cplitr3q10_6ka.htm - Generated by SEC Publisher for SEC Filing
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K/A
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
 
For the month of May, 2011

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: September 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

3756-8707

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

3

07.01.2010

09.30.2010

4

01.01.2009

12.31.2009

 

09 - INDEPENDENT ACCOUNTANT

KPMG Auditores Independentes

10 - CVM CODE

00418-9

11. PARTNER IN CHARGE

Jarib Brisola Duarte Fogaça

12 - CPF (INDIVIDUAL TAX ID)

012.163.378-02

1


 

(Free Translation of the original in Portuguese) 

FEDERAL GOVERNMENT 

BRAZILIAN SECURITIES COMMISSION (CVM)  

QUARTERLY INFORMATION – ITR                                                                          Brazilian Corporation Law

COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES                                 Date: September 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

09/30/2010

2 PREVIOUS QUARTER

12/31/2009

3 SAME QUARTER PREVIOUS YEAR

09/30/2009

Paid-in Capital

1 – Common

481,137,130

481,137,130

479,910,938

2 – Preferred

0

0

0

3 – Total

481,137,130

481,137,130

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

02

RCA

08/11/2010

Dividend

09/30/2010

ON

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: September 30, 2010

 

 

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: September 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 – 09/30/2010

4 – 12/31/2009

1

Total assets

6,684,795

6,841,525

1.01

Current assets

559,059

507,356

1.01.01

Cash and cash equivalents

4,181

219,126

1.01.02

Credits

552,202

285,587

1.01.02.01

Accounts receivable

0

0

1.01.02.02

Other receivables

552,202

285,587

1.01.02.02.01

Dividends and interest on shareholders’ equity

475,648

201,772

1.01.02.02.02

Financial investments

40,837

39,253

1.01.02.02.03

Recoverable taxes

35,715

44,310

1.01.02.02.04

Derivatives

2

252

1.01.03

Materials and supplies

0

0

1.01.04

Other

2,676

2,643

1.02

Noncurrent assets

6,125,736

6,334,169

1.02.01

Long-term assets

337,775

327,471

1.02.01.01

Other receivables

231,153

250,975

1.02.01.01.01

Financial investments

45,148

62,179

1.02.01.01.02

Recoverable taxes

2,787

2,787

1.02.01.01.03

Deferred taxes

172,775

176,199

1.02.01.01.04

Escrow deposits

10,443

9,810

1.02.01.02

Related parties

65,215

25,102

1.02.01.02.01

Associated companies

0

0

1.02.01.02.02

Subsidiaries

65,215

25,102

1.02.01.02.03

Other related parties

0

0

1.02.01.03

Other

41,407

51,394

1.02.02

Permanent assets

5,787,961

6,006,698

1.02.02.01

Investments

5,785,497

6,006,277

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

0

0

1.02.02.01.04

Permanent equity interests - goodwill

0

0

1.02.02.01.05

Other investments

0

0

1.02.02.01.06

Permanent equity interests – negative goodwill

0

0

1.02.02.02

Property, plant and equipment

166

1

1.02.02.03

Intangible assets

2,298

420

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: September 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 – 09/30/2010

4 – 12/31/2009

2

Total liabilities

6,684,795

6,841,525

2.01

Current liabilities

33,279

40,149

2.01.01

Loans and financing

0

0

2.01.02

Debentures

3,401

12,788

2.01.02.01

Interest on debentures

3,401

12,788

2.01.03

Suppliers

1,510

2,658

2.01.04

Taxes and social contributions payable

(913)

102

2.01.05

Dividends

19,910

17,036

2.01.06

Reserves

0

0

2.01.07

Related parties

0

0

2.01.08

Other

9,371

7,565

2.01.08.01

Accrued liabilities

198

78

2.01.08.02

Derivatives

78

0

2.01.08.03

Other

9,095

7,487

2.02

Noncurrent liabilities

534,800

532,028

2.02.01

Long-term liabilities

534,800

532,028

2.02.01.01

Loans and financing

0

0

2.02.01.02

Debentures

450,000

450,000

2.02.01.03

Reserves

10,438

9,800

2.02.01.03.01

Reserve for contingencies

10,438

9,800

2.02.01.04

Related parties

0

0

2.02.01.05

Advance for future capital increase

0

0

2.02.01.06

Other

74,362

72,228

2.02.01.06.01

Derivatives

412

1,056

2.02.01.06.02

Other

73,950

71,172

2.03

Deferred income

0

0

2.05

Shareholders’ equity

6,116,716

6,269,348

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

996,768

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

655,017

2.05.04.07.01

Additional proposed dividend

0

655,017

2.05.05

Equity valuation adjustments

785,351

765,667

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

196,174

(234,278)

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: September 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 - 07/01/2010 to 09/30/2010

4 - 01/01/2010 to 09/30/2010

3 - 07/01/2009 to 09/30/2009

4 - 01/01/2009 to 09/30/2009

3.01

Gross operating revenues

0

0

0

0

3.02

Deductions

890

892

3

3

3.03

Net operating revenues

890

892

3

3

3.04

Cost of sales and/or services

0

0

0

0

3.05

Gross operating income

890

892

3

3

3.06

Operating income (expense)

341,104

1,203,218

447,095

1,144,607

3.06.01

Selling

0

0

0

0

3.06.02

General and administrative

(6,340)

(17,361)

(4,018)

(11,901)

3.06.03

Financial

79

(12,465)

550

(21,837)

3.06.03.01

Financial income

21,072

43,550

14,483

26,687

3.06.03.02

Financial expense

(20,993)

(56,015)

(13,933)

(48,524)

3.06.04

Other operating income

0

0

0

0

3.06.05

Other operating expense

(36,255)

(108,496)

(37,427)

(112,898)

3.06.05.01

Amortization of intangible asset of concession

(36,255)

(108,496)

(37,187)

(111,561)

3.06.05.02

Operating expense

0

0

(240)

(1,337)

3.06.06

Equity in subsidiaries

383,620

1,341,540

487,990

1,291,243

3.07

Operating income

341,994

1,204,110

447,098

1,144,610

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: September 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 - 07/01/2010 to 09/30/2010

4 - 01/01/2010 to 09/30/2010

3 - 07/01/2009 to 09/30/2009

4 - 01/01/2009 to 09/30/2009

3.09

Income before taxes on income and profit sharing

341,994

1,204,110

447,098

1,144,610

3.10

Income tax and social contribution

296

(18,509)

1,013

(17,568)

3.10.01

Social Contribuition

(203)

(14,647)

361

(14,522)

3.10.02

Income Tax

499

(3,862)

652

(3,046)

3.11

Deferred income tax

1,858

(3,426)

655

(4,249)

3.11.01

Deferred social contribution

658

(501)

242

(1,370)

3.11.02

Deferred income tax

1,200

(2,925)

413

(2,879)

3.12

Statutory profit sharing/contributions

0

0

0

0

3.12.01

Profit sharing

0

0

0

0

3.12.02

Contributions

0

0

0

0

3.13

Reversal of interest on shareholders equity

0

0

0

0

3.15

Net income

344,148

1,182,175

448,766

1,122,793

 

SHARES OUTSTANDING EX-TREASURY STOCK (in units)

481,137,130

481,137,130

479,910,938

479,910,938

 

NET INCOME PER SHARE (Reais)

0.71528

2.45704

0.93510

2.33959

 

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: September 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 - 07/01/2010 to 09/30/2010

4 - 01/01/2010 to 09/30/2010

5 - 07/01/2009 to 09/30/2009

6 - 01/01/2009 to 09/30/2009

4.01

Net cash from operating activities

735,136

1,216,905

614,181

1,132,937

4.01.01

Cash generated from operations

1,961

(12,767)

(5,661)

(7,443)

4.01.01.01

Net income, including income tax and social contribution

341,994

1,204,111

447,098

1,144,610

4.01.01.02

Depreciation and amortization

36,294

108,600

37,217

111,650

4.01.01.03

Reserve for contingencies

5

5

(9,607)

(160)

4.01.01.04

Interest and monetary and exchange restatement

7,288

16,057

7,377

26,360

4.01.01.05

Equity in subsidiaries

(383,620)

(1,341,540)

(487,990)

(1,291,243)

4.01.01.06

Loss on the noncurrent assets disposal

0

0

244

1,340

4.01.02

Variation on assets and liabilities

733,175

1,229,672

619,842

1,140,380

4.01.02.01

Dividend and interest on shareholders’ equity received

754,785

1,254,799

645,950

1,197,718

4.01.02.02

Recoverable taxes

25,550

23,406

15,592

13,386

4.01.02.03

Escrow deposits

(240)

(633)

160

158

4.01.02.04

Other operating assets

499

217

(939)

(786)

4.01.02.05

Suppliers

(80)

(1,148)

802

746

4.01.02.06

Income taxes and social contributions

(18,790)

(18,790)

(18,580)

(18,580)

4.01.02.07

Other taxes and social contributions

(9,887)

(734)

1,017

1,050

4.01.02.08

Interest on debts - paid

(22,756)

(42,154)

(23,181)

(52,998)

4.01.02.09

Other operating liabilities

4,094

14,709

(979)

(314)

4.01.03

Other

0

0

0

0

4.02

Net cash in investing activities

(30,674)

(8,057)

(4,313)

71,183

4.02.01

Decrease of capital in subsidiaries

0

0

0

60,236

4.02.02

Acquisition of property, plant and equipment

0

(169)

0

0

4.02.03

Financial investments

11,264

32,503

9,259

29,325

4.02.04

Acquisition of intangible assets – other

0

0

(39)

(151)

4.02.05

Sale of noncurrent assets

0

(45)

0

0

4.02.06

Advances for future capital increase

(210)

(305)

(35)

(135)

4.02.07

Intercompany loans with subsidiaries and associated companies

(41,727)

(40,113)

4,594

0

4.02.08

Other

(1)

72

(18,092)

(18,092)

4.03

Net cash in financing activities

(771,253)

(1,423,793)

(569,227)

(1,173,006)

4.03.01

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

0

(198)

69

(170)

4.03.02

Dividend and interest on shareholders’ equity paid

(771,253)

(1,423,595)

(569,296)

(1,172,836)

4.04

Exchange variation on cash and cash equivalents

0

0

0

0

4.05

Increase (decrease) in cash and cash equivalents

(66,791)

(214,945)

40,641

31,114

4.05.01

Cash and cash equivalents at beginning of period

70,972

219,126

6,175

15,702

4.05.02

Cash and cash equivalents at end of period

4,181

4,181

46,816

46,816

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: September 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 JULY 01, 2010 TO SEPTEMBER 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

4,793,424

16

0

1,116,180

(154,622)

781,185

6,536,183

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,793,424

16

0

1,116,180

(154,622)

781,185

6,536,183

5.04

Net income / Loss for the period

0

0

0

0

344,148

0

344,148

5.05

Distribution

0

0

0

(774,429)

0

0

(774,429)

5.05.01

Dividend

0

0

0

0

0

0

0

5.05.02

Interest on shareholders’ equity

0

0

0

0

0

0

0

5.05.03

Other distributions

0

0

0

(774,429)

0

0

(774,429)

5.05.03.01

Approval of dividend proposal

0

0

0

(774,429)

0

0

(774,429)

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

6,648

4,166

10,814

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

5.07.04

Equity on Comprehensive income of subsidiaries

0

0

0

0

6,648

4,166

10,814

5.08

Increase/Decrease on capital

0

0

0

0

0

0

0

5.09

Constitution/Realization of capital reserve

0

0

0

0

0

0

0

5.10

Treasury shares

0

0

0

0

0

0

0

5.11

Other transactions of capital

0

0

0

0

0

0

0

5.12

Other

0

0

0

0

0

0

0

5.13

Final balance

4,793,424

16

0

341,751

196,174

785,351

6,116,716

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: September 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 SEPTEMBER 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

996,768

(234,278)

765,667

6,269,348

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,741,175

16

0

996,768

(234,278)

765,667

6,269,348

5.04

Net income / Loss for the period

0

0

0

0

1,182,175

0

1,182,175

5.05

Distribution

0

0

0

(655,017)

(771,452)

0

(1,426,469)

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

(655,017)

2,977

0

(652,040)

5.05.03.01

Approval of dividend proposal

0

0

0

(655,017)

0

0

(655,017)

5.05.03.02

Additional dividen proposed

0

0

0

0

2,977

0

2,977

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

19,729

19,684

39,413

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

5.07.04

Equity on Comprehensive income of subsidiaries

0

0

0

0

19,729

19,684

39,413

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

0

0

0

5.13

Final balance

4,793,424

16

0

341,751

196,174

785,351

6,116,716

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: September 30, 2010

 

 

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

 

1 - Code

2 – Description

3 – 09/30/2010

4 – 12/31/2009

1

Total assets

19,236,437

18,490,759

1.01

Current assets

3,507,940

3,649,296

1.01.01

Cash and cash equivalents

1,140,304

1,487,243

1.01.02

Credits

2,117,314

1,988,133

1.01.02.01

Accounts receivable

1,893,347

1,752,858

1.01.02.01.01

Consumers, concessionaires and licensees

1,893,347

1,752,858

1.01.02.02

Other credits

223,967

235,275

1.01.02.02.01

Financial investments

40,837

39,253

1.01.02.02.02

Recoverable taxes

178,749

192,278

1.01.02.02.03

Derivatives

361

795

1.01.02.02.04

Leases

4,020

2,949

1.01.03

Materials and supplies

22,158

17,360

1.01.04

Other

228,164

156,560

1.02

Noncurrent assets

15,728,497

14,841,463

1.02.01

Long-term assets

3,708,420

3,565,323

1.02.01.01

Other credits

3,426,125

3,328,294

1.02.01.01.01

Consumers, concessionaires and licensees

180,586

224,887

1.02.01.01.02

Financial investments

87,453

79,835

1.02.01.01.03

Recoverable taxes

135,986

113,235

1.02.01.01.04

Deferred taxes

1,182,177

1,286,805

1.02.01.01.05

Escrow deposits

862,071

794,177

1.02.01.01.06

Derivatives

159

7,881

1.02.01.01.07

Leases

23,830

21,243

1.02.01.01.08

Financial asset of concession

825,466

674,029

1.02.01.01.09

Private pension plan

11,743

9,725

1.02.01.01.10

Investment at cost

116,654

116,477

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

282,295

237,029

1.02.02

Permanent assets

12,020,077

11,276,140

1.02.02.01

Investments

0

0

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

0

0

1.02.02.01.06

Permanent equity interests – negative goodwill

0

0

1.02.02.02

Property, plant and equipment

5,603,183

5,213,039

1.02.02.03

Intangible assets

6,416,894

6,063,101

1.02.02.04

Deferred charges

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: September 30, 2010

 

 

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

 

1 - Code

2 – Description

3 – 09/30/2010

4 – 12/31/2009

2

Total liabilities

19,236,437

18,490,759

2.01

Current liabilities

4,418,999

3,422,933

2.01.01

Loans and financing

611,752

756,576

2.01.01.01

Accrued interest on debts

56,379

27,662

2.01.01.02

Loans and financing

555,373

728,914

2.01.02

Debentures

1,425,777

600,309

2.01.02.01

Accrued interest on debentures

114,639

101,284

2.01.02.02

Debentures

1,311,138

499,025

2.01.03

Suppliers

1,176,989

1,021,452

2.01.04

Taxes and social contributions payable

524,968

498,610

2.01.05

Dividends and interest on equity

23,076

25,284

2.01.06

Reserves

0

0

2.01.07

Related parties

0

0

2.01.08

Other

656,437

520,702

2.01.08.01

Private pension plan

43,801

44,484

2.01.08.02

Regulatory charges

119,130

63,750

2.01.08.03

Accrued liabilities

72,093

50,898

2.01.08.04

Derivatives

3,372

7,012

2.01.08.05

Other

401,298

338,861

2.01.08.06

Public utilities

16,743

15,697

2.02

Noncurrent liabilities

8,445,676

8,531,047

2.02.01

Long-Term liabilities

8,445,676

8,531,047

2.02.01.01

Loans and financing

4,632,705

3,791,469

2.02.01.01.01

Accrued Interest on debts

17,938

62,427

2.02.01.01.02

Loans and financing

4,614,767

3,729,042

2.02.01.02

Debentures

2,020,542

2,751,169

2.02.01.03

Reserves

289,017

300,644

2.02.01.03.01

Reserve for contingencies

289,017

300,644

2.02.01.04

Related parties

0

0

2.02.01.05

Advance for future capital increase

0

0

2.02.01.06

Other

1,503,412

1,687,765

2.02.01.06.01

Suppliers

10,664

42,655

2.02.01.06.02

Provate pension plan

605,759

723,286

2.02.01.06.03

Taxes and social contributions payable

1,139

1,639

2.02.01.06.04

Deferred tax debts

280,233

282,010

2.02.01.06.05

Derivatives

1,433

5,694

2.02.01.06.06

Other

183,859

226,644

2.02.01.06.07

Public utilities

420,325

405,837

2.03

Deferred revenue

0

0

2.04

Noncontrolling shareholders’ interest

255,046

267,431

2.05

Shareholders’ equity

6,116,716

6,269,348

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

996,768

2.05.04.01

Legal

341,751

341,751

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

0

0

2.05.04.06

Special reserve for undistributed dividends

0

0

2.05.04.07

Other revenue reserves

0

655,017

2.05.04.07.01

Additional proposed dividend

0

655,017

2.05.05

Equity valuation adjustments

785,351

765,667

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

196,174

(234,278)

2.05.07

Advance for future capital increase

0

0

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: September 30, 2010

 

 

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

 

1 – Code

2 - Description

3 - 07/01/2010 to 09/30/2010

4 - 01/01/2010 to 09/30/2010

5 - 07/01/2009 to 09/30/2009

6 - 01/01/2009 to 09/30/2009

3.01

Operating revenues

4,494,484

12,965,301

4,243,993

12,101,072

3.02

Deductions from operating revenues

(1,395,609)

(4,120,142)

(1,319,402)

(3,738,314)

3.03

Net operating revenues

3,098,875

8,845,159

2,924,591

8,362,758

3.04

Cost of electric energy services

(2,219,647)

(6,037,651)

(1,934,174)

(5,721,022)

3.04.01

Electric energy purchased for resale

(1,379,348)

(3,723,117)

(1,248,052)

(3,745,321)

3.04.02

Electric energy network usage charges

(286,430)

(859,443)

(264,311)

(781,832)

3.04.03

Personnel

(87,585)

(261,260)

(79,675)

(246,799)

3.04.04

Employee pension plans

21,800

65,405

(900)

(2,702)

3.04.05

Material

(16,797)

(45,952)

(14,624)

(40,958)

3.04.06

Outsourced services

(48,597)

(131,698)

(39,803)

(116,611)

3.04.07

Depreciation and amortization

(111,586)

(332,540)

(110,705)

(334,213)

3.04.08

Other

(13,510)

(45,552)

(14,519)

(37,957)

3.04.09

Cost of services rendered to third parties

(295,403)

(698,867)

(160,216)

(410,678)

3.04.10

Costs related to infrastructure construction

(2,191)

(4,627)

(1,369)

(3,951)

3.05

Gross operating income

879,228

2,807,508

990,417

2,641,736

3.06

Operating income (expense)

(330,329)

(938,957)

(285,370)

(859,815)

3.06.01

Sales and marketing

(67,573)

(211,431)

(67,043)

(182,850)

3.06.02

General and administrative

(133,312)

(323,520)

(99,907)

(296,086)

3.06.03

Financial income (expense)

(73,100)

(239,231)

(66,860)

(218,152)

3.06.03.01

Financial income

129,825

332,117

78,376

252,772

3.06.03.02

Financial expenses

(202,925)

(571,348)

(145,236)

(470,924)

3.06.04

Other operating income

0

0

0

0

3.06.05

Other operating expenses

(56,344)

(164,775)

(51,560)

(162,727)

3.06.05.01

Amortization of intangible asset of concession

(46,511)

(139,240)

(47,645)

(142,932)

3.06.05.02

Other operating expense

(9,833)

(25,535)

(3,915)

(19,795)

3.06.06

Equity in subsidiaries

0

0

0

0

3.07

Operating income

548,899

1,868,551

705,047

1,781,921

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

548,899

1,686,551

705,047

1,781,921

3.10

Income tax and social contribution

(203,679)

(592,636)

(101,790)

(361,082)

3.10.01

Social contribution

(53,610)

(156,746)

(28,528)

(97,676)

3.10.02

Income tax

(150,069)

(435,890)

(73,262)

(263,406)

3.11

Deferred income tax and social contribution

5,561

(77,501)

(145,573)

(275,961)

3.11.01

Social contribution

969

(21,570)

(38,502)

(72,491)

3.11.02

Income tax

4,592

(55,931)

(107,071)

(203,470)

3.12

Statutory profit sharing/contributions

0

0

0

0

3.12.01

Profit sharing

0

0

0

0

3.12.02

Contributions

0

0

0

0

3.13

Reversal of interest on shareholders’ equity

0

0

0

0

3.14

Noncontrolling shareholders’ interest

(6,633)

(16,238)

(8,918)

(22,085)

3.15

Net income

344,148

1,182,176

448,766

1,122,793

 

SHARES OUTSTANDING EX-TREASURY STOCK (units)

481,137,130

481,137,130

479,910,938

479,910,938

 

NET INCOME PER SHARE (Reais)

0.71528

2.45705

0.93510

2.33959

 

LOSS PER SHARE (Reais)

 

 

 

 

 

 

 

 

 

 

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: September 30, 2010

 

 

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

1 - Code

2 - Description

3 – 07/01/2010 to 09/30/2010

4 – 01/01/2010 to 09/30/2010

5 – 07/01/2009 to 09/30/2009

6 – 01/01/2009 to 09/30/2009

4.01

Net cash from operating activities

538,062

1,694,474

710,374

1,614,558

4.01.01

Cash generated from operations

862,664

2,584,137

978,576

2,713,082

4.01.01.01

Net income, including income tax and social contribution

548,899

1,868,551

705,047

1,781,921

4.01.01.02

Depreciation and amortization 

167,493

498,291

167,254

504,228

4.01.01.03

Reserve for contingencies

16,307

(143,233)

(9,216)

(4,058)

4.01.01.04

Interest and monetary and exchange restatement

158,466

413,900

153,985

435,599

4.01.01.05

(Gain) / Loss on pension plan

(21,800)

(65,405)

900

2,734

4.01.01.06

Losses on disposal of noncurrent assets

(1,998)

1,946

(415)

11,440

4.01.01.07

Deferred taxes - PIS and COFINS

(5,936)

5,407

(52,650)

(32,041)

4.01.01.08

Other

1,233

4,680

13,671

13,259

4.01.02

Variation on assets and liabilities

(324,602)

(889,663)

(268,202)

(1,098,524)

4.01.02.01

Consumers, Concessionaires and Licensees

(57,741)

(96,188)

(2,231)

(131,411)

4.01.02.02

Recoverable Taxes

32,757

5,588

(39,872)

(40,015)

4.01.02.03

Escrow deposits

(2,320)

(29,782)

(6,381)

(10,882)

4.01.02.04

Other operating assets

(48,146)

(115,776)

(9,817)

(5,340)

4.01.02.05

Suppliers

87,344

123,546

(39,008)

(63,160)

4.01.02.06

Taxes and social contributions paid

(189,519)

(531,006)

(100,571)

(406,354)

4.01.02.07

Other taxes and social contributions

(10,009)

(44,798)

26,669

19,745

4.01.02.08

Employee Pension Plans

(14,818)

(52,115)

(19,478)

(55,022)

4.01.02.09

Interest paid on debt

(150,809)

(393,976)

(166,237)

(438,600)

4.01.02.10

Regulatory Charges

8,770

55,380

21,817

(199)

4.01.02.11

Other operating liabilities

19,889

189,464

66,907

32,714

4.01.03

Other

0

0

0

0

4.02

Net cash in investing activities

(510,838)

(1,212,750)

(307,873)

(809,163)

4.02.01

Acquisition of  Interest in subsidiaries

(59)

(176)

(81)

(214)

4.02.02

Addition to property, plant and equipment

(166,489)

(447,636)

(124,111)

(389,590)

4.02.03

Financial investments

(35,107)

(17,361)

7,996

54,190

4.02.04

Acquisition of intangible assets – other

(335,408)

(776,342)

(192,352)

(462,756)

4.02.05

Sale of noncurrent assets

7,209

11,925

10,800

18,256

4.02.06

Other

19,016

16,840

(10,125)

(29,049)

4.03

Net cash in financing activities

(264,369)

(828,663)

(456,169)

(869,008)

4.03.01

Loans, financing and debentures obtained

786,499

1,586,602

1,144,330

2,050,351

4.03.02

Payments of Loans, financing and debentures , net of derivatives

(259,883)

(975,167)

(1,003,240)

(1,734,881)

4.03.03

Dividend and interest on shareholders’ equity paid

(790,985)

(1,440,098)

(597,259)

(1,184,478)

4.04

Exchange variation on cash and cash equivalents

0

0

0

0

4.05

Increase (decrease) in cash and cash equivalents

(237,145)

(346,939)

(53,668)

(63,613)

4.05.01

Cash and cash equivalents at beginning of period

1,377,449

1,487,243

748,509

758,454

4.05.02

Cash and cash equivalents at end of period

1,140,304

1,140,304

694,841

694,841

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: September 30, 2010

 

 

11.01 – CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JULY 01, 2010 TO SEPTEMBER 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

4,793,424

16

0

1,116,180

(154,622)

781,185

6,536,183

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,793,424

16

0

1,116,180

(154,622)

781,185

6,536,183

5.04

Net income / Loss for the period

0

0

0

0

344,148

0

344,148

5.05

Distribution

0

0

0

(774,429)

0

0

(774,429)

5.05.01

Dividend

0

0

0

0

0

0

0

5.05.02

Interest on shareholders’ equity

0

0

0

0

0

0

0

5.05.03

Other distributions

0

0

0

(774,429)

0

0

(774,429)

5.05.03.01

Approval of dividend proposal

0

0

0

(774,429)

0

0

(774,429)

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

6,648

4,166

10,814

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

5.07.04

Adjustment of financial instruments

0

0

0

0

110

16,275

16,385

5.07.05

Tax on adjustments of financial instruments

0

0

0

0

0

(5,571)

(5,571)

5.07.06

Realization of revaluation reserve

0

0

0

0

9,906

(9,906)

0

5.07.07

Tax on adjustments of financial instruments

0

0

0

0

(3,368)

3,368

0

5.08

Increase/Decrease on capital

0

0

0

0

0

0

0

5.09

Constitution/Realization of capital reserve

0

0

0

0

0

0

0

5.10

Treasury shares

0

0

0

0

0

0

0

5.11

Other transactions of capital

0

0

0

0

0

0

0

5.12

Other

0

0

0

0

0

0

0

5.13

Final balance

4,793,424

16

0

341,751

196,174

785,351

6,116,716

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: September 30, 2010

 

 

11.02 – CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO SEPTEMBER 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

996,768

(234,278)

765,667

6,269,348

5.02

Prior year adjustments

0

0

0

0

0

0

0

5.03

Adjusted balance

4,741,175

16

0

996,768

(234,278)

765,667

6,269,348

5.04

Net income / Loss for the period

0

0

0

0

1,182,175

0

1,182,175

5.05

Distribution

0

0

0

(655,017)

(771,452)

0

(1,426,469)

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

(655,017)

2,977

0

(652,040)

5.05.03.01

Approval of dividend proposal

0

0

0

(655,017)

0

0

(655,017)

5.05.03.02

Additional dividen proposed

0

0

0

0

2,977

0

2,977

5.06

Realization of profit reserve

0

0

0

0

0

0

0

5.07

Equity valuation adjustments

0

0

0

0

19,729

19,684

39,413

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

5.07.04

Adjustment of financial instruments

0

0

0

0

148

59,585

59,733

5.07.05

Tax on adjustments of financial instruments

0

0

0

0

0

(20,320)

(20,320)

5.07.06

Realization of revaluation reserve

0

0

0

0

29,673

(29,673)

0

5.07.07

Tax on realization of revaluation reserve

0

0

0

0

(10,092)

10,092

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

0

0

0

5.13

Final balance

4,793,424

16

0

341,751

196,174

785,351

6,116,716

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: September 30, 2010

 

 

 

 CPFL Energia S.A.

 Balance Sheets as of September 30, 2010 and December 31, 2009

 (in thousands of Brazilian Reais)

                   

 

 

 

 

 

 

 

 

 

 

 

 

 Parent Company 

 Consolidated  

 

 

 ASSETS  

 September 30, 2010

 

 December 31, 2009

 

 September 30, 2010

 

 December 31, 2009

 

 

               

 

 

 CURRENT ASSETS

             

 

 

 Cash and Banks (note 6)

4,181

 

219,126

 

1,140,304

 

1,487,243

 

 

 Consumers, Concessionaires and Licensees (note 7)

  -

 

  -

 

1,893,347

 

1,752,858

 

 

 Dividends and Interest on Equity (note 13.2)

475,648  

 

201,772

 

-

 

  -

 

 

 Financial Investments (note 8)

40,837

 

39,253

 

  40,837

 

39,253

 

 

 Recoverable Taxes (note 9)

35,715

 

44,310

 

  178,749

 

192,278

 

 

 Derivatives (note 31)

2

 

  252

 

  361

 

  795

 

 

 Materials and Supplies

  -

 

  -

 

  22,158

 

17,360

 

 

 Leases  

  -

 

  -

 

  4,020

 

2,949

 

 

 Other credits (note 12)

2,676

 

2,643

 

  228,164

 

156,560

 

 

 TOTAL CURRENT ASSETS

559,059

 

507,356

 

3,507,940

 

3,649,296

 

 

               

 

 

 NONCURRENT ASSETS

             

 

 

               

 

 

 Consumers, Concessionaires and Licensees (note 7)

  -

 

  -

 

  180,586

 

224,887

 

 

 Due from Related Parties

65,215

 

25,102

 

-

 

  -

 

 

 Escrow Deposits (note 22)

10,443

 

9,810

 

  862,071

 

794,177

 

 

 Financial Investments (note 8)

45,148

 

62,179

 

  87,453

 

79,835

 

 

 Recoverable Taxes (note 9)

2,787

 

2,787

 

  135,986

 

113,235

 

 

 Derivatives (nota 31)

  -

 

  -

 

  159

 

7,881

 

 

 Tax Credits (note 10)

172,775

 

176,199

 

1,182,177

 

1,286,805

 

 

 Leases  

  -

 

  -

 

  23,830

 

21,243

 

 

 Financial asset of concession (note 11)

  -

 

  -

 

  825,466

 

674,029

 

 

 Private pension plan (note 20)

  -

 

  -

 

  11,743

 

9,725

 

 

 Investment at cost

  -

 

  -

 

  116,654

 

116,477

 

 

 Other Credits (note 12)

41,407

 

51,394

 

  282,295

 

237,029

 

 

 Investments (note 13)

5,785,497

 

6,006,277

 

-

 

  -

 

 

 Property, Plant and Equipment (note 14)

  166  

 

1

 

5,603,183

 

5,213,039

 

 

 Intangible assets (note 15)

2,298

 

  420

 

6,416,894

 

6,063,101

 

 

 TOTAL NONCURRENT ASSETS

6,125,736

 

6,334,169

 

  15,728,497

 

14,841,463

 

 

               

 

 

 TOTAL ASSETS

6,684,795

 

6,841,525

 

  19,236,437

 

18,490,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: September 30, 2010

 

 

 

 

 
CPFL Energia S.A.

 

 Balance Sheets as of September 30, 2010 and December 31, 2009

 

 (in thousands of Brazilian Reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Parent Company 

 Consolidated  

 

 

 

 LIABILITIES AND SHAREHOLDERS' EQUITY

 September 30, 2010

 

 December 31, 2009

 

 September 30, 2010

 

 December 31, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 Suppliers (note 18)

1,510

 

2,658

 

1,176,989

 

1,021,452

 

 

 

 Accrued Interest on Debts (note 16)

-  

 

-  

 

56,379

 

27,662

 

 

 

 Accrued Interest on Debentures (note 17)

3,401

 

12,788

 

114,639

 

101,284

 

 

 

 Loans and Financing (note 16)

-  

 

-  

 

555,373

 

728,914

 

 

 

 Debentures (note 17)

-  

 

-  

 

1,311,138

 

499,025

 

 

 

 Private Pension Plan (note 20)

-  

 

-  

 

43,801

 

44,484

 

 

 

 Regulatory Charges (note 21)

-  

 

-  

 

119,130

 

63,750

 

 

 

 Taxes and Social Contributions Payable (note 19)

(913)

 

102

 

524,968

 

498,610

 

 

 

 Dividends and Interest on Equity

19,910

 

17,036

 

23,076

 

25,284

 

 

 

 Accrued liabilities

198

 

78

 

72,093

 

50,898

 

 

 

 Derivatives (note 31)

78

 

-  

 

3,372

 

7,012

 

 

 

 Public Utilities (note 23)

-  

 

-  

 

16,743

 

15,697

 

 

 

 Other (note 24)

9,095

 

7,487

 

401,298

 

338,861

 

 

 

 TOTAL CURRENT LIABILITIES

33,279

 

40,149

 

4,418,999

 

3,422,933

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 NONCURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 Suppliers (note 18)

-  

 

-  

 

10,664

 

42,655

 

 

 

 Accrued Interest on Debts (note 16)

-  

 

-  

 

17,938

 

62,427

 

 

 

 Loans and Financing (note 16)

-  

 

-  

 

4,614,767

 

3,729,042

 

 

 

 Debentures (note 17)

450,000

 

450,000

 

2,020,542

 

2,751,169

 

 

 

 Private Pension Plan (note 20)

-  

 

-  

 

605,759

 

723,286

 

 

 

 Taxes and Social Contributions Payable (note 19)

-  

 

-  

 

1,139

 

1,639

 

 

 

 Deferred tax debits (note 10)

-  

 

-  

 

280,233

 

282,010

 

 

 

 Reserve for contingencies (note 22)

10,438

 

9,800

 

289,017

 

300,644

 

 

 

 Derivatives (note 31)

412

 

1,056

 

1,433

 

5,694

 

 

 

 Public Utilities (note 23)

-  

 

-  

 

420,325

 

405,837

 

 

 

 Other (note 24)

73,950

 

71,172

 

183,859

 

226,644

 

 

 

 TOTAL NONCURRENT LIABILITIES

534,800

 

532,028

 

8,445,676

 

8,531,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 SHAREHOLDERS' EQUITY (note 25)

 

 

 

 

 

 

 

 

 

 

 Capital   

4,793,424

 

4,741,175

 

4,793,424

 

4,741,175

 

 

 

 Capital Reserves

16

 

16

 

16

 

16

 

 

 

 Profit Reserves 

341,751

 

341,751

 

341,751

 

341,751

 

 

 

 Additional dividend proposed

-  

 

655,017

 

-  

 

655,017

 

 

 

 Revaluation Reserve

785,351

 

765,667

 

785,351

 

765,667

 

 

 

 Retained earnings

196,174

 

(234,278)

 

196,174

 

(234,278)

 

 

 

 

6,116,716

 

6,269,348

 

6,116,716

 

6,269,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net equity attributable to controlling shareholders

6,116,716

 

6,269,348

 

6,116,716

 

6,269,348

 

 

 

 Net equity attributable to noncontrolling shareholders

 

 

-  

 

255,046

 

267,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 TOTAL SHAREHOLDERS' EQUITY

6,116,716

 

6,269,348

 

6,371,762

 

6,536,779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

6,684,795

 

6,841,525

 

19,236,437

 

18,490,759

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

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: September 30, 2010

 

 


CPFL Energia S.A.

 

 Statement of income for the periods ended in September 30, 2010 and 2009

 

 (in thousands of Brazilian Reais)

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Parent Company

 

Consolidated

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

 

 

                               

 

 

 NET OPERATING REVENUE (note 26)

890

 

892

 

  3

 

3

 

3,098,875

 

  8,845,159

 

  2,924,591

 

8,362,758

 

 

                               

 

 

COST OF ELECTRIC ENERGY SERVICES

                             

 

 

Cost of Electric Energy  (note 27)

  -

 

-

 

-

 

  -

 

  (1,665,778)

 

(4,582,560)

 

(1,512,363)

 

  (4,527,153)

 

 

Operating Cost (note 28)

  -

 

-

 

-

 

  -

 

  (256,275)

 

(751,597)

 

(260,226)

 

  (779,240)

 

 

Services Rendered to Third Parties (note 28)

  -

 

-

 

-

 

  -

 

  (297,594)

 

(703,494)

 

(161,585)

 

  (414,629)

 

 

                               

 

 

GROSS OPERATING INCOME

890

 

892

 

  3

 

3

 

879,228

 

  2,807,508

 

  990,417

 

2,641,736

 

 

                               

 

 

Operating expenses (note 28)

                             

 

 

Sales expenses

  -

 

-

 

-

 

  -

 

  (67,573)

 

(211,431)

 

(67,043)

 

  (182,850)

 

 

General and Administrative expenses

  (6,339)

 

(17,361)

 

(4,018)

 

  (11,901)

 

  (133,312)

 

(323,520)

 

(99,907)

 

  (296,086)

 

 

Other Operating Expense

  (36,255)

 

(108,495)

 

(37,431)

 

  (112,901)

 

  (56,344)

 

(164,775)

 

(51,560)

 

  (162,727)

 

 

 

  (42,594)

 

(125,856)

 

(41,449)

 

  (124,802)

 

  (257,229)

 

(699,726)

 

(218,510)

 

  (641,663)

 

 

                               

 

 

INCOME FROM ELECTRIC ENERGY SERVICE

  (41,704) 

 

(124,964)

 

(41,446)

 

  (124,799)

 

621,999

 

  2,107,782

 

  771,907

 

2,000,073

 

 

                               

 

 

Equity in subsidiaries (note 13)

383,620

 

  1,341,540

 

  487,990

 

1,291,243

 

  -

 

-

 

-

 

  -

 

 

                               

 

 

FINANCIAL INCOME (EXPENSE) (note 29)

                             

 

 

Income

21,072

 

  43,550

 

  14,483

 

26,687

 

129,825

 

  332,117

 

  78,376

 

252,772

 

 

Expense

  (20,994)

 

(56,015)

 

(13,929)

 

  (48,521)

 

  (202,925)

 

(571,348)

 

(145,236)

 

  (470,924)

 

 

 

78

 

(12,465)

 

554

 

  (21,834)

 

  (73,100)

 

(239,231)

 

(66,860)

 

  (218,152)

 

 

                               

 

 

INCOME BEFORE TAXES

341,994

 

  1,204,111

 

  447,098

 

1,144,610

 

548,899

 

  1,868,551

 

  705,047

 

1,781,921

 

 

                               

 

 

Social contribution (note 10)

1,157

 

(4,363)

 

894

 

  (4,416)

 

  (52,641)

 

(178,316)

 

(67,030)

 

  (170,167)

 

 

Income tax (note 10)

997

 

(17,572)

 

774

 

  (17,401)

 

  (145,477)

 

(491,821)

 

(180,333)

 

  (466,876)

 

 

 

2,154

 

(21,935)

 

  1,668

 

  (21,817)

 

  (198,118)

 

(670,137)

 

(247,363)

 

  (637,043)

 

 

                               

 

 

NET INCOME

344,148

 

  1,182,176

 

  448,766

 

1,122,793

 

350,781

 

  1,198,414

 

  457,684

 

1,144,878

 

 

                               

 

 

 Net income attributable to controlling shareholders

               

344,148  

 

  1,182,176

 

  448,766

 

1,122,793

 

 

 Net income attributable to noncontrolling shareholders

               

6,633  

 

  16,238

 

  8,918

 

22,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: September 30, 2010

 

 


CPFL Energia S.A.

Statement of changes in shareholders' equity for the period ended in September 30, 2010

 (in thousands of Brazilian Reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

               

 Other comprehensive 

                 

 

 

           

 Additional  

 

 income  

         

 Noncontrolling  

 

 Total  

 

 

 

 Capital  

 

 Capital  

 

 Legal  

 

 dividend  

 

 Deemed  

 

 Financial  

 

 Retained earnings

 

 Total  

 

 shareholders'  

 

 Shareholders'  

 

 

 

 

 

 Reserevs  

 

 reserve  

 

 proposed  

 

 cost  

 

 instruments  

 

 

   

 interest  

 

 equity  

 

 

Balance at December 31, 2009

  4,741,175

 

  16

 

  341,751

 

  655,017

 

635,871

 

  129,796

 

(234,278)

 

6,269,348

 

267,431

 

  6,536,779

 

 

 

                                       

 

Capital increase

52,249

 

-

 

-

 

-

 

  -

 

-

 

  -

 

  52,249

 

-  

 

  52,249

 

 

Net income for the period

  -

 

-

 

-

 

-

 

  -

 

-

 

1,182,175

 

1,182,175

 

  16,239

 

  1,198,414

 

 

Prescribed dividend

  -

 

-

 

-

 

-

 

  -

 

-

 

2,977

 

  2,977

 

-

 

  2,977

 

 

Approval of dividend proposal

  -

 

-

 

-

 

(655,017)

 

  -

 

-

 

  -

 

(655,017)

 

-

 

(655,017)

 

 

 

                                       

 

Changes in Other Comprehensive Income:

                                       

 

 - Gain (Loss) in financial instruments

  -

 

-

 

-

 

-

 

  -  

 

  59,764

 

  -

 

  59,764

 

(3,733)

 

  56,031

 

 

 - Tax on financial instruments

  -

 

-

 

-

 

-

 

  -

 

(20,320)

 

  -

 

(20,320)

 

  1,270

 

(19,050)

 

 

 - Realization of financial instruments

  -

 

-

 

-

 

-

 

  -  

 

(179)

 

  148

 

(31)

 

-

 

(31)

 

 

 - Realization of deemed cost of fixed assets

  -

 

-

 

-

 

-

 

  (29,673) 

 

-

 

29,673

 

-

 

-

 

-

 

 

 - Tax on deemed cost realization

  -

 

-

 

-

 

-

 

10,092

 

-

 

  (10,092)

 

-

 

-

 

-

 

 

 

                                       

 

Allocation of income:

                                       

 

 - Interim Dividend

  -

 

-

 

-

 

-

 

  -

 

-

 

(774,429)

 

(774,429)

 

(6,181)

 

(780,610)

 

 

Other changes in noncontrolling shareholders

  -

 

-

 

-

 

-

 

  -

 

-

 

  -

 

-

 

(19,980)

 

(19,980)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2010

  4,793,424

 

  16

 

  341,751

 

-

 

616,290

 

  169,061

 

  196,174

 

6,116,716

 

255,046

 

  6,371,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CPFL Energia S.A.

Statement of changes in shareholders' equity for the period ended in September 30, 2009

 (in thousands of Brazilian Reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

               

 Other comprehensive 

                 

 

 

           

 Additional  

 

 income  

         

 Noncontrolling  

 

 Total  

 

 

 

 Capital  

 

 Capital  

 

 Legal  

 

 dividend  

 

 Deemed  

 

 Financial  

 

 Retained earnings

 

 Total  

 

 shareholders'  

 

 Shareholders'  

 

 

 

 

 

 Reserevs  

 

 reserve  

 

 proposed  

 

 cost  

 

 instruments  

 

 

   

 interest  

 

 equity  

 

 

Balance at January 1, 2009

  4,741,175

 

  16

 

  277,428

 

  606,105

 

661,975

 

  137,895

 

(631,911)

 

5,792,683

 

258,163

 

  6,050,846

 

 

 

                                       

 

Capital increase

  -

 

-

 

-

 

-

 

  -

 

-

 

  -

 

-

 

-  

 

-

 

 

Net income for the period

  -

 

-

 

-

 

-

 

  -

 

-

 

1,122,793

 

1,122,793

 

  22,085

 

  1,144,878

 

 

Prescribed dividend

  -

 

-

 

-

 

-

 

  -

 

-

 

4,541

 

  4,541

 

-

 

  4,541

 

 

Approval of dividend proposal

  -

 

-

 

-

 

  (1,177,776)

 

  -

 

-

 

  -

 

  (1,177,776)

 

(14,244)

 

(1,192,020)

 

 

 

                                       

 

Changes in Other Comprehensive Income:

                                       

 

 - Gain (Loss) in financial instruments

  -

 

-

 

-

 

-

 

  -  

 

(9,507)

 

  -

 

(9,507)

 

  (133)

 

(9,640)

 

 

 - Tax on financial instruments

  -

 

-

 

-

 

-

 

  -

 

  3,232

 

  -

 

  3,232

 

46

 

  3,278

 

 

 - Realization of financial instruments

  -

 

-

 

-

 

-

 

  -  

 

(384)

 

  384

 

-

 

-

 

-

 

 

 - Realization of deemed cost of fixed assets

  -

 

-

 

-

 

-

 

  (29,660) 

 

-

 

29,660

 

-

 

-

 

-

 

 

 - Tax on deemed cost realization

  -

 

-

 

-

 

-

 

10,085

 

-

 

  (10,085)

 

-

 

-

 

-

 

 

 

                                       

 

Allocation of income:

                                       

 

 - Interim Dividend

  -

 

-

 

-

 

  571,671

 

  -

 

-

 

(571,671)

 

-

 

(6,161)

 

(6,161)

 

 

Other changes in noncontrolling shareholders

  -

 

-

 

-

 

-

 

  -

 

-

 

  -

 

-

 

848

 

848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2009

  4,741,175

 

  16

 

  277,428

 

-

 

642,400

 

  131,236

 

  (56,289)

 

5,735,966

 

260,604

 

  5,996,570

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: September 30, 2010

 

 

 

 


CPFL ENERGIA S.A

 
 

 Statements of Cash Flow for the periods ended in September 30, 2010 and 2009

 
     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

Parent Company

 

Consolidated

 

 

   

2010

 

2009

 

2010

 

2009

 

 

   

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

 

 

                                 

 

 

OPERATING CASH FLOW

                               

 

 

Income (Loss) for the period, including income tax and social contribution

341,994  

 

  1,204,111

 

447,098

 

  1,144,610

 

548,899

 

  1,868,551

 

705,047

 

  1,781,921

 

 

ADJUSTMENTS TO RECONCILE NET INCOME TO CASH DERIVED FROM OPERATIONS

                               

 

 

   Depreciation and amortization

 

   36,294

 

  108,600

 

   37,217

 

  111,650

 

167,493

 

  498,291

 

167,254

 

  504,228

 

 

   Reserve for contingencies

 

  5

 

  5

 

   (9,607)

 

(160)

 

   16,307

 

(143,233)

 

(9,216)

 

(4,058)

 

 

   Interest and monetary restatement

 

7,288

 

   16,057

 

7,377

 

   26,360

 

158,466

 

  413,900

 

153,985

 

  435,599

 

 

   Pension plan costs

 

   -  

 

-  

 

   -  

 

-  

 

  (21,800)

 

  (65,405)

 

  900

 

  2,734

 

 

   Equity in subsidiaries

 

   (383,620)

 

(1,341,540)

 

   (487,990)

 

(1,291,243)

 

   -  

 

-  

 

-  

 

-  

 

 

   Losses on the write-off of noncurrent assets

 

   -  

 

-  

 

244

 

  1,340

 

   (1,998)

 

  1,946

 

(415)

 

   11,440

 

 

   Deferred taxes (PIS and COFINS) - assets and liabilities

 

   -  

 

-  

 

   -  

 

-  

 

   (5,936)

 

  5,407

 

  (52,650)

 

  (32,041)

 

 

Other

 

   -  

 

-  

 

   -  

 

-  

 

1,233

 

  4,680

 

   13,671

 

   13,259

 

 

                                 

 

 

REDUCTION (INCREASE) IN OPERATING ASSETS

                               

 

 

   Consumers, concessionaires and licensees

 

   -  

 

-  

 

   -  

 

-  

 

  (57,741)

 

  (96,188)

 

(2,231)

 

(131,411)

 

 

   Dividend and interest on equity received

 

754,785

 

  1,254,799

 

645,950

 

  1,197,718

 

   -  

 

-  

 

-  

 

-  

 

 

   Recoverable taxes

 

   25,550

 

   23,406

 

   15,592

 

   13,386

 

   32,757

 

  5,588

 

  (39,872)

 

  (40,015)

 

 

Escrow deposits

 

   (240)

 

(633)

 

160

 

  158

 

   (2,320)

 

  (29,782)

 

(6,381)

 

  (10,882)

 

 

   Other operating assets

 

499

 

  217

 

   (939)

 

(786)

 

  (48,146)

 

(115,776)

 

(9,817)

 

(5,340)

 

 

                                 

 

 

INCREASE (DECREASE) IN OPERATING LIABILITIES

                               

 

 

   Suppliers 

 

  (80)

 

(1,148)

 

802

 

  746

 

   87,344

 

  123,546

 

  (39,008)

 

  (63,160)

 

 

   Taxes and social contributions paid

 

  (18,790)

 

  (18,790)

 

  (18,580)

 

  (18,580)

 

   (189,519)

 

(531,006)

 

   (100,571)

 

(406,354)

 

 

   Other taxes and social contributions

 

   (9,887)

 

(734)

 

1,017

 

  1,050

 

  (10,009)

 

  (44,798)

 

   26,669

 

   19,745

 

 

   Other liabilities with employee pension plans

 

   -  

 

-  

 

   -  

 

-  

 

  (14,818)

 

  (52,115)

 

  (19,478)

 

  (55,022)

 

 

   Interest on debts - paid

 

  (22,756)

 

  (42,154)

 

  (23,181)

 

  (52,998)

 

   (150,809)

 

(393,976)

 

   (166,237)

 

(438,600)

 

 

   Regulatory charges

 

   -  

 

-  

 

   -  

 

-  

 

8,770

 

   55,380

 

   21,817

 

(199)

 

 

   Other operating liabilities

 

4,094

 

   14,709

 

   (979)

 

(314)

 

   19,889

 

  189,464

 

   66,907  

 

   32,714

 

 

CASH FLOWS PROVIDED (USED) BY OPERATIONS

 

735,136 

 

  1,216,905

 

614,181

 

  1,132,937

 

538,062

 

  1,694,474

 

710,374

 

  1,614,558

 

 

                                 

 

 

INVESTMENT ACTIVITIES

                               

 

 

   Increase in investments on subsidiaries

 

   -  

 

-  

 

   -  

 

-  

 

  (59)

 

(176)

 

  (81)

 

(214)

 

 

   Capital decrease in subsidiaries

 

   -  

 

-  

 

   -  

 

   60,236

 

   -  

 

-  

 

-  

 

-  

 

 

   Increase in property, plant and equipment

 

   -  

 

(169)

 

   -  

 

-  

 

   (166,489)

 

(447,636)

 

   (124,111)

 

(389,590)

 

 

   Financial investments

 

   11,264

 

   32,503

 

9,259

 

   29,325

 

  (35,107)

 

  (17,361)

 

  7,996

 

   54,190

 

 

   Additions to intangible assets

 

   -  

 

-  

 

  (39)

 

(151)

 

   (335,408)

 

(776,342)

 

   (192,352)

 

(462,756)

 

 

   Sale of noncurrent assets

 

   -  

 

   (45)

 

   -  

 

-  

 

7,209

 

   11,925

 

   10,800

 

   18,256

 

 

   Advances for future capital increase

 

   (210) 

 

(305)

 

  (35)

 

(135)

 

   -  

 

-  

 

-  

 

-  

 

 

   Intercompany loans with subsidiaries and associated companies

 

  (41,727) 

 

  (40,113)

 

   -  

 

-  

 

   -  

 

-  

 

-  

 

-  

 

 

   Other

 

(1)

 

72

 

  (13,498)

 

  (18,092)

 

   19,016

 

   16,840

 

  (10,125)

 

  (29,049)

 

 

                       

 

       

 

 

GENERATION (UTILIZATION) OF CASH IN INVESTMENTS

 

  (30,674) 

 

(8,057)

 

   (4,313)

 

   71,183

 

   (510,838)

 

(1,212,750)

 

   (307,873)

 

(809,163)

 

 

                                 

 

 

FINANCING ACTIVITIES

                               

 

 

   Loans, financing and debentures obtained

 

   -    

 

-  

 

   -  

 

-  

 

786,499

 

  1,586,602

 

  1,144,330

 

  2,050,351

 

 

   Payments of Loans, financing and debentures, net of derivatives

 

   -    

 

(198)

 

   69

 

(170)

 

   (259,883)

 

(975,167)

 

(1,003,240)

 

(1,734,881)

 

 

   Dividend and interest on equity paid

 

   (771,253) 

 

(1,423,595)

 

  (569,296) 

 

(1,172,836)

 

   (790,985)

 

(1,440,098)

 

   (597,259)

 

(1,184,478)

 

 

                                 

 

 

GENERATION (UTILIZATION) OF CASH IN FINANCING

 

   (771,253) 

 

(1,423,793)

 

   (569,227)

 

(1,173,006)

 

   (264,369)

 

(828,663)

 

   (456,169)

 

(869,008)

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

  (66,791) 

 

(214,945)

 

   40,641

 

   31,114

 

   (237,145)

 

(346,939)

 

  (53,668)

 

  (63,613)

 

 

OPENING BALANCE OF CASH AND CASH EQUIVALENTS

 

   70,972  

 

  219,126

 

6,175

 

   15,702

 

1,377,449

 

  1,487,243

 

748,509

 

  758,454

 

 

                                 

 

 

CLOSING BALANCE OF CASH AND CASH EQUIVALENTS

 

4,181  

 

  4,181

 

   46,816

 

   46,816

 

1,140,304

 

  1,140,304

 

694,841

 

  694,841

 

 

                                 

 

 

SUPPLEMENTARY INFORMATION

                               

 

 

  Incorporation of minority shareholders by means of a share issue (note 13)

 

   -    

 

   52,249

 

   -  

 

-  

 

   -  

 

   52,249

 

-  

 

-  

 

 

                                 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: September 30, 2010

 

 

 

 

 

                               

 

 

Added Value Statements

For the periods ended September 30, 2010 and 2009

 

   

 Parent Company

 

 Consolidated  

 

 

   

2010

 

2009

 

2010

 

2009

 

 

   

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

 

 

   

 

 

 

 

 

 

 

 

 

         

 

 

 

                                 

 

1- Revenues

  980

 

982

 

42

 

154

 

  4,931,248

 

  14,256,222

 

  4,527,052

 

  12,863,274

 

 

1.1

Operating revenues

  980

 

982

 

3

 

3

 

  4,199,081

 

  12,266,434

 

  4,083,777

 

  11,690,394

 

 

1.2

Revenue from infrastructure construction

  -

 

  -

 

  -

 

  -

 

295,403

 

698,867

 

160,216

 

410,678

 

 

1.3

Revenues related to the construction of own assets

  -

 

  -

 

39

 

151

 

443,880

 

  1,330,644

 

295,181

 

783,136

 

 

1.4

Allowance for doubtful accounts

  -

 

  -

 

  -

 

  -

 

(7,330)

 

  (37,410)

 

  (12,122)

 

  (20,934) 

 

 

1.5

Other

  -

 

  -

 

  -

 

  -

 

214

 

(2,313)

 

-

 

-

 

 

                                 

 

2 - (-) Inputs

  (5,279)

 

  (14,340)

 

  (3,692)

 

  (11,414)

 

(2,786,627)

 

(7,611,590)

 

(2,301,289)

 

(6,665,963)

 

 

2.1

Electricity Purchased for Resale

  -

 

  -

 

  -

 

  -

 

(1,840,003)

 

(5,100,620)

 

(1,693,551)

 

(5,031,044)

 

 

2.2

Material

  (7)

 

  (46)

 

  (8)

 

  (20)

 

  (221,283)

 

  (760,103)

 

  (166,397)

 

  (405,216)

 

 

2.3

Outsourced Services

  (4,314)

 

  (10,894)

 

  (1,248)

 

  (5,070)

 

  (609,471)

 

(1,500,005)

 

  (346,737)

 

  (991,960)

 

 

2.4

Other

(958)

 

  (3,400)

 

  (2,436)

 

  (6,324)

 

  (113,462)

 

  (246,252)

 

  (93,405)

 

  (234,251)

 

 

2.5

Cost of Service Rendered

  -

 

  -

 

  -

 

  -

 

(2,408)

 

(4,610)

 

(1,199)

 

(3,492)

 

 

                   

-

 

-

 

-

   

 

3 - Gross Added Value (1 + 2)

 (4,299)

 

  (13,358)

 

  (3,650)

 

  (11,260)

 

  2,144,621

 

  6,644,632

 

  2,225,763

 

  6,197,311

 

 

                                 

 

4 - Retentions

  (36,294)

 

  (108,600)

 

  (37,217)

 

  (111,650)

 

  (173,462)

 

  (516,430)

 

  (174,052)

 

  (522,472)

 

 

4.1

Depreciation and Amortization

  (39)

 

  (105)

 

  (30)

 

  (89)

 

  (126,951)

 

  (377,190)

 

  (126,407)

 

  (379,540)

 

 

4.2

Amortization of intangible assets

  (36,255)

 

  (108,495)

 

  (37,187)

 

  (111,561)

 

  (46,511)

 

  (139,240)

 

  (47,645)

 

  (142,932)

 

 

                                 

 

5 - Net Added Value Generated (3 + 4)

  (40,593)

 

  (121,958)

 

  (40,867)

 

  (122,910)

 

  1,971,159

 

  6,128,202

 

  2,051,711

 

  5,674,839

 

 

                                 

 

6 - Added Value Received in Transfer

404,692

 

  1,394,207

 

502,473

 

  1,327,377

 

136,900

 

351,676

 

79,846

 

268,536

 

 

6.1

Financial Income

21,072

 

52,667

 

14,483

 

36,134

 

136,900

 

351,676

 

79,846

 

268,536

 

 

6.2

Equity in Subsidiaries

383,620

 

  1,341,540

 

487,990

 

  1,291,243

 

-

 

-

 

-

 

-

 

 

                                 

 

7 - Added Value to be Distributed (5 + 6)

364,099

 

  1,272,249

 

461,606

 

  1,204,467

 

  2,108,059

 

  6,479,878

 

  2,131,557

 

  5,943,375

 

 

                                 

 

8 - Distribution of Added Value

               

 

 

 

 

 

   

 

 

8.1

Personnel and Charges

  870

 

2,436

 

  470

 

1,421

 

124,585

 

362,987

 

132,584

 

399,684

 

 

 

8.1.1 Direct Remuneration

  804

 

2,257

 

  465

 

1,317

 

93,993

 

279,326

 

88,804

 

269,899

 

 

 

8.1.2 Benefits

44

 

96

 

8

 

36

 

22,875

 

61,294

 

36,644

 

107,368

 

 

 

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

22

 

83

 

  (3)

 

   68  

 

  7,717

 

22,367

 

  7,136

 

22,417

 

 

8.2

Taxes, Fees and Contributions

  (1,916)

 

31,578

 

  (1,589)

 

31,680

 

  1,417,589

 

  4,286,145

 

  1,379,525

 

  3,884,282

 

 

 

8.2.1 Federal

  (1,926)

 

31,562

 

  (1,590)

 

31,679

 

732,479

 

  2,242,963

 

713,620

 

  1,950,009

 

 

 

8.2.2 State

  -

 

  -

 

  -

 

  -

 

683,942

 

  2,035,895

 

664,713

 

  1,927,208

 

 

 

8.2.3 Municipal

10

 

16

 

1

 

1

 

  1,168

 

  7,287

 

  1,192

 

  7,065

 

 

8.3

Interest and Rentals

20,997

 

56,059

 

13,959

 

48,573

 

215,104

 

632,332

 

161,764

 

514,531

 

 

 

8.3.1 Interest

20,981

 

55,996

 

13,929

 

48,474

 

210,361

 

620,716

 

157,985

 

504,160

 

 

 

8.3.2 Rental

16

 

63

 

30

 

99

 

  4,490

 

11,363

 

  3,779

 

10,371

 

 

 

8.3.3 Other

  -

 

  -

 

  -

 

  -

 

253

 

253

 

-

 

-

 

 

8.4

Interest on capital

344,148

 

  1,182,176

 

448,766

 

  1,122,793

 

350,781

 

  1,198,414

 

457,684

 

  1,144,878

 

 

 

8.4.1 Dividends (including additional proposed)

  -

 

774,429

 

  -

 

571,671

 

-

 

774,429

 

-

 

571,671

 

 

 

8.4.2 Retained profits

344,148

 

407,747

 

448,766

 

551,122

 

350,781

 

423,985

 

457,684

 

573,207

 

 

                                 

 

 

   

364,099

 

  1,272,249

 

461,606

 

  1,204,467

 

  2,108,059

 

  6,479,878

 

  2,131,557

 

  5,943,375

 

 

                                 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: September 30, 2010

 

 

 

( 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’s headquarters are located at Rua Gomes de Carvalho, 1510 - 14º floor - Cj 2 - Vila Olímpia - São Paulo - SP - Brasil.

The Company has direct and indirect interests in the following operational subsidiaries (information on the concession area, number of consumers, energy production capacity and associated data not examined by the independent auditors):

 

Energy distribution

 

Company Type

 

Equity Interest

 

Location (State)

 

Number of municipalities

 

Concession term

 

End of the concession

                         

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

 

Publicly-quoted corporation

 

Direct
100%

 

Interior of S. Paulo

 

234

 

30 years

 

 November 2027

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

 

Publicly-quoted corporation

 

Direct
100%

 

Interior of S. Paulo

 

27

 

30 years

 

 October 2028

 Rio Grande Energia S.A. ("RGE")

 

Publicly-quoted corporation

 

Direct
100%

 

Interior of Rio Grande do Sul

 

262

 

30 years

 

 November 2027

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

 

Private corporation

 

Direct
100%

 

Interior of São Paulo and Paraná

 

27

 

16 years

 

 July 2015

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

 

Private corporation

 

Direct
100%

 

Interior of S. Paulo

 

7

 

16 years

 

 July 2015

 Companhia Jaguari de Energia ("CPFL Jaguari")

 

Private corporation

 

Direct
100%

 

Interior of S. Paulo

 

2

 

16 years

 

 July 2015

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

 

Private corporation

 

Direct
100%

 

Interior of S. Paulo

 

5

 

16 years

 

 July 2015

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

 

Private corporation

 

Direct
100%

 

Interior of São Paulo and Minas Gerais

 

4

 

16 years

 

 July 2015

 

 

 

                   

Installed power

Energy generation - operational

 

Company Type

 

Equity Interest

 

Location (State)

 

Number of plants / type of energy

 

Total

 

CPFL participation

                         

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

 

Publicly-quoted corporation

 

Direct
100%

 

 São Paulo,  Goiás and Minas Gerais

 

 1 Hydroelectric, 20 PCHs and 1 Thermal*

 

 812 MW

 

 812 MW

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

 

Private corporation

 

Indirect
48.72%

 

Santa Catarina

 

 1 Hydroelectric

 

 880 MW

 

 429 MW

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

 

Private corporation

 

Indirect
65%

 

Rio Grande do Sul

 

 3 Hydroelectric

 

 360 MW

 

 234 MW

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

 

Publicly-quoted corporation

 

Indirect
25.01%

 

Santa Catarina and
Rio Grande do Sul

 

 1 Hydroelectric

 

 690 MW

 

 173 MW

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

 

Private corporation

 

Indirect
51%

 

Paraíba

 

 2 Thermals

 

 342 MW

 

 174 MW

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

 

Private corporation

 

Indirect
59.93%**

 

São Paulo

 

 1 Hydroelectric

 

 903 MW

 

 63 MW

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

 

Limited company

 

Indirect
100%

 

Rio Grande do Sul

 

 4  Small Hydroelectric Plants (RS)

 

 2,65 MW

 

 2,65 MW

(*) PCH - Small Hydropower Plant

                       

(**) Paulista Lajeado has a 7% participation in the installed power of Investco S.A.

               

 

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: September 30, 2010

 

 

 

Energy generation - under development

 

Company Type

 

Equity Interest

 

Location

 

Number of plants / type of energy

 

Scheduled start-up date

 

Projected installed power

                         

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

 

Private corporation

 

Indirect
51%

 

Santa Catarina e
Rio Grande do Sul

 

 1 Hydroelectric

 

4th quarter
2010

 

 855 MW

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

 

Private corporation

 

Indirect
100%

 

São Paulo

 

 1 Thermal
(Biomass)

 

4th quarter
2010

 

 45 MW

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

 

Private corporation

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Thermal
(Biomass)

 

2011

 

 40 MW

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

 

Private corporation

 

Indirect
100%

 

São Paulo

 

 1 Thermal
(Biomass)

 

2011

 

 50 MW

CPFL Bio Ipê S.A.
("CPFL Bio Ipê")

 

Private corporation

 

Indirect
100%

 

São Paulo

 

 1 Thermal
(Biomass)

 

2011

 

 25 MW

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

 

Private corporation

 

Indirect
100%

 

São Paulo

 

 1 Thermal
(Biomass)

 

2012

 

 70 MW

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

 

Limited Company

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2012

 

 30 MW

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

 

Limited Company

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2012

 

 30 MW

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

 

Limited Company

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2012

 

 30 MW

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

 

Limited Company

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2012

 

 30 MW

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

 

Limited Company

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2012

 

 30 MW

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

 

Limited Company

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2012

 

 30 MW

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

 

Limited Company

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2012

 

 30 MW

Campo dos Ventos I Energias Renovaveis S.A.
("Campo dos Ventos I")

 

Private corporation

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2013

 

 30 MW

Campo dos Ventos II Energias Renovaveis S.A.
("Campo dos Ventos II")

 

Private corporation

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2013

 

 30 MW

Campo dos Ventos III Energias Renovaveis S.A.
("Campo dos Ventos III")

 

Private corporation

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2013

 

 30 MW

Campo dos Ventos IV Energias Renovaveis S.A.
("Campo dos Ventos IV")

 

Private corporation

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2013

 

 30 MW

Campo dos Ventos V Energias Renovaveis S.A.
("Campo dos Ventos V")

 

Private corporation

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2013

 

 30 MW

Eurus V Energias Renovaveis S.A.
("Eurus V")

 

Private corporation

 

Indirect
100%

 

Rio Grande do Norte

 

 1 Wind power

 

2013

 

 30 MW

 

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: September 30, 2010

 

 

             

Energy commercialization and services

 

Company Type

 

Core activity

 

Equity Interest

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

 

Private corporation

 

 Energy commercialization, consultancy and advisory services to agents in the energy sector

 

Direct
100%

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

 

Limited company

 

 Commercialization and provision of energy services

 

Indirect
100%

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

 

Private corporation

 

 Energy commercialization

 

Indirect
100%

CPFL Planalto Ltda.  ("CPFL Planalto")

 

Limited company

 

 Energy commercialization

 

Direct
100%

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

 

Private corporation

 

 Manufacturing, commercialization, rental and maintenance of electro-mechanical equipment and service provision

 

Direct
100%

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

 

Limited company

 

 Provision of telephone answering services

 

Direct
100%

Chumpitaz Serviços S.A. ("Chumpitaz")

 

Private corporation

 

Provision of administrative services

 

Direct
100%

             

Other

 

Company Type

 

Core activity

 

Equity Interest

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

 

Private corporation

 

 Venture capital company

 

Direct
100%

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

 

Private corporation

 

 Venture capital company

 

Direct
100%

Chapecoense Geração S.A. ("Chapecoense")

 

Private corporation

 

 Venture capital company

 

Indirect
 51%

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

 

Private corporation

 

 Energy generation studies and projects

 

Indirect
100%

CPFL Bio Itapaci S.A
("Itapaci")

 

Private corporation

 

 Energy generation studies and projects

 

Indirect
100%

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

 

Private corporation

 

 Venture capital company

 

Indirect
99.95%

 

Campos dos Ventos I to V and Eurus V

The corporate purpose of the indirect subsidiaries Campos dos Ventos I to V and Euros V is to participate in studies for developing electric energy generation projects using wind power. At the auction of reserve energy held on August 26, 2010, Campos dos Ventos II negotiated a 14 MW supply contract with delivery to begin in 2013, for a period of 20 years.

Chumpitaz Serviços S.A.

The bylaws of the subsidiary, previously called “Chumpitaz Participações S.A.”, were amended during this quarter, changing the name of the company to “Chumpitaz Serviços S.A.”. The corporate purpose was changed to providing services of a technical, administrative, commercial nature, among others.

 

Bio Itapaci S.A. and Bio Anicuns S.A.

CPFL Bio Itapaci and CPFL Bio Anicuns S.A. are private corporations that were set up for the purpose of developing studies and projects for thermoelectric power generation. CPFL Brasil holds 100% of the share capital of CPFL Bio Itapaci and CPFL Bio Anicuns.

Operational start-up

CPFL Bioenergia

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: September 30, 2010

 

 

On August 27, 2010, CPFL Bioenergia started the operations of the CPFL Energia group’s first thermoelectric plant powered by sugarcane bagasse biomass. The investment in the unit, which has installed power of 45 MW and an export capacity of 30 MW, was R$ 103.5 million.

Foz do Chapecó

 The first of four generators at the Foz do Chapecó plant started commercial operations on October 15, 2010, reaching the capacity to generate 214 MW of the 855 MW that will be reached when it is fully functional, scheduled for April 2011.

 The total investment in the project amounted to approximately R$ 2.6 billion, and the venture’s full capacity is equivalent to around 18% of the consumption of the state of Rio Grande do Sul.

 

 

( 2 )       PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS

 

In accordance with CVM Decision 603/2009, amended by CVM Decision 656/2011, the Company opted to re-present the quarterly financial information for 2010 compared to 2009 after publication of the 2010 financial statements. As such, the financial information presented here should be read together with the financial statements for 2010 compared to 2009.

The quarterly financial information presented here shows the figures originally presented, adjusted to reflect the alterations resulting from having applied the accounting pronouncements issued by the Brazilian Committee on Accounting Pronouncements (CPC) and approved by the Brazilian Securities Commission (CVM).  Note 5 shows the main adjustments made as a result of having adopted the new accounting practices.

The mainly accounting policies set out on the preparation of these quarterly financial statments are consistent with those adopted in the annual financial statements. These accounting policies have been applied consistently to all periods presented in these individual and consolidated financial statements.

 

2.1 Basis of preparation

The individual (Parent Company) and consolidated quarterly financial statements were prepared and presented in accordance with generally accepted accounting principles in Brazil, based on the guidelines provided by the Brazilian Committee on Accounting Pronouncements (Comitê de Pronunciamentos Contábeis - CPC) and approved by CVM and are being presented in accordance with “CPC21 Demonstrações Intermediárias”.

The Company also follows the guidelines of the Accounting Manual of the Public Electric Energy and the standards laid down by the National Electric Energy Agency (Agência Nacional de Energia Elétrica – ANEEL), when these are not in conflict with generally accepted accounting practices in Brazil and/or international accounting practices.

The individual quarterly financial statements are in conformity with the International Financial Reporting Standards – IFRS, issued by the International Accounting Standard Board – IASB, except for evaluation of investments in subsidiaries and jointly-owned entities, which are accounted for by the equity method, while for the IFRS they should be accounted for by the cost or fair value method.

 

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: September 30, 2010

 

 

The consolidated quarterly financial statements were also prepared and are presented in full conformity with the IFRS.

Note 5 shows the main differences between the accounting practices adopted previously in Brazil and the current and effective standards presented herein.

 

2.2 Basis of measurement

The quarterly financial statements have been prepared on the historic cost basis except for the following material items recorded in the balance sheets: i) derivative financial instruments measured at fair value, ii) financial instruments at fair value through profit or loss measured, iii) available-for-sale financial assets are measured at fair value, iv) property, plant and equipment adjusted to reflect the “deemed cost” on the transition date, and v) actuarial assets, recognition of which is limited to the present value of the economic benefits available in the form of reimbursements or future reductions in contributions to the plan.

 

2.3 Use of estimates and judgments

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

By definition, the resulting accounting estimates are rarely the same as the actual results. Accordingly, Company Management reviews the estimates and assumptions on an ongoing basis. Adjustments derived from revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

 

Information about assumptions and estimate that are subject to a greater degree of uncertainty and involve the risk of resulting in a material adjustment if these assumptions and estimates suffer significant changes during the next financial year is included in the following notes:

·         Note 10 – Deferred tax credits and debits

·         Note 11 – Financial asset of concession;

·         Note 15 – Intangible assets;

·         Note 20 – Employee Pension Plan;

·         Note 22 – Reserve for contingency, and

·         Note 31 – Financial instruments and Operating Risks.

 

2.4 Functional currency and presentation currency

The individual and consolidated financial statements are presented in thousands of Brazilian reais, which is the Company's functional currency.

 

2.5 Basis of consolidation

(i) Business combinations

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: September 30, 2010

 

 

- Acquisitions made after January 1, 2009

In the case of acquisitions made after January 1, 2009, the Company measures goodwill as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. If the excess is negative, a gain arising from the purchase agreement is recognized immediately in profit or loss for the period.

- Acquisitions prior to January 1, 2009

As part of the transition to the IFRS and CPC the Company opted not to re-present business combinations prior to January 1, 2009. In relation to acquisitions prior to January 1, 2009 the goodwill represents the amount recognized under the accounting practices adopted previously. This goodwill was tested for impairment at the transition date, in accordance with Note 3.6.

(ii) Subsidiaries and jointly-owned entities:

The financial statements of subsidiaries and jointly-owned entities (joint ventures) are included in the consolidated financial statements from the date that total or shared control commences until the date that control ceases.

A jointly controlled operation is a venture directly or indirectly controlled together with other investors, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions.

 

The accounting policies of subsidiaries and jointly controlled entities taken into consideration in consolidation are aligned with the Company's accounting policies.

The financial information of subsidiaries and jointly controlled entities and of the associates is accounted for using the equity method.

The consolidated financial statements include the balances and transactions of the Company and its subsidiaries. The balances and transactions of assets, liabilities, income and expenses have been fully consolidated for fully owned subsidiaries and proportionately consolidated for the jointly-owned entities.

Intra-group balances and transactions, and any income and expenses derived from these transactions, are eliminated in preparing the consolidated financial statements.  Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group's interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

Observing the conditions described above, the amount related to non-controlling interests is shown in shareholders’ equity after the statement of income for the period in each year presented.

(iii) Acquisition of non-controlling interest

Accounted for as transactions within equity holders and therefore no goodwill is recognized as a result of such transactions.

 

2.6 Segment information

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: September 30, 2010

 

 

An operating segment is a component of the Company (i) that engages in operating activities from which it may earn revenues and incur expenses, (ii) whose operating results are regularly reviewed by Management to make decisions about resources to be allocated and assess the segment's performance, and (iii) for which discrete financial information is available.

Company Management bases strategic decisions on reports, segmenting the business into: (i) electric energy distribution activities (“Distribution”); (ii) electric energy generation activities (“Generation”); (iii) energy commercialization and service provision activities (“Commercialization”); and (iv) other, basically corresponding to corporate services and other activities not listed in the previous items.

Presentation of the operating segments includes items directly attributable to them, such as allocations required, including intangible assets.  

 

2.7 Information on Corporate Interests

The interests directly or indirectly held by the Company in the subsidiaries and jointly-owned entities are described in Note 1. Except for the (i) jointly-owned entities ENERCAN, BAESA, Foz do Chapecó and EPASA, which are consolidated proportionately, and (ii) the investment in Investco recorded at cost by the subsidiary Paulista Lajeado, the other units are fully consolidated.

As of September 30, 2010, the participation of non-controlling interests stated in the consolidated statements refers to the third-party interests in the subsidiaries CERAN, Paulista Lajeado, CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa, CPFL Serviços and Jaguari Geração.

 

2.8 Value added statements

The Company prepared individual and consolidated value added statements (“DVA”) in conformity with technical pronouncement CPC 09 - Value Added Statement, which are presented as an integral part of the quarterly financial statements in accordance with the CPC standards for public companies, while for the IFRS they represent additional financial information.

 

 

( 3 )   SUMMARY OF THE SIGNIFICANT ACCOUNTING POLICIES

 

The accounting policies set out below have been applied consistently to all periods presented in these individual and consolidated financial statements.

 

3.1 Concession agreements

ICPC 01 “Concession Agreements” establishes general guidelines for the recognition and measurement of obligations and rights related to concession agreements and applies to situations in which the granting power controls or regulates which services the concessionaire should provide with the infrastructure, to whom the services should be provided and at what price, and controls any significant residual interest in the infrastructure at the end of the concession period.

These definitions having been attended to, the infrastructure of distribution concessionaires is segregated and rollforwarded from the time of construction, complying with the provisions of the CPCs and IFRSs, so that the financial statements record (i) an intangible asset corresponding to the right to operate the concession and collect from the users of public utilities, and (ii) a financial asset corresponding to the unconditional contractual right to receive cash (compensation) by reversing the assets at the end of the concession.

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: September 30, 2010

 

 

The value of the concession financial assets is determined at fair value, based on the remuneration of the assets established by the regulatory authority. The financial asset is classified as available-for-sale and is restated and amortized annually in accordance with the adjustment of its fair value, against the revaluation reserve in equity.

The remaining amount is registered in intangible assets and corresponds to the right to charge consumers for electric energy distribution services, amortized in accordance with the consumption pattern that reflects the estimated economic benefit to the end of the concession.

Provision of infrastructure construction services is registered in accordance with CPC 17 – Construction Contracts, against a financial asset corresponding to the amount subject to compensation. Residual amounts are classified as intangible assets and will be amortized over the concession period in accordance with the economic pattern against which the revenue from consumption of electric energy is collected.

In accordance with (i) the tariff model that does not provide for a profit margin for the infrastructure construction activity, (ii) the way in which the subsidiaries manage the building by using a high level of outsourcing, and (iii) there is no provision for gains on constructions in the Company‘s business plans, management is of the opinion that the margins on this operation are irrelevant, and therefore no additional value to the cost is considered in the composition of the revenue. The revenue and construction costs are therefore presented in profit or loss for the period at the same amounts.

 

3.2 Financial instruments

- Financial assets:

Financial assets are recognized initially on the date that they are originated or on trade date at which the Company or its subsidiaries become one of the parties to the contractual provisions of the instrument. Derecognition of a financial asset occurs when the contractual rights to the cash flows from the asset expire or when the risks and rewards of ownership of the financial asset are transferred. The Company and its subsidiaries hold the following main financial assets:

  i.       Classified at fair value through profit or loss: these are assets held for trading or designated as such upon initial recognition. The Company and its subsidiaries manage such assets and make purchase and sale decisions based on their fair value in accordance with their documented risk management or investment strategy. These financial assets are measured at fair value, and changes therein are recognized in profit or loss for the period.

The main financial assets classified by the Company and its subsidiaries in this category are: (i) bank balances and financial investments (Note 6), (ii) financial investments (Note 8) and (iii) derivatives (Note 31).

ii.       Held-to-maturity: these are assets that the Company and its subsidiaries have the positive intent and ability to hold to maturity. Held-to-maturity financial assets are recognized initially at fair value and subsequent to initial recognition are measured at recognized cost using the effective interest method, less any impairment losses.

The Company and its subsidiaries classify the following financial assets in this category: (i) security receivable from CESP (Note 8) and (ii) receivables of the subsidiary CPFL Paulista from CESP (Note 12).

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: September 30, 2010

 

 

iii.       Loans and receivables: these are assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognized initially at fair value and, subsequent to initial recognition, measured at recognized cost using the effective interest method, less any impairment losses.

The main financial assets of the Company and its subsidiaries classified in this category are: (i) consumers, concessionaires and licensees (Note 7), (ii) dividends and Interest on shareholders’ equity  (Note 13.2) and (iii) other credits (Note 12).

iv.       Available-for-sale: these are non-derivative financial assets that are designated as available-for-sale or that are not classified in any of the previous categories. Subsequent to initial recognition, interest calculated by the effective rate method is recognized in profit or loss as part of the net operating income. Changes for registration at fair value are recognized in the revaluation reserve in equity. The accumulated result in other comprehensive income is transferred to profit or loss when the asset is realized.

The main asset of the Company and its subsidiaries classified in this category is the right to compensation at the end of the concession. The option to designate this instrument as available-for-sale is due to its non-classification in the previous categories described. Since Management believes that the compensation will be made at least in accordance with the current tariff pricing model, this instrument cannot be registered as loans and receivables as the compensation will not be fixed or determinable, due to the uncertainty in relation to impairment for reasons other than deterioration of the credit. The main uncertainties relate to the risk of non-recognition of part of these assets by the regulatory authority and their replacement values at the end of the concession (Note 4).

 

- Financial liabilities:

Financial liabilities are initially recognized on the date that they are originated or on the trade date at which the Company or its subsidiaries become a part of the contractual provisions of the instrument. The Company and its subsidiaries have the following main financial liabilities:

  i.       Measured at fair value through profit or loss: these are financial liabilities that are: (i) held for short-term trading, (ii) designated at fair value in order to evaluate the effects of recognition of income and expenses to obtain more relevant and consistent accounting information, or (iii) derivatives. These liabilities are registered at fair value and for any change in the subsequent measurement of the fair value, set through profit or loss.

The Company and its subsidiaries classified the following financial liabilities in this category: (i) certain foreign currency debts (Note 16) and (ii) derivatives (Note 31).

 

ii.       Not measured at fair value through profit or loss: these other financial liabilities that are not classified in any of the previous categories. They are measured initially at fair value less any attributable transaction cost and subsequently measured at recognized cost by the effective interest method.

The main financial liabilities classified in this category are: (i) suppliers (note 18), (ii) loans and financing (note 16), (iii) debt charges (Note 16); (iv) debenture charges (Note 17); (v) debentures (Note 17); (vi) public utilities (Note 23); (vii) dividends payable and (viii) other accounts payable (note 24).

 

The Company accounts for warranties when these are issued to non-controlled entities or when the warranty is granted at a percentage higher than the Company's interest. Such warranties are initially measured at fair value, by (i) a liability equivalent to the income to be appropriated, which will subsequently be recognized as the Company is released from the obligations and (ii) an asset equivalent to the right to compensation by the guaranteed party, subsequently amortized by receipt of cash or on a straight-line basis to profit or loss.

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: September 30, 2010

 

 

Financial assets and liabilities are offset and the net amount presented when, and only when, there is a legal right to offset the amounts and the intent to settle on a net basis or to realize the asset and settle the liability simultaneously.

 

- Capital

Common shares are classified as equity. Additional costs directly attributable to shares issuance and share options are recognized as a deduction from equity, net of any tax effects.

 

3.3 Lease agreements:

It should be established at the inception of an agreement whether such arrangement is or contains a lease. A specific asset is the subject of a lease if fulfillment of the arrangement is dependent on the use of that specified asset. An arrangement conveys the right to use the asset if the arrangement conveys to the lessor the right to control the use of the underlying asset.

Leases in which substantially all the risks and rewards are with the lessor are classified as operating leases. Payments/receipts made under operating leases are recognized as expense/revenue in profit or loss on a straight-line basis, over the term of the lease.

Leases which involve not only the right to use assets, but also substantially transfer the risks and rewards to the lessee, are classified as finance leases.

In finance leases in which the Company or its subsidiaries act as lessee, the assets are capitalized to property, plant and equipment at the inception of the agreement against a liability measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. The property, plant and equipment is depreciated in accordance with the accounting policy applicable to that asset.

If the Company or its subsidiaries are the lessor in a finance lease, the investment is initially recognized at the construction/acquisition cost of the asset.

In both cases, the financial income/expense is recognized in profit or loss for the period over the term of the lease so as to produce a constant rate of interest on the remaining balance of the investment/liability.

 

 

3.4 Property, plant and equipment

Items of property, plant and equipment are measured at acquisition, construction or formation cost less accumulated depreciation and, if applicable, accumulated impairment losses. Cost also includes any other costs attributable to bringing the assets to the place and in a condition to operate as intended by management, the cost of dismantling and removing the items and restoring the site on which they are located and capitalized borrowing costs on qualifying assets.

The assets were measured at the transition date in accordance with the CPC and IFRS rules by segregation into two groups:

- Assets measured at deemed cost at the transition date: model adopted for assets built and put into long-term service where it is not possible to reconstruct the cost formation or where the cost of the survey is of no benefit in presentation of the financial statements. The cost of these items at the transition date was therefore determined in accordance with market prices (“deemed cost”) and the revalued amounts are presented for both cost and accumulated depreciation. The effects of the deemed cost increased property, plant and equipment against equity, net of related tax effects.

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: September 30, 2010

 

 

- Assets measured at historic cost: model adopted by the Company for recently built assets where the basis for cost formation can be easily confirmed and the values at historic cost approximate the respective market values. In such cases, the subsidiaries performed an analysis to ensure that the cost formation is in accordance with current accounting practices.

The replacement cost of items of property, plant and equipment is recognized if it is probable that it will involve economic rewards for the subsidiaries and if the cost can be reliably measured, and the value of the replaced item is written off. Maintenance costs are recognized in profit or loss as they are incurred.

Depreciation is calculated on a straight-line basis, at annual rates of 2% to 20%, taking into consideration the estimated useful life of the assets, as instructed and defined by the regulatory authority. In the case of generators subject to regulation by Decree 2003, of 1996, the assets are depreciated at the rates established by the regulatory authority, provided they do not exceed the term of the concession.

Gains and losses derived from write-down of an item of property, plant and equipment are determined by comparing the resources produced by disposal with carrying amount of the asset, and are recognized net together with other operating income/expense.

Assets and facilities used in the regulated activities are tied to these services and may not be removed, disposed of, assigned or pledged in mortgage without the prior and express authorization of ANEEL. ANEEL regulates the release of Public Electric Energy Utility concession assets, granting prior authorization for release of assets of no use to the concession, intended for disposal and determines that the proceeds of the disposal be deposited in a tied bank account for use in the concession. 

 

3.5 Intangible assets

Includes rights related to non-physical assets such as goodwill, concession exploration rights, software and rights-of-way.

Goodwill that arises from the acquisition of subsidiaries is measured at the difference between the amount paid and/or payable for acquisition of a business and the net fair value of the assets and liabilities of the subsidiary acquired.

Goodwill is measured at cost less accumulated impairment losses. Goodwill and other intangible assets with indefinite useful lives are not subject to amortization and tested annually for impairment.

Negative goodwill are registered as gains in profit or loss at the time of the acquisition.

In the individual financial statements, goodwill is included in the carrying amount of the investment, and stated as intangible in the consolidated financial statements.

Intangible assets corresponding to the right to operate concessions can have three separate origins, based on the following arguments:

  i.       Acquisitions through business combinations: the portion of goodwill arising from business combinations that corresponded to the right to operate the concession is stated as an intangible asset. Such amounts are amortized based on the net income curves projected for the concessionaires for the remaining term of the concession.

 

ii.       Investments in infrastructure (Application of ICPC 01 – Concession agreements): Under the electric energy distribution concession agreements with the subsidiaries, the intangible asset registered corresponds to the concessionaires' right to collection uses for use of the concession infrastructure. Since the exploration term is defined in the agreement, intangible assets with defined useful lives are amortized over the term of the concession in proportion to a curve that reflects the consumption pattern in relation to the anticipated economic rewards. For further information see Note 3.1.

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: September 30, 2010

 

 

 

Assets and facilities used in the regulated activities are tied to these services and may not be removed, disposed of, assigned or pledged in mortgage without the prior and express authorization of ANEEL. ANEEL regulates the release of Public Electric Energy Utility concession assets, granting prior authorization for release of assets of no use to the concession, intended for disposal and determines that the proceeds of the disposal be deposited in a tied bank account for use in the concession.

 

 

iii.       Public utilities: certain generation concessions were granted against payment to the federal government for use of a public utility. This obligation was registered on the date of signing the respective agreements, at present value, against the intangible assets account. These amounts, capitalized by interest incurred on the obligation to the start-update, are amortized on a straight-line basis over the remaining term of the concession. 

   

 

3.6 Impairment

- Financial assets:

A financial asset not measured at fair value through profit or loss is reassessed at each reporting date to determine whether there is objective evidence that it is impaired.  Impairment can occur after the initial recognition of the asset and have a negative effect on the estimated future cash flows.

The Company and its subsidiaries consider evidence of impairment of receivables and held-to-maturity investment securities at both a specific assets and collective level for all significant securities. Receivables and held-to-maturity investment securities that are not individually significant are collectively assessed for impairment by grouping together the securities with similar risk characteristics.

In assessing collective impairment the Company uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management's judgment as to whether the assumptions and current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historic trends.

An impairment loss of a financial asset is recognized as follows:

·       Amortized cost: as the difference between the carrying amount and the present value of the estimated future cash flows discounted at the assets original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recognized through the unwinding of the discount. When a subsequent event indicates the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

·       Available-for-sale: by reclassification of the cumulative loss that has been recognized in the revaluation reserve in equity, to profit or loss. This reclassified loss is the difference between the acquisition cost, net of any principal repayment and amortization of the principal, and the current fair value, less any impairment loss previously recognized in profit or loss. Changes in impairment provisions attributable to effective interest rate are reflected as a component of financial income.

If an increase (gain) is identified in periods subsequent to recognition of the loss, then the impairment loss is reversed, with the amount of the reversal recognized in profit or loss. However, any subsequent recovery in the fair value of an impaired available-for-sale financial asset is recognized in the revaluation reserve in equity.

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: September 30, 2010

 

 

- Non-financial assets:

Non-financial assets that have indefinite useful lives, such as goodwill, are tested annually to check that the asset's carrying amount does not exceed the recoverable value. Other assets subject to amortization are tested for impairment whenever events or changes in circumstance indicate that the carrying amount may be impaired.

An impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable amount, which is the greater of its value in use and its fair value less costs to sell.

The methods used to assess impairment include tests based on the asset's value in use. In such cases, the assets (e.g. goodwill) are segregated and grouped together at the lowest level that generates identifiable cash flows (the "cash generating unit", or CGU). If there is an indication of impairment, the loss is recognized in profit or loss. Except in the case of goodwill, where the loss cannot be reversed in the subsequent period, impairment losses are assessed annually for any possibility to reverse the impairment.

Goodwill included in the carrying amount of an investment in an associate, as it is not recognized individually, is tested with the investment, as if it were a single asset.

  

 3.7 Provisions

A provision is recognized if, as a result of a past event, there is a legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If applicable, provisions are determined by discounting the expected future cash flows at a rate that reflects current market assessment and the risks specific to the liability.

 

3.8 Employee benefits

The subsidiaries have post-employment benefits and pension plans, recognized by the accrual method in accordance with CPC 33 “Employee benefits”. Although the plans have particularities, they have the following characteristics:

  i.       Defined contribution plan: a post-employment benefit plan under which the Company pays fixed contributions into a separate entity and will have no liability for the actuarial deficits of this plan. The obligations are recognized as an expense in profit or loss in the periods during which the services are rendered.

ii.       Defined benefit plan: The net obligation is calculated as the difference between the present value of the actuarial obligation based on assumptions, biometric studies and interest rates in line with market rates, and the fair value of the plan assets of the reporting date. The actuarial liability is calculated annually by independent actuaries using the projected unit credit method. The subsidiaries use the corridor method to avoid fluctuations in the macroeconomic conditions distorting the profit or loss for the period. The accumulated differences between the actuarial estimates and the actual results are therefore not recognized in the financial statements unless they are in excess of 10% of the greater of the plan liabilities and assets. Unrecognized gains and losses in excess of this limit are recognized in profit or loss for the year over the estimated remaining service time of the employees. If the plan records a surplus and it becomes necessary to recognize an asset, recognition is limited to the total of any unrecognized past service costs and the present value of economic benefits available in the form of reimbursements or future reductions in contributions to the plan.

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: September 30, 2010

 

 

 

3.9 Dividends and Interest on shareholders’ equity

Under Brazilian law, the Company is required to distribute a mandatory minimum annual dividend of 25% of net income adjusted in accordance with the bylaws. To December 31, 2008, dividends in excess of the minimum of 25% had to be proposed and provisioned at each reporting date, subject to approval in an Annual General Meeting (AGM). According to international accounting practices, CPC 24 and ICPC 08, a provision may only be made for the minimum mandatory dividend, and dividends declared but not yet approved are only recognized as a liability in the financial statements after approval by the competent body. They will therefore be held in equity, in the “Additional dividend proposed” account, as they do not meet the criteria of present liability at the reporting date.

As established in the Company's bylaws and in accordance with current Corporate law, the Board of Directors is responsible for declaring interim dividends and Interest on shareholders’ equity  determined in a half-yearly balance sheet. Interim dividends declared at the base date of June 30 is only recognized as a liability in the Company's financial statement after the date of the Board's decision.

Under previous accounting practices, Interest on shareholders’ equity  was recorded in profit or loss and reversed for purposes of presentation of the statement of income for the year. In accordance with the new accounting practice, Interest on shareholders’ equity  is no longer shown in the statement of income for the year and the effects are only stated in changes in equity and in the effective income tax and social contribution rates.

 

3.10 Revenue recognition

Operating income in the course of ordinary activities of the subsidiaries is measured at the fair value of the consideration received or receivable. Operating revenue is recognized when persuasive evidence exists that the most significant risks and rewards have been transferred to the buyer, when it is probable that the financial and economic rewards will flow to the entity, that the associated costs can be reliably estimated, and the amount of the operating income can be reliably measured.

Revenue from distribution of electric energy is recognized when the energy is billed. Unbilled income related to the monthly billing cycle is appropriated based on the actual amount of energy provided in the month and the annualized loss rate. Historically, the difference between the unbilled revenue and the actual consumption, which is recognized in the subsequent month, has not been material. Revenue from energy generation sales is accounted for based on the assured energy and at tariffs specified in the terms of the contract or the current market price, as applicable. Energy commercialization revenue is accounted for based on bilateral contracts with market agents and duly registered with the Electric Energy Commercialization Chamber - CCEE. No single consumer represents 10% or more of the total billing.

Service revenue is recognized when the service is effectively provided, under a service agreement between the parties.

Revenue from construction contracts is recognized by the percentage of completion method (“fixed-price”), and losses are recognized in profit or loss as incurred.

 

3.11 Income tax and Social contribution

Income tax and Social contribution expense for the period is calculated and recognized in accordance with the legislation in force and comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to an item recognized directly in equity or in the revaluation reserve in equity, which is recognized net of tax effects.

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: September 30, 2010

 

 

Current tax is the expected tax payable or receivable/to be offset on the taxable income or loss for the year. Deferred tax is recognized for temporary differences between the carrying amounts of assets and liabilities for accounting purposes and the equivalent amounts used for tax purposes.   

The Company and certain subsidiaries recorded in their financial statements the effects of tax loss carryforwards and temporary non-deductible differences, based on projections of future taxable profits, approved by the Boards of Directors and examined by the Fiscal Council. The subsidiaries also recognized tax credits on merged goodwill, which is amortized in proportion to the individual projected net incomes for the remaining term of each concession agreement.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity.

Deferred income tax and social contribution assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

 

3.12 Earnings per share

Basic earnings per share is calculated by dividing the profit or loss attributable to the Company by the weighted average number of common and preferred shares outstanding during the period. Diluted earnings per share is determined by the above-mentioned weighted average number of shares outstanding, adjusted for the effects of all dilutive potential convertible notes for the reporting periods, in accordance with CPC 41 e IAS 33.

 

3.13 Regulatory assets and liabilities

In accordance with the preliminary interpretation of IASB/IFRIC, regulatory assets and liabilities cannot be recognized in the Company's financial statements as they do not meet the requirements for assets and liabilities described in the Framework for the Preparation and Presentation of Financial Statements. The rights or offsetting are therefore only reflected in the financial statements to the extent that the electric energy is consumed by the captive customers.

 

( 4 )   DETERMINATION OF FAIR VALUES

 

A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and / or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

- Property, plant and equipment and intangible assets

The fair value of property, plant and equipment and intangible assets recognized as a result of a business combination is based on market values. The market value of property is the estimated amount for which a property could be exchanged on the date of valuation between knowledgeable and willing parties under normal market conditions. The fair value of items of property, plant and equipment is based on the market approach and cost approaches using quoted market prices for similar items when available and replacement cost when appropriate.

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: September 30, 2010

 

 

- Financial instruments

Financial instruments measured at fair values were recognized based on quoted prices in an active market, or assessed using 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 rate curves, based on information obtained from the BM&F, BOVESPA and ANDIMA websites, when available. 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.

Financial assets classified as available-for-sale refer to the right to compensation to be paid by the Federal Government on reversal of the assets of the distribution concessionaires. The methodology adopted for marking these assets to market is based on the tariff review process for distributors. This review, conducted every four or five years according to each concessionaire, consists of revaluation at market price of the distribution infrastructure. This valuation basis is used for pricing the tariff, which is increased annually up to the next tariff review, based on the parameter of the main inflation ratios.

Although the methodology and criteria for valuation of the compensation on reversal of the assets has not yet been defined by the Federal Government, company management believes that it will be based at least on the tariff pricing model. Accordingly, at the time of the tariff review, each concessionaire adjusts the position of the financial asset base for compensation at the amounts ratified by the regulatory authority and uses the General Market Price Index - IGP-M as best estimate for adjusting the original base to the fair value at subsequent dates, in conformity with the Tariff Review process.

 

( 5 )   FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS

 

As a result of the enactment of Laws 11.638/07 and 11.941/09, in 2008, the CPC issued and the CVM approved a series of accounting Pronouncements and Interpretations with the objective of bringing Brazilian accounting practices into line with the international financial reporting standards (“IFRS”). These pronouncements have been fully applied, completing the first stage of the convergence.

In order to fully complete the process, further pronouncements were issued in the course of 2009 and 2010, so that the consolidated quarterly financial statements as of September 30, 2010 would be in line with international standards.

These quarterly financial statements are the first to have been prepared in conformity with the IFRS. In order to make the accounting practices standardization process possible, the Company applied CPCs 37 and 43 and IFRS 1, adopting January 1, 2009 as the transition date.  Consequently, the 2009 financial statements are re-presented with the adjustments on adoption of the above-mentioned CPCs identified.

According to the pronouncements referred to above, there are mandatory retroactive application exceptions and optional exemptions.

Procedures adopted by the Company:

- Employee benefits: Recognition of the defined benefit type pension plans. In view of the impracticality of retroactive application, the Company took advantage of the exemption and all past gains and losses were recognized at January 1, 2009 against the accrued loss account.

- ICPC 01 – Concession agreements: Retroactive reconciliation of the financial assets and intangible assets accounted for in accordance with ICPC 01 and IFRIC 12. Accordingly, the Company did not use the exemption allowed for the transition rules.

- Business combinations: In accordance with the exemption permitted by CPC 37 and IFRS 1, the Company opted not to apply the requirements of CPC 15 – Business combinations retroactively in the transition to the International accounting standards. Accordingly, only business combinations occurring after January 1, 2009 reflect the requirements of this pronouncement.

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: September 30, 2010

 

 

- Deemed cost: CPC 37 allows the option to measure an item of property, plant and equipment at the deemed cost at the transition date, in accordance with Technical Interpretation ICPC 10 - Interpretation on the First Application to Property, Plant and Equipment and to Investment Property of Technical Pronouncements CPC 27, 28, 37 and 43. The Company opted to recognize the property, plant and equipment of the subsidiaries CPFL Sul Centrais and CPFL Geração at market value at the transition date.

- The estimates used in preparation of these financial statements at January 1, 2009 and December 31, 2009 are consistent with the estimates made on the same dates in accordance with the practices previously adopted in Brazil.

The impact of the transition to the international accounting practices on the shareholders’ equity at January 1, 2009 and December 31, 2009 and September 30, 2010 and the profit or loss for the period are described below.

 

5.1 Reconciliation of the adjustments and reclassifications on adoption of the new accounting practices:

 

a)  Shareholders’ equity as of January 1, 2009, December 31, 2009 and September 30, 2010:

 

 

 

 

Consolidated

 

Reference

 

September 30, 2010

 

December 31, 2009

 

01/01/2009

Previous equity

   

5,525,827

 

  5,082,942

 

  5,018,619

Adjustments

             

Reversal of regulatory assets and liabilities

5.3.2

 

57,718

 

  (7,871)

 

   (690,956)

Pension plan

5.3.7

 

   (288,200)

 

   (288,192)

 

   (294,939)

ICPC 01 - Concession agreements

5.3.3

 

  274,073

 

  185,026

 

  200,186

Property, plant and equipment - deemed cost

5.3.4

 

  933,767

 

  963,440

 

  1,002,991

Write-down of discount

5.3.8

 

12,828

 

  12,828

 

  12,828

Guarantees

5.3.8

 

  (33,932)

 

  (21,099)

 

  (17,832)

Public utility

5.3.5

 

  (65,258)

 

  (29,317)

 

  (28,868)

Depreciation rate

5.3.6

 

  (20,466)

 

  (27,288)

 

  -  

Other

5.3.8

 

8,673

 

4,533

 

  377

Dividend

5.3.8

 

  -  

 

  664,522

 

  614,642

Tax effects on the adjustments

   

   (302,456) 

 

   (269,087)

 

  (20,307)

Effects of adjustments on the Noncontrolling interests

   

14,142 

 

  (1,089)

 

  (4,058)

Parent company equity after application of the new practices

   

6,116,716 

 

  6,269,348

 

  5,792,683

Noncontrolling interests as a result of the change in consolidation practices

   

  194,694 

 

  181,301

 

  165,773

Effects of adjustments on Noncontrolling interests

   

  (14,142) 

 

1,089

 

4,058

Previous Noncontrolling interests

   

74,494 

 

  85,041

 

  88,332

Total equity after adoption of the new practices

   

6,371,762 

 

  6,536,779

 

  6,050,846

               

Equity of the controlling interests

   

6,116,716 

 

  6,269,348

 

  5,792,683

Noncontrolling interests

   

  255,046

 

  267,431

 

  258,163

 

b) Statement of income for the period ended in September 30, 2009 and 2010:

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: September 30, 2010

 

 

 

 

Consolidated

 

Reference

 

September 30, 2010

 

September 30, 2009

Previous net income

   

1,162,088

 

861,345

Adjustments

         

Reversal of regulatory assets and liabilities

5.3.2

 

65,590

 

486,850

Pension plan

5.3.7

 

9

 

56

ICPC 01 - Concession agreements

5.3.3

 

31,741

 

(3,029)

Property, plant and equipment - deemed cost

5.3.4

 

(29,673)

 

(29,660)

Guarantees

5.3.8

 

(12,833)

 

(15)

Public utility

5.3.5

 

(8,652)

 

604

Depreciation rate

5.3.6

 

(20,466)

 

(20,466)

Other

5.3.8

 

4,678

 

3,363

Tax effects

   

(14,339)

 

(178,541)

Effects of adjustments on the Noncontrolling interests

   

4,033 

 

2,286

Net parent company income after application of the new practices

   

1,182,176 

 

1,122,793

Noncontrolling interests as a result of the change in consolidation practices

   

13,400 

 

16,076

Effects of adjustments on the Noncontrolling interests

   

(4,033)

 

(2,286)

Previous Noncontrolling interests

   

6,871

 

8,295

Total net income after adoption of the new practices

   

1,198,414 

 

1,144,878  

 

 

 

c)     Statement of Cash Flow as of September 30, 2009 and 2010:

 

 

2010

 

3rd quarter

 

Nine month 2010

 

Previous

 

Consolidation

 

Adjustments

 

New practices

 

Previous

 

Consolidation

 

Adjustments

 

New practices

                               

Income including Social Contribution and Income tax

605,774  

 

8,906

 

(65,781)

 

548,899

 

1,816,928

 

20,423

 

31,200

 

1,868,551

Adjustments to income

314,004

 

7,267

 

4,524

 

325,795

 

790,519

 

25,171

 

(88,074)

 

727,616

Operating assets

(74,111)

 

(1,273)

 

6,056

 

(69,328)

 

(160,889)

 

(224)

 

(68,923)

 

(230,036)

Operating liabilities

(314,257)

 

(6,187)

 

59,194

 

(261,250)

 

(750,748)

 

(27,862)

 

113,007

 

(665,603)

Cash from operations

531,410

 

8,713

 

3,993

 

544,116

 

1,695,810

 

17,508

 

(12,790)

 

1,700,528

                               

Acquisitions of property, plant and equipment

(493,950) 

 

(955)

 

321,942

 

(172,963)

 

(1,201,843)

 

(2,017)

 

749,750

 

(454,110)

Additions of intangible assets

(26,297)

 

-  

 

(309,112)

 

(335,409)

 

(72,411)

 

(1)

 

(703,931)

 

(776,343)

Other

(6,496) 

 

-  

 

(16,825)

 

(23,321)

 

44,670

 

7

 

(47,829)

 

(3,152)

Cash from investments

(526,743)

 

(955)

 

(3,995) 

 

(531,693)

 

(1,229,584)

 

(2,011)

 

(2,010)

 

(1,233,605)

                               

Cash from financing

(244,835)

 

(4,739)

 

5

 

(249,569)

 

(804,470)

 

(24,199)

 

14,806

 

(813,863)

                               

Increase (decrease) in cash and cash equivalents

(240,168) 

 

3,019

 

4

 

(237,146)

 

(338,244)

 

(8,702)

 

7

 

(346,940)

Opening cash and cash equivalents balance

1,375,099  

 

2,347

 

-  

 

1,377,449

 

1,473,175

 

14,068

 

-  

 

1,487,243

Closing cash equivalents balance

1,134,931

 

5,366

 

4

 

1,140,304

 

1,134,931

 

5,366

 

7

 

1,140,304

 

 

 

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: September 30, 2010

 

 

 

 

2009

 

3rd quarter

 

Nine month 2010

 

Previous

 

Consolidation

 

Adjustments

 

New practices

 

Previous

 

Consolidation

 

Adjustments

 

New practices

                               

Income including Social Contribution and Income tax

  452,253

 

  9,487

 

  243,307

 

705,047

 

  1,356,653

 

  24,302

 

   400,966

 

   1,781,921

Adjustments to income

  291,835

 

  7,313

 

  (25,619)

 

273,529

 

  886,449

 

  21,370

 

   23,342

 

931,161

Operating assets

  116,630

 

   (2,111)

 

  (172,820)

 

(58,301)

 

  239,557

 

  (1,160)

 

(426,045)

 

  (187,648)

Operating liabilities

   (188,624)

 

   (7,721)

 

  (13,556)

 

  (209,901)

 

   (898,621)

 

  (23,412)

 

   11,157

 

  (910,876)

Cash from operations

  672,094

 

  6,968

 

31,312

 

710,374

 

  1,584,038

 

  21,100

 

  9,420

 

   1,614,558

                               

Acquisitions of property, plant and equipment

   (300,012)

 

   (653)

 

  176,554

 

  (124,112)

 

   (826,510)

 

  (8,127)

 

   445,047

 

  (389,591)

Additions of intangible assets

  (19,381)

 

   -  

 

  (172,971)

 

  (192,352)

 

  (51,153)

 

  (31)

 

(411,572)

 

  (462,756)

Other

  23,000

 

   (46)

 

  (14,364)

 

   8,590

 

  81,870

 

4,211

 

   (42,898)

 

   43,183

Cash from investments

   (296,393)

 

   (699)

 

  (10,781)

 

  (307,873)

 

   (795,793)

 

  (3,947)

 

   (9,423)

 

  (809,163)

                               

Cash from financing

   (427,029)

 

   (8,610)

 

  (20,530)

 

  (456,169)

 

   (846,364)

 

  (22,644)

 

   -  

 

  (869,008)

                               

Increase (decrease) in cash and cash equivalents

  (51,328)

 

   (2,341)

 

   (3)

 

(53,668)

 

  (58,119)

 

  (5,491)

 

  (3)

 

(63,613)

Opening cash and cash equivalents balance

  731,056

 

   17,453

 

-  

 

748,509

 

  737,847

 

  20,607

 

   -  

 

758,454

Closing cash equivalents balance

  679,728

 

   15,112

 

   (3)

 

694,841

 

  679,728

 

  15,116

 

  (3)

 

694,841

 

5.2 Reclassification of the amounts of the financial statements published previously:

Certain reclassifications were made in order to adjust presentation of the financial statements to the new accounting standard, with a view to facilitate understanding of the Company's operations. These reclassifications relate basically to (i) reclassification of balances of escrow deposits that were previously presented net of provisions for contingencies, (ii) transfer of the balance of tax credits or debits from current to non-current and consequent offset of the balances of assets and liabilities in compliance with the provisions of CPC 26 – Presentation of the financial statements and CPC 32 – Income taxes, and (iii) transfer of balances between accounts to open or group items that became or ceased relevant in presentation of the balance sheet, after adoption of new practices.

 

5.3 Nature of the adjustments on first application of the IFRS

5.3.1 Consolidation adjustments:

The concept of consolidation applied by the accounting practices applied previously differs from the concepts established by CPCs 36 and 19, which are based on the control criterion. According to CPC 36, control is the ability to preside over the financial and operational policies of the entity so as to obtain the rewards of its activities. CPC 19 establishes that joint control exists when the strategic and operating decisions in relation to the activity require a unanimous consensus of the parties sharing the control, thereby permitting proportionate consolidation of the subsidiary's financial statements.

Application of these concepts for the investments held by the Company resulted in a change in the consolidation criterion for the subsidiary CERAN, which is now fully consolidated. The adjustment recognized in this lines refers to the amounts of the difference between 100% and the interest held in the subsidiary, which were added line by line for consolidation purposes.

 

5.3.2  Reversal of regulatory assets and liabilities

To December 31, 2008, the electric energy concessionaires had regulatory asset balances referring to pre-payments made by the concessionaire in relation to the increase in the electric energy acquisition cost and expenditure on system charges, among others, which were received by tariff increase granted by the regulatory authority in the following years. They also had regulatory liability balances in relation to the decrease in these non-manageable costs to be returned to the consumers by a subsequent reduction in the tariff.

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: September 30, 2010

 

 

In accordance with the new practices (Note 3.13), these regulatory assets and liabilities cannot be recognized, as they do not meet the criteria for definition of assets and liabilities as established in the Framework for the Preparation and Presentation of Financial Statements.

The adjustment made refers to the reversal of the balances of regulatory assets and liabilities of the distribution subsidiaries. Note 32 shows a breakdown of these balances for the reporting dates presented.

 

5.3.3 ICPC 01 – Concession Agreements and adjustment for reconciliation of the intangible infrastructure asset

In accordance with the previous accounting practices, the whole concession infrastructure was accounted for as a fixed asset tied to the concession. ICPC 01 changes the method for recognizing the concessions if certain conditions are met, such as: (i) control over the activities to be provided, to whom the services are provided and at what price, and (ii) the reversal of the assets to the Granting Authority at the end of the concession.

These definitions having been met, the infrastructure of the distribution concessionaires has been segregated and rollforwarded since the construction date, complying with the provisions of the CPCs and IFRSs, so that the following was recognized in the financial statements (i) an intangible asset corresponding to the right to operate the concession by collecting from the users of the public utilities, and (ii) a financial asset corresponding to the unconditional contractual right to receive payment (compensation) by reversal of the assets at the end of the concession.

The financial concession asset was measured at fair value, based on the remuneration of the assets fixed by the regulatory body. The financial asset is classified as available-for-sale and is restated and amortized annually in accordance with the adjustment of its fair value, against the revaluation reserve in equity account.

The remaining amount was recognized in intangible assets and corresponds to the right to collect from consumers for the electricity energy distribution services, and amortized in accordance with the consumption pattern that reflects the estimated economic benefit to the end of the concession.

In accordance with ICPC01 and OCPC05, the distribution subsidiaries applied the concepts retroactively and reconstructed the infrastructure accounting base so that the costs used in formation of the intangible and financial asset are fully aligned with the provisions of the international accounting standards.

The adjustments to the lines of net income and services cost relate to recognition of the revenue from construction work of the distribution assets carried out by the concessionaires. For further details, see Note 3.1.

The following tables show the reclassifications and adjustments made in the distribution companies to comply with ICPC01, at January 1, 2009 and December 31, 2009.

 

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: September 30, 2010

 

 

 

 

January 1, 2009

 

Previous

 

Transfers between asset accounts

 

Adjustments to equity and income statement

 

New practices

Property, plant and equipment

3,308,975

 

(3,308,975)

 

-  

 

-  

Intangible assets

717,570

 

2,938,831

 

(11,912)

 

3,644,489

Financial assets

-  

 

370,144

 

212,097

 

582,241

               
               
 

December 31, 2009

 

Previous

 

Transfers between asset accounts

 

Adjustments to equity and income statement

 

New practices

Property, plant and equipment

3,579,720

 

(3,579,720)

 

-  

 

-  

Intangible assets

741,307

 

3,105,894

 

(15,177)

 

3,832,024

Financial assets

-  

 

473,826

 

200,204

 

674,030

 

 

5.3.4  Recognition of property, plant at equipment at deemed cost

As previously mentioned, the Company opted to apply the exemption foreseen in CPC 37 in respect of evaluation of property, plant and equipment, at the transition date, for the assets of the subsidiaries CPFL Sul Centrais and CPFL Geração, taking the fair value of the transition date as the deemed cost.

 

5.3.5 Public utilities

On signing their Concession Agreements, the subsidiary CERAN and the jointly-controlled ENERCAN, BAESA and Foz do Chapecó 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.

To December 31, 2008, the subsidiaries recognized the granting expenses in profit or loss in accordance with their maturities. Under the new practices, the Public Utilities liabilities, discounted to present value in accordance with the fundraising rates of each venture, have been recognized on the date of signing the contract, against an intangible asset related to the right to exploit the concession.

 

5.3.6 Depreciation over the concession term

The concession agreements of the subsidiary CERAN and the jointly-owned subsidiaries ENERCAN, BAESA and Foz do Chapecó are ruled by Decree 2003, of 1996. In view of all the legal disputes and potential conflicts between (i) the wording of the Concessions Law, (ii) interpretations of the decree itself, and (iii) the way in which the concession agreements were drawn up, the Company conservatively made the adjustment to the related depreciation rates so that the property, plant and equipment related to the basic project would be depreciated over the useful life of the asset, provided it is restricted to the term of the concession.

 

5.3.7 Pension plan

- Employee benefit (pension plan)

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: September 30, 2010

 

 

As previously mentioned, the Company opted to recognize all accumulated actuarial gains and losses at January 1, 2009. The adjustment of R$ 294,939 (R$ 194,660 net of tax effects) corresponds to recognition of the accumulated actuarial loss at the transition date, in accordance with CPC 37, for all the defined benefit plans of the subsidiaries CPFL Paulista, CPFL Piratininga, CPFL Geração and RGE.

 

5.3.8 Other adjustments:

- Write-down of negative goodwill

In accordance with CPC 15 “Business Combinations”, negative goodwill recognized in accordance with the previous accounting practices should be written down at the transition date for the international accounting practices.

An adjustment of R$ 12,828 (R$ 8,466 net of tax effects) was made in the Investment in relation to the write-down against retained earnings in the opening equity at the transition date.

 

- Guarantees provided

The accounting practices adopted in Brazil to December 31, 2008 contained no specific pronouncement in respect of the requirements for accounting for guarantees, and issuing of guarantees was therefore not recognized in the financial statements.

As a result of adoption of the pronouncements on recognition, measurement, presentation and disclosure of financial instruments (CPC 38, CPC 39 and CPC 40) from January 1, 2009, the Company now recognizes guarantees issued in excess of its participation in the joint ventures.

These guarantees are recognized initially at the fair value of the obligation on issue. The Company therefore recognized a liability in Other Payables corresponding to the fair value of the guarantee contracted on January 1,  2009 to a total amount of R$ 63,692, which will be amortized by a credit in finance income as the guarantee risk is discharged.

The balancing items of R$ 45,860 were recognized as Other assets. The amount corresponding to the Company's participation in each jointly-owned subsidiary and the amounts that will not be reimbursed by the other shareholders of the jointly-owned subsidiaries are recognized in profit or loss as finance expense to maturity. Any remaining amount is subject to reimbursement by the other shareholders of the jointly-owned subsidiaries. The net adjustment against retained earnings at January 1, 2009 was R$ 17,832 (R$11,769 net of tax effects).

 

- Dividend and Interest on shareholders’ equity

The practices adopted previously determined that retained earnings should be distributed at the end of the year. A provision was recognized for the amount corresponding to appropriation of dividends as proposed by management even if it was subject to approval by the AGM.

In accordance with current accounting practices, as mentioned in Note 3.9, provisions are only recognized for amounts in excess of the minimum mandatory dividend after approval in an AGM, at which point they meet the obligation criteria determined by CPC 25. The adjustment stated reflects a reversal of the provision for an additional dividend to be paid in excess of the mandatory dividend not yet approved in a Meeting of Shareholders.

 

 

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: September 30, 2010

 

 

- Revaluation reserve

The adjustments in this group relate to (i) recognition of the value-added of the cost allocated to the property, plant and equipment of the generators and (ii) the balancing item of the restatement of the financial concession asset.

 

- Non-controlling interest

In accordance with the new accounting practices (CPC 26), since January 1, 2009, the Company has classified the participation of non-controlling shareholders as part of the consolidated results and of equity in the consolidated financial statements.

To December 31, 2008, this amount was stated in liabilities in the consolidated balance sheet and the adjustment in this line corresponded to reclassification of the liability to equity.

The amount previously stated in net income is now stated as net income attributable to the Company and the portion of the noncontrolling interests as net income attributable to noncontrolling interests.

 

( 6 )       CASH AND CASH EQUIVALENTS

 

   

Parent Company

 

Consolidated

   

September 30, 2010

 

December 31, 2009

 

September 30, 2010

 

December 31, 2009

                 

Bank balances

 

4,076

 

5,029

 

92,151

 

313,104

                 

Short-term financial investments

                105

 

214,097

 

1,048,153

 

1,174,139

           

 

 

 

Total

 

4,181

 

219,126

 

1,140,304

 

1,487,243

 

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).

 

( 7 )     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 at September 30, 2010 and December 31, 2009:

 

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: September 30, 2010

 

 

 

                     
   

 Consolidated  

   

 Amounts  

 

 Past due

 

 Total  

   

 coming due

 

 until 90 dias

 

 > 90 dias

 

 September 30, 2010

 

 December 31, 2009

 Current  

                   

 Consumer classes

                   

    Residential

 

290,972

 

195,033

 

20,099

 

506,104

 

485,541

    Industrial

 

179,329

 

54,521

 

44,678

 

278,528

 

264,798

    Commercial

 

115,692

 

42,339

 

16,662

 

174,693

 

189,080

    Rural

 

36,260

 

7,435

 

1,627

 

45,322

 

32,671

    Public administration

 

30,823

 

5,823

 

1,117

 

37,763

 

60,943

   Public lighting

 

24,782

 

3,991

 

17,083

 

45,856

 

60,557

   Public utilities

 

41,600

 

5,571

 

993

 

48,164

 

35,380

 Billed  

 

719,458

 

314,713

 

102,259

 

1,136,430

 

1,128,970

  Unbilled

 

451,032

 

-  

 

-    

 

451,032

 

388,162

   Financing of Consumers' Debts

 

58,195

 

18,984

 

48,544

 

125,723

 

91,437

  Free energy

 

3,808

 

-  

 

-  

 

3,808

 

3,506

  CCEE transactions

 

37,638

 

-  

 

-  

 

37,638

 

14,722

  Concessionaires and Licensees

 

195,295

 

-  

 

-  

 

195,295

 

184,891

  Provision for doubtful accounts

 

-  

 

-  

 

(87,594)

 

(87,594)

 

(81,974)

  Other

 

27,776

 

2,617

 

622

 

31,015

 

23,144

 Total  

 

1,493,202

 

336,314

 

63,831

 

1,893,347

 

1,752,858

                     

 Non current

                   

   Financing of Consumers' Debts

 

128,621

 

-  

 

-  

 

128,621

 

140,893

  Free energy

 

-  

 

-  

 

-  

 

-  

 

38

  CCEE transactions

 

41,301

 

-  

 

-  

 

41,301

 

41,301

  Concessionaires and Licensees

 

10,664

 

-  

 

-  

 

10,664

 

42,655

 Total  

 

180,586

 

-  

 

-  

 

180,586

 

224,887

 

 

 

 

Allowance for doubtful accounts

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: September 30, 2010

 

 

 

 

Consolidated

 At December 31, 2009

(81,974)

 Provision recognized

(21,349)

 Recovery of revenue

9,576

    Write-off of accounts receivable provisioned

13,047

 At March 31, 2010

(80,700)

 Provision recognized

(32,113)

 Recovery of revenue

13,805

    Write-off of accounts receivable provisioned

13,098

 At June 30, 2010

(85,910)

 Provision recognized

(26,973)

 Recovery of revenue

19,418

    Write-off of accounts receivable provisioned

5,871

 At September 30, 2010

(87,594)

 

 

 

 

( 8 )     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 September 30, 2010, the current assets balance of the parent company is R$ 40,837 (R$ 39,253 as of December 31, 2009), and the noncurrent assets balance is R$ 45,148 (R$ 62,179 as of December 31, 2009).  The operation is subject to interest of 17.5% p.a., plus the annual variation of the IGP-M, and is amortized in monthly installments of amounts corresponding to the purchase of energy.

 

( 9 )     RECOVERABLE TAXES

 

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: September 30, 2010

 

 

 

   

Parent Company

 

Consolidated

   

September 30, 2010

 

December 31, 2009

 

September 30, 2010

 

December 31, 2009

Current

               

Prepayments of social contribution - Social Contribution

-  

 

-  

 

839

 

8,189

Prepayments of income tax - Income tax

 

-  

 

42

 

3,967

 

19,549

Income tax and social contribution to be offset

 

2,780

 

3,023

 

13,341

 

15,424

Withholding tax - IRRF

 

17,668

 

9,367

 

50,785

 

42,959

IRRF on interest on equity

 

15,223

 

31,867

 

15,223

 

33,095

ICMS to be offset

 

-  

 

-  

 

66,590

 

48,271

Social integration program - PIS

 

-  

 

-  

 

3,915

 

4,545

Contribution for Social Security financing- COFINS

 

43

 

-  

 

11,885

 

12,028

National Social Security Institute - INSS

 

-  

 

-  

 

1,005

 

1,115

Other

 

1

 

11

 

11,199

 

7,103

Total

 

35,715

 

44,310

 

178,749

 

192,278

                 

Noncurrent

               

Social contribution to be offset - Social Contribution

 

-  

 

-  

 

31,637

 

29,999

Income tax to be offset - Income tax

 

-  

 

-  

 

1,001

 

1,001

Social integration program - PIS

 

2,787

 

2,787

 

2,787

 

2,787

ICMS to be offset

 

-  

 

-  

 

94,128

 

74,212

Other

 

-  

 

-  

 

6,433

 

5,236

Total

 

2,787

 

2,787

 

135,986

 

113,235

                 

 

 

( 10 )  DEFERRED TAXES

 

10.1- Composition of the tax credits:

 

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: September 30, 2010

 

 

 

   

 Parent Company

 

 Consolidated  

   

 September 30, 2010

 

 December 31, 2009

 

 September 30, 2010

 

 December 31, 2009

                 

 Social contribution credit

               

 Tax loss carryforwards

 

40,393

 

  42,048

 

   46,317

 

52,174

 Tax benefit of merged goodwill

 

-  

 

  -  

 

177,528

 

191,184

 Temporarily non-deductible differences 

 

1,987

 

  833

 

(11,266)

 

(3,941)

 Subtotal  

 

42,380

 

  42,881

 

212,579

 

239,417

                 

 Income tax credit

               

 Tax losses

 

122,267

 

  128,553

 

126,062

 

132,471

 Tax benefit of merged goodwill

 

-  

 

  -  

 

597,728

 

641,757

 Temporarily non-deductible differences 

 

8,128

 

4,765

 

(31,249)

 

(11,081)

 Subtotal  

 

130,395

 

  133,318

 

692,541

 

763,147

                 

PIS and COFINS credit

               

Temporary non-deductible differences

 

-  

 

  -  

 

   (3,176)

 

   2,231

                 

 Total  

 

  172,775

 

  176,199

 

901,944

 

1,004,795

                 

 Total tax credit

 

  172,775

 

  176,199

 

   1,182,177

 

1,286,805

 Total tax debit

 

  -  

 

  -  

 

(280,233)

 

  (282,010)

 

 

 

 

10.2 - Tax Benefit on Merged Goodwill:

 

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: September 30, 2010

 

 

 

   

Consolidated

   

September 30, 2010

 

December 31, 2009

 

Social Contribution

 

Income tax

 

Social Contribution

 

Income tax

CPFL Paulista

 

  96,872

 

  269,089

 

  103,736

 

  288,152

CPFL Piratininga

 

  21,758

 

  74,659

 

  23,207

 

  79,630

RGE

 

  41,933

 

  173,171

 

  44,378

 

  183,269

CPFL Santa Cruz

 

4,764

 

  15,938

 

5,862

 

  18,435

CPFL Leste Paulista

 

3,003

 

8,227

 

3,451

 

9,586

CPFL Sul Paulista

 

4,399

 

  12,010

 

5,020

 

  13,943

CPFL Jaguari

 

2,633

 

7,219

 

3,027

 

8,411

CPFL Mococa

 

1,711

 

4,672

 

1,966

 

5,461

CPFL Geração

 

  -  

 

  31,502

 

  -  

 

  33,379

CPFL Serviços

 

  455

 

1,241

 

  537

 

1,491

Total

 

  177,528

 

  597,728

 

  191,184

 

  641,757

                 

 

The tax benefit on merged goodwill refers to the tax credit calculated on the merged goodwill on acquisition 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 that gave rise to it, in accordance with the projected net income of the subsidiaries during the remaining term of the concession, as shown in Note 14.

 

10.3 – Accumulated balances on temporary nondeductible differences:

 

 

   

Consolidated

   

September 30, 2010

 

December 31, 2009

   

Social Contribution

 

Income tax

 

PIS/COFINS

 

Social Contribution

 

Income tax

 

PIS/COFINS

Temporary non-deductible differences:

                       

Provision for contingencies

 

20,867

 

58,202

 

   -  

 

21,884

 

   60,454

 

   -  

Private pension fund

 

3,318

 

10,216

 

   -  

 

4,097

 

   12,377

 

   -  

Allowance for doubtful accounts

 

8,886

 

20,784

 

   -  

 

7,389

 

   20,927

 

   -  

Free energy provision

 

3,594

 

   9,980

 

   -  

 

2,410

 

   6,694

 

   -  

Research and Development and Energy Efficiency Programs

 

16,021

 

44,496

 

   -  

 

16,736

 

   46,477

 

   -  

Profit-sharing

 

876

 

   5,459

 

   -  

 

1,986

 

   6,267

 

   -  

Depreciation rate difference - Revaluation

 

9,462

 

26,282

 

   -  

 

9,898

 

   27,494

 

   -  

Financial instruments (IFRS / CPC)

 

3,054

 

   8,483

 

   -  

 

832

 

   2,255

 

   -  

Recognition of the concession - adjustment of intangible assets (IFRS / CPC)

 

5,873

 

16,315

 

   -  

 

(4,025)

 

(11,183)

 

   -  

Reversal of regulatory assets and liabilities (IFRS / CPC)

 

(4,714)

 

(13,095)

 

   (4,467)

 

1,561

 

   4,337

 

  1,607

Actuarial losses on the transition of accounting practices (IFRS/CPC)

 

25,938

 

72,050

 

   -  

 

26,042

 

   72,340

 

   -  

Other adjustments changes in practices

 

(1,412)

 

(5,375)

 

   868

 

13

 

   36

 

   473

Other

 

3,835

 

11,798

 

   423

 

6,387

 

   15,860

 

   151

                         

Temporarily non-deductible differences - comprehensive income:

                       

Recognition of the concession - financial adjustment  (IFRS / CPC)

 

  (24,667)

 

(68,518)

 

   -  

 

  (18,019)

 

(50,051)

 

   -  

Property, plant and equipment  - deemed cost adjustments (IFRS/CPC)

 

  (82,197)

 

  (228,325)

 

   -  

 

  (81,132)

 

  (225,365)

 

   -  

                         

Total

 

  (11,266)

 

(31,249)

 

   (3,176)

 

(3,941)

 

(11,081)

 

  2,231

                         

 

 

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

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: September 30, 2010

 

 

 

 

   

Parent Company

 

Parent Company

   

3rd quarter 2010

 

Nine month 2010

 

3rd quarter 2009

 

Nine month 2009

   

Social Contribution

 

Income tax

 

Social Contribution

 

Income tax

 

Social Contribution

 

Income tax

 

Social Contribution

 

Income tax

Income before taxes

 

  341,994

 

  341,994

 

  1,204,111

 

  1,204,111

 

  447,098

 

  447,098

 

  1,144,610

 

  1,144,610

Adjustments to reflect effective rate:

                               

 - Equity in subsidiaries

 

   (383,620)

 

   (383,620)

 

  (1,341,540)

 

  (1,341,540)

 

   (487,990)

 

   (487,990)

 

  (1,291,243)

 

  (1,291,243)

 - Amortization of intangible asset acquired

 

  28,945

 

  36,255

 

  86,836

 

  108,495

 

  30,330

 

  37,187

 

  90,990

 

  111,561

 - Other permanent additions, net

 

  (172)

 

3,807

 

  400

 

2,976

 

  626

 

  574

 

2,573

 

2,543

 - Receita JSCP

 

  -  

 

  -  

 

  98,669

 

  98,669

 

  -  

 

  -  

 

  102,134

 

  102,134

Calculation base

 

  (12,853)

 

  (1,564)

 

  48,476

 

  72,711

 

  (9,936)

 

  (3,131)

 

  49,064

 

  69,605

Statutory rate

 

9%

 

25%

 

9%

 

25%

 

9%

 

25%

 

9%

 

25%

Tax debit result

 

1,157

 

  391

 

  (4,363)

 

  (18,178)

 

  894

 

  783

 

  (4,416)

 

  (17,401)

 -  Tax credit allocated

 

  -  

 

  606

     

  606

 

  -  

 

(9)

     

  -  

Total

 

1,157

 

  997

 

  (4,363)

 

  (17,572)

 

  894

 

  774

 

  (4,416)

 

  (17,401)

                                 

Current

 

  499

 

  (203)

 

  (3,862)

 

  (14,647)

 

  652

 

  361

 

  (3,046)

 

  (14,522)

Deferred

 

  658

 

1,200

 

  (501)

 

  (2,925)

 

  242

 

  413

 

  (1,370)

 

  (2,879)

                                 
                                 
                                 
   

Consolidated

 

Consolidated

   

3rd quarter 2010

 

Nine month 2010

 

3rd quarter 2009

 

Nine month 2009

   

Social Contribution

 

Income tax

 

Social Contribution

 

Income tax

 

Social Contribution

 

Income tax

 

Social Contribution

 

Income tax

Income before taxes

 

  548,899

 

  548,899

 

  1,868,551

 

  1,868,551

 

  705,047

 

  705,047

 

  1,781,921

 

  1,781,921

Adjustments to reflect effective rate:

                               

 - Amortization of intangible asset acquired

 

  28,945

 

  36,478

 

  86,836

 

  109,164

 

  30,330

 

  37,585

 

  90,990

 

  112,756

 - Realization CMC

 

2,449

 

  -  

 

8,590

 

  -  

 

2,172

 

  -  

 

9,251

 

  -  

 - Effect of presumed profit system

 

  (12,490)

 

  (14,176)

 

  (21,312)

 

  (24,792)

 

  (10,513)

 

  (12,301)

 

  (30,328)

 

  (34,670)

 - Other permanent additions/(eliminations), net

 

4,840

 

  (752)

 

4,438

 

  (19,081)

 

  14,463

 

  (11,420)

 

  23,947

 

  (4,733)

Calculation base

 

  572,643

 

  570,449

 

  1,947,103

 

  1,933,842

 

  741,499

 

  718,911

 

  1,875,781

 

  1,855,274

Statutory rate

 

9%

 

25%

 

9%

 

25%

 

9%

 

25%

 

9%

 

25%

Tax credit result

 

  (51,538)

 

   (142,612)

 

   (175,239)

 

   (483,461)

 

  (66,735)

 

   (179,728)

 

   (168,820)

 

   (463,819)

 -  Tax credit allocated

 

  (1,103)

 

  (2,865)

 

  (3,077)

 

  (8,360)

 

  (295)

 

  (605)

 

  (1,347)

 

  (3,057)

Total

 

  (52,641)

 

   (145,477)

 

   (178,316)

 

   (491,821)

 

  (67,030)

 

   (180,333)

 

   (170,167)

 

   (466,876)

                                 

Current

 

  (53,610)

 

   (150,069)

 

   (156,746)

 

   (435,890)

 

  (28,528)

 

  (73,262)

 

  (97,676)

 

   (263,406)

Deferred

 

  969

 

4,592

 

  (21,570)

 

  (55,931)

 

  (38,502)

 

   (107,071)

 

  (72,491)

 

   (203,470)

 

 

( 11 )  FINANCIAL ASSET OF CONCESSION

 

 

Consolidated

At December 31, 2009

  674,029

Additions

12,222

Marked to market

19,352

Disposal

   (30)

At March 31, 2010

  705,573

Additions

37,163

Marked to market

20,234

Disposal

   (71)

At June 30, 2010

  762,899

Additions

46,546

Marked to market

16,370

Disposal

  (349)

At September 30, 2010

  825,466

   

 

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: September 30, 2010

 

 

The balance refers to the fair value of the financial asset in relation to the right established in the concession agreements of the energy distributors to receive payment on reversal of the assets at the end of the concession.

Under the current tariff model, interest on the asset is recognized in profit or loss on billing of the consumers and realized on receipt of the electric energy bills. The difference in relation to the adjustment to market value is recognized against the revaluation reserve in equity.

 

 

( 12 )  OTHER CREDITS

 

   

Consolidated

   

Current

 

Noncurrent

   

September 30, 2010

 

December 31, 2009

 

September 30, 2010

 

December 31, 2009

Receivables from CESP

 

  -  

 

8,923

 

  -  

 

  -  

Receivables from BAESA's shareholders

 

  17,425

 

  15,503

 

3,272

 

  15,503

Advances - Fundação CESP

 

8,290

 

6,299

 

  -  

 

  -  

Advances to suppliers

 

  13,158

 

6,134

 

  -  

 

  -  

Pledges, funds and tied deposits

 

3,197  

 

1,804

 

  75,982

 

  99,762

Fund tied to foreign currency loans

 

  -    

 

  -  

 

  21,578

 

  19,148

Orders in progress

 

  10,753

 

4,484

 

  -  

 

  -  

Services rendered to third parties

 

  59,755  

 

  48,845

 

  -  

 

  -  

Reimbursement RGR

 

4,537

 

5,504

 

1,611

 

1,611

Advance energy purchase agreements

 

  12,513

 

  13,989

 

  69,048

 

  61,847

Prepaid expenses

 

  42,168

 

  14,351

 

4,045

 

6,573

Collection agreements

 

  27,131

 

4,263

 

  -  

 

  -  

Other

 

  29,237

 

  26,461

 

  106,759

 

  32,585

Total

 

  228,164

 

  156,560

 

  282,295

 

  237,029

                 

 

 

( 13 )    INVESTMENTS 

 

   

Parent Company

   

September 30, 2010

 

December 31, 2009

Permanent equity interests - equity method

       

By equity method of the subsidiary

 

   4,348,327  

 

4,493,465

Value-added of assets, net

 

   1,431,115  

 

1,508,764

Goodwill

 

  6,055

 

   4,048

         

Total

 

   5,785,497

 

6,006,277

         

 

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: September 30, 2010

 

 

13.1 - Permanent Equity Interests – equity method:

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

 

       

September 30, 2010

 

September 30, 2010

 

December 31, 2009

 

3rd quarter 2010

 

3rd quarter 2009

Investment

 

Number of shares held (thousands)

 

Capital

 

Shareholders' Equity

 

Profit or loss for the year

 

 Shareholders Equity  Interest

 

Equity in Subsidiaries

  CPFL Paulista

 

72,650

 

109,810

 

653,436

 

   545,265

 

653,436

 

689,479

 

  125,155

 

224,360

  CPFL Piratininga

 

53,031,259

 

70,587

 

314,505

 

   221,130

 

314,505

 

278,139

 

  61,067

 

66,475

  RGE

 

807,168

 

867,604

 

1,133,844

 

   189,808

 

1,133,844

 

1,147,092

 

  73,414

 

36,671

  CPFL Santa Cruz

 

371,772

 

45,330

 

96,927

 

   14,838

 

96,927

 

110,228

 

3,320

 

   8,933

  CPFL Leste Paulista

 

895,373

 

12,217

 

64,999

 

   11,668

 

64,999

 

64,713

 

3,481

 

   3,931

  CPFL Jaguari

 

211,844

 

   5,716

 

39,993

 

  8,500

 

39,993

 

39,802

 

2,588

 

   1,585

  CPFL Sul Paulista

 

445,317

 

    10,000  

 

57,631

 

   11,627

 

57,631

 

53,208

 

3,847

 

   3,560

  CPFL Mococa

 

116,989

 

   9,850

 

34,810

 

  6,985

 

34,810

 

33,566

 

1,931

 

   2,448

  CPFL Geração

 

  205,487,716

 

1,039,618

 

1,845,667

 

   164,268

 

1,845,667

 

1,913,900

 

  51,729

 

76,000

  CPFL Brasil

 

   2,999

 

   2,999

 

55,025

 

   153,852

 

55,025

 

114,116

 

  49,953

 

61,848

  CPFL Atende (*)

 

  1

 

  1

 

(1,158)

 

   101

 

(1,158)

 

(1,259)

 

  734

 

  6

  CPFL Planalto (*)

 

630

 

630

 

   3,539

 

  8,301

 

   3,539

 

   4,782

 

2,907

 

   1,603

  CPFL Serviços

 

1,443,141

 

   5,800

 

   3,498

 

  1,036

 

   3,498

 

   2,351

 

1,391

 

(1,950)

  CPFL Jaguariuna

 

189,620

 

   2,481

 

   1,818

 

   (362)

 

   1,818

 

   2,180

 

  (250)

 

  6

  CPFL Jaguari Geração

 

40,072

 

40,108

 

43,793

 

  5,909

 

43,793

 

41,168

 

2,353

 

   2,514

Total

                 

4,348,327

 

4,493,465

 

  383,620

 

    487,990  

                                 

(*) Number of quotes

                               

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

     

At September 30, 2010, the Parent Company had 100%  of all subsidiaries capital

       

 

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.

 

13.2 – Interest on Shareholders’ Equity and Dividends Receivable:

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: September 30, 2010

 

 

 

 

 

Parent Company

 

 

Dividend

 

Interest on shareholders' equity

 

Total

Subsidiaries

 

September 30, 2010

 

December 31, 2009

 

September 30, 2010

 

December 31, 2009

 

September 30, 2010

 

December 31, 2009

   CPFL Paulista

 

237,000

 

  -  

 

  -  

 

  -  

 

  237,000

 

   -  

   CPFL Piratininga

 

   60,000

 

  132,706

 

  -  

 

6,123

 

60,000

 

   138,829

   RGE

 

    -  

 

41,002

 

  -  

 

  -  

 

-  

 

   41,002

   CPFL Santa Cruz

 

   12,000

 

7,000

 

  -  

 

  -  

 

12,000

 

  7,000

   CPFL Geração

 

   85,000

 

  -  

 

  -  

 

  -  

 

85,000

 

   -  

   CPFL Brasil

 

   75,000

 

  -  

 

  -  

 

  -  

 

75,000

 

   -  

   CPFL Leste Paulista

 

-  

 

3,582

 

  -  

 

1,375

 

-  

 

  4,957

   CPFL Sul Paulista

 

-  

 

    4,800  

 

  -  

 

1,036

 

-  

 

  5,836

   CPFL Mococa

 

   3,000

 

500

 

  -  

 

  -  

 

   3,000

 

   500

   CPFL Serviços

 

   3,648

 

3,648

 

  -  

 

     -    

 

   3,648

 

  3,648

 

 

475,648

 

  193,238

 

  -  

 

8,534

 

  475,648

 

   201,772

 

 

 

 

 

 

             

 

 

In this quarter, the Company received from the amount of R$ 754,785 related to dividend and interest on shareholders’ equity declared in 2009 and proposed in the first 6 months of 2010

 

13.3 – Added value on assets and goodwill

Added value on assets refers mainly to the right to exploit the concession acquired through business combinations. The goodwill relates mainly to the acquisition of investments, based on projections of future income.

The amounts have been reclassified to intangible assets in the consolidated financial statements.

 

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: September 30, 2010

 

 

 

( 14 )  PROPERTY, PLANT AND EQUIPMENT

 

 

   

 Consolidated  

   

 September 30, 2010

 

December 31, 2009

   

 Historic cost

 

 Accumulated depreciation

 

 Net Value

 

 Net Value

         

In Service

               

 - Generation

 

4,536,392

 

(696,879)

 

3,839,513

 

3,896,161

 - Commercialization

 

22,508

 

(7,947)

 

14,561

 

12,490

 - Administration

 

2,239

 

(1,044)

 

1,295

 

934

   

4,561,239

 

(705,870)

 

3,855,369

 

3,909,585

                 

In Progress

               

 - Generation

 

1,689,402

 

-  

 

1,689,402

 

1,289,779

 - Commercialization

 

57,531

 

-  

 

57,531

 

13,002

 - Administration

 

881

 

-  

 

881

 

673

   

1,747,814

 

-  

 

1,747,814

 

1,303,454

Total

         

5,603,183

 

5,213,039

                 

 

 

As mentioned in item 3.4, assets not acquired recently were measured at deemed cost at the transition date, while the assets of recently-built plants are recognized at cost, which in Management’s opinion, approximates market value. Property, plant and equipment were valuated to their market values based on an appraisal carried out by an independent engineering company specializing in equity valuation. Added value of R$ 1,002,991 was determined at January 1, 2009 and recognized in the revaluation reserve in equity.

 

There were no changes on depreciation rates for the period presented.

 

Construction in progress - the consolidated balance mainly refers to work in progress of the operating subsidiaries and/or those under development, particularly the EPASA and Foz do Chapecó generation projects, with total property, plant and equipment of R$ 2,496,875 and R$ 515,444, respectively, (R$ 1,273,406 and R$ 262,876 in proportion to the participation of the subsidiary CPFL Geração). The greatest additions to property, plant and equipment in progress refer to construction of Foz do Chapecó, EPASA and wind-power Santa Clara plants, which contributed to increases of R$ 228,865, R$ 76,736 and R$ 68,993, respectively. Write-offs during the quarter were not significant.

 

In conformity with CPC 20, the interest on the loans taken out by the projects to finance the construction is capitalized during the construction phase. For further details of construction assets and fund raising costs, see notes 1, 16 and 17.

 

 

 

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: September 30, 2010

 

 

( 15 )  INTANGIBLE ASSETS

 

 

 

Consolidated

 

September 30, 2010

 

December 31, 2009

 

Historic cost

 

Accumulated amortization

 

Net value

 

Net value

Goodwill

6,055

 

-  

 

6,055

 

4,048

Intangible assets - Concession rights:

             

   Acquired in business combinations

3,726,246

 

(1,646,919)

 

2,079,327

 

2,185,780

   Distribution infrastructure - operational

8,001,387

 

(4,827,293)

 

3,174,094

 

2,879,341

   Distribution infrastructure - in progress

652,976

 

-  

 

652,976

 

521,147

   Public utility

405,611

 

(6,515)

 

399,096

 

392,221

Other intangible assets

153,255

 

(47,909)

 

105,346

 

80,564

Total intangible assets

12,945,530

 

(6,528,636)

 

6,416,894

 

6,063,101

               

Historic cost

       

12,945,530

 

12,209,040

Accumulated amortization

       

(6,528,636)

 

(6,145,939)

         

6,416,894

 

6,063,101

 

 

 

The main additions during this semester refer to construction of distribution infrastructure. Distribution infrastructure in progress increased R$ 361,823. However, transfers of R$ 285,435 to the distribution infrastructure in service account and R$ 43,641 to concession financial assets contributed towards reducing the open balance as at September, 2010. The other changes basically refer to amounts for amortization for the quarter, which continues to be consistent with the practices described in Note 3.

 

 

 

 

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: September 30, 2010

 

 

 

( 16 )  INTEREST ON DEBTS, LOANS AND FINANCING

 

 

   

Consolidated

   

September 30, 2010

 

December 31, 2009

   

Interest - Current and Noncurrent

 

Principal

 

Total

 

Interest - Current and Noncurrent

 

Principal

 

Total

     

Current

 

Noncurrent

     

Current

 

Noncurrent

 

At cost

                               

LOCAL CURRENCY

                               

 BNDES - Power Increases

 

  57

 

  5,680

 

  9,437

 

  15,174

 

86

 

   7,321

 

  13,538

 

  20,945

 BNDES - Investment

 

   11,940

 

327,802

 

   2,726,259

 

  3,066,001

 

  11,204

 

362,902

 

  2,476,242

 

  2,850,348

 BNDES - Other

 

   725

 

   43,988

 

   119,086

 

  163,799

 

49

 

661

 

5,628

 

6,338

 Furnas Centrais Elétricas S.A.

 

   -  

 

   -  

 

   -  

 

  -  

 

  379

 

46,028

 

  -  

 

  46,407

 Financial Institutions

 

   52,418

 

144,079

 

   1,204,728

 

  1,401,225

 

  10,408

 

194,766

 

  164,054

 

  369,228

 Other 

 

   787

 

   26,221

 

   51,304

 

  78,312

 

  554

 

22,174

 

  30,693

 

  53,421

 Subtotal 

 

   65,927

 

547,770

 

   4,110,814

 

  4,724,511

 

  22,680

 

633,852

 

  2,690,155

 

  3,346,687

                                 

FOREIGN CURRENCY

                               
                                 

 IDB 

 

   247

 

  3,789

 

   47,120

 

  51,156

 

  260

 

   3,652

 

  51,379

 

  55,291

 Financial Institutions

 

  1,017

 

  3,814

 

   43,341

 

  48,172

 

  541

 

   3,920

 

  46,503

 

  50,964

 Subtotal 

 

  1,264

 

  7,603

 

   90,461

 

  99,328

 

  801

 

   7,572

 

  97,882

 

  106,255

                                 

Total at cost

 

   67,191

 

555,373

 

   4,201,275

 

  4,823,839

 

  23,481

 

641,424

 

  2,788,037

 

  3,452,942

                                 

At Fair Value

                               

FOREIGN CURRENCY

                               

 Financial Institutions

 

  7,126

 

   -  

 

   413,492

 

  420,618

 

  66,608

 

87,490

 

  941,005

 

  1,095,103

Total

 

  7,126

 

   -  

 

   413,492

 

  420,618

 

  66,608

 

87,490

 

  941,005

 

  1,095,103

                                 

Total

 

   74,317

 

555,373

 

   4,614,767

 

  5,244,457

 

  90,089

 

728,914

 

  3,729,042

 

  4,548,045

                                 

 

 

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: September 30, 2010

 

 

 

   

Consolidated

           

At cost

 

September 30, 2010

 

December 31, 2009

 

 

Remuneration

 

Amortization

 

Collateral

Local currency

                     

 BNDES - Power Increases

                     

   CPFL Geração

 

  15,174

 

  20,847

   

TJLP + 3.1% to 4.3%

 

36 to 84 monthly installments from February 2003 to December 2008

 

Guarantee of CPFL Paulista and CPFL Energia

   CPFL Geração

 

  -  

 

98

   

 UMBND + 4.0% 

 

 72 monthly installments from September 2004

 

Guarantee of CPFL Paulista and CPFL Energia

   

 

                 

 BNDES - Investment

 

 

                 

CPFL Paulista - FINEM II

 

  15,909

 

  63,655

   

TJLP + 5.4%

 

48 monthly installments from January 2007

 

Guarantee of CPFL Energia and receivables

CPFL Paulista - FINEM III

 

  87,414

 

   107,614

   

TJLP + 3.3%

 

72 monthly installments from January 2008

 

Guarantee of CPFL Energia and receivables

CPFL Paulista - FINEM IV

 

   272,540

 

   237,325

   

TJLP + 3.28% to 3.4%

 

60 monthly installments from January 2010

 

Guarantee of CPFL Energia and receivables

CPFL Paulista - FINAME

 

6,821

 

  -  

   

Fixed rate 4.5%

 

96 monthly installments from January 2012

 

Guarantee of CPFL Energia

CPFL Piratininga - FINEM I

 

5,924

 

  23,702

   

TJLP + 5.4%

 

48 monthly installments from January 2007

 

Guarantee of CPFL Energia and receivables

CPFL Piratininga - FINEM II

 

  51,928

 

  63,927

 

 

TJLP + 3.3%

 

72 monthly installments from January 2008

 

Guarantee of CPFL Energia and receivables

CPFL Piratininga - FINEM III

 

   113,600

 

   104,990

 

 

TJLP + 3.28% to 3.4%

 

60 monthly installments from January 2010

 

Guarantee of CPFL Energia and receivables

CPFL Piratininga - FINAME

 

  16,921

 

  -  

 

 

Fixed rate 4.5%

 

96 monthly installments from January 2012

 

Guarantee of CPFL Energia

RGE - FINEM III

 

  50,450

 

  67,285

 

 

TJLP + 5.0%

 

60 monthly installments from January 2008

 

Receivables / Reserve account

RGE - FINEM IV

 

   173,486

 

   173,424

 

 

TJLP + 3.28 to 3.4%

 

60 monthly installments from January 2010

 

Receivables / Guarantee of CPFL Energia

RGE - FINAME

 

3,409

 

  -  

 

 

Fixed rate 4.5%

 

96 monthly installments from January 2012

 

Guarantee of CPFL Energia

CPFL Santa Cruz

 

9,346

 

2,255

 

 

TJLP + 2.90%

 

54 monthly installments from December 2010

 

Guarantee of CPFL Energia

CPFL Mococa

 

3,206

 

3,018

 

 

TJLP + 2.9%

 

54 monthly installments from January 2011

 

Guarantee of CPFL Energia and receivables

CPFL Jaguari

 

2,499

 

2,498

 

 

TJLP + 2.9%

 

54 monthly installments from December 2010

 

Guarantee of CPFL Energia and receivables

CPFL Leste Paulista

 

3,262

 

2,024

 

 

TJLP + 2.9%

 

54 monthly installments from June 2011

 

Guarantee of CPFL Energia and receivables

CPFL Sul Paulista

 

4,736

 

3,350

 

 

TJLP + 2.9%

 

54 monthly installments from June 2011

 

Guarantee of CPFL Energia and receivables

BAESA

 

   124,241

 

   136,045

 

 

TJLP + 3.125% to 4.125%

 

144 monthly installments from September 2006

 

Pledge of shares, credit rights and revenue

BAESA

 

  25,331

 

  28,058

 

 

UMBND + 3.125%  (1)

 

144 monthly installments from November 2006

 

Pledge of shares, credit rights and revenue

ENERCAN

 

   282,220

 

   307,203

 

 

TJLP + 4%

 

144 monthly installments from April 2007

 

Letters of Credit

ENERCAN

 

  16,669

 

 18,557  

 

 

UMBND + 4%

 

144 monthly installments from April 2007

 

Letters of Credit

CERAN

 

   391,296

 

   417,440

 

 

TJLP + 5%

 

168 monthly installments from December 2005

 

Guarantee of CPFL Energia

CERAN

 

  56,285

 

  60,981

 

 

UMBND + 5%  (1)

 

168 monthly installments from February 2006

 

Guarantee of CPFL Energia

CERAN

 

   178,315

 

   189,283  

 

 

TJLP + 3.69%  (Average of percentage)

 

168 monthly installments from November 2008

 

Guarantee of CPFL Energia

Foz do Chapecó

 

   975,131

 

   792,209

 

 

TJLP + 2.49% to 2.95%

 

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 - FINEM

 

  37,614

 

  15,248

 

 

TJLP + 1.9%

 

144 monthly installments from June 2011

 

Trust property, credit rights and guarantee of CPFL Energia

CPFL Bioenergia - FINAME

 

  38,378

 

  30,257

 

 

Fixed rate 4.5%

 

102 monthly installments from June 2011

 

Trust property, credit rights and guarantee of CPFL Energia

EPASA - BNB

 

  89,126

 

  -  

 

 

Fixed rate 10%

 

132 monthly installments from January 2013

 

Guarantee of CPFL Energia

 

 

 

 

 

 

 

 

 

   

 

BNDES - Other

 

 

 

 

 

 

 

 

   

 

CPFL Brasil - Purchase of assets

 

6,448  

 

6,338

 

 

TJLP + from 1.94% to 2.5%

 

36 monthly installments from May 2009

 

Linked to the asset acquired

CPFL Piratininga - Working capital

 

  53,030

 

  -  

 

 

TJLP + 5.0%

 

32 monthly installments from February 2011

 

 No guarantee

   CPFL Geração - FINEM - Capital de Giro

 

  51,837

 

  -  

 

 

TJLP + 4.95%

 

24 monthly installments from February 2011

 

Guarantee of CPFL Energia

   CPFL Geração - FINAME - Capital de Giro

 

  52,484

 

  -  

 

 

TJLP + 4.95%  (3)

 

23 monthly installments from February 2011

 

Guarantee of CPFL Energia

 

 

 

 

 

 

 

 

 

   

 

 Furnas Centrais Elétricas S.A.

 

 

 

 

 

 

 

 

   

 

  CPFL Geração

 

  -  

 

  46,407

 

 

IGP-M + 10%  (2)

 

24 monthly installments from June 2008

 

Energy produced by plant

 

 

 

 

 

 

 

 

 

   

 

 Financial Institution

 

 

 

 

 

 

 

 

   

 

CPFL Paulista

 

 

 

 

 

 

 

 

   

 

   Banco do Brasil - Law 8727

 

  36,014

 

  39,314

 

 

IGP-M + 7.42%

 

240 monthly installments from May 1994

 

Receivables

   Banco do Brasil

 

   107,593

 

  -  

 

 

107% of CDI

 

1 installment in April 2015

 

Guarantee of CPFL Energia

Banco do Brasil-Crédito Rural (*)

 

   194,303

 

  -  

 

 

98.50% of CDI

 

4 annual installments from July 2012

 

Guarantee of CPFL Energia

CPFL Piratininga

 

 

 

 

 

 

 

 

   

 

Banco Alfa

 

  -  

 

  50,017

 

 

105.1% of CDI

 

1 installment in April 2010

 

 No guarantee

Banco do Brasil - Crédito Rural (*)

 

  17,871

 

  -  

 

 

98.5% of CDI

 

4 annual installments from July 2012

 

Guarantee of CPFL Energia

RGE

 

 

 

 

 

 

 

 

   

 

Banco do Brasil - Crédito Rural (*)

 

   230,479

 

  -  

 

 

98.5% of CDI

 

2 and 4 annual installments from July 2012

 

Guarantee of CPFL Energia

CPFL Brasil

 

 

 

 

 

 

 

 

   

 

FINEP

 

3,682

 

  -  

 

 

5% Pré-fixada

 

81 monthly installments from August 2011

 

Recebíveis

CPFL Santa Cruz

 

 

 

 

 

 

 

 

   

 

HSBC

 

  43,958

 

  40,747

 

 

CDI + 1.10%

 

1 installment in June 2011

 

Guarantee of CPFL Energia

Banco do Brasil - Crédito Rural (*)

 

  16,182

 

  -  

 

 

98.5% of CDI

 

2 annual installments from July 2012

 

Guarantee of CPFL Energia

CPFL Sul Paulista

 

 

 

 

 

 

 

 

   

 

Banco do Brasil - Crédito Rural (*)

 

  10,013

 

  -  

 

 

98.5% of CDI

 

2 annual installments from July 2012

 

Guarantee of CPFL Energia

CPFL Leste Paulista

 

 

 

 

 

 

 

 

   

 

Banco do Brasil - Crédito Rural (*)

 

  16,637

 

  -  

 

 

98.5% of CDI

 

2 annual installments from July 2012

 

Guarantee of CPFL Energia

CPFL Mococa

 

  -  

 

 

 

 

 

 

   

 

Banco do Brasil - Crédito Rural (*)

 

8,394

 

  -  

 

 

98.5% of CDI

 

2 annual installments from July 2012

 

Guarantee of CPFL Energia

CPFL Jaguari

 

 

 

 

 

 

 

 

   

 

Banco do Brasil - Crédito Rural (*)

 

1,769

 

 -    

 

 

98.5% of CDI

 

2 annual installments from July 2012

 

Guarantee of CPFL Energia

CPFL Geração

 

 

 

 

 

 

 

 

   

 

   Banco Itaú  BBA

 

   100,639

 

   102,750

 

 

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 do Brasil

 

   643,603

 

  -  

 

 

107.0% of CDI

 

1 installment in April 2015

 

Guarantee of CPFL Energia

   Banco Alfa

 

  -  

 

 

 

 

105.1% of CDI

 

1 installment in April 2010

 

Guarantee of CPFL Energia

CERAN

 

 

 

 

 

 

 

 

   

 

   Banco Bradesco

 

8,078

 

  36,915

 

 

CDI + 2%

 

24 monthly installments from November 2008

 

 No guarantee

   Banco Bradesco

 

  15,004

 

  -  

 

 

CDI + 1.75%

 

1 installment in April 2012

 

Não existem garantias

   

 

               

 

Other

 

 

               

 

Eletrobrás

 

 

               

 

CPFL Paulista

 

6,114

 

8,648

   

RGR + 6.0% to 9.0% 

 

Monthly installments until July 2016

 

Receivables and Notas Promissórias

CPFL Piratininga

 

1,048

 

1,415

   

RGR + 6%

 

Monthly installments until July 2016

 

Receivables and Notas Promissórias

RGE

 

  18,619

 

  12,095

   

RGR + 6%

 

Monthly installments until June 2020

 

Receivables and Notas Promissórias

CPFL Santa Cruz

 

4,125

 

4,660

   

RGR + 6%

 

Monthly installments until April 2018

 

Receivables and Notas Promissórias

CPFL Leste Paulista

 

1,127

 

1,011

   

RGR + 6%

 

Monthly installments until February 2022

 

Receivables and Notas Promissórias

CPFL Sul Paulista

 

1,896

 

1,779

   

RGR + 6%

 

Monthly installments until July 2018

 

Receivables and Notas Promissórias

CPFL Jaguari

 

  113

 

31

   

RGR + 6%

 

Monthly installments until May 2017

 

Receivables and Notas Promissórias

CPFL Mococa

 

  424

 

  285

   

RGR + 6%

 

Monthly installments until February 2022

 

Receivables and Notas Promissórias

Other

 

  21,796

 

  23,497

           

 

Local Currency - At cost

 

  4,724,511

 

  3,346,687

           

 

                     

 

Foreign currency

                   

 

                     

 

                     

 

 BID - Enercan

 

  51,156

 

  55,291

   

 US$ + Libor + 3.5% 

 

 49 quarterly installments from June 2007

 

 Guarantee of CPFL Energia

 Financial Institutions

 

 

               

 

CPFL Paulista (5)

 

 

               

 

Debt Conversion Bond

 

4,062

 

5,207

   

 US$ + Libor 6 month + 0.875% 

 

 17 semiannual installments from April 2004

 

 Revenue/Government SP guaranteed

C-Bond

 

7,466

 

8,462

   

 US$ + 8% 

 

 21 semiannual installments from April 2004

 

 Revenue/Government SP guaranteed

Discount Bond

 

  14,879

 

  15,264

   

 US$ + Libor 6 month + 0.8125% 

 

 1 installment in April 2024

 

 Escrow deposits and revenue/ Gov.SP guarantee

PAR-Bond

 

  21,765

 

  22,031

   

 US$ + 6% 

 

 1 installment in April 2024

 

 Escrow deposits and revenue/ Gov.SP guarantee

Foreign currency - At cost

 

  99,328

 

   106,255

             
                       

Total at cost

 

  4,823,839

 

  3,452,942

             
                       

Foreign currency

 

 

                 

Measured at fair value

                     

Financial Institutions

                     

CPFL Paulista

                     

Banco do Brasil

 

  -  

 

   101,233

   

 Yen + 5.7778%  (3)

 

 1 installment in January 2011

 

 No guarantee

Banco ABN AMRO Real

 

   420,618

 

   385,969

   

 Yen +1.49% (4)

 

 1 installment in January 2012

 

 No guarantee

CPFL Geração

                     

Banco do Brasil

 

  -  

 

   101,332

   

 Yen + 5.8% . (5)

 

 1 installment in April 2010

 

 Guarantee of CPFL Energia

Banco do Brasil

 

  -  

 

   506,569

   

 Yen + 2.5% to 5.8% .

 

 1 installment in January 2011

 

 Guarantee of CPFL Energia

                       

Total Foreign Currency - Fair value

 

   420,618  

 

  1,095,103

             
                       

 Total Consolidated

 

  5,244,457

 

  4,548,045

             
                       
                       

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

   

(1) 160.5% of CDI

 

(3) 106.0% of CDI

             

(2) 106.0% to 106.5% of CDI

 

(4) 104.98% of CDI

             

(5) As certain assets are dollar indexed, a partial swap of R$ 29,126 was contracted, converting the currency variation to 112.9 % of the CDI.

(*) Effective rate : 98.5% CDI + 2.88% (CPFL Paulista and CPFL Piratininga) and 98.5% CDI + 2.5% (RGE)

 

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: September 30, 2010

 

 

 

 

In conformity with CPCs 38 and 39 (Financial Instruments), the Company and its subsidiaries classified their debts, as (i) financial liabilities not measured at fair value (or measured at cost), and (ii) financial liabilities measured at fair value through profit or loss.

The objective of classification of financial liabilities measured at fair value is to compare the effects of recognition of income and expense derived from marking hedge derivatives to market, tied to the 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:

 

 

   

September 30, 2010

   

Value at cost

 

Fair value (accounting balance)

   

Interest - Current and noncurrent

 

Principal

 

Total

 

Foreign currency

 

Noncurrent

   
                 

At fair value

               

CPFL Paulista

               

Banco ABN AMRO Real

 

7,126

 

416,885

 

424,011

 

420,618

Subtotal Foreign currency - Consolidated

 

7,126

 

416,885

 

424,011

 

420,618

 

 

The changes in the fair values of these debts are recognized in the financial income (expense) of the Company and its subsidiaries. The gains of R$ 3,393 obtained by marking the debts to market are offset by the effects of R$ 6,434 obtained by marking to market the derivative financial instruments contracted as a hedge against exchange variations (Note 31), resulting in a net accumulated loss of R$ 3,041.

 

Main funding in the period:

Local currency

 

BNDES/BNB – 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. The amount of R$ 63,924 was received during this quarter and the remaining estimated balance of R$ 37,101  will be cancelled.

 

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. The amount of R$ 24,767 was received during this quarter and the remaining balance of R$ 25,966 will be cancelled. 

 

 

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: September 30, 2010

 

 

FINEM IV (RGE) – The subsidiary obtained approval for financing of R$ 216,131 from the BNDES in 2008, part of a FINEM credit line, to be invested in the expansion and modernization of the Electricity System. The amount of R$ 26,526 was received during this quarter and the remaining balance of R$ 17,104 will be cancelled.

 

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$ 5,170 in this quarter and the remaining balance of R$ 85,376 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 (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$ 16,243 in this quarter and the remaining balance of R$ 31,225 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 (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$ 1,752 in this quarter and the remaining balance of R$ 29,015 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.

 

FINEM/FINAME (Bioenergia) – The indirect subsidiary obtained approval for financing of R$ 75,297 from the BNDES in 2009, comprised of R$ 37,491 from FINEM and R$ 37,806 from FINAME, to be invested in the construction of the Thermoelectric Plant. The amount of R$ 16,100 was received during this quarter and the remaining estimated balance of R$ 13,706 is scheduled to be released in the 4th quarter of 2010.  The interest and principal will be paid monthly as from June, 2011.

 

BNDES – Investimento (Foz do Chapecó) The indirect subsidiary obtained approval for financing of R$ 1,633,155 (R$ 832,909 in proportion to the Company's participation) from the BNDES in 2007, to be sed to finance the construction works of the Foz do Chapecó Hydroelectric Power Plant.. The amount of R$ 68,914 (R$ 35,146 in proportion to the Company's participation) was received during this quarter, this being final installment of this financing. The interest and principal will be paid monthly as from October 2011.

 

BNB – Investimento (EPASA) – In December 2009, the indirect subsidiary contracted a loan of R$ 214,278 (R$ 109,282 in proportion to the Company's participation) from Banco do Nordeste do Brasil - BNB, to be invested in the construction of the Termoparaíba and Termonordeste thermoelectric power plants. The amount of R$ 177,838 (R$ 90,697 in proportion to the Company's participation) was released in this quarter, and the release of the remaining balance is conditional upon: i) physical and financial verification of the funds obtained; and ii) increasing the capital in EPASA by R$ 91,834 (R$ 46,835 in proportion to the Company's participation). The interest will be paid quarterly until December 2012 and on a monthly basis as from January 2013. There are no restrictive covenants for this financing agreement.

 

Financial Institutions

 

Banco do Brasil – Crédito Rural (CPFL Paulista, CPFL Piratininga, RGE, CPFL Santa Cruz, CPFL Leste Paulista, CPFL Mococa, CPFL Jaguari e CPFL Sul Paulista)  - These subsidiaries obtained approval for financing, in the form of rural credit, with a total amount of R$ 499,800 (R$ 435,849 net of costs) released during this quarter to cover working capital. The interest will be capitalized monthly and amortized together with the installments of the principal.

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: September 30, 2010

 

 

 

ELETROBRÁS  (RGE)  –  The subsidiary obtained approval for financing of R$ 25,251 from Eletrobras in 2008, the purpose of which is to finance part of the improvement works on the electricity system to bring electricity to rural areas (Universalization Program). The subsidiary received the amount of R$ 7,392 during this quarter and the remaining balance of R$ 9,147 was cancelled, in line with the physical execution of the works.

 

 

RESTRICTIVE COVENANTS

The loan from Banco do Brasil - Rural Credit is subject to certain restrictive covenants, including clauses that require the subsidiaries to maintain certain financial ratios within pre-established parameters. The ratio demanded is that of net indebtedness to EBITDA of 3.0 or less

The other 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 monitors these ratios 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.

 

( 17 )  DEBENTURES 

 

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: September 30, 2010

 

 

 

                       

Consolidated

                       

September 30, 2010

 

December 31, 2009

   

Issued

 

Remuneration

 

Effective rate

 

Amortization Conditions

 

Collateral

 

Interest

 

Current

 

Noncurrent

 

Total

 

Interest

 

Current

 

Noncurrent

 

Total

Parent Company

     

 

     

 

     

 

 

 

 

 

     

 

 

 

 

 

   

 3rd Issue

                                                   

Single Series

 

45,000

 

CDI + 0.45% (1)

 

CDI + 0.53% 

 

3 annual installments from September 2012

 

Unsecured

 

   3,401

 

   -  

 

450,000

 

453,401

 

   12,788

 

-  

 

  450,000

 

  462,788

                                                     

CPFL Paulista

                                                   

3rd Issue

                                                   

   1st Series

 

64,000

 

104.4% of CDI

 

104.4% CDI  + 0.05%

 

3 annual installments from December 2011

 

CPFL Energia guarantee

 

22,618

 

   -  

 

640,000

 

662,618

 

   4,618

 

-  

 

  640,000

 

  644,618

4ª Issue

                                                   

   Single Series

 

175,000

 

110.3% of CDI

 

110.3% CDI + 0.79%

 

2 annual installments from July 2010

 

CPFL Energia guarantee

 

   3,124

 

   109,428

 

-  

 

112,552

 

   8,285

 

   64,303

 

  109,601

 

  182,189

                       

25,742

 

   109,428

 

640,000

 

775,170

 

   12,903

 

   64,303

 

  749,601

 

  826,807

CPFL Piratininga

                                                   

 1ª Issue

                                                   

   1st Series

 

40,000

 

104.0% of CDI

 

104.0% CDI + 0.16%

 

2 annual installments from January 2010

 

CPFL Energia guarantee

 

   5,351

 

   200,000

 

-  

 

205,351

 

   17,690

 

200,000

 

  200,000

 

  417,690

 2ª Issue

                                                   

   Single Series

 

1

 

106.45% of CDI .

 

106.45% CDI + 0.3%

 

02 de May 2011

 

Quirografária

 

-  

 

   -  

 

-  

 

-  

 

   2,189

 

-  

 

  100,000

 

  102,189

 3rd Issue

                                                   

   Single Series

 

260

 

 107.0% of CDI 

 

107.0% CDI + 0.67%

 

 April 1st, 2015

 

CPFL Energia guarantee

 

13,514

 

   -  

 

258,801

 

272,315

 

-  

 

-  

 

  -  

 

-  

                       

18,865

 

   200,000

 

258,801

 

477,666

 

   19,879

 

200,000

 

  300,000

 

  519,879

RGE

                                                   

 2ª Issue

                                                   

   1st Series

 

2,620

 

IGP-M + 9.6%

 

IGP-M + 9.73%

 

 April 1st, 2011

 

Unsecured

 

   1,289

 

  27,489

 

-    

 

   28,778

 

   1,630

 

-  

 

26,200

 

27,830

 3rd Issue

                                                   

   1st Series

 

1

 

CDI + 0.60%  (2)

 

CDI + 0.71%

 

3 annual installments from December 2011

 

CPFL Energia guarantee

 

   3,591

 

   -    

 

100,000

 

103,591

 

   741

 

-  

 

  100,000

 

  100,741

   2nd Series

 

1

 

CDI + 0.60%  (3)

 

CDI + 0.71%

 

3 annual installments from December 2011

 

CPFL Energia guarantee

 

   3,818

 

   -  

 

140,000

 

143,818

 

   6,437

 

-  

 

  140,000

 

  146,437

   3rd Series

 

1

 

CDI + 0.60%  (4)

 

CDI + 0.71%

 

3 annual installments from December 2011

 

CPFL Energia guarantee

 

720

 

   -  

 

40,000

 

   40,720

 

   1,491

 

-  

 

40,000

 

41,491

   4th Series

 

1

 

CDI + 0.60%  (5)

 

CDI + 0.84%

 

3 annual installments from December 2011

 

CPFL Energia guarantee

 

   2,582

 

   -  

 

50,000

 

   52,582

 

   1,103

 

-  

 

50,000

 

51,103

   5th Series

 

1

 

CDI + 0.60%  (5)

 

CDI + 0.84%

 

3 annual installments from December 2011

 

CPFL Energia guarantee

 

   2,582

 

   -  

 

50,000

 

   52,582

 

   1,103

 

-  

 

50,000

 

51,103

 4ª Issue

                                                   

   Single Series

 

185,000

 

110.30% of CDI

 

110.3% CDI + 0.82%

 

July 1st, 2011

 

Unsecured

 

   5,254

 

   184,433

 

    -    

 

189,687

 

   8,758

 

-  

 

  183,804

 

  192,562

                       

19,836

 

   211,922

 

380,000

 

611,758

 

   21,263

 

-  

 

  590,004

 

  611,267

                                                     

CPFL Leste Paulista

                                                   

 1ª Issue

                                                   

   Single Series

 

2,400

 

111.90% of CDI

 

111.9% CDI + 0.65%

 

July1st, 2011

 

CPFL Energia guarantee

 

692

 

  23,947

 

-  

 

   24,639

 

   1,153

 

-  

 

23,894

 

25,047

                                                     

CPFL Sul Paulista

                                                   

 1ª Issue

                                                   

   Single Series

 

1,600

 

111.00% of CDI

 

111% CDI + 0.6%

 

July1st, 2011

 

CPFL Energia guarantee

 

457

 

  15,968

 

-  

 

   16,425

 

   762

 

-  

 

15,936

 

16,698

                                                     

CPFL Jaguari

                                                   

 1ª Issue

                                                   

   Single Series

 

1,000

 

111.90% of CDI

 

111.9% CDI + 0.79%

 

July1st, 2011

 

CPFL Energia guarantee

 

288

 

  9,974

 

-  

 

   10,262

 

   480

 

-  

 

9,948

 

10,428

                                                     

CPFL Brasil

                                                   

 1ª Issue

                                                   

   Single Series

 

16,500

 

111% of CDI

 

111% CDI + 0.57%

 

July 1st, 2011

 

CPFL Energia guarantee

 

   4,716

 

   164,610

 

-  

 

169,326

 

   7,862

 

-  

 

  164,221

 

  172,083

                                                     

CPFL Geração

                                                   

2ª Issue

                                                   

   Single Series

 

425,250

 

109.8% of CDI

 

109.8% CDI + 0.58%

 

July 1st, 2011

 

CPFL Energia guarantee

 

12,021

 

   423,954

 

-  

 

435,975

 

   20,039

 

-  

 

  423,295

 

  443,334

3rd Issue

                                                   

   Single Series

 

264

 

 107.0% of CDI

 

 107.0% of CDI + 0.67% 

 

 1 installment in April 2015

 

CPFL Energia guarantee

 

13,722

 

   -  

 

263,070

 

276,792

 

-  

 

-  

 

  -  

 

-  

                                                     

EPASA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1ª Issue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Single Series

 

450

 

112.6% of CDI

 

116.9% of CDI

 

 1 installment in December 2010

 

CPFL Energia guarantee

 

13,955

 

   145,601

 

-  

 

159,556

 

   3,504

 

228,473

 

  -  

 

  231,977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BAESA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   1st Series

 

9,000

 

CDI + 0.3%

 

CDI + 0.43%

 

Quarterly with settlement in August 2016

 

Letters of Guarantee

 

519

 

  3,164

 

15,821

 

   19,504

 

   308

 

   3,164

 

18,195

 

21,667

   2nd Series

 

3,236

 

CDI + 0.4%

 

106% CDI + 0.12%

 

Annually with settlement in August 2016

 

Letters of Guarantee

 

425

 

  2,570

 

12,850

 

   15,845

 

   343

 

   3,085

 

6,075

 

   9,503

 

 

 

 

 

 

 

 

 

 

 

 

         

 

 

 

 

 

 

 

 

 

 

                       

944

 

  5,734

 

28,671

 

   35,349

 

   651

 

   6,249

 

24,270

 

31,170

                       

114,639

 

 1,311,138

 

2,020,542

 

 3,446,319

 

101,284

 

499,025

 

2,751,169

 

3,351,478

                                                     

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

                               

(1) 104.4% of CDI

 

(3) 104.85% of CDI

 

(5) 104.87% of CDI

                               

(2) 105.07% of CDI

 

(4) 104.9% of CDI

                                       

 

 

RESTRICTIVE COVENANTS

The debentures are subject to certain restrictive covenants, the details of which are set forth in the December 31, 2009 financial statements and in the Quarterly Information at June 30, 2010.

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

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

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: September 30, 2010

 

 

 

( 18 )  SUPPLIERS 

 

   

Consolidated

Current

 

September 30, 2010

 

December 31, 2009

         

System Service Charges

 

  51,426

 

   34,556

Energy Purchased

 

  740,944

 

   658,068

Electricity Network Usage Charges

 

  136,828

 

   121,801

Materials and Services

 

  178,058

 

   143,180

Free energy

 

  68,504

 

   61,341

Other

 

1,229

 

  2,506

Total

 

  1,176,989

 

   1,021,452

         

Noncurrent

       

Electricity Network Usage Charges

 

  10,664

 

   42,655

Total

 

  10,664

 

   42,655

 

 

( 19 )  TAXES AND CONTRIBUTIONS PAYABLE  

 

   

Consolidated

   

Current

 

Noncurrent

   

September 30, 2010

 

December 31, 2009

 

September 30, 2010

 

December 31, 2009

ICMS (State VAT)

 

  289,186

 

  315,906

 

  -  

 

   -  

PIS (Tax on Revenue)

 

  12,809

 

  11,762

 

  -  

 

   -  

COFINS (Tax on Revenue)

 

  60,210

 

  54,978

 

1,139

 

  1,639

Income tax (Corporate Income Tax)

 

  111,102

 

  69,480

 

  -  

 

   -  

Social Contribution (Social Contribution Tax)

 

  20,866

 

  18,583

 

  -  

 

   -  

Other

 

  30,795

 

  27,901

 

  -  

 

   -  

Total

 

  524,968

 

  498,610

 

1,139

 

  1,639

 

 

( 20 )  EMPLOYEE PENSION PLANS

 

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

 

I – CPFL Paulista

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: September 30, 2010

 

 

 

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 September 30, 2010 is R$ 527,665 (R$ 508,706 in December 31, 2009). The contract amount differs from the accounting recording of the subsidiary, which is in conformity with CPC 33.

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 September 30, 2010 is R$ 155,668 (R$ 150,444 as of December 31, 2009).  The contract amount differs from the accounting entries made by the subsidiary, which are in conformity with CVM Decision no 371/00.

 

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

 

 

III – RGE

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

For employees admitted as from 1997, a defined contribution Benefit Generating Plan (PGBL – defined contribution) 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.

 

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: September 30, 2010

 

 

 

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

 

 

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 September 30, 2010 is R$ 10,616 (R$ 18,354 as of December 31, 2009). The contract amount differs from the accounting recording of the subsidiary, which is in conformity with CPC 33.

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:

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: September 30, 2010

 

 

 

   

September 30, 2010

   

 CPFL  

 

 CPFL  

 

 CPFL  

 

Total Liability

 

 RGE  

 

Total Asset

   

Paulista

 

Piratininga

 

Geração

     

Actuarial liability (asset) at the beginning of the period

 

   591,712

 

   141,964

 

  13,774

 

   747,450

 

  (9,725)

 

(9,725)

Income (expense) recognized in income statement

 

   (53,076)

 

   (10,549)

 

   (906)

 

   (64,531)

 

  (879)

 

  (879)

Sponsor's Contributions during the year

 

   (39,043)

 

   (11,442)

 

   (845)

 

   (51,330)

 

  (1,139)

 

(1,139)

Actuarial liability (asset) at the end of the period

 

   499,593

 

   119,973

 

  12,023

 

   631,589

 

  (11,743)

 

  (11,743)

Other contributions

 

  13,748

 

   (525)

 

  114

 

   13,337

       

Subtotal

 

   513,341

 

   119,448

 

  12,137

 

   644,926

 

 

 

 

Other contributions RGE

 

  -  

 

   -  

 

  -  

 

  4,634

       

Total Passivo

 

   513,341

 

   119,448

 

  12,137

 

   649,560

       
                         

Current

             

   43,801

     

  -  

Noncurrent

             

   605,759

     

11,743

 

 

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

 

 

   

3rd quarter 2010

   

 CPFL  

 

 CPFL  

 

 CPFL  

 

RGE

 

Consolidated

   

Paulista

 

Piratininga

 

Geração

   

Cost of service

 

  275

 

  1,202

 

36

 

   288

 

1,801

Interest on actuarial liabilities

 

  73,114

 

   18,883

 

1,586

 

  4,587

 

  98,170

Expected return on assets

 

   (91,072)

 

   (23,288)

 

  (1,921)

 

   (5,929)

 

   (122,210)

Total Expense (Income)

 

   (17,683)

 

   (3,203)

 

   (299)

 

   (1,054)

 

  (22,239)

Expected contributions from participants

 

(9)

 

   (313)

 

  -  

 

   468

 

  146

Subtotal

 

   (17,692)

 

   (3,516)

 

   (299)

 

   (586)

 

  (22,093)

Other

 

  -  

 

   -  

 

  -  

 

   293

 

  293

Total Income

 

   (17,692)

 

   (3,516)

 

   (299)

 

   (293)

 

  (21,800)

                     
                     
   

3rd quarter 2009

   

 CPFL  

 

 CPFL  

 

 CPFL  

 

RGE

 

Consolidated

   

Paulista

 

Piratininga

 

Geração

   

Cost of service

 

  361

 

  1,367

 

41

 

   314

 

2,083

Interest on actuarial liabilities

 

  75,755

 

   19,245

 

1,633

 

  4,407

 

  101,040

Expected return on assets

 

   (76,088)

 

   (19,389)

 

  (1,617)

 

   (4,597)

 

   (101,691)

Total Expense (Income)

 

28

 

  1,223

 

57

 

   124

 

1,432

Expected contributions from participants

 

(9)

 

   (324)

 

  -  

 

   (274)

 

  (607)

Subtotal

 

19

 

   899

 

57

 

   (150)

 

  825

Other

 

  -  

 

   -  

 

  -  

 

  75

 

75

Total Expense (Income)

 

19

 

   899

 

57

 

   (75)

 

  900

 

 

The principal assumptions considered in the actuarial calculations were:

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: September 30, 2010

 

 

 

 

CPFL Paulista, CPFL Piratininga and CPFL Geração

 

RGE

   
 

2010

 

2009

 

2010

 

2009

               
               

Nominal discount rate for actuarial liabilities:

10.24% p.a.

 

10.24% p.a.

 

10.24% p.a.

 

10.24% p.a.

Nominal Return Rate on Assets:

(*)

 

(**)

 

11.28% p.a.

 

10.24% p.a.

Estimated Rate of nominal salary increase:

6.08% p.a.

 

6.08% p.a.

 

6.08% p.a.

 

6.08% p.a.

Estimated Rate of nominal benefits increase:

0.0% p.a.

 

0.0% p.a.

 

0.0% p.a.

 

0.0% p.a.

Estimated long-term inflation rate (basis for establishing 

             

  nominal rates above)

4.0% p.a.

 

4.0% p.a.

 

4.0% p.a.

 

4.0% p.a.

General biometric mortality table:

AT-83

 

AT-83

 

AT-83

 

AT-83

Biometric table for the onset of disability:

MERCER TABLE

 

MERCER TABLE

 

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.

           

 

 

 

( 21 )  REGULATORY CHARGES

 

   

Consolidated

   

September 30, 2010

 

December 31, 2009

Fee for the Use of Water Resources

 

3,615

 

4,080

Global Reverse Fund - RGR

 

19,381

 

9,876

ANEEL Inspection Fee

 

2,131

 

1,945

Fuel Consumption Account - CCC

 

53,759

 

9,392

Energy Development Account - CDE

 

40,244

 

38,457

Total

 

119,130

 

63,750

 

 

( 22 )  RESERVE FOR CONTINGENCIES

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: September 30, 2010

 

 

 

   

Consolidated

   

September 30, 2010

 

December 31, 2009

   

 Reserve for contingencies

 

 Escrow Deposits

 

 Reserve for contingencies

 

 Escrow Deposits

Labor

               

Various

 

   58,520

 

  138,856

 

   42,752

 

  127,750

                 

Civil

               

General Damages

 

   13,329

 

85,586

 

   9,897

 

59,434

Tariff Increase

 

   10,621

 

   9,368

 

   12,249

 

9,068

Other

 

   12,666

 

17,502

 

   11,967

 

15,674

   

   36,616

 

  112,456

 

   34,113

 

84,176

Tax

               

FINSOCIAL

 

   18,687

 

53,244

 

   18,601

 

52,998

Increase in basis - PIS and COFINS

 

   830

 

890

 

   866

 

1,022

Interest on  Shareholders’ Equity - PIS and COFINS

 

   10,433

 

10,433

 

   9,800

 

9,800

PIS and COFINS - Non-Cumulative Method

 

   84,554

 

-  

 

122,792

 

  -  

Income Tax

 

   71,585

 

  528,771

 

   63,914

 

  498,347

Other

 

   7,792

 

17,421

 

   7,806

 

20,084

   

193,881

 

  610,759

 

223,779

 

  582,251

Total

 

    289,017

 

  862,071

 

300,644

 

  794,177

 

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

 

 

 

Consolidated

 

June 30, 2010

 

Addition

 

Reversal

 

Payment

 

Monetary Restatement

 

September 30, 2010

         

Labor

41,336

 

20,595

 

(1,007)

 

(2,404)

 

  -  

 

   58,520

Civil

37,166

 

3,441

 

(3,124)

 

  (950)

 

83

 

   36,616

Tax

  191,108

 

2,060

 

  (563)

 

(22)

 

1,298

 

193,881

Reserve for Contingencies

  269,610

 

26,096

 

(4,694)

 

(3,376)

 

    1,381  

 

289,017

                       

Escrow Deposits

  845,697

 

12,336

 

(6,014)

 

(2,520)

 

12,572

 

862,071

                       

 

 

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

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

 

Fiscal: PIS and COFINS – Non-cumulative method

 

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: September 30, 2010

 

 

Considering the taxation rules and discussions regarding the non-cumulative incidence of PIS and COFINS on certain sectorial charges, 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”.

 

Labor Suit - Litigation Settlement  

 

In this quarter, the subsidiary CPFL Paulista agreed a settlement with the Sao Paulo Engineers' Union in relation to the labor claim, in the amount of R$ 19,797 for payment in October 2010.

 

 

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 September 30, 2010, the claims relating to possible losses were as follows: (i) R$ 325,218 for labor suits (R$ 294,825 as of December 31, 2009); (ii) R$ 593,010 for civil suits, mainly for suits for personal injuries, environmental damages and tariff increases (R$ 472,710 as of December 31, 2009); and (iii) R$ 793,901 in respect of tax suits, relating basically to Income Tax, ICMS, INSS, FINSOCIAL and PIS and COFINS (R$ 625,369 as of December 31, 2009).

 

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

 

 

( 23 )  PUBLIC UTILITIES

 

Consolidated

Companies

 

September 30, 2010

 

December 31, 2009

 

Number of remaining installments

 

Interest rates

CERAN

 

69,625

 

65,904

 

304

 

IGP-M + 9.6%p.a.

ENERCAN

 

9,772

 

9,434

 

294

 

IGP-M + 8%p.a.

BAESA

 

52,233

 

50,402

 

306

 

IGP-M + 8%p.a.

Foz do Chapecó

 

305,438

 

295,794

 

313

 

IGP-M / IPC-A + 5.3%p.a.

TOTAL

 

437,068

 

421,534

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

16,743

 

15,697

 

 

 

 

Noncurrent

 

420,325

 

405,837

 

 

 

 

 

 

( 24 )      OTHER ACCOUNTS PAYABLE

 

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: September 30, 2010

 

 

 

   

Consolidated

   

Current

 

Noncurrent

   

September 30, 2010

 

December 31, 2009

 

September 30, 2010

 

December 31, 2009

                 

Consumers and Concessionaires

 

57,748

 

50,250

 

   -

 

   -

Energy Efficiency Program - PEE

 

77,135

 

55,889

 

29,274

 

56,915

Research & Development - P&D

 

  113,466

 

  100,544

 

24,923

 

12,636

National Scientific and Technological Development Fund - FNDCT

 

   4,718  

 

   4,705

 

   -

 

   -

Energy Research Company - EPE

 

   2,025

 

   2,008

 

   -

 

   -

Fund for Reversal

 

   -

 

   -

 

17,750

 

17,751

Advances

 

   6,768

 

   9,652

 

27,829

 

55,987

Provision for environmental expenditure

 

   1,851

 

   2,483

 

344

 

   2,628

Payroll

 

   6,521

 

   8,085

 

   -

 

   -

Profit sharing

 

30,786

 

32,490

 

   -

 

   -

TAC ANEEL fine (DEC/FEC and voltage level)

 

   -

 

10,877

 

   -

 

   -

Collections agreement

 

49,490

 

27,138

 

   -

 

   -

Guarantees

 

   -

 

   -

 

73,943

 

71,152

Other

 

50,790

 

34,740

 

   9,796

 

   9,575

Total

 

  401,298

 

  338,861

 

  183,859

 

  226,644

                 

 

 

 

 

( 25 )  SHAREHOLDERS’ EQUITY

The shareholders' participations in the Company's equity as of September 30, 2010 and December 31, 2009 are distributed as follows:

 

   

Number of shares

   

September 30, 2010

 

December 31, 2009

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

Brumado Holdings S.A.

 

  17,251,048

 

  3.59

 

   17,251,048

 

  3.59

Board Members

 

  112

 

   -  

 

  112

 

   -  

Executive Officers

 

2,824

 

   -  

 

  6,450

 

   -  

Other Shareholders

 

  90,460,449

 

  18.80

 

   89,230,631

 

  18.60

Total

 

   481,137,130

 

   100.00

 

479,910,938

 

   100.00

                 

 

 

25.1 –Capital Increase

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: September 30, 2010

 

 

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

In the second quarter of 2010, the Company paid out R$ 652,302 relating to dividends declared and provisioned as of December 31, 2009.

 

In this quarter, the Company paid out R$ 771,253 relating to dividends declared and provisioned at the base date of June 30, 2010.

 

 

 

 

( 26 )  GROSS SALES AND SERVICES INCOME

 

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: September 30, 2010

 

 

 

   

Consolidated

   

2010

 

2009

 

 

Revenue from Eletric Energy Operations
  (thousand of R$)

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

Consumer class

               

  Residential

 

  1,341,914

 

  4,047,322

 

  1,304,572

 

  3,759,712

  Industrial

 

  1,058,882

 

  3,107,336

 

  1,102,098

 

  3,017,161

  Commercial

 

   663,447

 

  2,077,040

 

   660,906

 

  1,964,124

  Rural

 

   117,130

 

   329,254

 

   112,640

 

   323,553

  Public Administration

 

  95,431

 

   284,437

 

  95,507

 

   273,309

  Public Lighting

 

  76,959

 

   226,762

 

  76,612

 

   217,732

  Public Services

 

   119,987

 

   351,734

 

   122,609

 

   342,247

  Billed

 

  3,473,750

 

   10,423,885

 

  3,474,944

 

  9,897,838

  Unbilled (Net)

 

  8,876

 

  (2,247)

 

  9,678

 

  54,152

  Emergency Charges - ECE/EAEE

 

  -

 

3

 

  (4)

 

  (11)

   Reclassification to Network Usage Charge - TUSD - Captive Consumers

 

   (1,406,042)

 

   (4,427,684)

 

   (1,478,923)

 

   (4,367,063)

Electricity sales to final consumers

 

  2,076,584

 

  5,993,957

 

  2,005,695

 

  5,584,916

                 

  Furnas Centrais Elétricas S.A.

 

  87,582

 

   259,930

 

  89,115

 

   264,479

  Other Concessionaires and Licensees

 

   205,723

 

   513,104

 

   211,891

 

   618,923

  Current Electric Energy

 

  55,075

 

  72,853

 

  23,676

 

  76,988

Electricity sales to wholesaler

 

   348,380

 

   845,887

 

   324,682

 

   960,390

                 

Revenue due to Network Usage Charge - TUSD - Captive Consumers

 

  1,406,042

 

  4,427,684

 

  1,478,923

 

  4,367,063

Revenue due to Network Usage Charge - TUSD - Free Consumers

 

   305,745

 

   807,925

 

   207,047

 

   583,937

Revenue from construction of concession infrastructure

 

   295,403

 

   698,867

 

   160,216

 

   410,678

 Low Income Consumer´s Subsidy

 

  7,548

 

  23,472

 

  7,998

 

  23,911

 Other Revenue and Income

 

  54,782

 

   167,509

 

  59,432

 

   170,177

Other operating revenues

 

  2,069,520

 

  6,125,457

 

  1,913,616

 

  5,555,766

                 

Total gross revenues

 

  4,494,484

 

   12,965,301

 

  4,243,993

 

   12,101,072

                 

Deductions from operating revenues

               

ICMS

 

(683,792)

 

   (2,034,144)

 

(664,459)

 

   (1,925,420)

PIS

 

   (65,506)

 

   (198,882)

 

   (68,470)

 

   (191,832)

COFINS

 

(302,523)

 

   (916,917)

 

(316,801)

 

   (885,029)

ISS

 

   (919)

 

  (2,436)

 

   (936)

 

  (2,712)

Global Reversal Reserve - RGR

 

   (17,844)

 

   (53,444)

 

   (15,772)

 

   (45,523)

Fuel Consumption Account - CCC

 

(159,958)

 

   (424,563)

 

(103,915)

 

   (249,005)

Energy Development Account - CDE

 

(117,659)

 

   (352,975)

 

(112,344)

 

   (337,074)

Research and Development and Energy Efficiency Programs

 

   (34,402) 

 

   (91,769)

 

   (23,166)

 

   (73,640)

PROINFA

 

   (13,006)

 

   (45,009)

 

   (13,543)

 

   (28,090)

Other

 

  -

 

(3)

 

4

 

11

   

   (1,395,609)

 

   (4,120,142)

 

   (1,319,402)

 

   (3,738,314)

   

 

 

 

 

 

 

 

Net revenue

 

  3,098,875

 

  8,845,159

 

  2,924,591

 

  8,362,758

                 
                 

(*) Information not examined by the independent auditors.

               

 

 

 

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: September 30, 2010

 

 

 

   

Consolidated

   

2010

 

2009

 

 

Revenue from Eletric Energy Operations  - GWh (*)

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

Clas of consumers

               

  Residential

 

  3,226

 

9,697

 

  3,041

 

9,180

  Industrial

 

  3,911

 

  11,602

 

  3,866

 

  10,961

  Commercial

 

  1,808

 

5,719

 

  1,692

 

5,350

  Rural

 

  576

 

1,617

 

  559

 

1,698

  Public Administration

 

  272

 

  822

 

  259

 

  785

  Public Lighting

 

  364

 

1,079

 

  355

 

1,053

  Public Services

 

  446

 

1,300

 

  416

 

1,246

  Billed

 

  10,603

 

  31,836

 

  10,188

 

  30,273

Own consuption

 

8

 

25

 

8

 

24

Electricity sales to final consumers

 

  10,611

 

  31,861

 

  10,196

 

  30,297

                 

  Furnas Centrais Elétricas S.A.

 

  763

 

2,263

 

  783

 

2,318

  Other Concessionaires and Licensees

 

  1,805

 

5,226

 

  2,470

 

8,708

  Current Electric Energy

 

  795

 

1,762

 

  1,156

 

2,229

Electricity sales to wholesaler

 

  3,363

 

9,251

 

  4,409

 

  13,255

                 

(*) Information not examined by the independent auditors.

               
                 
                 
                 
                 

Consumers (*)

2010

 

2009

       

Clas of consumers

               

  Residential

 

  5,828,837

 

  5,656,836

       

  Industrial

 

  78,480

 

  77,275

       

  Commercial

 

   492,484

 

   496,220

       

  Rural

 

   236,542

 

   239,133

       

  Public Administration

 

  44,926

 

  43,531

       

  Public Lighting

 

  8,015

 

7,566

       

  Public Services

 

  7,212

 

6,802

       

Total

 

  6,696,496

 

  6,527,363

       
                 

(*) Information not examined 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 and to enable comparison of Statements, the subsidiaries made the following reclassifications in the Financial Statements for 2009:

 

(a) Reclassification of 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”.

 

(b) In accordance with CAT Ordinance 97/2009, amounts relating to ICMS charged from free consumers are no longer posted to the Income Statement. As this involved posting items under Gross Revenue against Revenue Deductions, there was no impact to the Income Statements of the subsidiaries.

 

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: September 30, 2010

 

 

 

( 27 )  COST OF ELECTRIC ENERGY

 

 

   

Consolidated

   

2010

 

2009

Cost of Electric Energy

 

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

Electricity Purchased for Resale

               

Energy Purchased in Restricted Framework - ACR

               

   Tractebel Energia S.A.

 

251,031

 

839,382

 

  228,565

 

   748,042

   Itaipu Binacional

 

249,584

 

765,665

 

  270,145

 

   903,426

   Petróleo Brasileiro S.A. Petrobrás

 

49,612

 

150,431

 

  53,563

 

   147,942

   CESP - Cia Energética de São Paulo

 

46,065

 

130,722

 

  42,535

 

   129,046

   Furnas Centrais Elétricas S.A.

 

41,809

 

114,713

 

  36,416

 

   111,408

   CEMIG  - Cia  Energética de Minas  Gerais

 

30,097

 

97,523

 

  58,421

 

   163,320

   CHESF - Cia Hidro Elétrica do São Francisco

 

30,369

 

87,962

 

  27,714

 

   85,703

   Termorio S.A.

 

35,838

 

82,154

 

9,545

 

   34,850

   Copel Geração e Transmissão S.A.

 

16,543

 

51,992

 

  16,726

 

   51,554

   Tractebel Energia Comercializadora Ltda.

 

32,792

 

32,792

 

  35,009

 

   35,009

   Câmara de Comercialização de Energia Elétrica - CCEE

 

45,297

 

62,049

 

  (10,018)

 

   56,423

   PROINFA

 

44,507

 

139,092

 

  42,048

 

   130,979

Other

 

  207,259

 

505,126

 

  171,319

 

   468,892

   

1,080,803

 

3,059,603

 

  981,988

 

   3,066,594

 Energy Purchased in the Free Market - ACL

 

  426,796

 

1,046,474

 

  403,721

 

   1,067,440

   

1,507,599

 

4,106,077

 

  1,385,709

 

   4,134,034

 Credit of PIS and COFINS

 

   (128,251)

 

  (382,960)

 

   (137,657)

 

(388,713)

Subtotal

 

1,379,348

 

3,723,117

 

  1,248,052

 

   3,745,321

                 

Electricity Network Usage Charge

               

 Basic Network Charges

 

  222,960

 

679,935

 

  240,392

 

   678,907

 Transmission from Itaipu

 

19,838

 

62,645

 

  20,517

 

   59,674

 Connection Charges

 

18,881

 

44,319

 

  11,787

 

   36,026

 Charges of Use of the Distribution System

 

6,767

 

20,420

 

6,598

 

   18,927

 System Service Charges - ESS

 

34,839

 

113,615

 

  17,707

 

   73,553

 Reserve Energy charges

 

12,385

 

28,902

 

  -  

 

  3,219

   

  315,670

 

949,836

 

  297,001

 

   870,306

 Credit of PIS and COFINS

 

  (29,240)

 

(90,393)

 

  (32,690)

 

   (88,474)

Subtotal

 

  286,430

 

859,443

 

  264,311

 

   781,832

                 

Total

 

1,665,778

 

4,582,560

 

  1,512,363

 

   4,527,153

                 

(*) Information not examined by the independent auditors.

               

 

 

 

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: September 30, 2010

 

 

 

 

 

Consolidated

 

 

2010

 

2009

Electricity Purchased for Resale - GWh (*)

 

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

Energy Purchased in Restricted Framework - ACR

 

 

 

 

 

 

 

 

   Tractebel Energia S.A.

 

1,804

 

   5,733

 

1,689

 

  5,251

   Itaipu Binacional

 

2,734

 

   8,087

 

2,812

 

  8,288

   Petróleo Brasileiro S.A. Petrobrás

 

419

 

   1,243

 

425

 

  1,220

   CESP - Cia Energética de São Paulo

 

460

 

   1,315

 

444

 

  1,364

   Furnas Centrais Elétricas S.A.

 

426

 

   1,235

 

403

 

  1,252

   CEMIG  - Cia  Energética de Minas  Gerais

 

235

 

   773

 

539

 

  1,301

   CHESF - Cia Hidro Elétrica do São Francisco

 

340

 

   991

 

320

 

  1,003

   Termorio S.A.

 

   80

 

   242

 

   37

 

  126

   Copel Geração e Transmissão S.A.

 

165

 

   519

 

171

 

  535

   Câmara de Comercialização de Energia Elétrica - CCEE

 

844

 

   2,364

 

562

 

  3,027

   PROINFA

 

154

 

   649

 

259

 

  647

Other

 

1,176

 

   3,760

 

1,106

 

  3,359

 

 

8,837

 

26,911

 

8,767

 

   27,373

 Energy Purchased in the Free Market - ACL

 

4,274

 

11,643

 

4,350

 

   11,694

 

 

  13,111

 

38,554

 

  13,117

 

   39,067

(*) Information not examined by the independent auditors.

 

 

 

 

 

 

 

 

 

 

 

In compliance with ANEEL Order no 4,722/2009 and in order to enable comparison of Financial Statements, the subsidiaries reclassified amounts in the Financial Statements for 2009 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$ 15,302 and R$ 9,943, respectively, for the third quarter of 2010 and the third quarter of 2009, and R$ 40,873 and R$ 24,490 for the 9 months ended on September 30, 2010 and 2009, respectively.

 

  

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: September 30, 2010

 

 

( 28 )  COST AND OPERATING EXPENSES

 

 

   

Parent Company

     

3rd quarter

 

Nine month

       

General

 

Other

 

Total

 

General

 

Other

 

Total

     

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

Personnel

     

 996

 

  549

 

   -  

 

   -  

 

  996

 

  549

 

  2,837

 

  1,789

 

  -  

 

   -  

 

2,837

 

1,789

Materials

     

7

 

8

 

   -  

 

   -  

 

7

 

8

 

  46

 

  20

 

  -  

 

   -  

 

46

 

20

Outside Services

     

  4,314

 

  1,210

 

   -  

 

   -  

 

  4,314

 

  1,210

 

  10,894

 

  4,919

 

  -  

 

   -  

 

  10,894

 

4,919

Depreciation and Amortization

     

  39

 

  30

 

   -  

 

   -  

 

  39

 

  30

 

  105

 

  89

 

  -  

 

   -  

 

  105

 

89

Other:

     

  983

 

  2,221

 

  36,255

 

  37,431

 

  37,238

 

  39,652

 

  3,479

 

  5,084

 

  108,495

 

   112,901

 

  111,974

 

  117,985

 Leases and Rentals

     

  15

 

  30

 

   -  

 

   -  

 

  15

 

  30

 

  62

 

  99

 

  -  

 

   -  

 

62

 

99

 Publicity and Advertising

     

  351

 

  (93)

 

   -  

 

   -  

 

  351

 

  (93)

 

  852

 

   -  

 

  -  

 

   -  

 

  852

 

  -  

 Legal, Judicial and Indemnities

     

  19

 

   (405)

 

   -  

 

   -  

 

  19

 

   (405)

 

  380

     

  -  

 

   -  

 

  380

 

  -  

 Donations, Contributions and Subsidies

     

   -  

 

  28

 

   -  

 

   -  

 

   -  

 

  28

 

   -  

 

  28

 

  -  

 

   -  

 

  -  

 

28

Loss (gain) on the write-off of noncurrent assets

     

   -  

 

   -  

 

   -  

 

  244

 

  -    

 

  244

 

   -  

 

   -  

 

  -  

 

  1,340

 

  -  

 

1,340

Intangible of concession amortization

     

   -  

 

   -  

 

  36,255

 

  37,187

 

  36,255

 

  37,187

 

   -  

 

   -  

 

  108,495

 

   111,561

 

  108,495

 

  111,561

Other:

     

  598

 

  2,661

 

   -  

 

   -  

 

  598

 

  2,661

 

  2,185

 

  4,957

     

   -  

 

2,185

 

4,957

Total

     

  6,339

 

  4,018

 

  36,255

 

  37,431

 

  42,594

 

  41,449

 

  17,361

 

  11,901

 

  108,495

 

   112,901

 

  125,856

 

  124,802

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

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: September 30, 2010

 

 

 

   

Consolidated

   

Operating costs

 

Services Rendered to Third Parties

 

Operating expenses

 

Total

       

Sales

 

General

 

Other

 
   

3rd quarter

   

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

Personnel

 

   87,585

 

   79,676

 

  71

 

198

 

  20,682

 

  17,161

 

39,399

 

39,989

 

   -  

 

   -  

 

   147,737

 

   137,024

Employee Pension Plans

 

   (21,800)

 

   900

 

   -  

 

-  

 

   -  

 

   -  

 

-  

 

-  

 

   -  

 

   -  

 

   (21,800)

 

   900

Materials

 

   16,797

 

   14,624

 

   858

 

309

 

  667

 

  713

 

   3,090

 

   2,023

 

   -  

 

   -  

 

   21,412

 

   17,669

Outside Services

 

   48,680

 

   39,803

 

  1,095

 

697

 

  20,033

 

  19,552

 

41,446

 

34,809

 

   -  

 

   -  

 

   111,254

 

   94,861

Depreciation and Amortization

 

   112,014

 

   110,704

 

   164

 

165

 

  2,271

 

  2,711

 

   6,352

 

   5,849

 

  181

 

  180

 

   120,982

 

   119,609

Costs related to infrastructure construction

 

   -  

 

   -  

 

   295,403

 

160,216

 

   -  

 

   -  

 

-  

 

-  

 

   -  

 

   -  

 

   295,403

 

   160,216

Other:

 

   12,999

 

   14,519

 

3

 

-  

 

  23,920

 

  26,906

 

43,025

 

17,237

 

  56,163

 

  51,380

 

   136,110

 

   110,042

Collection charges

 

   -  

 

   -  

 

   -  

 

-  

 

  12,050

 

  11,989

 

    -  

 

-  

 

   -  

 

   -  

 

   12,050

 

   11,989

Allowance for doubtful accounts

 

   -  

 

   -  

 

   -  

 

-  

 

  7,555

 

  12,122

 

-  

 

    -  

 

   -  

 

   -  

 

  7,555

 

   12,122

 Leases and Rentals

 

   -  

 

   -  

 

   -  

 

-  

 

6

 

5

 

   2,261

 

   1,429

 

   -  

 

   -  

 

  2,267

 

  1,434

 Publicity and Advertising

 

   -  

 

   -  

 

   -  

 

-  

 

   -  

 

   -  

 

   8,236

 

   1,438

 

   -  

 

   -  

 

  8,236

 

  1,438

 Legal, Judicial and Indemnities

 

   -  

 

   -  

 

   -  

 

-  

 

   -  

 

   -  

 

26,174

 

   7,322

 

   -  

 

   -  

 

   26,174

 

  7,322

 Donations, Contributions and Subsidies

 

   -  

 

   -  

 

   -    

 

-  

 

   -  

 

   -  

 

   1,645

 

   1,534

 

   -  

 

   -  

 

  1,645

 

  1,534

Inspection fee

 

   -  

 

   -  

 

   -  

 

-  

 

   -  

 

   -  

 

-  

 

-  

 

  6,396

 

  5,683

 

  6,396

 

  5,683

Loss (gain) on the write-off of noncurrent assets

 

   -  

 

   -   

 

   -  

 

-  

 

   -  

 

   -  

 

-  

 

-  

 

  2,188

 

  (2,295)

 

  2,188

 

   (2,295)

Free energy adjustment

 

   -  

 

   -  

 

   -  

 

-  

 

   -  

 

   -  

 

-  

 

-  

 

  1,127

 

   -  

 

  1,127

 

   -  

Intangible of concession amortization

 

   -  

 

   -  

 

   -  

 

-  

 

   -  

 

   -  

 

-  

 

-  

 

  46,511

 

  47,645

 

   46,511

 

   47,645

Other:

 

   12,999

 

   14,519

 

3

 

-  

 

  4,309

 

  2,790

 

   4,709

 

   5,514

 

  (59)

 

  347

 

   21,961

 

   23,170

Total

 

   256,275

 

   260,226

 

   297,594

 

161,585

 

  67,573

 

  67,043

 

133,312

 

99,907

 

  56,344

 

  51,560

 

   811,098

 

   640,321

                                                 

 

 

 

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: September 30, 2010

 

 

 

     

Consolidated

     

Operating costs

 

Services Rendered to Third Parties

 

Operating expenses

 

Total

         

Sales

 

General

 

Other

 
     

Nine month

   

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

 

2010

 

2009

Personnel

   

   261,260

 

   246,800

 

  304

 

  537

 

58,956

 

51,697

 

   120,575

 

   115,046

 

-  

 

-  

 

  441,095

 

414,080

Employee Pension Plans

   

   (65,405)

 

2,734

 

  -  

 

  -  

 

-  

 

-  

 

   -  

 

   -  

 

-  

 

-  

 

  (65,405)

 

  2,734

Materials

   

   45,952

 

  40,958

 

1,477

 

  823

 

   2,252

 

   3,486

 

  7,945

 

  5,530

 

-  

 

-  

 

  57,626

 

   50,797

Outside Services

   

   131,697

 

   116,611

 

2,349

 

2,093

 

58,353

 

53,879

 

   127,824

 

   110,266

 

-  

 

-  

 

  320,223

 

282,849

Depreciation and Amortization

   

   333,821

 

   334,213

 

  494

 

  495  

 

   6,688

 

   8,231

 

   17,507

 

   17,816

 

541

 

541

 

  359,051

 

361,296

Costs related to infrastructure construction

   

   -  

 

  -  

 

   698,867

 

   410,678

 

-  

 

-  

 

   -  

 

   -  

 

-  

 

-  

 

  698,867

 

410,678

Other:

   

   44,272

 

  37,924

 

3

 

3

 

85,182

 

65,557

 

   49,669

 

   47,428

 

164,234

 

162,186

 

  343,360

 

313,098

Collection charges

   

   -  

 

  -  

 

  -  

 

  -  

 

35,090

 

36,436

 

   -  

 

   -  

 

-  

 

-  

 

  35,090

 

   36,436

Allowance for doubtful accounts

   

   -  

 

  -  

 

  -  

 

  -  

 

37,410

 

20,934

 

   -  

 

   -  

 

-  

 

-  

 

  37,410

 

   20,934

 Leases and Rentals

   

   -  

 

  -  

 

  -  

 

  -  

 

  6

 

   13

 

  6,397

 

  3,817

 

-  

 

-  

 

6,403

 

  3,830

 Publicity and Advertising

   

   -  

 

  -  

 

  -  

 

  -  

 

-  

 

-  

 

   10,951

 

  2,508

 

-  

 

-  

 

  10,951

 

  2,508

 Legal, Judicial and Indemnities

   

   -  

 

  -  

 

  -  

 

  -  

 

-  

 

-  

 

  7,726

 

   17,256

 

-  

 

-  

 

7,726

 

   17,256

 Donations, Contributions and Subsidies

   

   -  

 

  -  

 

  -  

 

  -  

 

-  

 

 -  

 

  4,924

 

  4,509

 

-  

 

-  

 

4,924

 

  4,509

Inspection fee

   

   -  

 

  -  

 

  -  

 

  -  

 

-  

 

-  

 

   -  

 

   -  

 

18,575

 

17,767

 

  18,575

 

   17,767

Loss (gain) on the write-off of noncurrent assets

   

   -  

 

  -  

 

  -  

 

  -  

 

-  

 

-  

 

   -  

 

   -  

 

   1,946

 

(1,154)

 

1,946

 

   (1,154)

Free energy adjustment

   

   -  

 

  -  

 

  -  

 

  -  

 

-  

 

-  

 

   -  

 

   -  

 

   3,654

 

-  

 

3,654

 

   -  

Intangible of concession amortization

   

   -  

 

  -  

 

  -  

 

  -  

 

-  

 

-  

 

   -  

 

   -  

 

139,240

 

142,932

 

  139,240

 

142,932

Other:

   

   44,272

 

  37,924

 

3

 

3

 

12,676

 

   8,174

 

   19,671

 

   19,338

 

819

 

   2,641

 

  77,441

 

   68,080

Total

   

   751,597

 

   779,240

 

   703,494

 

   414,629

 

211,431

 

182,850

 

   323,520

 

   296,086

 

164,775

 

162,727

 

  2,154,817

 

   1,835,532

                                                   

 

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: September 30, 2010

 

 

( 29 )     FINANCIAL INCOME AND EXPENSES

 

 

   

Parent Company

   

2010

 

2009

   

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

Financial Income

               
                 

Income from Financial Investments

 

6,626

 

24,951

 

8,014

 

17,890

Arrears of  interest and fines

 

-  

 

22

 

-  

 

-  

Restatement of tax credits

 

2,173

 

2,527

 

574

 

2,570

Restatement of Escrow Deposits

 

240

 

633

 

160

 

160

Monetary and Exchange Variations

 

-  

 

-  

 

-  

 

-  

Discount on purchase of ICMS credit

 

-  

 

-  

 

-  

 

-  

PIS and COFINS on Interest on Shareholders' Equity

 

-  

 

(9,117)

 

-  

 

(9,447)

Guarantees

 

1,532

 

4,684

 

1,307

 

5,673

Other

 

10,501

 

19,850

 

4,428

 

9,841

Total

 

21,072

 

43,550

 

14,483

 

26,687

                 

Financial Expense

               
                 

Debt Charges

 

(12,599)

 

(33,187)

 

(10,686)

 

(36,108)

Monetary and Exchange Variations

 

224

 

619

 

(12)

 

(326)

(-) Capitalized borrowing costs

 

-  

 

-  

 

-  

 

-  

Public utilities

 

-  

 

-  

 

-  

 

-  

Guarantees

 

(6,246)

 

(17,517)

 

(869)

 

(5,685)

Other

 

(2,373)

 

(5,930)

 

(2,362)

 

(6,402)

Total

 

(20,994)

 

(56,015)

 

(13,929)

 

(48,521)

                 

Net financial income (expense)

 

78

 

(12,465)

 

554

 

(21,834)

 

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: September 30, 2010

 

 

 

   

Consolidated

   

2010

 

2009

   

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

Financial Income

               
                 

Income from Financial Investments

 

  45,509

 

  110,887

 

   21,131

 

  63,532

Arrears of  interest and fines

 

  33,132

 

98,976

 

   29,070

 

  93,995

Restatement of tax credits

 

3,711

 

 5,421

 

   300

 

3,251

Restatement of Escrow Deposits

 

  12,068

 

32,447

 

   10,772

 

  35,187

Monetary and Exchange Variations

 

8,676

 

24,758

 

   (2,122)

 

9,445

Discount on purchase of ICMS credit

 

1,820

 

5,389

 

  2,555

 

5,321

PIS and COFINS on Interest on Shareholders' Equity

 

  -  

 

(9,117)

 

   -  

 

  (9,447)

Guarantees

 

1,532

 

4,684

 

  1,307

 

5,673

Other

 

  23,377

 

58,672

 

   15,363

 

  45,815

Total

 

   129,825

 

  332,117

 

   78,376

 

   252,772

                 

Financial Expense

               
                 

Debt Charges

 

   (196,993)

 

   (535,131)

 

(126,219)

 

   (413,100)

Monetary and Exchange Variations

 

   (19,344)

 

  (67,025)

 

   (6,683)

 

   (20,843)

(-) Capitalized borrowing costs

 

  37,942

 

  109,599

 

  2,161

 

  20,730

Public utilities

 

  (4,858)

 

  (15,038)

 

   (1,894)

 

  (5,485)

Guarantees

 

  (6,247)

 

  (17,517)

 

   (872)

 

  (5,688)

Other

 

   (13,425)

 

  (46,236)

 

   (11,729)

 

   (46,538)

Total

 

   (202,925)

 

   (571,348)

 

(145,236)

 

   (470,924)

                 

Net financial income (expense)

 

   (73,100)

 

   (239,231)

 

   (66,860)

 

   (218,152)

                 

 

( 30 )  TRANSACTIONS WITH RELATED PARTIES

 

The Company is controlled by the following Companies:

·   VBC Energia S.A.

Controlled by the Camargo Corrêa group, with operations in a number of segments, such as construction, cement, footwear, textiles, aluminum and highway concessions, among others.

·   Bonaire Participações S.A.

Controlled by Energia São Paulo Fundo de Investimento em Participações, which in turn is controlled by the following pension funds: (a) Fundação CESP, (b) Fundação SISTEL de Seguridade Social, (c) Fundação Petrobras de Seguridade Social - PETROS, and (d) Fundação SABESP de Seguridade Social - SABESPREV.

·   Fundo BB Carteira Livre I - Fundo de Investimento em Ações (“Fund")

Fund controlled by PREVI - Caixa de Previdência dos Funcionários do Banco do Brasil.

The direct and indirect participations in operating subsidiaries are described in Note 1.

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: September 30, 2010

 

 

Controlling shareholders, subsidiaries and associated companies, jointly controlled corporations and entities under common control and that in some way exercise significant influence over the Company are regarded as related parties.

The financial statements for September 30, 2010 and December 31, 2009 show the balances and changes that took place in the normal course of operating activities of the Company and its subsidiaries.

The main transactions are described below:

a)         Bank deposits and short-term investments – refer mainly to bank deposits and short-term financial investments, as mentioned in Note 6.

b)        Loans and Financing, Debentures and Derivatives – relate to funds raised in accordance with Notes 16 and 17, contracted under the normal market conditions at the time. In addition, the Company is guarantor of some of the loans obtained by its subsidiaries, as described in Notes 16 and 17.

c)         Other Financial Transactions – the amounts in relation to Banco do Brasil are bank costs and collection expenses. The balance recorded in liabilities comprises basically the rights over the payroll processing of certain subsidiaries, negotiated with Banco do Brasil, which are appropriated as an income in the statement of operations over the term of the contract. The Company also has an Exclusive Investment Fund managed by BB DTVM, which charges management fees under normal market conditions for such management.

d)        Property, plant and equipment, Materials and Service Provision – refers to the acquisition of equipment, cables and other materials for use in distribution and generation, and contracting of services such as construction and information technology consultancy. These operations were contracted under normal market conditions.

e)         Energy sales to the free market – refers basically to energy sales to free consumers, through short or long-term contracts made under conditions regarded by the Company as being market conditions at the time of the negotiation, in accordance with internal policies established in advance by Company management.

f)         Energy purchased in the free market – refers basically to energy purchased by the trading companies in accordance with short or long-term agreements made under conditions regarded by the Company as being market conditions at the time of the negotiation, in accordance with policies established in advance by Company management.

g)        Other revenue – refers basically to revenue from rental of use of the distribution system for telephony services.

h)         Purchase and sale of energy in the regulated market - The subsidiaries that are public distribution service concessionaires charge tariffs for the use of the distribution system (TUSD) and sell energy to related parties in their respective concession areas (captive consumers). The amounts charged are established in accordance with prices regulated by the regulatory agency. These distributors also purchase energy from related parties, mainly involving long-term agreements, in conformity with the rules established by the sector (principally by auction); these prices are also regulated and approved by ANEEL.

Additionally, certain subsidiaries have supplementary retirement plan maintained with Fundação CESP and offered to the employees of the subsidiaries, as mentioned in Note 20.

To ensure that commercial transactions with related parties are conducted under normal market conditions, the Company set up a Related Parties Committee, comprising representatives of the controlling shareholders, responsible for analyzing the main transactions with related parties.

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: September 30, 2010

 

 

During the quarter, the subsidiaries obtained approval for financing of R$ 499,800 (see note 16) from Banco do Brasil, in the form of rural credit.

 

( 31 )    FINANCIAL INSTRUMENTS AND OPERATING RISKS

 

a) Risk Considerations:

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

The main market risk factors affecting the businesses are as follows:

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 operations of the Company’s subsidiaries are also exposed 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 tried to increase the proportion 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 is very low for 2011, and the likelihood of another energy rationing program is remote.

Risk of Acceleration of Debts: The 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.

Risk Management for Financial instruments

The Company and its subsidiaries maintain operating and financial policies and strategies to protect the liquidity, safety and profitability of their assets. They accordingly 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 market conditions.

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 Mark to Market, Stress Testing and Duration of the instruments, and assess the risks to which the Company and its subsidiaries are exposed. Historically, the financial instruments contracted by the Company and its subsidiaries supported by these tools have produced adequate risk mitigation results. It must be stressed that the Company and its subsidiaries have a formal policy of contracting 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.

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: September 30, 2010

 

 

c) Valuation of Financial Instruments

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

 

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

 

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

 

In addition to the assets and financial liabilities calculated at fair value through profit or loss, the Company and its subsidiaries have other financial liabilities not calculated at fair value. The market values of these financial instruments as of September 30, 2010 and December 31, 2009, applying the above methodology, are shown below:

 

   

Parent Company

   

September 30, 2010

 

December 31, 2009

   

Accounting balance

 

Fair value

 

Accounting balance

 

Fair value

                 

Debentures (note 17)

 

(453,401)

 

(458,537)

 

(462,788)

 

(468,993)

Total

 

(453,401)

 

(458,537)

 

(462,788)

 

(468,993)

                 
   

Consolidated

   

September 30, 2010

 

December 31, 2009

   

Accounting balance

 

Fair value

 

Accounting balance

 

Fair value

Loans and financing (note 16)

 

(4,823,839)

 

(4,644,798)

 

(3,452,942)

 

(3,194,735)

Debentures (note 17)

 

(3,446,319)

 

(3,495,551)

 

(3,351,478)

 

(3,392,071)

Total

 

(8,270,158)

 

(8,140,349)

 

(6,804,420)

 

(6,586,806)

                 

 

 

 

d) Derivatives

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: September 30, 2010

 

 

 

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

 

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

 

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

 

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: September 30, 2010

 

   

Market values (book values)

                       

Company / strategy / Counterparts

 

Asset

 

(Liability)

 

Market values, net

 

Values at cost, net

 

Gain (Loss) on marking to market

 

Currency / index

 

Maturity range

 

Notional

 

Trading market

                                     

Derivatives for protection of debts designated at fair value

                           
                                     

Exchange variation hedge

                                   
                                     

CPFL Paulista

                                   

 ABN  

 

   -  

 

   (779)

 

(779)

 

5,655

 

  (6,434)

 

 yen  

 

 Jan 2012

 

376,983

 

 Over-the-counter  

Subtotal

 

   -  

 

   (779)

 

(779)

 

5,655

 

  (6,434)

               
                                     

Derivatives for protection of debts not designated at fair value

                           
                                     

Exchange variation hedge

                                   
                                     

CPFL Paulista

                                   

 Itau BBA

 

   -  

 

  (2,589)

 

   (2,589)

 

  (2,581)

 

(8)

 

 dollar  

 

 Oct/2010  

 

   30,121

 

 Over-the-counter  

                                     

CPFL Geração

                                   

HSBC

 

   -  

 

   (447)

 

(447)

 

   (401)

 

  (46)

 

 dollar  

 

 Oct/2010 to Mar/2011

 

   65,237

 

 Over-the-counter  

                                     
                                     
                                     

Hedge interest rate variation (1)

                                   
                                     

CPFL Energia

                                   

 Citibank  

                                   
   

2

 

   (490)

 

(488)

 

96

 

   (584)

 

 CDI + spread

 

Sep 2010 to Sep 2014

 

450,000

 

 Over-the-counter  

RGE

                                   

 Santander  

 

  416

 

  -  

 

   416

 

99

 

  317

 

 CDI  

 

 Dec 2010 to Dec 2013

 

280,000

 

 Over-the-counter  

 Citibank  

 

  102

 

  -  

 

   102

 

34

 

68

 

 CDI  

 

 Dec 2010 to Dec 2013

 

100,000

 

 Over-the-counter  

                                     

Hedge interest rate variation (2)

                                   
                                     

CPFL Piratininga

                                   

 HSBC  

 

   -  

 

   (118)

 

(118)

 

9

 

   (127)

 

 TJLP  

 

 Jan/2013  

 

   25,453

 

 Over-the-counter  

 Santander  

 

   -  

 

   (140)

 

(140)

 

4

 

   (144)

 

 TJLP  

 

 Jan/2013  

 

   25,453

 

 Over-the-counter  

                                     

CPFL Geração

                                   

 HSBC  

 

   -  

 

   (242)

 

(242)

 

4

 

   (246)

 

TJLP

 

Dec/2012

 

   50,377

 

 Over-the-counter  

                                     

Subtotal

 

  520

 

  (4,026)

 

   (3,506)

 

  (2,736)

 

   (770)

               
                                     

Total

 

  520

 

  (4,805)

 

   (4,285)

 

2,919

 

  (7,204)

               
                                     

Current

 

  361

 

  (3,372)

                           

Noncurrent

 

  159

 

  (1,433)

                           

Total

 

  520

 

  (4,805)

                           
                                     

For further details of terms and informationa bout debts and debentures, see Notes 16 and 17

                   

(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 16).

 

 

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

 

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: September 30, 2010

 

           

Gain (loss)

           

2010

 

2009

 

 

Company

 

Hedged risk / Operation

 

Account

 

3rd quarter

 

Nine month

 

3rd quarter

 

Nine month

                         

CPFL Energia

 

Interest rate variation

 

Financial expense - Swap transactions

 

(14)

 

164

 

97

 

37

CPFL Energia

 

Mark to market

 

Financial expense - Adjustment to fair value

 

20

 

(231)

 

(109)

 

415

CPFL Paulista

 

Exchange variation

 

Financial expense - Swap transactions

 

13,802

 

(3,160)

 

(23,902)

 

(195,372)

CPFL Paulista

 

Mark to market

 

Financial expense - Adjustment to fair value

 

1,627

 

1,558

 

1,223

 

44,450

CPFL Piratininga

 

Exchange variation

 

Financial expense - Swap transactions

 

-  

 

 -  

 

-  

 

(218)

CPFL Piratininga

 

Variação de taxas de juros

 

Financial expense - Swap transactions

 

13

 

13

 

-  

 

-  

CPFL Piratininga

 

Mark to market

 

Financial expense - Adjustment to fair value

 

(271)

 

(271)

 

-  

 

(126)

CPFL Geração

 

Exchange variation

 

Financial expense - Swap transactions

 

(5,594)

 

(13,832)

 

(28,700)

 

(233,624)

CPFL Geração

 

Interest rate variation

 

Financial expense - Swap transactions

 

(38)

 

581

 

(132)

 

(1,339)

CPFL Geração

 

Mark to market

 

Financial expense - Adjustment to fair value

 

206

 

1,792

 

1,120

 

10,700

RGE

 

Exchange variation

 

Financial expense - Other financial exp

 

 

-  

 

(969)

 

(11,743)

RGE

 

Interest rate variation

 

Financial expense - Other financial exp

 

109

 

450

 

                  188

 

321

RGE

 

Mark to market

 

Financial expense - Derivatives adjust fair value

 

104

 

92

 

(155)

 

422

           

9,964

 

(12,844)

 

(51,339)

 

(386,077)

                         

 

 

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$ 139,214 (R$ 67,825 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 gain of R$ 8,747 (R$ 4,262 in proportion to the participation of CPFL Geração) in the third quarter of 2010 and a gain of R$ 15,351 (R$ 7,479 in proportion to the participation of CPFL Geração) in the same period of 2009. The compensation of these amounts will occur after the respective tariff adjustment process, respecting the existing conditions of each contract. 

 

The subsidiary CPFL Paulista also has a total indebtedness in foreign currency of R$ 468,790.  As a hedge against exchange exposure, it contracted derivatives used as a hedge directly tied to the indebtedness of R$ 420,618. To minimize the exchange exposure, the subsidiary also contracted a non tied derivative of R$ 29,126 and also has sufficient assets indexed in dollars (fund tied to foreign currency loans – Note 11) to offset any exchange impact.

 

d) 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 September 30, 2010 were maintained, the simulation of the consolidated effects by type of financial instrument for three different scenarios would be:

 

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: September 30, 2010

 

   

Consolidated

Instruments

 

Exposure

 

Risk

 

Exchange depreciation of 9%*

 

Exchange depreciation of 25%**

 

Exchange depreciation of 50%**

Financial asset instruments

 

  21,578

 

 apprec.dollar  

 

1,871

 

5,395  

 

  10,789

Financial liability instruments

 

   (197,613)

 

 apprec.dollar  

 

  (17,135)

 

  (49,407)

 

   (98,807)

Derivatives - Plain Vanilla Swap

 

  92,076

 

 apprec.dollar  

 

7,983

 

23,020

 

  46,038

   

  (83,959)

     

(7,281)

 

  (20,992)

 

   (41,980)

                     

Financial liability instruments

 

   (420,618)

 

 apprec.yen  

 

  (36,471)

 

   (105,154)

 

   (210,309)

Derivatives - Plain Vanilla Swap

 

  420,618

 

 apprec.yen  

 

36,471

 

  105,154

 

   210,309

   

  -  

     

  -  

 

  -  

 

  -  

                     
   

  (83,959)

     

(7,281)

 

  (20,992)

 

   (41,980)

                     

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

           

**In compliance with CVM Instruction 475/08

                   

 

 

 Variation in interest rates

 

Supposing that (i) the scenario of exposure of the financial instruments indexed to variable interest rates as of September 30, 2010 were to be maintained, and (ii) the respective accumulated annual indexes as of that date were to remain stable (CDI of 9,20% p.a.; IGP-M of 7,77% 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$ 525,808. 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

 

  1,565,951

 

CDI variation

 

39,294

 

43,036

 

  86,073

Financial liability instruments

 

  (4,851,857)

 

CDI variation

 

   (110,365)

 

   (120,875)

 

   (241,752)

Derivatives - Plain Vanilla Swap

 

   (622,815)

 

CDI variation

 

  (13,079)

 

  (14,325)

 

   (28,651)

 

 

  (3,908,721)

     

  (84,150)

 

  (92,164)

 

   (184,330)

 

 

                 

Financial asset instruments

 

  85,985

 

IGP-M variation

 

  (808)

 

1,670

 

3,341

Financial liability instruments

 

   (264,155)

 

IGP-M variation

 

889

 

(4,249)

 

  (8,498)

Derivatives - Plain Vanilla Swap

 

  -  

 

IGP-M variation

 

  -  

 

  -  

 

  -  

 

 

   (178,170)

     

81

 

(2,579)

 

  (5,157)

 

 

                 

Financial liability instruments

 

  (2,762,725)

 

TJLP variation

 

3,869

 

  (41,441)

 

   (82,880)

Financial liability instruments

 

  105,836

 

Fixed rate

 

  (148)

 

1,588

 

3,175

 

 

  (2,656,889)

     

3,721

 

     (39,853) 

 

   (79,705)

 

 

                 

Total increase

 

  (6,743,780)

 

 

 

  (80,348)

 

   (134,596)

 

   (269,192)

 

 

 

 

 

 

 

 

 

 

 

* The CDI, IGP-M and TJLP indexes considered of 11.30%, 6.83% and 5.86%, respectively, were obtained from information available in the market

**In compliance with CVM Instruction 475/08

                   

 

 

( 32 )  REGULATORY ASSETS AND LIABILITIES  

The Company accounts for the following assets and liabilities for regulatory purposes, which are not recognized in the consolidated financial statements, as mentioned in Note 3.13.

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: September 30, 2010

 

 

 

   

Consolidated

   

 

September 30, 2010

 

December 31, 2009

           

Assets

         
           

Consumers, Concessionaires and Licensees

         

 Discounts TUSD (*) and Irrigation

   

34,077

 

12,753

 Other financial components

   

-  

 

199

     

34,077

 

12,952

           

Deferred Costs Variations

         

Parcel "A"

   

666

 

1,290

CVA (**)

   

304,552

 

374,336

     

305,218

 

375,626

           

Prepaid Expenses

         

Increase in PIS and COFINS

   

-    

 

259

Overcontracting

   

36,587

 

100,326

Low income consumers' subsidy - Losses

   

44,831  

 

55,506

Neutrality of the sector charges

   

1,337  

 

-  

Tariff adjustment

   

22,226

 

-  

Other financial components

   

48,819

 

11,297

     

153,800

 

167,388

           

Liabilities

         
           
           

Deferred Gains Variations

         

Parcel "A"

   

(22,906)

 

(44,419)

CVA

   

(380,697)

 

(377,735)

     

(403,603)

 

(422,154)

           

Other Accounts Payable

         

Tariff review

   

-  

 

(89,261)

Discounts TUSD and Irrigation

   

(2,666)

 

(991)

Tariff adjustment

   

(7,234)

 

-  

Overcontracting

   

(52,659)

 

(17,541)

Low income consumers' subsidy - Gains

   

(3,172) 

 

(6,011)

Neutrality of the sector charges

   

(50,030) 

 

-  

Other financial components

   

(31,449)

 

(12,138)

   

 

(147,210)

 

(125,942)

           

Total net

   

(57,718)

 

7,870

           

(*)   Network Usage Charge - TUSD

         

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

   

 

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: September 30, 2010

 

 

 

 

( 33 )  SUBSEQUENT EVENT

 

 

Foz do Chapecó

 

On October 15, 2010 the first unit of the four generators of the Foz do Chapeco power plant went into commercial operation, as described in note 1.

 

 

Tariff Adjustment - CPFL Piratininga

 

By means of Ratification Resolution nº 1,075 of October 19, 2010, ANEEL set the Annual Tariff Adjustment for CPFL Piratininga at an average percentage of 10.11%, with 5.66% of perception of consumer.

 

 

   

 

 

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: September 30, 2010

 

 

07.01 – COMMENTS ON PERFORMANCE IN THE QUARTER

 

Analysis of Results – CPFL Energia (parent company)

 

Net income was R$ 344,148 in the third quarter of 2010, a decrease of 23.3% (R$ 104,618) compared to the same quarter of the previous year, due mainly to results of equity in subsidiaries, as shown below:

 

 

 

 

3rd quarter 2010

 

3rd quarter 2009

CPFL Paulista

125,155

 

224,360

CPFL Piratininga

61,067

 

66,475

RGE

73,414

 

36,671

CPFL Santa Cruz

3,320

 

8,933

CPFL Leste Paulista

3,481

 

3,931

CPFL Jaguari

2,588

 

1,585

CPFL Sul Paulista

3,847

 

3,560

CPFL Mococa

1,931

 

2,448

CPFL Geração

51,729

 

76,000

CPFL Brasil

49,953

 

61,848

CPFL Atende

734

 

6

CPFL Planalto

2,907

 

1,603

CPFL Serviços

1,391

 

(1,950)

CPFL Jaguariúna

(250)

 

6

CPFL Jaguari Geração

2,353

 

2,514

 

 

 

 

Total

383,620

 

487,990

 

 

 

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: September 30, 2010

 

 

12.01 – COMMENTS ON CONSOLIDATED PERFORMANCE IN THE QUARTER

 

CPFL Energia (Consolidated)

 

Information

Consolidated

3rd quarter

Nine month

2010

2009

Variation

2010

2009

Variation

GROSS REVENUE

4,494,484

        4,243,993

5.9%

       12,965,301

     12,101,072

7.1%

Electricity sales to final consumers (¹)

2,076,584

     2,005,695

3.5%

      5,993,957

      5,584,916

7.3%

Electricity sales to wholesaler

348,380

        324,682

7.3%

         845,887

         960,390

-11.9%

Revenue from concession infrastructure construction

295,403

        160,216

84.4%

         698,867

         410,678

70.2%

Other operating revenues (¹)

    1,774,117

     1,753,400

1.2%

      5,426,590

      5,145,088

5.5%

DEDUCTION  FROM OPERATING REVENUE

   (1,395,609)

    (1,319,402)

5.8%

     (4,120,142)

     (3,738,314)

10.2%

NET OPERATING REVENUE

    3,098,875

        2,924,591

6.0%

        8,845,159

      8,362,758

5.8%

ENERGY COST

   (1,665,778)

       (1,512,363)

10.1%

       (4,582,560)

     (4,527,153)

1.2%

Electricity purchased for resale

   (1,379,348)

    (1,248,052)

10.5%

     (3,723,117)

     (3,745,321)

-0.6%

Electricity network usage charges

      (286,430)

       (264,311)

8.4%

        (859,443)

        (781,832)

9.9%

OPERATING COST/EXPENSE

      (811,098)

         (640,321)

26.7%

       (2,154,817)

     (1,835,532)

17.4%

Personnel

      (147,737)

       (137,024)

7.8%

        (441,095)

      (414,080)

6.5%

Employee pension plan

        21,800

             (900)

-2522.2%

           65,405

         (2,734)

-2492.3%

Material

       (21,412)

         (17,669)

21.2%

          (57,626) 

        (50,797)

13.4%

Outsourced Services

      (111,254)

         (94,861)

17.3%

        (320,223)

      (282,849)

13.2%

Infrastructure construction costs

      (295,403)

       (160,216)

84.4%

        (698,867)

      (410,678)

70.2%

Depreciation and Amortization

      (120,982)

       (119,609)

1.1%

        (359,051)

      (361,296)

-0.6%

Amortization of intangible asset of concession

       (46,511)

         (47,645)

-2.4%

        (139,240)

      (142,932)

-2.6%

Other

       (89,599)

         (62,397)

43.6%

        (204,120)

      (170,166)

20.0%

OPERATING INCOME

       621,999

          771,907

-19.4%

        2,107,782

      2,000,073

5.4%

FINANCIAL INCOME (EXPENSE)

       (73,100)

           (66,860)

9.3%

          (239,231)

        (218,152)

9.7%

 Income 

       129,825

          78,376

65.6%

         332,117

         252,772

31.4%

 Expense 

      (202,925)

       (145,236)

39.7%

        (571,348)

        (470,924)

21.3%

Net income / (expense)

       (73,100)

         (66,860)

9.3%

        (239,231)

        (218,152)

9.7%

INCOME BEFORE TAX

       548,899

          705,047

-22.1%

        1,868,551

      1,781,921

4.9%

Social Contribution

       (52,641)

         (67,030)

-21.5%

        (178,316)

        (170,167)

4.8%

Income Tax

      (145,477)

       (180,333)

-19.3%

        (491,821)

        (466,876)

5.3%

NET INCOME FOR THE PERIOD

       350,781

          457,684

-23.4%

        1,198,414

      1,144,878

4.7%

 

 

 

 

 

 

 

EBITDA

       767,692

          940,061

-18.3%

        2,540,668

      2,507,035

1.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income for the Period and  EBITDA  Reconciliation (²)

 

 

 

 

 

 

   NET INCOME FOR THE PERIOD

       350,781

          457,684

 

        1,198,414

      1,144,878

 

  Employee Pension Plan

       (21,800)

                 900

 

            (65,405)

             2,734

 

  Depreciation and Amortization

       167,493

          167,254

 

           498,291

         504,228

 

  Financial Income (Expense)

        73,100

            66,860

 

           239,231

         218,152

 

  Social Contribution

        52,641

            67,030

 

           178,316

         170,167

 

  Income Tax

       145,477

          180,333

 

           491,821

         466,876

 

EBITDA

       767,692

          940,061

 

        2,540,668

      2,507,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 (2) Information not reviwed by the independent accountants

 

 

 

 

 

 

 

 

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: September 30, 2010

 

 

 

Gross Operating Revenue

The Gross Operating Revenue in the third quarter of 2010 was R$ 4,494,484, up 5.9% (R$ 250,491) on the same period of the previous year.          

By excluding “Revenue from construction of concession infrastructure” (because it does not have effect in the Profit and Loss due to its related cost which is recorded at the same value), the Gross Operating Revenue would have an amount of R$ 4,199,081, an increase of 2.8% (R$ 115,304).

 

In spite of the billed energy sales having fallen slightly by R$ 1,194 as a result of the net effect of the 3.9% reduction in average prices practiced, caused mainly by the negative tariff adjustments of the ditributors and the increase of 4.1% in energy sales, gross operating revenue was positively impacted by the following factors:

 

·         An increase of R$ 23,698 in the energy supplied, mainly due to the increase of R$ 31,339 in short-term electricity sales, as well as the price increase in the CCEE.This increase was partially offset by reduction in Other concessionaires, licensees and authorized.

·         An increase of R$ 93,598 in Other Operating Revenue, due to the increase of R$ 98,698 in revenue due to the Use of the Distribution System – TUSD for free customers. This increase is mainly due to the revival of industrial activity, the effects of the tariff adjustment and the migration of captive clients to the free market, particularly in the case of CPFL Paulista.This increase was partially offset by reduction in Other revenue and income.

 

Ø  Quantity of Energy Sold

 

An increase of 4.1% was recorded in the quantity of energy billed to final consumers in the third quarter of 2010.

The residential, commercial and industrial classes, which account for 84.3% of the energy sold to end users in the quarter and have the highest average tariffs, registered growth of 6.1%, 6.8% and 1.1% respectively, compared with the same quarter of the previous year.

The 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 same period last 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. However, growth in the third quarter was less than in the first half of the year, on account of the withdrawal of these tax incentives and the winding down of the inventory recomposition process. In addition, the migration of free customers resulted in a decrease in sales in the period.

In respect of the quantity of energy sold and transported within the concession area, which impacted both billed supply and the collection of TUSD, there was an increase of 7.5% compared with the same period of the previous year.

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: September 30, 2010

 

 

The quantity of energy supplied decreased 23.7% in the third quarter of 2010, both in the sales to the CCEE (short term sales), as a result of the lower energy balances, in the commercial segment (sales to other concessionaires, licensees and authorized sellers), due to the termination of several contracts.

                                                                                                                          

Ø  Tariffs 

 

In the third quarter of 2010, the energy supply tariffs applied fell by an average of 3.9%, mainly due to the impacts of the tariff adjustments of the distribution subsidiaries:

 

 

 

Deductions from Operating Revenue    

Deductions from Operating Income in the third quarter of 2010 amounted to R$ 1,395,609, an increase of 5.8% (R$ 76,207) in relation to the same quarter of 2009, mainly reflecting an increase of R$ 2,091 in taxes on revenue (PIS, COFINS and ICMS) and the increase of R$ 61,358 in CCC and CDE charges.

 

Cost of Electric Energy

Cost of Electric Energy in the quarter totaled R$ 1,665,778, representing an increase of 10.1% (R$ 153,415) 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$ 1,379,348, an increase of 10.5% (R$ 31,296). The variation reflected an increase of R$ 98,815 in energy purchased in restricted framework and R$ 23,075 in energy purchased in free market. These increases are explained due primarily to the tariff adjustments

 

Ø  Tariff for the Use of the Distribution System

 

The balance of tariff for the Use of the Distribution System was R$ 286,430, an increase of 8.4% (R$ 22,119)  in relation to the third quarter 2009, basically due to raise in charges, such as: System service charge – ESS (R$ 17,132), Reserve energy charge (R$ 12,385), Connection charge (R$ 7,094). These effects were partially offset by a reduction Basic network charge (R$ 17,432).

 

Operating Costs and Expense

Operating costs and expenses in the quarter amounted to R$ 811,098, an increase of 26.7% (R$ 170,777) compared to the same period of the previous year.

93


 

(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: September 30, 2010

 

 

Operating costs and expense would have an amount of R$ 515,965, a decrease of 7.4% (R$ 35,590) by excluding “Costs related to infrastructure construction” (because it does not have effect in the Profit and Loss due to its related revenue which is recorded at the same value),  mainly due to:

 

·         Employee Pension Plan: recorded income of R$ 21,800 in the quarter and expense of R$ 900 in the third quarter of 2009, largely as a result of the nominal earnings expected on the plan assets, based on an Actuarial Report;

·         Personnel: expenses relating to Personnel presented an increase of R$ 10,713, mainly as a result of the wage increases determined in collective bargaining agreements and an increase in the number of employees basically due to the business expansion by service companies.

·         Outsourced Services: an increase of R$ 16,393 as a result of price increases; maintenance expenses relating to the electricity system, telephone services and providing reinforcement for the technical staff;

·         Other Expenses: an increase of R$ 26,068, particularly in terms of Legal, Court and Indemnity expenses, which increased R$18,852, mainly due to the provision for labor claims recorded by CPFL Paulista (see note 21) and by the increase of R$ 6,798 in Publicity and Advertising Expenses.

 

Financial Income (Expense)

The Net Financial Income (Expense) in the third quarter of 2010 was an expense of R$ 73,100, representing an increase of 9.3% (R$ 6,240) compared with the same period of 2009:

 

Ø  The financial income increased R$ 51,449 (65.6%), mainly due to:

 

·         An increase of R$ 24,764 in earnings on short-term financial investments as a result of the higher balance of cash and cash equivalents in the third quarter of 2010;

·         An increase of R$ 15,505 in monetary and exchange restatement, deferred taxes and escrow deposits.

 

Ø  The financial expense increased R$ 57,689 (39.7%) mainly due to:

·         An increase of R$ 43,196 in debt charges and R$ 12,661 in monetary and exchange restatement , mainly due to the increase in indebtedness in the period and the increase of indicators used to correct debts, particularly the CDI index.

 

Social Contribution and Income Tax

Taxes on income in the third quarter of 2010 totaled R$ 198,118, a decrease of 19.9% (R$ 49,245) in relation to the same quarter of 2009, mainly as a result of the 22.1% decrease in pre-tax income.

 

 

Net income and EBITDA

94


 

(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: September 30, 2010

 

 

As a result of the above factors, the net income for the quarter was R$ 350,781, 23.4% (R$ 106,903) lower 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 third quarter of 2010 was R$ 767,692, 18.3% (R$ 172,369) lower than the EBITDA for the same period of 2009.

 

 

 

95


 

(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: September 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

29.80

COMMERCIAL, INDUSTRIAL AND OTHER

109,809,901

109,809,901

             

 

02

CPFL GERAÇÃO DE ENERGIA S/A

03.953.509/0001-47

PUBLIC SUBSIDIARY

100.00

22.27

COMMERCIAL, INDUSTRIAL AND OTHER

205,487,715,793

205,487,715,790

             

 

03

CPFL COMERCIALIZAÇÃO BRASIL S/A

04.973.790/0001-42

PRIVATE SUBSIDIARY

100.00

2.11

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

7.71

COMMERCIAL, INDUSTRIAL AND OTHER

53,031,258,899

53,031,258,896

             

 

05

RIO GRANDE ENERGIA S/A

02.016.439/0001-38

PUBLIC SUBSIDIARY

100.00

23,17

COMMERCIAL, INDUSTRIAL AND OTHER

807,168,582

807,168,578

             

96


 

(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: September 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

 

97


 

(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: September 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 September 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.

 

98


 

(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: September 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 of September 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

 

2,824

 

-  

Other shareholders

 

107,711,497

 

22.39

Total

 

481,137,130

 

100.00

 

Quantity and characteristic of secutiries held by Controlling Shareholders, Executive Officers, Board of Directors, Fiscal Council and Free Float, as of September

 

 

   

09/30/2010

 

09/30/2009

Shareholders

 

Common shares

 

Interest - %

 

Common shares

 

Interest - %

Controlling shareholders

 

333,314,879

 

69.28

 

333,314,881

 

69.45

Administrator

 

-  

           

Executive officers

 

2,824

 

0.00

 

31,152

 

0.01

Board of directors

 

112

 

0.00

 

3,110

 

0.00

Fiscal Council  Members

 

-  

 

-  

 

-  

 

-  

Other shareholders - free float

 

147,819,315

 

30.72

 

146,561,795

 

30.54

Total

 

481,137,130

 

100.00

 

479,910,938

 

100.00

Outstanding shares

 

147,819,315

 

30.72

 

146,561,795

 

30.54

 

99


 

(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: September 30, 2010

 

 

 

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

               
 

Shareholders

Common Shares

%

Preferred Shares

%

TOTAL

%

(a)

Átila Holdings S/A

1,815,927

  46.55

70,530

  50.00

1,886,457

  46.67

(b)

Camargo Corrêa Energia S.A.

1,339,149

  34.33

47,018

  33.33

1,386,167

  34.29

(c)

Camargo Corrêa S.A.

581,201

  14.90

23,512

  16.67

604,713

  14.96

 

Other shareholders

164,951

4.22

-  

-  

164,951

4.08

 

Total

3,901,228

100.00

141,060

100.00

4,042,288

100.00

               

(a)

Átila Holdings S/A

           
               
 

Shareholders

Common Shares

%

       

(d)

Construções e Comércio Camargo Corrêa S.A.

280,767,655

  38.91

       
 

Camargo Corrêa S.A

440,877,607

  61.09

       
 

Total

721,645,262

100.00

       
               

(b)

Camargo Corrêa Energia S.A.

           
               
 

Shareholders

Common Shares

%

Preferred Shares

%

TOTAL

%

(e)

Camargo Corrêa Investimento em Infra-Estrutura S.A.

518,860

100.00

518,854

100.00

1,037,714

100.00

 

Other shareholders

-  

-  

6

-  

6

-  

 

Total

518,860

100.00

518,860

100.00

1,037,720

100.00

               

(c)

Camargo Corrêa S.A.

           
               
 

Shareholders

Common Shares

%

Preferred Shares

%

TOTAL

%

(f)

Participações Morro Vermelho S.A.

48,941

  99.99

93,099

100.00

142,040

100.00

 

Other shareholders

5

0.01

1

-  

6

-  

 

Total

48,946

100.00

93,100

100.00

142,046

100.00

               

(d)

Construções e Comércio Camargo Corrêa S.A.

           
               
 

Shareholders

Common Shares

%

Preferred Shares

%

TOTAL

%

(c)

Camargo Corrêa S.A.

318,069

100.00

87,772

  99.99

405,841

  99.99

 

Other shareholders

5

-  

8

0.01

13

0.01

 

Total

318,074

100.00

87,780

100.00

405,854

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

  749,998

  33.33

   -

-  

749,998

  11.11

(h)

RCNON Empreendimentos e Participações S.A

  749,998

  33.33

   -

-  

749,998

  11.11

(i)

RCPODON Empreendimentos e Participações S.A

  749,998

  33.33

   -

-  

749,998

  11.11

(j )

RCABPN Empreendimentos e Participações S.A

   -

-  

  1,498,080

  33.29

1,498,080

  22.19

(k)

RCNPN Empreendimentos e Participações S.A

   -

-  

  1,498,080

  33.29

1,498,080

  22.19

(l)

RCPODPN Empreendimentos e Participações S.A

   -

-  

  1,498,080

  33.29

1,498,080

  22.19

(m)

RRRPN Empreendimentos e Participações S.A

   -

-  

  5,760

0.13

5,760

0.09

 

Other shareholders

6

0.01

   -

-  

6

0.01

 

Total

2,250,000

100.00

4,500,000

100.00

6,750,000

100.00

               

(g)

RCABON Empreendimentos e Participações S.A

           
               
 

Shareholders

Common Shares

%

Preferred Shares

%

TOTAL

%

 

Rosana Camargo Arruda Botelho

749,850

100.00

   -

   -

749,850

  99.98

 

Other shareholders

   -

-  

  150

  100

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

 

100


 

(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: September 30, 2010

 

 

 

( 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

 

 

101


 

(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: September 30, 2010

 

 

 

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

               
               
 

Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I

         
               
 

Shareholders

Cotas

%

       
 

Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI

130,163,541

100.00

       
 

Total

130,163,541

100.00

       
               
               

Shareholder's composition of  BONAIRE Parcipações S.A. holding more than 5% of the shares of the same type and class, up to the individuals level, as of September 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

Cotas

%

       
 

Fundação CESP

353,528,507

100.00

       
 

Total

353,528,507

100.00

       
               

Shareholder's composition 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 September 30, 2010:

               
 

Shareholders

Common Shares

%

       
 

Banco Nacional de Desenv. Econômico e Social  ( * )

1

100.00

       
 

Total

1

100.00

       
               

( * )

State agency - Federal Government

           
               

Number of shares is 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. 

  

 

102


 

(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: September 30, 2010

 

 

 

Social Report / Nine-month period ended in September 2010 and 2009 (*)

           

Company: CPFL ENERGIA S.A.

           

1 - Basis for Calculation

9 month-period ended September 2010 Value (R$ thousand)

9 month-period ended September 2009 Value (R$ thousand)

Net Revenues (NR)

8,845,159

8,362,758

Operating Result (OR)

1,868,551

1,781,921

Gross Payroll (GP)

392,854

359,500

2 - Internal Social Indicators

Value (000)

% of GP

% of NR

Value (000)

% of GP

% of NR

Food

30,935

7.87%

0.35%

29,268

8.14%

0.35%

Mandatory payroll taxes

106,701

27.16%

1.21%

94,696

26.34%

1.13%

Private pension plan

19,274

4.91%

0.22%

17,924

4.99%

0.21%

Health

23,164

5.90%

0.26%

20,852

5.80%

0.25%

Occupational safety and health

1,612

0.41%

0.02%

1,450

0.40%

0.02%

Education

1,754

0.45%

0.02%

1,428

0.40%

0.02%

Culture

0

0.00%

0.00%

0

0.00%

0.00%

Trainning and professional development

7,285

1.85%

0.08%

3,870

1.08%

0.05%

Day-care / allowance

1,113

0.28%

0.01%

824

0.23%

0.01%

Profit / income sharing

31,062

7.91%

0.35%

31,444

8.75%

0.38%

Others

3,929

1.00%

0.04%

2,082

0.58%

0.02%

Total - internal social indicators

226,829

57.74%

2.56%

203,838

56.70%

2.44%

3 - External Social Indicators

Value (000)

% of OR

% of NR

Value (000)

% of OR

% of NR

Education

533

0.03%

0.01%

1,346

0.08%

0.02%

Culture

7,282

0.39%

0.08%

8,442

0.47%

0.10%

Health and sanitation

1,864

0.10%

0.02%

452

0.03%

0.01%

Sport

40

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

1,559

0.08%

0.02%

535

0.03%

0.01%

Total contributions to society

11,278

0.60%

0.13%

10,890

0.61%

0.13%

Taxes (excluding payroll taxes)

4,178,796

223.64%

47.24%

3,800,612

213.29%

45.45%

Total - external social indicators

4,190,074

224.24%

47.37%

3,811,502

213.90%

45.58%

4 - Environmental Indicators

Value (000)

% of OR

% of NR

Value (000)

% of OR

% of NR

Investments relalated to company production / operation

73,304

3.92%

0.83%

65,699

3.69%

0.79%

Investments in external programs and/or projects

58,271

3.12%

0.66%

47,678

2.68%

0.57%

Total environmental investments

131,575

7.04%

1.49%

113,377

6.36%

1.36%

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

 

Nine month 2010

 

 

Nine month 2009

 

Nº of employees at the end of period

7,664

7,369

Nº of employees hired during the period

1,030

701

Nº of outsourced employees

ND

6,746

Nº of interns

252

199

Nº of employees above 45 years age

2,106

2,016

Nº of women working at the company

1,666

1,390

% of management position occupied by women

8.70%

9.43%

Nº of Afro-Brazilian employees working at the company

853

730

% of management position occupied by Afro-Brazilian employees

1.79%

1.27%

Nº of employees with disabilities

294

291

6 - Relevant information regarding the exercise of corporate citizenship

 

Nine month 2010

 

 

Nine month 2009

 

Ratio of the highest to the lowest compensation at company

79.33

59.20

Total number of work-related accidents

13

7

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

( ) are
suggested

(x) are
required

(  ) are not
considered

( ) are
suggested

(x) 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  530.416

in Procon            1.666

in the Courts
1.291

in the company
552.304

in Procon
393

in the Courts
845

% 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):

Nine-month-period 2010*:         6,479,878

Nine-month-period 2009* :     5,943,375

Value-Added Distribution (VAD):

66.15% government          5.6% employees                                  
11.95% shareholders      9.76% third parties  
6.54% retained

65.36% government           6.72% employees                                  
9.62% shareholders    8.66% third parties  
9.64% retained

7 - Other Information

 

 

 

 

 

 

Consolidated information

* Adjusted to adequate to IFRS.

           

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

           

 

103


 

(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: September 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 individual quarterly financial information of CPFL Energia S.A. (“The Company”) comprising the balance sheets, the statements of income, comprehensive income, shareholders’ equity and cash flows and the consolidated quarterly financial information of this Company and its subsidiaries, comprising the consolidated balance sheets, the consolidated statements of income, comprehensive income, shareholders’ equity and cash flows, both related to  the quarter ended as of September 30, 2010, which include the footnotes and performance report, prepared under the responsibility of the Management.

 

2.    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.

 

3.    Based on our special review, we are not aware of any material modifications that should be made to the individual quarterly financial information of CPFL Energia S.A. aforementioned, for it to be in conformity with accounting practices adopted in Brazil and the regulations issued by the Brazilian Securities Commission - CVM, applicable to the preparation of quarterly financial information.

 

4.    Based on our special review, we are not aware of any material modifications that should be made to the consolidated quarterly financial information of CPFL Energia S.A. and its subsidiaries aforementioned, for it to be in conformity with International Financial Reporting Standards (IFRS) and the regulations issued by the Brazilian Securities Commission - CVM, applicable to the preparation of quarterly financial information

104


 

(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: September 30, 2010

 

 

 

5.    As mentioned in footnote n° 5, during 2009 and 2010, were approved by CVM, several pronouncements, interpretations and technical guidance issued by the Committee for Accounting Pronouncements (CPC) in effect for 2010, which changed the accounting practices adopted in Brazil. These changes were adopted by the Company and its subsidiaries to the preparation of individual quarterly financial information of the Company of the quarter ended September 30, 2010 and disclosed in footnote no 5. This individual quarterly financial information has been restated, and thus, were different of the individual quarterly information presented in November 10, 2010, including our independent auditors´ review report dated by November 03, 2010. The individual quarterly financial information of the year and period ended on 2009 and 2010, prepared and restated to for comparative purpose, were adjusted to include the changes in account practices adopted in Brazil effective for 2010.

 

6.    As mentioned in footnote n° 5, the Company and its subsidiaries since the fiscal year ended 2010, start the present their consolidated quarterly financial information in accordance with International Financial Reporting Standards (IFRS). The consolidated quarterly financial information of the Company and its subsidiaries for the year and periods ended 2009, prepared in accordance with aforementioned international accounting standards, are being presented for the comparison purpose.

 

7.    Our review was conducted with the purpose to issue a review report on accounting information of quarterly financial information of this Company and its subsidiaries, referred in the first paragraph, as a whole. The statements of additional value, prepared under the responsibility of the Management, is not required by international accounting practices issued by IASB and is presented as additional information. Those additional information were subject to the same review procedures applied to the accounting information included in to the individual and consolidated quarterly financial information of CPFL Energia S.A. and its subsidiaries and, based on our review, we are not aware of any material modifications that should be made in this additional information to be presented in accordance with the accounting information included in to the quarterly information referred in the first paragraph, as a whole.

 

 

Campinas, April 13, 2011

 

 

KPMG Auditores Independentes

CRC 2SP014428/O-6

 

 

 

 

 

Jarib Brisola Duarte Fogaça

Contador CRC 1SP125991/O-0

 

105


 

(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: September 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 September 30, 2010, filed with the CVM (Brazilian Securities Commission).

106


 

(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: September 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 September 30, 2010, filed with the CVM (Brazilian Securities Commission).

 

107


 

(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: September 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 - 07/01/2010 to 09/30/2010

 4 - 01/01/2010 to 09/30/2010

 5 - 07/01/2009 to 09/30/2009

 6 - 01/01/2009 to 09/30/2009

3.01

Operating revenues

541,252

1,380,580

533,603

1,456,198

3.02

Deductions from operating revenues

(57,758)

  (148,228)

(52,909)

  (183,797)

3.03

Net operating revenues

483,494

1,232,352

480,694

1,272,401

3.04

Cost of sales and/or services

  (400,112)

  (978,492)

  (384,649)

  (1,023,850)

3.04.01

Electric energy purchased for resale

  (391,420)

  (958,369)

  (377,887)

  (1,003,910)

3.04.02

Electric energy network usage charges

-  

  (17)

   1

  423

3.04.03

Material

16

  (61)

   (450)

   (836)

3.04.04

Outsourced services

   (8,708)

(20,045)

   (6,313)

(19,527)

3.05

Gross operating income

   83,382

253,860

   96,045

248,551

3.06

Operating expenses/income

   (8,929)

(24,543)

   (4,822)

(10,578)

3.06.01

Sales and Marketing

   (6,646)

(22,378)

   (6,300)

(18,739)

3.06.02

General and administrative

   (2,820)

   (3,796)

   (515)

   (1,558)

3.06.03

Financial

 537

  1,631

  1,993

  9,719

3.06.03.01

Financial income

  7,077

   17,331

  4,646

   12,073

3.06.03.02

Financial expenses

   (6,540)

(15,700)

   (2,653)

   (2,354)

 

 

108


 

(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: September 30, 2010

 

 

 

1 – Code

2 – Description

 3 - 07/01/2010 to 09/30/2010

 4 - 01/01/2010 to 09/30/2010

 5 - 07/01/2009 to 09/30/2009

 6 - 01/01/2009 to 09/30/2009

3.06.04

Other operating income

   -  

  -    

   -  

   -  

3.06.05

Other operating expense

   -  

   -  

   -  

   -  

3.06.06

Equity in subsidiaries

   -  

   -  

   -  

   -  

3.07

Income from operations

   74,453

229,317

91,223

   237,973

3.08

Nonoperating income (expense)

   -  

  -    

   -  

   -  

3.08.01

Income

   -  

   -    

   -  

   -  

3.08.02

Expenses

   -  

   -  

   -  

   -  

3.09

Income before taxes on income and noncontrolling interest

   74,453

    229,317  

91,223

   237,973

3.10

Income tax and social contribution

  (25,314)

(77,235)

(11,831)

  (55,481)

3.10.01

Social contribution

(6,737)

(20,537)

(4,799) 

  (16,487)

3.10.02

Income tax

  (18,577)

(56,698)

(7,032)

(38,994)

3.11

Deferred income tax and social contribution

  816

1,770

  (17,555)

   (19,391) 

3.11.01

Social contribution

  217

469

(4,647)

  (5,133)

3.11.02

Income tax

599

  1,301

  (12,908)

  (14,258)

3.12

Statutory profit sharing/contributions

   -  

   -  

   -  

   -  

3.12.01

Profit sharing

   -  

   -  

   -  

   -    

3.12.02

Contributions

   -  

   -  

   -  

   -    

3.13

Reversal of interest on shareholders’ equity

   -  

   -  

   -    

   -  

3.15

Net income (loss) for  the period

   49,955

153,852

61,837

   163,101

 

SHARES OUTSTANDING EX-TREASURY STOCK (in units)

2,998,565

2,998,565

2,998,565

2,998,565

 

EARNINGS PER SHARE (Reais)

16.65964

51.30854

   20.62220

   54.39302

 

LOSS PER SHARE (Reais)

 

 

 

 

 

109


 

(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: September 30, 2010

 

 

22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES

 

Subsidiary: CPFL COMERCIALIZAÇÃO BRASIL S.A.

 

Gross Operating Revenue

 

Consolidated Gross Operating Revenue for the third quarter of 2010 was R$ 541,252, an increase of R$ 7,649 (1.4%) in relation to the same quarter of 2009. This increase is basically explained by the net effect of: (i) increase in the parent company’s revenue from energy sales, which grew R$ 34,152 impacted by the increase of 24 GWh in volume of energy sales and 6.3% in the average price; (ii) decrease of R$ 16,465 related to supply contracts of subsidiaries CPFL Cone Sul and Clion; (iii) decline of R$ 10,038 regarding revenue from services rendered by the parent company.

 

 

 

Net Income and EBITDA

 

Net income of R$ 49,955 was recorded in the third quarter of 2010, a decrease of R$ 11,894 (19.2%), compared with the same quarter of 2009.

 

EBITDA (net income before Financial Income (Expense), income tax and social contribution, depreciation and amortization) for the third quarter of 2010 was R$ 74.626, 16.8% lower than the R$ 89,736 recorded in the same quarter of 2009 (information not reviewed by the Independent Auditors). 

110


 

(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: September 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 September 30, 2010, filed with the CVM (Brazilian Securities Commission).

 

111


 

(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: September 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 September 30, 2010, filed with the CVM (Brazilian Securities Commission).

112


 

(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: September 30, 2010

 

 

 

23.01 – DESCRIPTION OF CHANGED INFORMATION

 

Restatement due to CVM Decision 656 of January 25, 2011.

113


 

(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: September 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 JULY  01, 2010 TO SEPTEMBER 30, 2010

9

05

02

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

10

08

01

CONSOLIDATED BALANCE SHEET - ASSETS

11

08

02

CONSOLIDATED BALANCE SHEET - LIABILITIES

12

09

01

CONSOLIDATED INCOME STATEMENT

13

10

01

CONSOLIDATED STATEMENTS OF CASH FLOW

14

11

01

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JULY 01, 2010 TO SEPTEMBER 30, 2010

15

11

02

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

16

06

01

NOTES TO THE INTERIM FINANCE STATEMENTS

17

07

01

COMMENTS ON PERFORMANCE IN THE QUARTER

90

12

01

COMMENTS ON CONSOLIDATED PERFORMANCE OF THE QUARTER

91

13

01

INVESTMENTS IN SUBSIDIARIES AND/OR ASSOCIATED COMPANIES

96

14

01

CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES

97

19

01

CAPITAL EXPENDITURES

98

20

01

OTHER IMPORTANT INFORMATION ON THE COMPANY

99

21

01

REPORT ON  SPECIAL REVIEW-UNQUALIFIED

104

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

106

 

 

COMPANHIA PAULISTA DE FORÇA E LUZ – CPFL

 

22

 01 

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

107

 

 

CPFL GERAÇÃO DE ENERGIA S.A.

 

22

01

INCOME STATEMENT OF SUBSIDIARIES

108

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

110

 

 

CPFL COMERCIALIZAÇÃO BRASIL S.A.

 

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

111

 

 

COMPANHIA PIRATININGA DE FORÇA E LUZ

 

22

01

COMMENTS ON  PERFORMANCE OF SUBSIDIARIES

112

 

 

RIO GRANDE ENERGIA S.A.

 

114


 
SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: May 13, 2011
 
CPFL ENERGIA S.A.
 
By:  
         /S/  WILSON P. FERREIRA JUNIOR
  Name:
Title:  
 Wilson P. Ferreira Junior 
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.