Investor Presentaiton
The approval made by the Board of Directors did not extend to the Canoas,
Machadinho, Barra Grande and Campos Novos plants, since they are not
fully managed by the Company, but through consortia or other entities. All
had their extension deadlines already approved by National Eletric Energy
Agency (ANEEL).
Power Plant
Canoas 1
Canoas 2
Machadinho
Barra Grande
Campos Novos
Approval resolution
Dead line of extension
(in days)
2,919
1,460
2,919
1,467
2,932
1,180
2,932
2,932
1,757
1,318
With this, what is lacking is the deliberation by the governance bodies of
each one by all of its consortium members and other shareholders, who
must agree on their portions of right levied on the renegotiation before the
effective approval.
For the subsidiary VGE, on March 1, 2021, the calculations of the extension
of the grants of the plants that adhere to the renegotiation of the hydro-
logical risk of the Free Contracting Environment (ACL) were presented and
forwarded to ANEEL for analysis and approval, which should take place in
up to 30 days (expected March 30, 2021). However, such approval did not
take place within this period because of funds claimed by some plants with
ANEEL, so that new conditions for the renegotiation of hydrological risk
related to the Regulated Contracting Environment (ACR) were included. As
a consequence, ANEEL requested that the GSF values be recalculated for a
new round of analysis and approval.
Pursuant to Ratification Resolutions No. 2,919 of August 3, 2021 and
No. 2,932 of September 14, 2021, ANEEL ratified the term of grant ex-
tension of the hydroelectric plants participating in the Energy Reallocation
Mechanism (MRE) related to the ACL, according to Eletric Energy Trading
Chamber (CCEE) calculations, including the Paraibuna and Porto Primavera
plants (whose concessions are held by Companhia Energética de São Paulo-
CESP, a subsidiary of VTRM) and Igarapava, Amador Aguiar I and Picada
(whose concessions are linked to the investees, LDRSPE Geração de Energia
e Participações Ltda., LDOSPE Geração de Energia e Participações Ltda. and
LDQSPE Geração de Energia e Participações Ltda., subsidiaries of Pollarix).
As for the first two plants mentioned, the Board of Directors of CESP appro-
ved in March 2021: (i) the agreement with the terms proposed in Official
Letter 36/2021, so that an amendment to the Concession Agreement
3/2004 could be signed, to forecast the provisional extension of six months
of the concession of the Paraibuna HPP; (ii) adherence to the renegotiation
of the hydrological risk for the two Paraibuna and Porto Primavera plants
and the consequent extension of the concession due to the compensation
provided for in the terms of Law 14,052/2020. The accounting recognition
was carried out in the third quarter of 2021, after approval by ANEEL of the
amounts and terms of extension of the concessions.
Regarding the Igarapava, Amador Aguiar I and Picada plants, approval of
the adhesion to the hydrological risk renegotiation - GSF, took place on
September 24, 2021 by the governance bodies of the investee Pollarix.
Additionally, through Ratification Resolution No. 2,932 of September 14,
2021, ANEEL ratified the term of extension of the concession of the hydro-
electric plants related to the ACR, among which are the Barra Grande plants,
in which the indirect investee CBA Energia holds 15% of participation, and
Campos Novos, in which the indirect investees Pollarix and CBA Energia hold
a 20.98% and 23.78% interest, respectively.
The subject will be deliberated by the governance bodies, all the consortium
members and other shareholders, who must agree on their portions of right
levied on the renegotiation, as disclosed by ANEEL.
Considering the innovation brought about by the renegotiation of the
hydrological risk and the absence of a CPC Pronouncement (Accounting
=
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