STXNEWS LATAM-Cemig passes on 3 hydro-dam concession renewals

Tue Oct 16, 2012 8:48am EDT

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Brazilian electricity generator Cia. Energetica de Minas Gerais declined to apply to renew concessions to operate three hydroelectric power dams, Chief Executive Djalma Bastos de Morais said in a statement. The dams are responsible for more than a third of its output. Cemig said new government rules that allow concession renewal in exchange for sharp cuts in electricity rates do not impact its right to renew the contracts for 20 years under old rules. Renewal under the old rules would increase the chance that Cemig, controlled by the state of Minas Gerais, could make a profit.

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