ISA CTEEP Investment and Infrastructure Update

RTP WACC WEIGHTED AVERAGE COST OF CAPITAL Inconsistent methodology among sectors (Generation, Transmission, Distribution) CONTRIBUTIONS IN PUBLIC HEARING Adoption of Brazilian local inflation bond (NTNB) vs. US Treasury Bond (10 years) isa CTEEP Difference in timeframe to calculate risk-free rate and country risk premium Cost of debt does not consider "all in costs" Debt ratio of 44.33% VS. approximately of 20% in Dec/17 auction 10.63% 10.22% 9.98% WACCS(%) 9.18% 8.57% 8.49% 8.09% 7.95% 7.16% 6.64% 6.27% RAILWAYS TRANSMISSION 2015 PORT (Auction/2016) 2015 HIGHWAY TRANSMISSION AIRPORTS 2015 DISTRIBUTION 2015 (Auction/2017) 2015 COPASA 2017 GENERATION TRANSMISSION 2014 (Current) TRANSMISSION (Public Hearing 04/2017) 37

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