Investor Presentaiton
Pronouncements Committee), Interpretation or Guidance that applies spe-
cifically to the topic, the Company's Management exercised its judgment in
the development and application of an accounting policy, as provided for in
CPC 23 - Policies Accounting, Change in Estimate and Error Correction, using
by analogy the precepts of CPC-04 (R1) - Intangible Assets, considering
that it is essentially an intangible asset related to the right of grant arising
from compensation for costs incurred in fiscal years above. Additionally,
considering also by analogy paragraph 44 of the aforementioned CPC - 04
(R1), the asset constituted by the renegotiation of the non-hydrological
risk was recognized at fair value, considering the Company's best estimate,
based on the parameters determined by the regulation of ANEEL, as well as
the values of compensation calculated by the CCEE.
The amounts were transformed by ANEEL into an extension of the concession
term, which will be amortized using the straight-line method until the end of
the concession term, adjusted with the extension as from the renegotiation.
The table below shows the amounts involved and the concession extension
period for each plant:
=
Investees
GSF Value
Impairment
GSF (i)
% Reflected
on VGE
Equity method impact
Extension period
End date of grant
Plants
Porto Primavera
CESP Companhia Energética de São
Paulo
739
(299)
20.00%
88
7 years
April 13, 2056
Paraíbuna
CESP Companhia Energética de São
Paulo
43
20.00%
9
15 months
June 3, 2022
Igarapava
L.D.R.S.P.E. Empreendimentos e
Participações Ltda
13
66.67%
9
2 years and 7 months.
September 9, 2031
L.D.O.S.P.E. Empreendimentos e
Amador Aguiar I
Participações Ltda
17
66.67%
11
6 years
November 25, 2042
L.D.Q.S.P.E. Empreendimentos e
Picada
Participações Ltda
24
66.67%
16
5 years
March 30, 2041
Campos Novos
L.D.Q.S.P.E. Empreendimentos e
Participações Ltda
157
20.98%
33
3 years and 5 months
January 6, 2039
Baesa
L.D.Q.S.P.E. Empreendimentos e
Participações Ltda
179
23.79%
Total
1,172
(299)
43
208
4 years and 9 months
March 6, 2041
(i) In possession of the calculations approved by ANEEL for Porto Primavera, CESP updated the impairment test on hydrological risk (GSF), in order to analyze the ability to recover the book value
of the intangible asset in its future operations, considering the future cash flow from operations and the indemnity amount at the end of the concession, and identified the need to set up a
provision for impairment of the GSF, in the amount of R$ 299, recognized in CESP's income.
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