ISA CTEEP Investment and Infrastructure Update

RTP REGULATORY OPERATIONAL COSTS (O&M) ✓ Revenue reduction much higher than efficiency gains isa CTEEP CONTRIBUTIONS IN PUBLIC HEARING Comparability assumptions: auctioned vs. non auctioned (existing) Holding synergies Impact Normalization by 3rd quartile (efficiency score) instead of quality adjustment Arbitrated weights for benchmarking variables PROPOSED OPERATIONAL REGULATORY COMPANY (MAIN CONCESSION CONTRACT) SCORES ADJUSTED SCORES OPERATIONAL COST 2016 BRL Million COSTS BRL Million CURRENT REGULATORY OPERATIONAL PROPOSED REGULATORY OPERATIONAL COSTS REGULATORY OPERATIONAL COSTS CHANGE BRL Million COSTS CEMIG-GT 91.3% 106.3% 178.3 215.8 189.5 -12.2% VS. CURRENT ISA CTEEP 89.5% 104.1% 527.1 719.1 548.9 -23.7% OPERATIONAL CEEE-GT 85.4% 99.4% 244.4 246.3 243.1 -1.4% REGULATORY CELG G&T 72.4% 84.2% 43.1 24.3 36.3 49.4% COSTS 1 FURNAS 55.5% 64.6% 1,340.6 862.1 865.9 0.4% COPEL-GT 48.5% 56.4% 179.2 164.2 101.1 -38.4% CHESF 38.1% 44.3% 1,122.1 716.2 497.6 -30.5% ELETROSUL 37.4% 43.6% 528.2 560.2 230.1 -58.9% ELETRONORTE 28.3% 33.0% 929.8 388.1 306.4 -21.1% AVERAGE 50.74% Note: 1 Technical Note ANEEL 164/2017 TOTAL 5,092.8 3,896.3 3,018.9 -22.5% 35

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