Profile: CPFL Energia S.A. (CPL)

CPFL Energia S.A., incorporated in 1998, is a holding company that, through its subsidiaries, distributes, generates and commercializes electricity in Brazil. During the year ended December 31, 2008, it distributed approximately 37,323 gigawatt hour of electricity to approximately 6.4 million consumers. In 2008, its installed generating capacity was 1,704 megawatt. It is also involved in upgrading existing generation assets, building one new hydroelectric generation facility, one biomass generation project, and upgrading two small hydroelectric power plants. CPFL Energia S.A. is also engaged in electricity commercialization and provides electricity-related services to its affiliates, as well as unaffiliated parties. In 2008, the total amount of electricity sold by its commercialization services was 7,608 gigawatt and 8,822 gigawatt to affiliated and unaffiliated parties, respectively.

Distribution

During 2008, the Company’s eight distribution subsidiaries together supplied electricity to a region covering 208,205 square kilometers primarily in the States of Sao Paulo and Rio Grande do Sul. Their service areas include 568 municipalities and a population of approximately 17.2 million people. Together, they provided electricity to approximately 6.4 million consumers as of December 31, 2008. Its eight subsidiaries distributed approximately 12.9% of the total electricity distributed in Brazil. The Company’s eight distribution subsidiaries include Companhia Paulista de Forca e Luz (CPFL Paulista), Companhia Piratininga de Forca e Luz (CPFL Piratininga), Rio Grande Energy (RGE), Companhia Luz e Forca Santa Cruz (CPFL Santa Cruz), Companhia Jaguari de Energia (CPFL Jaguari), Companhia Luz e Forca de Mococa (CPFL Mococa), Companhia Paulista de Energia Elétrica (CPFL Leste Paulista) and Companhia Sul Paulista de Energia (CPFL Sul Paulista).

CPFL Paulista supplies electricity to a region covering 90,440 square kilometers in the State of Sao Paulo with a population of approximately 8.9 million people. Its service area covers 234 municipalities, including the cities of Campinas, Bauru, Ribeirao Preto, Sao Jose do Rio Preto, Araraquara and Piracicaba. CPFL Piratininga supplies electricity to a region covering 6,785 square kilometers in the southern part of the State of Sao Paulo with a population of approximately 3.3 million people. Its service area covers 27 municipalities, including the cities of Santos, Sorocaba and Jundiai. RGE supplies electricity to a region covering 90,718 square kilometers in the State of Rio Grande do Sul with a population of approximately 3.8 million people. Its service area covers 262 municipalities, including the cities of Caxias do Sul and Gravatai.

CPFL Santa Cruz supplies electricity to an area covering 11,775 square kilometers, which includes 24 municipalities in the northwest part of the State of Sao Paulo and three municipalities in the State of Parana. CPFL Jaguari supplies electricity to an area covering 252 square kilometers, which includes two municipalities of the State of Sao Paulo. CPFL Mococa supplies electricity to an area covering 1,844 square kilometers, which includes one municipality of the State of Sao Paulo and three municipalities in the State of Minas Gerais. CPFL Leste Paulista supplies electricity to an area covering 2,589 square kilometers, which includes seven municipalities of the State of Sao Paulo. CPFL Sul Paulista supplies electricity to an area covering 3,802 square kilometers, which includes five municipalities of the State of Sao Paulo.

Generation

As of December 31, 2008, CPFL Energia S.A. had installed generation capacity of 1,704 MEGAWATT. During 2008, it generated a total of 6,659 Gigawatt of electricity, and it had 7,134 Gigawatt of assured energy. It holds equity interests in eight hydroelectric plants (Serra da Mesa, Monte Claro, Barra Grande, Campos Novos, Luiz Eduardo Magalhaes-Lajeado, Castro Alves, 14 de Julho and Foz do Chapeco). The Company also owns 33 small hydroelectric power plants and one thermoelectric power plant.

Commercialization and Electricity-Related Services

The Company’s subsidiary CPFL Comercializacao Brasil S.A., (CPFL Brasil), handles its commercialization operations and electricity-related services. CPFL Brasil procures electricity for its distribution operations, sells electricity to Free Consumers, other commercialization companies and distribution utilities, and provides electricity-related services. In 2008, it sold 16,431 Gigawatt of electricity of which 8,822 Gigawatt was sold to unaffiliated third parties.