Sustainability Report 2011 - EasyWork

Sustainability
Report 2011
safety
Innovation and excellence for
the customer’s satisfaction
Generation of
Sustainable Power
efficient use
of resources
Development and Appreciation
of Employees, Suppliers
and The Communities

Summary
3
About the Report
4
Message from the CEO
6
PROFILE
Our History 14
Corporate structure 15
24
Strategy and Management
Sustainability Platform 39
Sustainability Policy 47
Public Commitments 38
40
Safety
56
Efficient use of resources
Efficient use of financial resources 58
Efficient use of power resources 66
Efficient use of natural resources 68
74
Development and Valorization
of Employees, Suppliers and
Communities
46
Innovation and excellence
for customers’ satisfaction
Employees 76
Suppliers 90
Communities 94
100
Content index
16
Corporate Governance
Governance Structure 20
Capital markets 22
52
Generation of
sustainable power
110
CReDITS

about
the report
GRI: 2.1; 3.1; 3.3; 3.4; 3.5; 3.8
AES Tietê presents in this sustainability
report the initiatives to ensure the
development of its business, explaining
subjects related to the company’s social and
environmental and economic responsibility.
GRI’s guidelines, the document reached level
B of compliance with the guidelines.
This report is also in compliance with the
recommendations by Brazilian Electricity
Regulatory Agency (ANEEL) Resolution
No. 444/2001, as amended, that provides
for the Accounting Manual for the Public
Electricity Service (MCSPEE) and present
accounting instructions and a schedule for
the preparation and disclosure of economic
and financial information and the social
responsibility of the concessionaires and
permittees in the document referred to as
Annual Report of Social and Environmental
Responsibility of the Electric power
Companies.
This report comprises, on an annual basis,
the period from January 1 to December 31,
of 2011. Information related to AES Tietê’s
activities within its operational units in the
States of São Paulo and Minas Gerais.
The contents was defined together
with all the company’s areas and based
on the discussions throughout the 3rd
Cycle of Relationship Discussions, held
between October and November 2011
and that represented an engagement
process, attended by employees, suppliers,
customers (corporate and residential) and
representatives of different sectors of the
community (such as public authorities,
NGOs and other institutions).
ContaCT
In case of doubts and suggestions
with respect to the contents of this
report, contact the Executive Board of
Communication and Sustainability, to the
care of Luiz Pires.
e-mail
comunicacao@aes.com
LETTER
Rua Lourenço Marques, 158, Vila Olímpia
– São Paulo (SP) – CEP 04547-100
Report – Levels of application
C C+ B B+ A A+
report content
G3 Profile Answer to items: 1,1; 2,1 a 2,10;
3,1 to 3,8; 3,10 to 3,12; 4,1 to 4,4;
4,14 and 4,15
Information on G3’s management
Performance indicators of G3 &
performance indicators of the
Sector Supplement
Not required
Answer to at least 10
performance indicators, including
at least one of the following areas
of performance: social, economic
and environmental
With external verification
Answer to all criteria for Level C,
plus the following items: 1,2; 3,9;
3,13; 4,5 to 4,13; 4,16 and 4,17
Information on the type of
management for each category
of indication
Answer to at least 20
performance indicators, including
at least one of the following
areas of performance: economic;
environmental, human rights,
work practices, society and
responsibility for the product
With external verification
The same is required for level B
Type of management for each
category of indication
Answer to each main indicator
of G3 and Sector Complement
(if any), properly considering the
principle of materiality, of one of
the following types: a) answering
to the indicator or b) explaining
the reason of the omission
With external verification
Sustainability Report 2011
3

Message
from the CEO
GRI: 1.1; 1.2; 2.10
Important challenges took place in 2011
with respect to all businesses of Grupo
AES Brasil. In view of a more complex
scenario, simplification was the best way. We
reviewed and improved our management
structure, reinforced our investment
programs in the generation and distribution
of electric power, renewed our commitment
with customer care and quality related to
the services rendered to our customers,
over 7.5 million, and we sought to improve
our operational procedures. Through the
performance of the value added to our
telecommunication business – AES Atimus
–, whose sale was successfully concluded, in
the amount of R$ 1.6 billion, we reinforced
our strategic focus as one of the main
groups operating in the Brazilian electric
power groups.
In 2011, we invested R$ 1.3 billion, an
amount 14% greater than the amount
invested in 2010. With respect to our
distribution business, we invested R$ 1
billion (R$ 948 million in 2010) in the
expansion of our electric energy networks
– in order to serve 234 thousand new
customers and to ensure the continued
consumption increase –, improvement and
acceleration of our automated electrical
system and improvement of the services
provided to our customers and of our
response time to more aggressive climate
events. We invested R$ 739 million in
AES Eletropaulo and R$ 271 million in AES Sul.
In June 2011, AES Eletropaulo faced an
adverse condition with the extra tropical
cyclone that interrupted the electric power
supply to approximately 600 thousand
customers. In order to improve our response
time under similar conditions, as well
as to continue improving the quality of
the services rendered, we reinforced our
operational activities and investments,
allocating approximately R$ 242 million to a
specific action plan, whose implementation
commenced in July 2011 and will continue
through the end of 2012.
The expected results have been reached. AES
Eletropaulo ended 2011 with an Equivalent
Interruption Frequency per Consumer Unit
(FIC) of 5.45 times and with a Duration of
Interruption per Consumer Unit (DIC) of 10.36
hours, respectively, the fourth and sixth best
FIC and DIC among important Brazilian electric
power discos. In February 2012, we recorded
FEC of 4.94 times and DEC of 9.16 hours.
Our purpose is to continue our
improvement and close 2012 with FEC of
5.03 times and DEC of 8.11 hours, based on
the regulatory limit of 6.87 times and 8.67
hours, respectively.
In AES Sul, also as a result of our actions
and our investments in the continued
improvement of the quality of the services
rendered, we reduced 2.68 hours in DEC and
0.83 times in FEC, closing 2011 with DEC of
15.38 hours and FEC of 9.29 hours.
In the generation of electric power, we
invested R$ 175.3 million (R$ 82.2 million
in 2010), mainly in the maintenance and
modernization of the hydroelectric plants
of AES Tietê, whose goal is to double its
installed capacity, by adding approximately
3 thousand MW by 2016. In view of this,
in 2011, we continued with the Termo São
Paulo project, the thermoelectric unit under
natural gas with generation capacity of 550
MW, to be installed in the Municipality of
Canas (SP), with an estimated investment of
R$ 1.1 billion.
In October 2011, we obtained the Previous
Environmental License and, as soon as the
natural gas supply is confirmed for new
electric energy auctions, the project will
continue to be developed.
AES Uruguaiana, thermoelectric plant with
generation capacity of 640 MW, remains
with its activities discontinued due to the
suspension of the agreement for natural gas
supply with Argentina.
4 AES Tietê

In 2011, AES Brasil renewed
the to more than 7.5 million
of customers and sough
more efficiency in the
operational proceedings
In December 2011, the hearings were
resumed in connection with the arbitration
procedure filed by AES Uruguaiana against
YPF S.A., in Argentina. We expect that
this process is concluded in the second
half of 2012.
In terms of safety, our main concern,
we invested R$ 43.5 million in training,
campaigns and lectures in communities
and schools, protection equipment and
continuous improvement of the operating
procedures. These investments and the
commitment of all employees were
essential to, in 2011, avoid accidents with
our and contracted employees and we
were able to reduce by 32% the number
of fatal accidents with the population in
the concession area o four electric power
distributors.
With regard to our social actions in the
communities, we advanced. In July 2011,
we launched the seven units of Culture
and Citizenship House, in Novo Hamburgo,
concession area of AES Sul, in the State
of Rio Grande do Sul. With this new unit,
we reached approximately 5,600 children
and adolescents, directly benefited from
this project. AES Eletropaulo, together
with the Ministry of Social Development
and municipalities of its concession
area, renewed the personal file of the
beneficiaries of the Social Tariff, based on
the changes introduced in specific regulation
in 2011. Approximately 270 thousand
beneficiaries were already registered and
we expect to reach approximately 500
thousand customers.
In 2011, Grupo AES Brasil reached Ebitda
(income before interest, taxes, depreciation
and amortization) of R$ 4.9 billion and net
income of R$ 3 billion, an increase of 17%
and 35% as compared to 2010, respectively.
In 2011, we were recognized for our efforts,
as follows:
- AES Eletropaulo was elected, for the third
consecutive time, as The Most Admired
Company in Brazil, under category Electric
Power Supply, by Carta Capital magazine;
- AES Sul received the Ibero American
Quality Award, Abradee Award (Brazilian
Association of Electric Power Distributors),
under categories Management Quality
and Social Responsibility, and Eloy Chaves
Medal, granted by Fundação Coge, in
recognition for its safety standards;
- AES Tietê received the Abrasca Award
for the Best Annual Report amongst the
companies with net income of up to R$
2 billion and the Sectorial Award, under
category Electric Power, and Abrasca Value
Creation Award;
- AES Eletropaulo and AES Tietê maintained
the Business Sustainability Index (ISE), of
BM&FBovespa, for the seventh and sixth
year, respectively;
- AES Eletropaulo, AES Tietê and AES Sul
received the Ethics Seal, comprising the
Pro-Ethics Company Registry, an initiative
of the General Controllership of the Federal
Government and Ethos Institute.
Between 2012 and 2016, we defined a new
strategic plan, supported by our Sustainability
Platform, that renews and reinforces the focus
on the customer and establishes the other
key steps for the next five years: growth,
relation network management, and efficiency
and focus on the execution. This planning
is associated with the investments in our
businesses of distribution and generation
of electric power of approximately R$ 5.5
billion, in the next five years. For purposes of
distribution, we estimate R$ 4.7 billion and,
in terms of generation, R$ 814 million. These
amounts may increase to the extent that we
improve our growth strategy and develop new
generation projects.
We thank for the confidence of our
customers, the dedication and commitment
of our employees and the support provided
by suppliers, shareholders, communities,
regulatory bodies, public authorities and
investors.
Britaldo Soares
CEO of Grupo AES Brasil
Sustainability Report 2011
5

6 AES Tietê

AES Tietê invests to expand
generation capacity and
ensure the continuous
improvement of service
PROFILE
Generate
to Grow
Sustainability Report 2011
GRI: 2.2; 2.3; 2.7; 2.8
AES Tietê – company of AES Brasil Group –
is the second largest Brazilian publicly-held
company in the power generating sector,
with installed capacity of 2,659 MW and
physical guarantee of 1,280 MW average.
The Company operates, in the State of São
Paulo, the following hydroelectric plants
Água Vermelha, Bariri, Barra Bonita, Caconde,
Euclides da Cunha, Ibitinga, Limoeiro, Nova
Avanhandava and Promissão, in addition
to the small hydroelectric power plants
(SHPPs) Mogi-Guaçu and São Joaquim. In
Minas Gerais, where operates through its
controlled company AES Minas PCH, it holds
six SHPPs. In the aggregate, its generation
complex represents 18.2% of the installed
capacity of the State of São Paulo and 2.3%
of national the installed capacity.
To ensure the continuous improvement of the
service and the expansion of the generation
capacity, AES Tietê is also investing in the
Termo São Paulo project, which sets the
construction of a new combined cycle gasfired
thermal plant that will be installed in the
city of Canas (SP) and will generate power
from natural gas and vapor.
AES Tietê generates more than electric
power. The rendering of services is directly
related to the population’s quality of life and
wellbeing. There are 355 own professionals
and 963 subcontracted working on a
daily basis to serve the customers, always
focusing on safety – value number 1 – and
committed to sustainability.
7

Commercialization
GRI: 2.2
In 2011, AES Tietê expanded the interest in
the electric power purchase and sell market,
increasing the client portfolio as part of the
strategy to seek news opportunities in the
national power scenario.
AES Tietê’s concession agreement is effective
until 2029 and can be renewed for further
30 years. Until the end of 2015, a substantial
part of the power generated by AES Tietê is
contracted by AES Eletropaulo, a disco for
AES Brasil Group.
AES Tietê
in Numbers
GRI: 2.8; EU1; EU2
9 hydroelectric plants
GRI: 2.5
AES Corp. and AES Brasil
AES Corp. is a global company operating in the generation
and distribution of electric power. Operating in 27 countries,
the workforce of AES, comprised of 28 thousand persons, is
committed with the operational excellence and compliance
with the energy consumption needs in the world.
AES operates in Brazil since 1997 in the generation,
distribution and sale of electric power, with operations in
the States of São Paulo, Minas Gerais and Rio Grande do Sul.
Grupo AES Brasil is comprised of two distributors,
AES Eletropaulo and AES Sul, and two generators,
AES Uruguaiana and AES Tietê. Together, these companies
account for 12.5% of electric energy distributed and
2.3% of installed capacity in the country.
2 Small Hydroelectric Plants in São Paulo
6 Small Hydroelectric Plants in Minas Gerais
355 own employees
963 employees subcontracted
2,659 MW de installed capacity
13.86 TWh power generated in 2011
R$ 175.2 million invested in 2011
R$ 844.9 million in net income
* One of the PCHs is disabled for reform, with functioning
scheduled for April 2012.
** One of the PCHs is disabled.
Plants in the State of São Paulo GRI: 2.3
Rio Grande
Aes TietÊ plants
Ibitinga (with floodgate)
132 MW
Rio Pardo
Nova Avanhandava (with floodgate) 347 MW
Promissão (with floodgate)
264 MW
Barra Bonita (with floodgate)
141 MW
Rio paraná
Rio Tietê
Bariri (with floodgate)
Água Vermelha
143 MW
1,396 MW
Rio mogi guaçu
Euclides da Cunha
109 MW
Rio Paranapanema
Limoeiro
Caconde (with floodgate)
PCH Mogi-Guaçu
32 MW
80 MW
7 MW
Brasil
PCH São Joaquim
PCH São José
3 MW
4 MW
8 AES Tietê

2 nd largest
Brazilian
publicly-held
company of
generation of
electric power,
AES Tietê have
an installed
capacity of
2,659 MW
The Company controls AES Minas PCH Ltda.
(PCH Minas), a company holding seven
Small Hydroelectric Power Plants (SHPPs)
in the State of Minas Gerais, provided that
one is deactivated, in a modernization study.
The installed capacity of the operational
SHPPs accounts to 5.4 MW, with a physical
guarantee of 4.9 MW average.
GRI: EU1
Plant
Capacity (MW)
Power Generated
in 2011 (GWh)
Ibitinga (with floodgate) 132 762.663
Nova Avanhandava (with floodgate) 347 1,117.539
Promissão (with floodgate) 264 1,415.866
Barra Bonita (with floodgate) 141 691.245
Bariri (with floodgate) 143 766.131
Água Vermelha 1,396 7,971.376
Euclides da Cunha 109 486.499
Limoeiro 32 135.452
Caconde (with floodgate) 80 345.273
PCH Mogi-Guaçu 7 28.600
PCH São Joaquim 3 0.021
Sustainability Report 2011
9

A) GENERATION
TRANSFORMER
D) Consumers
commercial
and industrial
10 AES Tietê

B) transmisSION
ENERGY PATH
A) Generation
The plants are the first step in the electric power production. Most cases, they use a
type of natural resource to propel the turbines that generate electric power which,
in turn, will be transmitted to the system. AES Brasil operates in the generation with
AES Tietê and AES Uruguaiana.
B) Transmission
These are high power cable networks that connect the generating plants to the
distribution centers. In the event of failure in the transmission, the electric energy
distributors are not able to provide the services. AES Brasil does not operate in this
stage of the system.
C) Distribution
These are high power cable networks, easily identified in the cities, that distribute the
electric energy received from the transmission systems to the sundry consumption
points. In this stage, AES Brasil operates with AES Eletropaulo and AES Sul.
D) Consumers commercial and industrial
They receive the electric energy and transform it in several types of products or services:
hospitals, schools, cafés, restaurants, plants, hotels, shopping malls and other customers
that use the electric power to offer quality of life and comfort to any citizen.
E) Residential consumers
We receive the electric power to be used in lightning, showers, TVs, refrigerators,
freezers, microwaves, computers and sundry appliances, in order to ensure quality of
life and comfort to persons.
SUB-STATION
TRANSMISSION
SUB-STATION
DISTRIBUTION
C) distribution
E) residential
consumers
Sustainability Report 2011
11

AES Tietê’s generation complex
represents 18.2% of the
installed capacity of the State
of São Paulo and 2.3% of
the national capacity.
Operational and productivity indicators GRI: 2.8
Technical data (inputs, production capacity, sale and losses) 2009 2010 2011
Number of own employees 315 313 355
Number of employees subcontracted 339 529 963
Number of commercial offices 1 1 1
Power generated (GWh) 14.558 14.006 13.860
Power purchased (GWh) 416 966 * 1.569
Itaipu 0 0 0
with third parties 416 966 * 1.569
with related party 0 0 0
Global power losses (GWh) 358 306 206
Energy sold (GWh): 14.706 14.729 15.122
Installed capacity (MVA) 2.651 2.657 2.659
Energy sold by own employee (MWh) 46.686 47.058 42.597
Added value/GWh sold (R$ thousand) 104 94 105
*Information rectified with respect to 2010 sustainability report.
5,4 MW
is the sum of AES Tietê’s installed
capacity of the Small Hydroelectric
Power Plants in operation
12 AES Tietê

Vision, Mission
and Values
GRI: 4.8
In order to consolidate the high performance
culture disseminated in all companies of
AES Brasil Group, AES Tietê’s initiatives are
aligned with the organizational guidelines,
objective and long-term goals set forth in
the Group’s strategic plan.
In 2011, the strategic plan incorporate
AES Brazil’s Sustainability Platform,
presented at the beginning of 2012 (refer
page XX for more information). All Group’s
companies are governed by the same values
and principles and, during the year, AES Tietê
view was reformulated aiming at a new
cycle of strategic plan, which contemplates
the period from 2012 to 2016.
Vision
Be the leader company in the
operational, commercial and
financial management of the power
generation sector in Brasil and
expand the capacity by 3 thousand
MW, until 2016, through sustainable
practices.
Mission
Improving lives and promoting
development by providing safe,
reliable and sustainable energy
solutions
Values
Safety in first place Operate with
integrity Honor commitments Seek
excellence Job satisfaction
Sustainability Report 2011
13

Our History
1999
São Paulo government approves the spin-off the Companhia Energética de
São Paulo (Cesp) in three new companies, including Companhia de Geração
de Energia Elétrica Tietê, which had the majority of its capital stock acquired
by AES Corp., through direct and indirect controlled companies, in a public
auction held in BM&FBOVESPA S.A. The concession agreement with the
Brazilian Electricity Regulatory Agency (ANEEL) is executed for the operation
of nine plants generating electric power and one small hydroelectric plant
for a 30-year term and it may be extended for an addition of 30 years.
2000
acquisition of PCH Minas, in 2000, of Vale.
2001
the corporate name Companhia de Geração de
Energia Elétrica Tietê changes to AES Tietê S.A.
2003
in December 22, AES Corp. and several of its controlled companies (including
AES Tietê), together with BNDES Participações S.A. (BNDESPAR), executed
several agreement whereby AES Corp. transferred all shares it held directly and
indirectly in AES Tietê to a new parent company, referred to as Brasiliana Energia
S.A. (current Companhia Brasiliana), in exchange for 50%, plus a common
share of Brasiliana. Brazilian National Development Bank – BNDES, through
BNDESPAR, acquired all Brasiliana’s remaining voting shares, in addition to
the preferred shares issued by the company due to the renegotiation of AES
Elpa S.A. and AES Transgás Empreendimentos Ltda.’s debt to BNDESPAR. As a
result, 53.85% of Brasilians’s total capital stock is currently granted by BNDES,
represented by BNDESPAR, and 46.15% is held by AES Corp., through the
holding AES Holdings Brasil Ltda.
14 AES Tietê

AES Tietê’s initiatives are aligned
to the organizational guidelines,
objective and long-term goals
established in the Group’s
strategic plan
Corporate structure
GRI: 2.8
GRI: 2.10
AES TIetê Recognition
in 2011
• Wan the Best Annual Report Award
(category b) – Companies with net
income of up to R$ 2 Billion. The award is
granted by ABRASCA and evaluated the
best annual reports, essentially in terms
of content;
• Remained in the Corporate Sustainability
Index (SCI), from BM&FBOVESPA, for the
sixth year in a roll;
• Received the Ethics Seal, integrating
the Pro-Ethics Company Registry, an
initiative by the Office of the Comptroller
General and Ethos Institute to evaluate
and disclose the companies commercial,
including those that involve the
public sector;
• Deemed the Sector Highlight in the
Electric power category of ABRASCA
Value Creation Award, an award granted
to companies that achieve the highest
value creation index over the last three
years and present sustainable results,
excellence in risk controls, transparency
and socio-environmental initiatives.
T 99.70%
AES Corp. USA
AES Sul
O 99%
T 99%
O: common shares
P: preferred shares
T: total
SHAREHOLDERS
T 99.99%
Common
Shares
AES Holdings
Brasil Ltda.
O 50% + 1 ação
P 0.00%
T 46.15%
AES
Uruguaiana
Empreend.
Cia. Brasiliana de Energia
O 99.99%
T 99.99%
%
preferred
Shares
BNDES
O 50% - 1 ação
P 100.00%
T 53.85%
O 98.26%
T 98.26%
AES Elpa
O 77.81%
P 0%
T 30.97%
AES
Eletropaulo
AES Minas
PCH
AES Tietê
O 99.99%
T 99.99%
O 71.35%
P 32.34%
T 52.55%
AES Rio
PCH
O 99.99%
T 99.99%
% TOTAL %
Cia. Brasiliana
de Energia
140,882,909 71.30 59,447,091 32.30 200,330,000 52.50%
Centrais Elétricas
Bras. S.A – Eletrobras
150,534 0.10 30,107,688 16.40 30,258,222 7.90%
Other (free float)* 56,427,768 28.60 94,237,503 51.30 150,665,271 39.50%
Total 197,461,211 100.00 183,792,282 100.00 381,253,493 100.00%
Shareholders’ equity: R$ 1.95 billion.
Capital stock: R$ 0.21 billion.
* Free float (or outstanding shares): all shares issued by the Company, except for the shares held by the controlling shareholder, related persons,
management, treasury shares and special class preferred shares, whose purpose is to ensure differentiated political rights, not subject to transfer
and exclusively held by the entity.
Sustainability Report 2011
15

16 AES Tietê

With ethics, responsibility and
transparency, our operations
promote welfare to all of our
relation networks
Corporate
Governance
Sustainability Report 2011
Transparency
is added value
GRI: 4.12
The main focus of the Corporate
Governance of AES Eletropaulo is to
create value to all relation networks, with
ethics and responsibility, as well as the
adoption of good practices. Based on the
vision of Grupo AES Brasil, such behavior
is essential to establish an efficient
management that is able to comply
with the commitment of promoting
the welfare of its customers through
excellence in the rendering of services
and innovative electric power solutions.
In order to ensure equity and
transparency in the relations with
shareholders and protection of the
rights of the other relations, all AES
companies share solid values that
serve as a common parameters for
performing businesses.
Recognized Ethics
In 2011, the corporate governance practices
adopted by AES Eletropaulo included the
company in the list of the second edition
of the Pro-Ethics Company Registry, an
initiative of the General Controllership of
the Federal Government (CGU) and Ethos
Institute. The file evaluates, considers –
based on strict criteria – and discloses the
organizations that voluntarily contributes
to the creation of an environment of
integrity and confidence in the commercial
relations, including those operating in the
public sector. Amongst over 60 companies
throughout Brazil that seek to be included
in the CGU list, solely eight companies were
accepted, out of which three companies
comprise Grupo AES Brasil (AES Eletropaulo,
AES Tietê and AES Sul).
17

GRI: 4.12
Commitments with
transparency
Grupo AES Brasil adopts strict initiatives
that supersedes the common market
practices.
The companies comprising the Group
are signatories of the Business Plan for
Integrity and against Corruption, joint
initiative of the Ethos Institute, United
Nations Program for Development
(Pnud), United Nations Office against
Drugs and Crime (Unodoc) and Brazilian
Global Treaty Committee. These
companies also comprise the Ethic
Committee of the National Quality
Foundation (FNQ), whose purpose is
to contribute with other organizations
in the development of the best joint
practices and in the production of
materials to support other companies
that intend to adopt transparent and
reliable practices.
The recognition confirms that ethics in
businesses is one of the principal values of
AES Tietê.
It is a formal, express and disclosed
commitment reflected by our set of rules,
guidelines and recommendations that
ensure transparency and coherency of
the actions of Grupo AES Brasil (see table
below). In addition, we adopt the Ethics and
Compliance Program in order to disseminate
the good practices throughout our relations.
Communication
channel
GRI: 4.4
AES Helpline is a communication tool
whose purpose is to maintain an open
channel for discussion between the
governance bodies and relation networks
of the companies comprising the Grupo
AES Brasil. Through telephone (0800 891
4167) or Internet (www.aeshelpline.com),
AES Helpline receives from own employees
or subcontracted employees, suppliers,
shareholders and others doubts, claims or
denounces related to ethics, lack of ethics
and business practices deemed illegal,
corrupt r not in accordance with AES values.
located in the United States of America,
ensuring reliability, transparency and
appropriateness in the verification process.
All reports are analyzed and verified by the
Compliance Management.
The most critical cases are reported to
the Ethics Committee for decision and
resolution with the organization leadership.
AES Corp., in turn, manages the findings of
these verifications, as the ultimate authority,
and may resume the case if necessary.
In the aggregate, AES Brasil Group received
379 calls, provided that 102 related to
clarifications and 277 to claims that could
affect the Group’s values.
In AES Tietê, from nine calls received, four
were claims and five guide requests.
As to claims:
• 100 % refers to issues related to people’s
behavior and policy.
As to guide requests:
• 20% were related to general concerns;
• 60% to conflict of interest;
• 20% to supplier’s invitation.
Guide of value
The activities of the companies
comprising AES Brasil are supported
by our Code of Ethics and business
standards, denominated AES Values –
from words to actions. The document
is based on the guidelines of AES Corp.
that supports the corporate governance
practices.
The shared values in the code are:
• Safety first
• Operate with integrity
• Honor commitments
• seek excellence
• Job satisfaction
The communications are anonymous
and always treated as confidential. The
confidentiality is ensured because these
comments are received by an outsourced
company, globally contracted by AES Corp.,
Evolution of the use of AES Helpline – AES Tietê
year 2009 2010 2011
Claims 6 6 4
Guide requests 7 8 5
The guide AES Values – From Words to
Actions – is available on the internet to
all interested people, at www.aesbrasil.
com.br/Documents/GuiadeValores.pdf
18 AES Tietê

In 2011, the
corporate
governance
practices
included AES
Tietê in the
list of Pro-
Ethics Company
Registry
Requirements
evaluated by
the Pro-Ethics
Company Registry
• Adoption of an internal Code of Ethics.
• Adoption of social responsibility rules.
• Creation of a system to receive anonymous
comments.
• Implementation of rules to receive gifts.
• Creation of internal commission to judge
eventual deviations committed internally.
For further information on CGU
initiative and Ethos Institute, visit
www.cgu.gov.br/empresaproetica.
Contractual
Compliance Review
The contractual compliance review has as a
purpose verify the legal and ethics conduct
of the commercial partners, prior to an
agreement contracting or renewal, and
safeguard AES Tietê from situations that may
characterize any ethics or legal violation, in
order to ensure the integrity of the business
(for more information, read page XX).
TRAININGS
The Training initiatives for disclosure and
reinforcement of the company’s values
and internal policies we carried out during
2011 at AES Tietê, pursuant to the numbers
indicated in the table below:
Persons trained, per type of Training – 2011
trainings
persons trained
Conflicts of interest 270
Integration of New Employees 1
Guide of values and Helpline Certification 7
Workshop Contract Compliance 3
Reinforcement in the Communication of Prohibition to the Second Employment
and External Activity
68
Ethics Champions 143
FCPA (Foreign Corrupt Practices Act) 1 274
Dilemma at the Movies 2 2
International Ethics Day 203
Trainings performed 972
Total of persons trained 338
1
U.S. Foreign Corrupt Practices Act
2
Dilema no Cinema is a training program is devoted to discussing the values of AES Brazil. We made a movie with our employees, and based
on the situations presented in excerpts of the films, we relate them to our everyday life and discuss what is the best posture that situation
based on our Guide of Values
Sustainability Report 2011
19

Governance
Structure
GRI: 4.1
The Corporate Governance of AES Tietê
is supported by its corporate bodies, as
described below, which are responsible for
the analysis and decision-making procedures
in accordance with the matters set forth in
the Bylaws.
General Shareholders’ Meeting
The General Shareholders’ Meeting is the
Company’s resolute body and, although
with powers to decide on all matters, it
is solely requested and held with respect
to private matters. There are two types of
General Shareholders’ Meeting: Ordinary
and Extraordinary. The General Shareholders’
Meeting is requested by the Board of
Directors, in the fourth first months of each
year, to resolve on the matters set forth in
article 132 of the Brazilian Corporate Law;
and the Extraordinary Shareholders’ Meeting
is requested by the Board of Directors
whenever there is the need to resolve on
matters not under the specific responsibility
of the Ordinary General Shareholders’
Meeting.
Board of directors
GRI: 4.3; 4.7; 4.9
The Board of directors is the agency
responsible for the determination of the
general direction of the Company’s business,
for the resolution of the relevant matters
and the ones of its exclusive responsibility
and for approving the strategic pan and the
business plan, as provided for in the Bylaws.
Consists of 11 effective members and nine
alternates, provided that two effective
members are independent directors,
one effective member and its respective
alternate as representatives of the
employees and the other being indicated by
the controlling shareholder. The mandate
of the currently management directors
ends in the general shareholders’ meeting
that appreciates the financial statements
related to the fiscal year of 2013. The Board
of directors met 13 times during the 2011
to conduct and monitor, in an effective
way, the Company’s economic, social and
environmental performance.
Supervisory Board
The Supervisory Board is the board that
monitors management’s acts, as well
as verifies its compliance with legal and
statutory obligations. It is an optional body;
however, when installed, its opinion is
mandatory with respect to some matters. It
is comprised of five effective members and
five alternates, with mandate through the
first Ordinary General Shareholders’ Meeting
held after the election of its members.
Board of Executive Officers
The Executive Board is the executive
body responsible for the Company’s
administration and management, in
addition to perform the resolutions of
the General Shareholders’ Meetings and
Board of Directors. It is comprised of
the Chief Executive Officer, Vice Chief
Executive Officer of Investor Relations and
four Officers, with a three-year mandate,
reelection being permitted. The mandate
of current members of the Executive Board
expires at the General Shareholders’ Meeting
that approved the financial statements for
the year ended 2012.
Sustainability Committee
GRI: 4.9
It is responsible to ensure the management
and rendering of accounts related to
sustainability, including the validation of the
strategy and the oversight of the progress by
monitoring the action plans, development of
indicators and measurement of goals (read
more in page xx)
Our governance
aims at the
compliance with
welfare of the
customers
through
excellence in
the rendering
of services
Controlling shareholder
The shareholder holding the majority of
the voting shares, insuring, potentially,
the control over the company due to the
election of the majority of the members and
conduction of the company’s businesses.
Performance Forum
It aims at ensuring the compliance with
the planned operating performance and
the strategic goals. It is supported by
the company’s executive officers and
leaderships. (Read more in page xx).
20 AES Tietê

Focused areas
and groups
Compliance – subordinated to the vice-chair
of Legal Matters of the AES Brasil, the area
is responsible for the Code of Ethics and
conduct and its dissemination, for Trainings
related to ethics and compliance, for the
investigations of accusations made to AES
Helpline Channel and for the evaluation of
reputation and ethics of suppliers, agents,
services providers and currently or future
business partners.
Safety of the Information – it ensures the
confidentiality, integrity and availability of
the business information complying with the
requirements of Corporate Governance and
the laws and regulations.
Internal Audit – prepares, together with AES
Corp., an annual audit plan that includes the
business risks, regulations and controls, as well
as performs the work established in such plan.
Internal Controls – it proposes, improves and
monitors the implementation of the best
corporate governance practices.
GRI: 4.2
Members of the Board
of directors *
Effective Directors
Andrew Martin Vesey (Chairman)
Berned Raymod da Santos Ávila
Britaldo Pedrosa Soares
Carlos Augusto Galvani Marchese (employees’ representative)
Fernando Agustín Pujals
Francisco Jose Morandi López
Luiz Gonzaga de Mello Belluzzo (conselheiro independente)
Marcelo de Carvalho Lopes
Marco Antonio De La Rosa Ascanio
Sérgio Silva do Amaral (independent director)
Vincent Winslow Mathis
Alternate Directors
Airton Ribeiro de Matos
Antonio Carlos de Oliveira
Gustavo Duarte Pimenta
Lucio da Silva Santos
Marco Aurélio Deboni (employees’ representative)
Marcos Ponce de Leon Arruda
Pedro de Freitas Almeida Bueno Vieira
Rinaldo Pecchio Junior
Sidney Simonaggio
Fiscal council
members *
Effective Directors
Cláudio José de Oliveira Magalhães
Kurt Janos Toth (chairman)
Luis Eduardo Frisoni Júnior
Maria Carmen Westerlund Montera
Mauro Thomaz de Oliveira Gomes
Alternate Directors
Luiz Alberto de Castro Falleiros
Luiz Ferreira Xavier Borges
Paulo Roberto Miguez Bastos da Silva
Roberto Lamb
Sebastião Bergamini Júnior
Members of the Board of
Executive Officers *
Britaldo Pedrosa Soares – Chief Executive Officer
Arturo Enrique Gris Lindenthaler (vice chief executive officer)
Rinaldo Pecchio Júnior - Financial and Investor Relations Officer
Cibele Castro (officer)
Italo Tadeu de Carvalho Freitas Filho (officer)
Pedro de Freitas Almeida Bueno Vieira (officer)
Sheilly Caden Contente (officer)
*As of December 31, 2011.
Managers 2009 2010 2011
Compensation and/or total fees (R$
3.515 4.662 5.252
thousand) (A)
Number of Officers (B) 6 7 7
Compensation and/or average fees (A/B) (R$ 703 666 750
thousand)
Management Directors’ Fees (R$ thousand) 176 806 584
(C)
Number of Management Directors (D) 11 11 11
Average fees (R$ thousand) (C/D) (only taken
into account the remunerated directors)
16 73 53
Sustainability Report 2011
21

Capital markets
AES Tietê has the commitment to reinforce
the sustainability levels of its operation,
ratified through the transparency of its
relation with several public. The use of good
corporate governance practices is a conduct
valued by its shareholders and managers.
AES Tietê’s shares are traded in the
BM&FBOVESPA traditional market under
the codes GETI3 (common) and GETI4
(preferred). Additionally, the Company also
has ADRs Level I traded in the US OTC
market under the codes AESAY (common)
and AESYY (preferred).
AES Tietê’s shares are part the of the Electric
Power Index (IEE), which has as a purpose
measure the performance of the electricity
sector, in addition to the BM&FBOVESPA
Business Sustainability Index (ISE) 4 , which
gathers companies with recognized
commitment with social responsibility and
business sustainability.
In 2011, the AES Tietê common shares
(GETI3) ended the exercise quoted at R$
23.64, up 10.0%, while the preferred shares
(GETI4) ended the exercise quoted at R$
26.88, up 12.0%. On this same period,
Ibovespa depreciated 18.3% and IEE
appreciated 19.0%.
During 2011 357,281 business were carried
out involving preferred shares (21.3%
above the total in 2010), while 117,519
negotiations with the Company’s common
shares were observed, 31.9% above the total
registered in 2010.On December 31, 2011,
the Company’s market value was of
R$ 9.6 billion.
AES Tietê’s total shares is 381,253,493,
provided that 197,461,211 common shares
and 183,792,282 preferred shares.
The holder of common shares is entitled
to vote in the resolutions of the ordinary
and extraordinary general shareholders’
meetings, in which the decisions are taken
based on the majority of votes, and tag
along of 80%.
The preferred shares ensure priority in the
reimbursement of the capital (based on the
paid-up capital, with no right to premium,
no event of liquidation of the company) and
provide to its holder right to dividends 10%
higher to those addressed to the common
shares and restricted vote to certain matters
(provided for in paragraph two of article 5 of
the Company’s Bylaws). . More information
related to capital markets are available to
public access in the AES Tietê’s Investor
Relations website (aestiete.com.br/ri).
5 years
is consecutive mark of
AES Tietê’s shares presence in
the BM&FBovespa’s Business
Sustainability Index.
4
ISE is a BM&FBovespa’s share portfolio, revised on an annual
basis, comprised by actions of companies with recognized
commitment with the social responsibility and business
sustainability
22 AES Tietê

In 2011 the company upheld itself for the
fifth consecutive year in the BM&FBOVESPA’s
ISE. The highlight is the fact that AES Tietê is
one of the eight companies – among the 38
that are part of the portfolio – which enabled
the opening of their questionnaires, thus,
enabling a greater knowledge of the web of
relationships on the company’s operation and
stance
Disclosure policy
With the purpose of developing a
continuous flow of information, disclose to
investors the results realistic expectations
and comply with a CVM’s (Brazilian
Securities and Exchange Commission)
determination, AES Tietê keeps the
Disclosure Police of Relevant Information,
which sets forth the dissemination of
information in a wide and transparent way.
In addition, AES Tietê adopts the Securities
Trading Policy, aiming at avoiding the use of
proprietary and insider information in the
trading of the securities, thus, preventing the
occurrence of the practice of operations with
insider information (insider trading), also
pursuant to Instruction No. 358/02 of CVM.
The financial statements are disclosed
on an annual basis, in newspapers with
high circulation, including the analysis of
its operating, economic, environmental
and social performance. All information
useful to the investors, such as quarterly
results, annual reports, notices to the
market, material facts, press releases,
teleconferences, corporate policies and other
institutional information, is permanently
available at http://ri.aestiete.com.br.
AUDITS
GRI: 3.13
Independent audit: Ernst&Young Terco
Auditores Independentes S.S. performed
an independent audit of the financial
statements in 2011. In accordance with the
rule established by CVM Instruction 381/03,
the company did not provide services other
than outside audit. KPMG Risk Advisory
Services Ltda. verified the information
included in this report and will, beginning
2012, audit the company’s financial
statements.
Internal audit: the main purposes are to
review and evaluate the effectiveness,
sufficiency and application of the
accounting, regulatory, financial and
operational controls.
GRI: 4.4
Communication with
shareholders and
investors
For communication with its shareholders
and investors, AES Tietê provides:
email: ri.aestiete@aes.com
• access to Investor Relations (IR) website
through cell phone
• system of updates alert sent directly to
the email of the requesting shareholder
• Twitter account focused exclusively in IR
• quarterly conference calls open to all
shareholders
• public meetings with presentation of
the business and results landscape
Sustainability Report 2011
23

AES Tietê strategy is aimed to
ensure the creation of value for
the web of relationships
Strategy and
Management
Focus on quality
AES Tietê’s management, so as those from
other companies of AES Brasil, is lined by
Management Excellence Model (MEG), of
the National Quality Foundation (FNQ).
MEG is constituted of 11 excellence basis 5 ,
that must be followed by the organization.
Such basis are converted into excellence
criteria which, among other things, allow
the determination of the maturity degree
of the company’s management. The
performance in this criterion is carried out
through an independent evaluation and
within the cycle of the National Quality
Award (PNQ), a FNQ’s initiative that
acknowledges the world class companies,
deemed as those which adopt the best
management practices.
As an integral part of Management
Excellence Model of AES Brasil’s companies
and an important instrument for
organizational directioning, the strategic
plan is reviewed on an annual basis.
This review counts on the leaderships’
participation and involves all Company’s
areas. The process is developed during the
first semester of the year as a way to direct
and strength the culture of organizational
performance and the competitive position,
on the short and long terms (periods of one
and five years, respectively), in accordance
with Strategic Plan Cycle.
5
Systematic thought; organizational learning; innovation culture,
leadership and during purposes; direction by proceedings and
information, future view; generation of value; people appreciation;
knowledge on the customer and the market; development of
partnerships and social responsibility.
24 AES Tietê

Sustainability Report 2011
25

Strategic Plan Cycle
Formulação da estratégia
1º Step
Strategy elaboration
• Mission, Vision and values
• Xtrategy
• Strategies elaboration
2º Step
Business strategy
• Strategic Map
• Goals, indicators and maps
• Projects e strategic initiatives
1º and 2º Steps
...Where and what we will do!
6º Step
Learning and review
• Analysis of cause and effect
• New strategies
• Improvements of the key process
strategy execution
3º Step
Organization alignment
• Management agreements
• Communication to employees
3º, 4º, 5º and 6º Steps
...How, when, how much, and who will do it!
5º Step
Evaluation of the performance
• Strategies review
• Operating plan review
4º Step
Operating plan
• Allocation plan: OPEX e CAPEX
• Goals and targets, per areas
The process of AES Tietê’s strategic plan
includes two stages:
(i) strategic structuring; and
(ii) strategic implementation. This process
is performed between March and
November prior to the first year included
in the plan and comprises several areas
and leaderships of the company to define
the long-term strategy.
On the first stage, defined as strategy
elaboration, which occurs during the period
from March to June, the Xtrategy occurs (see
more on the next page), in which discussions
and meetings are conducted on:
(i) macroeconomic perspectives;
(ii) regulatory & political;
(iii) market growth projections;
(iv) business risk matrix;
(v) Swot matrix; and
(vi) specific challenges of each business,
including specific competitive
advantages. Based on the findings,
three scenarios are prepared: base,
good and bad, with combination of the
assumptions discussed.
Based on the assumptions defined for the
base case, the following set of corporate
principles is reviewed:
(i) mission;
(ii) long-term vision;
(iii) strategic guidelines; and
(iv) strategic map
For 2012-2016, four strategic guidelines
were established:
(i) focus on customer (customers’
satisfaction);
(ii) expansion (focused on business
development for AES Tietê);
(iii) improvement of relations management,
including the development and relation
with suppliers, political role, corporate
and strategic communication of persons;
and
(iv) efficiency and accuracy in the
performance, including governance
and management model, improvement
in the business key procedures,
modernization, automation and
environment.
In the second stage, defined as strategic
implementation, beginning June, discussions
are performed for the preparation of the
following:
(i) budget of revenues;
(ii) budget of expenses (Opex);
(iii) budget of investments (Capex);
(iv) allocation of funds and operational
costs; and
(v) selection of the main initiatives/projects
to reach the strategic guidelines and
long-term goals.
Between September and October, the
budgeting assumptions and the financial
statements are discussed and approved with
AES Corp. In accordance with the approved
allocation of funds, such detailed action
plans for each one of the projects/initiatives
related to the strategic drivers are defined
and approved in executive board, containing:
terms, targets and relevant responsible.
In November and December, the individual
goals and targets of the Group companies’
main executives are defined in accordance
with the approved strategic plan and budget.
Finally, all commitments are delivered
26 AES Tietê

The strategic
plan is reviewed
on an annual
basis to direct
and improve our
organizational
performance
culture and
our competitive
position
through management agreements (read
more in the chart below).
The last action within the stage “strategy
implementation” refers to the learning and
adapting that occur in each step of the process
and, also, in each new planning cycle, in which
the learning of the previous process is the
starting point for the new cycle.
The report and disclosure of the long-term
strategy, purposes and strategic goals for all
company’s employees take place in February
of the next year.
Management Agreement
and Contribution Panel
The AES Brasil Strategic Plan Cycle stands
out for Management Agreement and
Contribution Panel tools. Management
Agreement is a formalization of the
targets and commitments of the
managing level positions and above.
Upon these agreements, indicators
for the monitoring of the employees
performance during the year are created.
However, the Contribution Panel has
the same role, but with focus in the
coordinator and expert levels. In 2011,
all employees up to the coordination
level already had access to the tools.
The target is that, until the end of 2012,
all employees may participate in the
Contribution Panel.
Xtrategy methodology
1.
Business
definition
2.
Web of
relationships
(expectations
and needs)
3.
Risk scenarios
and analyses
4.
Strategic
foundation
5.
Analysis of
alternatives
6.
High impact
projects
7.
Strategic summary
(each business in
Brazil) and BSCs
(Balanced Score
Cards)
Operational area and
identity.
Shareholder,
customers, employees,
community,
suppliers e regulators
(Requirements of
the Interested Party
(RPIs) Comparative
References (RCs))
Qualifies the business
risks and defines
scenarios (external
and internal), based
on noncontrolling
guidelines.
Elements to reach the
strategies, including
intangible assets.
Study on probabilities
and parameters.
Business triggers.
RPI – interested party requirement: represents the expectations
and needs of the parties that are subsequently considered to
define the organizational goals.
RC – compared reference: proper reference to determine the
superior competition levels of the results reached in the market
or operational sector, considering the organizational strategies.
BSC – Balanced Score Card: management methodology to support
the companies to convert the strategic plan in purposes, plans, goals
and organized indicators, allowing the continuous monitoring of its
performance.
Sustainability Report 2011
27

Performance
Forum
The strategy performance is monitored at
the performance meeting, whose purpose
is to evaluate the operating and financial
performance, the goals and the status of the
projects and initiatives.
The meetings are divided into three stages:
Level 1 – AES Brasil’s meetings;
Level 2 – Meetings per company; and
Level 3 – preparatory meetings.
1. AES Brasil’s meetings
2. Meetings per company
3. Preparatory meetings
Sustainability Committee
Operational Cycle
Commercial Cycle
Finance and Market
Legal
Personnel Management
Investment Management
Supllies
Image and Reputation
IT
Inovation and P&D
Intangible
Assets
In order to keep the intangible assets aligned
with the corporate strategy, AES Tietê makes
use of a set of mechanisms that allow
the renovation of knowledge, attraction
and retention of people, improvement
of consumers’ satisfaction levels and
development of communities, in addition to
product and proceedings innovation.
The nonaccounting intangible assets are
identified and evaluated based on the
market trends (new services, demand and
integrated solutions), technological trends
(new equipment and business process) and
administrative trends (management model
and human resources demand). Based on
this analysis, the following classification
is applicable:
• Human: capacity, experience and
knowledge. The development and
maintenance of talents are essential
for the company’s expansion. AES
Eletropaulo has plans and programs
that aim to provide employees with the
tools necessary for their professional
development.
• Market: brand, consumers and relationship.
The company’s reputation and perception
by consumers are the core of a work
developed in 2009, involving the
repositioning of AES Brasil brand.
• Infrastructure: sundry systems and
customers’ registry. Currently, investments
are performed in equipment and systems
that aim at improving the company’s
operating performance
• Technological: research and development,
proceedings and products. On an annual
basis, investments are performed in
projects and modernization of the
distribution networks and products
offered.
Risk management
GRI: EU6
The companies of the AES Brasil Group
count on the Integrated Risk Management
process. This process allows that the most
significant enterprise risks which may affect
AES Tietê’s image and ability to reach goals
and strategic targets are identified and
controlled based on the COSO-ERM (The
Committee of Sponsoring Organizations –
Enterprise Risk Management) methodology.
The risk management process has a matrix
denominated heat map, whereby the risks
identified are classified based on two
variables: probability and impact. The risks
related to the businesses are grouped into
four areas: strategic, financial, operational
and regulatory. These areas are subdivided
into 57 categories.
All risks are properly addressed, including the
related action plan and monthly monitoring
of key risk. The other risks are monitored
considering an interval from four to
12 months.
In addition, some risks are monitored by
using the KRI (Key Risk Indicator), whose
purpose is to verify the risk behavior, as a
rapid and advanced warning with respect to
the related exposure or potential future loss.
The indicator is associated with the areas in
charge, in accordance with the specifications
of each segment analyzed, in order to ensure
preventive or corrective actions in the event
the analysis determines that the risk took
place or may take place.
57
Categories comprising the
definition of the risks mapped
related to the business.
28 AES Tietê

AES Tietê has mechanisms that
provide knowledge updating,
attraction and retention of
persons, development of the
communities and products and
proceedings innovations
risk management
strategic
Intangible asset GOVERNANCE Market Market strategy/Electricity sector
Reputation
Technological
Innovation
Internal controls
and policy
Organizational
structure
Relationship/Water
shortage
Political
Macroeconomic
scenario
Recruitment
and retention
of talents
Integrity on
the customers’
registration
Unethical
conduct
Relationship with
stakeholders
Energy contracting
Development of
Products and Services
Continuity of
the operations
Succession and
personnel reliance
Planning and
budget
Performance
incentive
Competition
and market interest
Investment
decision
Consolidation
and acquisition
FINANCIAL
Operations
Regulatory
Industry
Information
Actuarial Credit Liquidity Process
infrastructure
Personnel
and Technology
Community General Electricity sector
Pension
Plan
Collection and
default
Accounts
receivable
concentration
Commodities
Exchange
Commodities
Supply of
material and
services
Contractual
obligation
Commercial
losses
Equity
management
Quality in
rendering of
services
Technical losses
and energy
efficiency
Training
Health
and safety
Relationship
with trade
unions
Access to
information
Systems
availability
Integrity of
systems and IT
environment
Public’s
safety
Environment
Labor
Civil
Tax/fiscal
Tariff revision
Concessions
renewal
Access to the
capital
Projects
monitoring
Operational
capacity
Outsourcing
Accounting
practices
Debt
anticipation
Operating
Efficiency
Benefits
Cash flow
Insurance
policies
Sustainability Report 2011
29

Sustainability
Platform
Comments from the web
of relationships
“How the Sustainability Platform
is within the Company’s decision
process?”
Comment of and employee during
the 3rd Dialogue Cycle with Web of
Relationships)
GRI: 1.2
At the beginning of 2012, AES Brasil
undertook a significant step to integrate
and align the sustainability to the planning
and strategy of the company with the
launching of the Sustainability Platform,
comprising a set of aligned guidelines that
will affect all organizational procedures.
The Platform commenced to be developed
in 2010, in order to align the programs
and initiatives directed to the economic,
environmental and social development of
the communities where we operate.
The construction process was performed
based on the identification of the business
priorities, considering not solely the
organization’s strategic guidelines, but also
the relation network expectations.
Accordingly, 18 executive officers were
interviewed, including the CEO, vicechief
executive officers and the officers.
Additionally, performance analyses of AES
Eletropaulo and AES Tietê were carried out
in ISE, of BM&FBovespa; performance of
AES Eletropaulo and AES Sul in the
questionnaire provided by Ethos; community
studies; and national and international
benchmarkings.
Continuous
Discussion
GRI: 4.16
One of the main concerns of AES Brasil
with respect to the relations is to provide
an environment opened to conversation,
participation and transparency, in order
to align and improve the knowledge on
sustainability and provide opportunities of
improvement and management with respect
to the key matters of our Platform. It is a
double way in the sense that the demands
are received and treated, and the results are
shared with all employees.
In order to improve on a continuous basis
the transparency o four synergy and further
meet the expectations and needs of our
relations, the definition of the commitments
and action plans of the Sustainability
Platform was based on discussions with
our employees over one year, involving
approximately 130 professionals of all areas
of the companies comprising AES Brasil.
In October and November 2011, we carried
out the third edition of the Discussion
Cycle, comprised of several groups involved
with the company’s relation network to
evaluate how the organization is meeting
the expectations and demands. The matters
discussed in these meetings are used in the
Company’s actions, in the improvement of
the relation network and progress of the
sustainability report, as well as feedback on
the initiatives and projects performed.
The 2011 edition was attended by 113
persons, including representatives of the
community, public authorities, residential,
commercial and industrial customers,
suppliers and employees.
The sustainability report, published on an
annual basis, is also an important channel
that seeks to meet the demands of the
web of relationships on our management in
economic, social and environmental themes.
30 AES Tietê

Materiality Matrix
AES themes
Responsibility in
the Value Chain
Innovation and
excellence for
the customer’s
satisfaction
Waste
management
Weather
changes
Power
efficiency
Development and
valorization of
personnel
Customers’
satisfaction
Transparency
Renewable
energy
Public dialogue
Safety
Education for sustainable
development
(water and power)
Stakeholders themes
Materiality
GRI: 1.2; 4.14; 4.17
After the interviews and analyses, 30
themes potentially strategic were pointed
for the Group. After, in a workshop that last
eight hours, the main executives pointed the
themes that should be deemed strategic.
In order to ensure the Sustainability Platform
success, the Group carried out also three
Dialogue cycles with Web of Relationships,
a commitment process that had the
participation of employees, suppliers,
customers (corporate and residential) and
representatives from different society sectors
(as public authorities, NGOs and other
institutions), in a total of 250 persons.
Based on the relation network
recommendations, the executive officers of
AES Brasil defined five strategic aspects for
the period between 2012 and 2016:
• Safety;
• Innovation and excellence for the
customers’ satisfaction;
• Generation of Sustainable Power
• Efficient use of resources (natural, power
and financial);
• Development and evaluation of employees,
suppliers and communities.
The construction of the Sustainability
Platform commenced in 2010 and, since
this date, it is subject to improvements and
restructuring, always focused on reflecting,
with transparency, the commitment of AES
Brasil with its relation network. In view of
this, in 2012, the foundation denominated
“Innovation in Products and Services” was
replaced by “Innovation and Excellence for
the Customers’ Satisfaction”, in order to
clearly represent the commitment of the
companies AES Brasil with the customers’
satisfaction, both through excellence in the
rendering of services and continuous search
for innovative solutions.
In addition to the five main foundations,
the “strategic matters”, the Sustainability
Platform is comprised of three transversal
themes. These themes are used as tools
whereby AES Brasil is able to disclose the
sustainability matter throughout the relation
network. The transversal themes include:
• Education for sustainability;
• Integration of relation network;
• Communication, knowledge and
information.
Transversal theme
commitments
GRI: 1.2
Education for sustainability
1. Be a reference in the education for the
responsible consumption of natural
resources, mainly electric energy and
water, by 2016.
2. Have 100% of the employees trained
in sustainability by 2013.
Relation network integration
1. Define a systematic procedure for
integration with all business relation
networks of AES Brasil, as set forth in
international rule AA1000, by 2012.
2. Contract again or identify and
comply with the commitments of
volunteers related to the sustainable
development, by 2013.
Communication, knowledge
and information
1. Disclose the Sustainability Platform
findings.
Sustainability Report 2011
31

The Sustainability Platform
was integrated to the
strategic plan of AES Brasil
GRI: 1.2
safety
Generation of
Sustainable Power
32 AES Tietê

Innovation and excellence for
the customer’s satisfaction
efficient use
of resources
Development and Appreciation
of Employees, Suppliers
and The Communities
Sustainability Report 2011
33

Dialog with
the web of
relationships
GRI: 4.16
Between October and November 2011,
AES Brasil performed the 3rd Discussion
Cycle with Relation Networks, whereby 113
persons, including employees, suppliers,
residential and corporate customers, public
authorities and community, discussed the
commitments of AES Brasil with sustainable
development.
The event also proposed the alignment
and improvement of the knowledge on
sustainability of AES Brasil, review of the
significant matters to the report – that is,
the most relevant matters for the businesses
in connection with the relation networks
– and presentation of the opportunities to
improve management in connection with
these matters.
Sustainability
governance
GRI: 1.2; 4.9
In order to establish a sustainability
governance Platform, AES Brasil established
Committee of Sustainability, which has
as leadership chief executive officer of
the Group, Britaldo Soares, and the vice
presidents.
Committee of Sustainability monitors action
plans, indicators development and goals
measurement. In 2011, the Committee
approved commitments in sustainability for
the period of 2012-2016.
These action plans were responsibility of six
work groups: one for each strategic theme
and one for transversal themes.
Vice presidential of Institutional Relations,
Communication and Sustainability,
which respond to chief executive
officer, is the facilitator of sustainability
integration process in culture and business
management, ensuring good operation of
governance model and the rhythm and
effectiveness in implementation of the
action plans.
Committee of Sustainability activities –
which refers to Board of Directors of each
AES Brasil company – initiated in 2011,
when they validated Group commitment
with sustainability for the next five years.
The Boards of Directors of the Group
companies are responsible for monitor,
guide and validate Company longterm
strategies regarding integration of
sustainability in the process of company
management.
All strategic themes of the Sustainability
Platform are aligned with the strategic
plan guidelines, including goals, specific
commitments and plans of action.
Sustainability Governance at AES Brasil
AES Sul
Board of
Directors
AES Eletropaulo
Board of
Directors
AES Tiete
Board of
Directors
AES Uruguaiana
Board of
Directors
Chairman
Sustainability
Committee
Comments from the web
of relationships
“An important step was the
integration of Sustainability Platform
with the strategic plan. It provides
safety and that, in anyway, it is really
being seen by the company.”
Vice-Chairman of
Communication
and Sustainability
Opinion of an employee during the
3rd Cycle of Dialog with Web of
relationships
Working
Group
1
Working
Group
2
Working
Group
3
Working
Group
4
Working
Group
5
Working
Group
6
34 AES Tietê

The Sustainability Committee
is responsible to ensure the
management and rendering of
accounts through sustainability
and, in 2011, approved the
commitments for the period
between 2012 and 2016
Education for
Sustainability
GRI: LA10
To engage web relationships in
commitments with sustainability is
fundamental to disseminate knowledge
about this theme. For this reason, one of
the transversal themes of Sustainability
Platform is the Education for sustainability.
In 2011, more than 600 employees of AES
Brasil participated in workshops, lectures
and Trainings focused on the theme. The
Company seeks to gradually increase the
number of participants and the quality of
offered activities, in order to reach 100% of
the employees until the end of 2013, with
platform of Education for sustainability.
Take a look at the video about what
sustainability is to the AES leaderships:
http://youtu.be/m9a5MaiB34k.
113
people,
among employees, suppliers,
customers and representatives of
public authority and the company,
participated of the 3rd Cycle of
Dialog with Web of relationship.
Program Public Purpose
Trained
employees
Hour
HHT (man-hour/
training)
Leadership
Development
Program (PDL)
Managers and
Coordinators
Train the leaderships to disclose the sustainability
matter with the teams
48 2 96
Leadership
Communities
Managers and
Coordinators
Train the leaderships to disclose the sustainability
matter with the teams
231 4 924
Workshops and
lectures
Officers, VPs,
coordinators
technicians,
operational and
administrative
Ensure that the employees are able to understand
the sustainability matter in AES Brasil
262 8 2,096
Knowledge
Management
Program
Managers and
Coordinators
Qualify the leaders with respect to the concepts,
practices and activities of sustainability of AES Brasil
84 6 504
Total 625 20 3,620
Sustainability Report 2011
35

Sustainability
Policy
GRI: 1.2
In 2011, one of the first important actions in
connection with the Sustainability Platform
was the approval by senior management of
the Sustainability Policy of AES Brasil that
includes and replaces the Environment,
Occupational Health and Safety Policy. In
this policy, the commitments of the Group’s
companies with each of the strategic
themes of the Sustainability Platform are
clear, ensuring the effective contribution of
AES Brasil for the sustainable development.
The commitment of Group with
sustainability is: to operate as transformers
agents, understanding, complying and
anticipating the needs for electric power
of the customers with safe and innovative
solutions to the economic, environmental
and social development of the communities
where it is.
Aware of decisions and activities affect
web relationships (customers, employees,
suppliers, shareholders, regulatory bodies,
public authorities, press, agents of
electricity sector, organized civil company
and communities) in the places in which
operates, the Group undertook the
commitment of incorporate principles and
practices of sustainability in the culture and
the daily management of the business. This
position inspires to plan and make short-,
medium- and long-terms decisions, taking
into account, in a balanced way, economic,
environmental and social aspects.
The Sustainability Platform sets forth the
guidelines to guide the decision-making
process of the several companies comprising
Grupo AES Brasil, based on the five main
themes:
Safety
• Operate focused on the prevention of
accidents, incidents and occupational
diseases, on a proactive basis, occupational
health indicators, safety and community
occupational indicators, by applying
Technologies, procedures and inputs that
would reduce the risks and continuously
improve the performance of operations,
aiming at the health and safety of
employees, suppliers, customers and
community.
• Ensure the compliance with applicable
legislation and other requirements related
to the health and safety in our activities,
operation and maintenance of all units
• Develop the safety culture with employees,
suppliers, customers and community in
general in order to reduce accidents.
Innovation and
excellence for
the customers’
satisfaction
• Provide an environment and a culture that
inspire innovative and effective solutions,
ensure quality and the excellence of
the service rendered to the costumer,
potentiate positive impacts, minimize
negative impacts and improve quality
of people life, aggregating value to the
products and services of Grupo AES Brasil.
The Sustainability
Platform sets
forth the
guidelines to
guide the decisionmaking
procedure
of the several
companies of
Grupo AES Brasil
Generation of
Sustainable
power 5
• Stimulate the use of alternative and
renewable power.
• Consider the economic, social and
environmental aspects of the current and
future power developments of Grupo AES
no Brasil, by maintaining the commitment
of mitigating and reducing the negative
effects and improving the positive effects.
5
O compromisso de geração de energia sustentável não se aplica
às empresas AES Eletropaulo e AES Sul.
36 AES Tietê

Efficient use
of resources
Natural resources
• Operate focused on the prevention of and
control over pollution and environmental
damages, mainly considering the benefits
to all communities with which Grupo
AES has relations in Brazil, by monitoring,
on a proactive basis, the environmental
indicators and applying technologies,
procedures and inputs that would reduce
the environmental effects and ensure
continuous improvement.
• Use, on a rational and sustainable basis,
the natural resources and other resources
necessary to the procedures under the
responsibility of the companies of Grupo
AES in Brazil, by stimulating the adoption
of techniques that aim the preservation
of biodiversity, proper consumption and
reuse of materials or waste, reducing the
effects from its activities, and consumption
and post consumption of its products and
services, by seeking solutions economically
and technically sustainable.
• Ensure compliance with applicable
legislation and other requirements
related to the environmental matters in
connection with our activities, operation
and maintenance of all units.
• Identify and promote the reduction of
issuances, effluents and residues against
the environment and work environment,
by actively participating in the discussions
and implementing actions related to
climate changes.
Financial resources
• Allocate financial resources in order to
ensure positive effects for all parties, by
respecting the values practiced by the
companies comprising Grupo AES in Brazil.
Energy efficiency
• Plan and develop activities continuously
improving performance of the operations
and stimulating energy efficiency
Development
and Appreciation
of Employees,
Suppliers and
Communities
• Know, engage in a transparent way and
positively influence employees, suppliers
and communities where Grupo AES Brasil
is inserted to the collective construction
of solutions and practices which generate
value to everybody.
• Provide an ethical and inclusive work
environment for the employees and
which appreciate diversity and promote
personal and professional development,
through education to the sustainability
and application of criteria in the selection
and management proceedings and in the
talent retention, valuing the commitments
of Grupo AES Brasil.
• Act in partnership with suppliers, guiding
and developing them in order to be adjusted
to the requirements of health, safety and
environment and the code of conduct,
pursuant to standards of Grupo AES Brasil, as
well as stimulate them for the development
of continuous improvement proceedings with
respect to its socioenvironment, health and
safety impacts, covering its productive chain.
• Maintain open and permanent
communication with relationships web,
through dialogs and disclosure in a
transparent and systematic way of the
financial and socioenvironment practices
and performances, as well as the actions
performed to mitigate negative impacts and
power up positive impacts caused by the
activities.
Sustainability Report 2011
37

Public
Commitments
GRI: 4.13
AES Tietê is signatory of Global Pact and
promotes eight Objectives of Millennium,
initiatives of United Nations (ONU). The
first stimulates the business community to
adopt, support and promote ten universal
basic principles of human rights, labor
practices, environment and bribery and
bribe fighting. The signatory are invited to
implement ten principles of its business
and activities conducting and to declare
its progress to ONU and the company
on an annual basis. On the other hand,
the Millennium Goals, known in Brazil
as the Eight Ways to Change the World,
defined eight measures targeted at hunger
eradication, education, equality, child death
reduction, pregnant health, AIDS and other
disease combat, environmental respect and
development.
In 2011, Grupo AES Brasil sponsored the
Land Letter, a global initiative that seeks
to promote more sustainable forms of life
and a global community supported by a
shared ethical model, including respect
and care with life community, ecological
integrity, democracy and peace. The
favorable aspect of this integration was the
participation of Brendan Mackey, member
of the International Land Letter Board and
professor at Fenner School of Environment
and Society (Australia University), in the
event promoted to discuss the effects from
the climate changes in life and professional
activities of employees of AES Brasil.
AES Tietê agreed with Business Agreement
by Integrity and against Bribery, taking part
of discussion with civil society about its
operation, aiming to encourage business
citizenship. The source power maintains
relation especially with:
• Brazilian Association of Source Power of
Electric power (ABRAGE): its objective is
to facilitate information exchange between
the companies associated and execute
accords and agreements of technical
cooperation with public and private
entities, nationals and internationals.
• Union of the Energy Industry in the State
of São Paulo (Siesp): studies, coordinates,
protects and represents the agents of the
energy sectors in the State of São Paulo.
• Institute, Foundation and Company
Group (Gife): promote private social
investment, by disseminating concepts
and practices relating to the use of private
resources in projects focused on the
development of the well being.
• Instituto Ethos de Empresas e
Responsabilidade Social: assists
companies in incorporating the concept of
social responsibility in their management,
by making use of an incessant evaluation
and improvement process.
• Abrinq Foundation: mobilize the society
towards issues related to the children
and adolescent rights. AES Eletropaulo
participates in the Company Friend of the
Children Program (“Programa Empresa
Amiga da Criança”), which encourages
private social investment in measures on
behalf of the children and adolescents.
• +Unidos Group: a partnership between
the U.S. Diplomatic Corps in Brazil and U.S.
companies headquartered in the Brazilian
territory, which purpose is to disseminate
the investment of member companies in
environmental and social and economic
development projects and promote
corporate social responsibility before
diverse segments of the society
Global pact
GRI: 4.12
Since 2005, AES Tietê supports Global
Pact and discloses, on an annual basis, the
performance of its activities, as well as
the socioenvironment impacts, through
sustainability report.
38 AES Tietê

Millennium
Development
Purposes
1. Combat the extreme poverty and hunger.
2. Reach basic education.
3. Promote equal rights between man and
woman and independency of women.
4. Reduce child mortality table.
5. Improve motherly health.
6. Combat HIV/Aids, malaria
and other diseases.
7.Ensure environmental sustainability.
10
Are the principles of the Global
pact, of ONU, that the signatories
must implement to their business
management.
8. Defines a worldwide partnership
for development.
Sustainability Report 2011
39

40 AES Tietê

safety
It is the attitude
protecting employee,
suppliers and
population lives
Daily challenge
GRI: LA7; LA8
The AES Tietê efforts in terms of safety have
as objective to anticipate risks and seek
preventive actions which reduce accident
occurrence. The daily challenge is to ensure
to the society the welfare proportionate
by electric power, and it is necessary to
do it with the best safety conditions,
because nothing is more important that
ensure employees, suppliers and population
physical integrity.
In AES Tietê, as in all companies of Grupo
AES Brasil, safety is the value number
1, and all activities performed have
as principal focus the prevention of
accidents with employees and population.
Therefore, powers are concentrated in
the identification work of possible risks
which involve day to day of the operations,
in addition to engage professionals in
campaigns for a more secure attitude inside
and outside the Company.
AES Tietê
Commitments
(2012-2016)
Zero fatal accident (own or
contracted) per annum
Reduce in 20% per annum total
accidents with population
Reduce in 20% of accidents
with and without removal
(own and contracted)
Sustainability Report 2011
41

Safety management
In order to verify if the companies are aligned with the 12 pillars
of the Safety Management System, all companies of Group AES
Brasil receive on an annual basis a visit from AES Corp. technicians
to a safety audit. The pillars are: Management Commitment; Policy
& Principles; Goals; Objectives & Plans; Procedures & Performance;
Accounting of Indicators & Responsibility of Operational
Management; Safety Personnel; Integrated organizational structure;
Motivation & Awareness; Investigation of Fatalities; Inspections &
Audits; Effective Communication and Training & Development.
In 2011, AES Tietê reached XX% of adherence to the corporative
standards, comparing to XX% in 2010. This result places the
company between the ones that have a management system for
world-wide class, considering that, to reach this recognition, it is
necessary to obtain more than 80% of adherence to standards. This
increase is granted to the maturity of management system and to
the constant refinement of practices.
The AES Tietê’s Safety Program is based on the AES Corp. global
guidelines and in the Occupational Health and Safety Management
System (OHSMS). The OHSMS requirements are based on
specifications of OHSAS 18001 standard (Occupation Health Safety
Assessment Series).
At the end of 2011, AES Tietê obtained the certification of Integrated
Management System (IMS), adopting the ISO 14001:2004
(Environment) and BS OHSAS 18001:2007 standards (Occupational
health and safety). The qualification was recommended by the
auditors of the external certifying body – ABS Quality Evaluations –
which visited the company at the end of November.
The certification occurred in an integrated and multi-sites manner,
i.e., for the ten AES Tietê’s plants.
ISO 14001 is the international standard that certifies the excellence
of the organization’s environmental programs, through identification
and control of the aspects and impacts of its activities in the
environment. OHSAS 18001 is an international standard that focus
on occupational health and safety, aiming at preservation of physical
integrity and the employees’ and partners’ health, through practices
of mitigation of risks in activities and facilities.
100%
of employees are represented by
CIPA (Internal Commission for the
Prevention of Accidents) and by
internal safety committees
With this certification, AES Tietê guarantees the standardization and
integration of processes related to health, Occupational Safety and
environment in all plants.
42 AES Tietê

In 2011 were carried out 3.065
safety walks by the company’s
leaders, result that overcame at
32% the goal and had as a highlight
the participation of the CEO, with
25 inspections per annum
Today, AES Tietê is deemed the AES Corp.
company with the best safety practices in
the world. This result was constructed over
the last two years. In 2009, the Company
started to develop an action plan with a
strategy designed by the Occupational
Safety and Environment Executive board,
aiming at the improvement of equipment
and installation infrastructure in plants of
generation of electric power.
It were created ten taskforce teams,
composed by AES Tietê employees, which
visited each of the units to map the main
risks linked to health and safety on day
to day operation. To each of the found
deficiencies, the Occupational Safety and
Environment area defined a technical
procedure specific to the adjustment of
the fragility.
Safety walk
It is not secure to go into field to observe
work activities focusing on identify and
eliminate conditions and behaviors. This is
the Safety walk goal, a program that evolves
leaderships (presidents, vice president,
Officers, Managers and Coordinators) from
different areas.
In addition to evolve and engage the
leadership with the topic, Safety walk is a
source of good ideas and innovation, provided
by the interaction between professionals of
different areas with different perspectives.
Comments from the
relation networks
“AES has a comprehensive and
efficient policy in terms of safety of
its consumers and employees. It has
full understanding on the risks of
its product and adopts a very good
prevention performance; however, this
could be more strict with respect to
the prevention and guidelines to its
customers.”
Comment from a representative of the
community during the 3rd Cycle of
Relation Network Discussions.
With the teams’ work, we managed to
meet AES Corp. requirements, which define
the safety procedures to be followed by
all Group companies. Internally, these
proceedings are accepted as standards.
With them, it is possible to foresee risk
situations, standardize actions and evolve
all employees in the construction of a new
prevention culture.
Walks and safety inspections
Annual goal
President, vice presidents and Operational officers (O&M engenharia) 24
Officer of Health, Safety and Environment 12
Administrative Officers ( non-operational) 6
Regional, Safety and Environment Managers 72
Non-operational Managers 24
Operational Coordinators 132
Occupational Safety Technicians 60
Environmental walks (managers, coordinators and operational technicians) 12
Environmental walks (regional manager, plant’s coordinator , safety coordinator, Safety
technician, Safety and Environment manager and environmental engineer)
2
Sustainability Report 2011
43

The highest commitment of the
companies of Grupo AES Brasil
is with the safety of all public
involved in the business of
generation and distribution
of electric power
Hands Care
In 2011, AES Tietê carried out the
1 st Campaign of Hands Protection
that engaged more than thousand
employees of its hydro power plants,
in order to establish a more secure
attitude. The idea was to make, on a
daily basis, its own employees and
subcontracted ones aware about the
relevance of protecting yourself and
correctly using the personal protection
equipment (EPIs).
Among the activities performed, it
is worth to mention lectures and
simulations that showed how to avoid
accidents with the hands.
Rate of health and safety – employees and third parties **
RATE 2009 2010 2011
Rate of lesions 1.27 0.95 1.14
Rate of occupational illness rate 0.00 0.00 0.00
Total of not worked days* 0.00 5.32 4.27
Total of deaths during the period 2.00 0.00 0.00
Total number of lesions 9.00 8.00 12.00
Taxas de health e safety – third parties **
RATE 2009 2010 2011
Rate of lesions 1.44 1.15 1.42
Rate of occupational illness rate 0.00 0.00 0.00
Total of not worked days* 0.00 8.63 6.39
Total of deaths during the period 1.00 0.00 0.00
*Counting from the day after the accident.
**For the calculation, it was adopted the Regulatory Rule 4 (Services Specialized on Safety Engineering and on
Occupational Medicine) and management system OHSAS 18001.
Daily Safety
GRI: LA6; LA7
During the reported period, it was registered
12 fatalities involving own employees (two
without removal) and contracted (nine
without removal and one with removal).
These numbers reflects the actions carried
out over 2011.For example, the campaigns
of perception of risks and reports of events,
which presents a video with employees’
testimonies about safety.
The year was also marked by the team
work we did with the Casas de Cultura e
Cidadania of the cities where we operate
(read more on page XX). The employees had
an opportunity to watch theater plays (with
children and teenagers) that talked about
safe behavior. The same action was reapplied
in the Internal Week of Workplace Accident
Prevention (SIPAT); the theme addressed
was home safety. In AES Tietê, 100% of the
employees are represented by CIPA and by
Safety Committees.
44 AES Tietê

Trainings
GRI: EU16; EU18
All employees, own and third parties, receive
specific Trainings to properly exercise
their functions, focusing on occupational
safety issues. AES Corp. establishes safety
standards for some types of work performed
in AES Tietê and, in addition to corporative
standards (the safety standards), OHSAS
18001 standard are adopted, which
certifies the Occupational health and safety
Management System in all plants.
The third parties contracted are submitted
to a specific procedure of contracting in
which requirements related to health and
occupational safety are defined
that, aligned to the trainings offered by
AES Tietê, minimize the risks of occurrence
of accidents. The compulsory Trainings
are required, as established by NR-33
and NR-10 standards that talks about
health and safety in confined space and in
services related to electricity, respectively.
All contracted ones are submitted to an
Occupational Safety integration process
hosted by AES Tietê, approaching procedures
to mitigate risks in the activities they
will perform, such as working at height,
evaluation of risks and other applicable
safety rules.
Population
Safety
The main risk to the population related to
AES Tietê business is the permanence in the
proximity of the dams and the edges of the
reservoir, focusing on leisure activities. Therefore
the Company performs a constant work of
awareness and alert on the risks of possible
overflowing and flooding as a result of heavy
rainfall, especially from October to March.
During this period, the company intensifies
the safety campaigns to the population,
encouraging the safe behavior in these areas
through regional newspaper, and spots on
local radio, in addition to explicative folders
distributed in the points of greater circulation in
the cities where our plants are located.
Additionally, AES Tietê hosts local school,
in order to submit the themes related
to population’s safety to students. The
Promissão and Barra Bonita units host
80% of these visits. There are situations
in which the communication with the
community needs to be fast and effective,
as in this case of flood in the reservoirs.
Therefore, the company has the Operating
System for Emergency Situations (SOSEM),
which consists in alarms to alert people
about the danger of inundation around
the plant. Every three months, hearing
tests are carried out to ensure the action
affectivity.
GRI: 3.10, LA7
Challenges for
the future
The highest commitment of the companies
of AES Brasil Group is with the safety of all
public involved on the business of generation
and distribution of electric power. In AES
Tietê, we believe that the performance of
a good work is based on safe attitudes.
Therefore, the Company undertakes to
eliminate the accidents with employees,
both own or contracted ones, and with the
population. The Company has the challenge
to maintain the standard of excellence
acquired in the last two years, in addition to
search for new improvement opportunities.
Health and safety at work 2009 2010 2011
Average of extra hours per employee per year 276.00 179.64 225.32
Total number of work accidents with employees 3 2 2 1
Total number of work accidents with subcontracted/contracted 6 6 10 2
Average of work accidents per employee per year 0.010 0.006 0.006
Accidents with employees’ and/or service providers’ temporary
absence (%)
0.0 12.5% 8.3%
Accidents that resulted in mutilation or other damages to
employees’ and/or service providers’ physical integrity, with
0.0 0.0 0.0
temporary absence from the job (including RSI) (%)
Accidents that resulted in employees’ and or service providers’
death (%)
22.22 0.0 0.0
Company’s total TF 1 index (rate of frequency) during the
period, for employees
5.17 3.09* 2.86
Company’s total TF 1 index (rate of frequency) during the
period, for subcontracted/contracted*
7.20 5.75* 7.10
Company’s TG 2 index (rate of gravity) during the period, for
employees
10,347.36 0.0 0.0
Company’s index (rate of frequency) during the period, for
subcontracted/contracted*
7,204.54 43.15* 244.79
1
Rate of accidents, with or without absence, for each one million of worked hours.
2
Rate related to days missed as a result of accidents with absence, for each one million of worked hours.
*
Data published in the report from 2010 were amended for this edition as a result of adjustments in the calculation methodology.
Safety in the consumer’s final use of power 2009 2010 2011
Rate of gravity (TG) of accidents with third parties by electric
shock in concessionaire area (total events * )
NA NA NA
Number of improvements implanted aiming at offering safer
products and services
NA NA NA
*Up to 2011 it was reported the total of accidents and not the rate of gravity as ANEEL’s guideline suggests. Since 2012, data shall be reported
pursuant to the guideline.
Sustainability Report 2011
45

46 AES Tietê

Innovation and
excellence for
customers’ satisfaction
GRI: EU8
Is to provide an
environment and culture
that offer solutions
to improve the life of
persons and ensure the
quality and excellence
in the services rendered
to the customer
In order to satisfy its customers through
clean and quality power supply, AES Tietê
invested in the operational efficiency of its
generating units.
The year of 2011 was highlighted by the
high productivity in AES Tietê plants, which,
together, produced 13,860.4 GWh of energy,
a volume 23.6% higher than its physical
guarantee 6 . The good performance is result
of the preventive maintenance program,
responsible for the index of 88.3% of
availability of the machines.
This performance, considering the useful
availability for the generation, was higher
than the standard established by ANEEL and
by National Electricity System Operator,
which is 85%.
However, the company faced some
operational issues related to machinery
throughout the year. One of them is the
golden mussel, a shellfish from China which
arrived to South America by mercantile ship
ballast water. It fixes on a surface, enters
the refrigeration system of the plants and
causes the block of water pipelines.
6
The maximum amount of energy that the hydroelectric and
thermoelectric plants and Energy Import Projects can sell is
their physical guarantee.
Source: Empresa de Pesquisa Energética.
Sustainability Report 2011
47

AES Tietê’s
Commitments
(2012-2016)
Implement an internal structure
which guarantees the promotion
and management of practices and
innovative projects until 2012
Promote an organizational culture of
innovation incentive until 2014
Implement five innovative solutions
and clean technologies in AES Brasil
– which create value to interested
parties, with increase of quality
and reduction of costs and of
environmental and social impacts of
the operations – until 2016
Spread the innovation concept and
strategy in the value chain and
establish partnerships which extend
the results until 2016
To clean it and remove the mussel, it is
necessary to turn the machines off, what
contributes to reduce the availability index.
Even though, the generation capacity of
energy was not significantly affected and, in
accordance with the network procedure, 72
hours per generating unit may be expurgated,
which is above the availability standard
established by ANEEL and by National
Electricity System Operator for the year to
reach 13.86 GWh of generated power.
genereted power (mw averege)
130% 125% 124%
1,665
1,599
1,582
Favorable scenario
The electric power consumption
demand is connected to GDP growth.
For 2012, Brazilian economy is expected
to grow approximately 3%, and the
challenge for the generators is to keep
themselves prepared to meet their
customers’ expectations.
There is not a control for the golden
mussel yet, but AES Tietê is investing in
research projects to solve the issue. Among
them there are the application of ozone
in refrigeration system of plants and the
development of protective system through
material and technical selection to control
the incrustation through a special ink which
prevents the mussel fixes on surfaces, in
addition to the implementation of closed
refrigeration circuits in the plants.
2009
2010
2011
Generation – physical guarantee
48 AES Tietê

Research,
development
and innovation
AES Brasil believes that innovative ideas do
not necessarily need to involve technology.
Simple attitudes may also contribute to
improve people’s daily routine in developing
their activities inside and outside the work
environment. To spread this concept among
its employees, the company created an area
of innovation incentive.
The plan started to be designed in 2011
by AES Brasil’s Research and development
Executive board staff, which had as main
focus the compulsory 7 investment in
research and development. With this new
path, the company wants to take advantage
of people’s talent and create new projects
which help in good performance of the
businesses – this is one of the Sustainability
Platform challenges.
The big challenge, however, is to cause this
practice to become recurrent among the
employees. For this happens, AES Brasil
counts on Innovation Forum, a space where
the employees have the chance to express
their view about different ways of doing the
same thing. The tool is available on intranet
of all Group’s companies and it works as an
idea base to which everyone has access
and may contribute to the construction of a
new initiative.
For 2012, improvements to Innovation
Forum are expected, including statistics
of registered ideas, grouping of ideas
and implemented project results, as
well as a new functionality, referred to
as “Challenges”, which purpose is to
bring material themes to the companies
and catch ideas which contribute to
improvement of the results.
7
By determination of ANEEL, power distributors must allocate
0.50% of its net operating revenues to programs of research
and development (R&D).
In AES Tietê, the innovation culture pervades
all areas. Under this aspect, in 2011 there
were investments in developing a new
technology capable of anticipate accidents
with barrage, which might happen in case
of natural disaster – such as earthquakes or
heavy storms – or even by operating faults.
Dam Break project performs simulations and
draws an emergency action plan to remove
people which live in areas of risk mapped in
case of upcoming disaster.
Developed in partnership with State
University of Campinas (UNICAMP),
the project has among its objectives to
identify all areas which may be flooded
in cases of barrage disruption. The system
has implementation expected to the first
semester of 2012.
Other measure which will provide more
safety with respect to the level of the
reservoirs is the investment of R$ 600
thousand in the revitalization of the
telemetric network, responsible for gathering
and transmitting plant information to the
Center of Operation of the Generation and
Locks (COGE).
The system update will enable faster and
more efficient emergency actions. Technology
calculates the discharge of water of the rivers
where the plants are established and enables
to set forth more accurately the rain volume,
in millimeters, for certain period. Data arrive in
real time to COGE.
The new transmission model – through
satellite and GPRS (cell phone chip) –
which replaced the former radio system is
already operating in the whole company’s
telemetric network, which has a structure of
11 stations through GPRS and 20 stations
through satellite.
In addition, the company has been investing
in machine automation plans and the
remote monitoring of plants through COGE
to obtain more control on the operations.
The purpose is to match information of
existing equipment in all of the operating
units with maintenance plans, spare
parts, historical information and material
documents. For that, AES Tietê counts on a
database in which the registration of all of
its physical assets is contained.
Apex
One of the channels to which the
creativity of our employees turns into
an innovation and results is Apex (AES
Performance Excellence), program of AES
Corp. comprised by quality methods and
tools that, in a structured way, permits to
identify opportunities for improvements
and aims to improve the proceeding
through innovative projects.
In order to disseminate the concept of
pursuit of ongoing improvement and
inspire an innovative attitude, AES Brasil
counts on some Training to motivate
employees to understand how day to day
attitude can lead to excellent results.
Rather than encouraging an innovative
approach, AES Brasil is concerned about
the recognization and valuation of
ideas that could represent projects with
multiply results. On an annual basis the
staff for Continuous Improvements, in
partnership with Internal management of
Communication of AES Brasil, performs
the ERA (Apex Awareness Event).
This event, traditionally held on
November 4 of each year, with
participating of members and leaders
of projects, governing body of the
companies of the Group and very happy
to celebrate and recognize those that
made a difference in practice, through
several projects carried out throughout
the year.
Sustainability Report 2011
49

Research and
development
To continuously improve the service quality,
AES Tietê’s research and development
(P&D) program encourages the innovation
and creates investment opportunities
aligned to the business strategy and to the
appreciation of the knowledge produced
by the employees, in partnership with
institutes, universities, manufacturers and
public and private companies fomenting
technology.
The P&D program gives tools to ensure the
safety and reliability of the services. The
program also promotes opportunities for
sustainable growth, creating benefits for
the consumers, shareholders, employees,
partners, suppliers, and society in general.
In addition to practitioners’ results,
the intangible results (masters, PhDs,
specializations of employees) provide
expectations and future opportunities,
which may be economically valued.
Currently, the Company aims 0.40% of the net
operating income (ROL) to the P&D program,
in compliance with the laws and regulations
of the electricity sector. The projects include
technical, commercial and operational
proceedings and employee and subcontracted
employees safety, in addition to the promotion
of sustainable initiative for communities,
among other correlated themes.
In 2011, AES Tietê invested R$ 19.5
million in P&D provided that 39% of total
in improvements of the planning and
operation, in addition to 18% in renewable
energy sources or alternatives.
COMMENTS FROM THE WEB
OF RELATIONSHIPS
“Remains to define what is the goal of
AES Brasil in terms of innovation, disclose
it and devise a plan for the company can
say if it is innovative or not.”
Comment from a supplier during the 3
Cycle of Dialogue with relationships web
Social and sectorial dimension
Funds invested in research, technological and scientific development – R$ thousand
By research themes (R&D Manual – ANEEL) 2009 2010 2011 goal 2011
Energy efficiency (A) 0 0 0 0
Renewable or alternative source (B) 0 782 3.529 5.325
Environment (C) 102 737 684 833
Quality and reliability (D) 227 518 2.250 2.205
Planning and operation (E) 368 5.322 7.565 8.485
Supervision, control and protection (F) 211 1.616 3.795 4.003
Assessment (G) 0 2 517 326
Data transmission by power grid (H) 0 0 932 940
New material and components (I) 457 932 209 1.162
Technological development to combat fraud and theft (J) 0 0 0 0
Total R&D investments (K) 1.365 9.909 19.482 23.279
Investment in the energy efficiency theme (A) on total R&D investments (K) 0.00% 0.00% 0.00% 0.00%
Investment in the renewable or alternative source theme (B) on total R&D investments (K) 0.00% 7.90% 18.10% 22.90%
Investment in the energy theme (A) on total R&D investments (K) 7.50% 7.40% 3.50% 3.60%
Investment in the quality and reliability theme (D) on total R&D investments (K) 16.60% 5.20% 11.50% 9.50%
Investment in the planning and operation theme (E) on total invested in R&D (K) 27.00% 53.70% 38.80% 36.40%
Investment in the supervision, control and protection theme (F) on total invested in R&D (K) 15.50% 16.30% 19.50% 17.20%
Investment in the assessment theme (G) on total R&D investments (K) 0.00% 0.00% 2.70% 1.40%
Investment in the transmission of data theme by power grid (H) on total R&D investments (K) 0.00% 0.00% 4.80% 4.00%
Investment in the new material and components theme (I) on total R&D investments (K) 33.50% 9.40% 1.10% 5.00%
Investment in the development of technology theme to combat fraud and theft (J) on total R&D
investments (K)
0.00% 0.00% 0.00% 0.00%
50 AES Tietê

In 2011, AES Tietê invested R$19.5
million in research and development,
provided that 39% in improvements of
planning and operation and 18% in
renewable sources or alternatives
of energy generation
r&D main Projects
Project
Dynamic Attenuator of Occupational Noise with Acoustical Events Registration and Management , for
use in hydroelectric plants
Description Single use device for dynamic environment noise reduction and amplification of the verbal
communication associated with a registrant of intensity and sound frequency spectrum which the
employee will be exposed for use in hydroelectric plants, with software for analysis and diagnosis
Project
GISHELE: Integrated Management of Hydroelectric Energy Systems
Description Risk analysis and management tool for AES Tietê’s power generation with the capacity of
outlining preventive management strategies of multiple risk factors relating to the production and
commercialization of energy
Project
Development of a system to communicate with and locate people in confined spaces and galleries of
the hydroelectric power plant – UHE
Description People communication and location system with com a pilot implemented and assessed in the UHE. The
solution comprise: small emission/reception devices of radio frequency – RF, “reader” devices (antennas)
distributed in a way that covers the entire area to be monitored and supervision software. In addition,
contemplates gas monitoring and also ensure more safety to employees
Project
Geothermal Energy: technical alternatives for the implementation of generation of hybrid geothermal
electric power in Brazil from low temperature sources
Description The project aims to identify the potential to generate energy from thermal sources and its contribution
to the Brazilian energy parent company
Project
Center of Monitoring of Physical Magnitudes and Diagnosis of Occupational Safety Conditions to
Employees in the UHEs
Description Methodology capable to measure, analyze and diagnose risks underlying to the physical magnitudes in
the work environment. Uses the monitoring of variable multiples in an intelligent computer platform,
with online diagnosis, in a continuous and dynamic way, allowing expedition and reliability when
determining the risks involved. Considers the prevailing laws and regulations in making decisions and
predicting the risks involved
Sustainability Report 2011
51

Generation of
sustainable power
The use of
economic, social
and environmental
resources on a
balanced basis,
preserving the
present and ensuring
the future
AES Tietê has big challenges for the next five
years. The commitment undertaken with
the government of the State of São Paulo
to expand by 15% (400 MW) the capacity
of the generation complex is included.
Additionally, by launching the Sustainability
Platform of Grupo AES Brasil, at the
beginning of 2012, the Company undertook
the goal to add 3,000 MW to its generation
capacity until 2016.
In this scenario, the Termo São Paulo
construction project, a thermoelectric power
plant that will generate energy from natural
gas in the city of Canas, State of São Paulo,
with investment estimated in R$ 1.1 billion.
A new power will operate in a combined
cycle system 8 and will be capable to
generate, in full capacity, 550 MW of electric
power, increasing AES Tietê’s installed
capacity in approximately 21%.
By choosing the construction of a thermal
plant in São Paulo, AES Tietê took into
account some key aspects that reaffirmed
the viability of the project in the region. The
state offers a favorable gas pipeline structure,
in addition to the last oil discovery in the
coastline of São Paulo. Capture of water
will be made in Paraíba River, which has an
ensured availability to supply the plant.
8
A combined cycle plant uses gas and vapor to move turbines
in a sole industrial unit, generating electric power from burning
the same fuel only once. This happens because the heat from
exhaustion gases of gas-fired turbines is recovered, producing
fuel required to add a vapor-fired turbine.
52 AES Tietê

Sustainability Report 2011
53

AES Tietê commitments
(2012-2016)
Add 3,000 MW of installed capacity or in construction of projects to
generate sustainable power until 2016
Invest at least 20% of the proceeds of R&D in the development of
technologies to generate sustainable power until 2016
Promote proper use of the Permanent Preservation Areas surroundings
the plants and reservoirs until 2016
3,000 MW
is the goal to expand the
generation capacity undertook
by AES Tietê until 2016
Environmental
Viability
In order to reduce the effect on potential
impacts that an undertaking of this
magnitude would cause on the environment,
the project to construct Thermo São Paulo
was initiated with social and environmental
studies that sets monitoring and control
programs of the atmospheric emissions,
water consumption and solid waste and
liquid effluent generation, as well as
accidents prevention.
In 2011, were carried out public audits
in which there was a presentation of the
Environmental Impact Study (EIA) and
Environmental Impact Report (RIMA) on
the communities of Canas, Cachoeira
Paulista and Lorena. Based on the results
of these documents and what was
addressed in meetings with population,
Companhia Ambiental do Estado de São
Paulo (CETESB) granted the prior license
that confirms the environmental viability of
the undertaking and the compliance with
all legal requirements carried up to now.
With this license and after conclusion of all
negotiations to ensure the supply of gas,
AES Tietê may attend to energy sale
auctions, execute an energy sale agreement
and raise funds to construct the plant.
Challenges of
generation
GRI: SO1
In 2012, one of AES Tietê’s focus point will
be to establish the commercial conditions
required to make the Termo São Paulo
project possible. Therefore, it is necessary to
mainly define the machine and equipment
suppliers and service providers and to insure
the natural gas supply source and financial
conditions of the project.
Meet all environmental conditions to obtain
the license to install the new thermoelectric
plant is also among the challenges.
Comments from the web
of relationships
“I get excited with the possibility to
add 3 thousand MW to generation
capacity and be able to produce
sustainable power”.
An employee’s comment during the 3rd
Dialogue Cycle with Web of relationships
Open dialogue
GRI: SO1
The installation of a thermoelectric power
plant in Canas, which has proximately 5
thousand inhabitants, will affect people’s
way of live. In order to manage these effects,
by increasing benefits and reducing negative
impacts, AES Tietê will develop, together
with the population, a plan for a sustainable
development of the region.
Therefore, a communication plan was
created to answer the questionings made by
inhabitants of the city and the region, which
included the cities of Lorena and Cachoeira
Paulista. The plan is to identify the main
needs in terms of infrastructure of the
region, as well as skills that generate income
in the cities and support the town halls in
developing work plan and directing funds.
Throughout 2011, were carried out 32
meeting with the communities involved
and we sought to clarify doubts on
about the functioning of a combined
cycle thermoelectric plant and explain
the impacts that it may cause on the
environment, especially on the waters of
Paraíba River, reason of high concern to
the inhabitants. The planning also included
speeches in local schools and associations
and conversations with regional farmers.
AES Tietê already undertook to offer
professional qualification and to prioritize
the contracting of local labor to construct
the plant.
54 AES Tietê

Solar energy
for the opening
of the 2014
World Cup
Seeking to perform, in practice, the technical
studies on the viability of the use of
photovoltaic panels in the generation of
electric power, AES Tietê, together with AES
Eletropaulo, submitted to ANEEL a project
that aims the installation of a solar power
plant with capacity to generate up to 1
MWp where the stadium to be used in the
opening of the 2014 World Cup is being
constructed.
The research is strategic, as it allows the
preparation of proposals on the contracting
and marked mechanisms for solar energy,
alternative energy matrix deemed clean,
that do not emit carbon or wastes with
proved durability of up to three decades.
The project will allow the assessment
and certification of the results obtained
in labs in industrial scale, by observing
the actual operation of the plant in a
urban environment and the connection to
the network. Additionally, the matter on
competitive scale is already being overcome.
In 2010, more than 13 GW installed was
reached in the world.
Besides AES Tietê and AES Eletropaulo, the
project counts on the participation of other
companies of the electricity sector and
funds from private initiative.
This initiative reaffirms AES Tietê’s
commitment with sustainability through
the generation of sustainable power and low
environmental impact.
Reforestation
GRI: EN11; EN13
AES Tietê counts on an area of 480,300
hectares, in which the units generating
power are installed. From this total, 193,626
hectares are deprived for environmental
protection and all the company’s area is
deemed Area for Permanent Protection
(APP) by the national laws and regulations.
The Clean Development Mechanism (CDM)
project to reforest native species with
Border Project
In 2011, AES Tietê intensified the focalization and control work of the
irregular occupations of the borders of its ten reservoirs, considered
Areas for Permanent Protection (APPs). Now, the monitoring through
satellite images is made every three months, associated with a change
detection process, new among the companies of the sector. Before
that, the frequency was made once a year. Thus, it is possible to faster
note changes on vegetation, due mainly to irregular occupations, as the
technology allows to cross information from different data and identify
changes in the use of soil in the company’s property. In possession of this
mapping will be possible to exactly locate the regions with interventions
and collect precise information about the inhabitants, which will help on
the mitigation of impacts and recovery of areas. After the identification
of irregularities, the company begins a notification stage, requesting the
documents that evidence the regular occupation. If this license is not
obtained, the inhabitant is summoned to obtain the license and, if he/she
does not attend, a repossession proceeding is filed.
There are situations 9 in which the occupation of the borders is allowed
by CONAMA Resolution 369/2006. In these cases, the inhabitant must
access our webpage on the Internet and request for a use agreement
commitment. This document allows that the interested party seeks, at
the environmental body, the occupation licensing. In possession of the
environmental licensing, AES Tietê executes a use assignment agreement
with effectiveness of five years.
9
At AES Tietê’s website you can find information about the concession for revervoir border use and the
procedures to be adopted. Please access www.aestiete.com.br/responsabilidade/bordas_de_reservatorio.
no industrial purpose in the area of AES
Tietê’s plants is deemed groundbreaking
in the world and, in 2011, was registered
by the United Nations – UN – United
Nations Framework Convention on Climate
Change – UNFCCC. At the end of 2010,
the company executed an agreement with
International Bank for Reconstruction and
Development (IBRD), dealing the first 400
thousand tons in carbon credits.
AES Tietê performs reforesting works since
2001. The seedlings are produced in own
nursery and the seeds collected come from
matrixes selected in remaining forests of the
region. In order to guarantee biodiversity,
in average 120 species native from Mata
Atlântica are cultivated and planted with
specific handling techniques flora.
Between 2001 and 2008, 1,542 hectares
of APPs were reforested. In 2009, another
1,100 hectares were planted.
In 2010, the project passed through a
new stage to improve the proceedings.
Improvements in Promissão nurseries were
carried, such as expansion of the production
area, in the reforesting database, control of
suppliers and identification and mapping of
new areas to be reforested, among others.
During the year, the total reforested area
was 30 hectares in the reservoir borders
of Bariri plant and were further performed
maintenance activities in 1,100 hectares
reforested in 2009 in the reservoir borders
of Barra Bonita, Água Vermelha and
Promissão plants.
In 2011, reforesting projects were not
carried. However, we expect to improve, in
the next years, plantation and maintenance
techniques and promote partnerships with
owners of the area, as to increase the success
index in the reforested areas and in the
plantation area, reducing pressure on
these areas.
Sustainability Report 2011
55

Efficient use
of resources
It is the proper
allocation of these
resources in order
to ensure balanced
results with respect
to all relation
networks,
in accordance with
the company’s values
56 AES Tietê

Sustainability Report 2011
57

Efficient use of
power resources
AES Tietê;s commitments
(2012-2016)
Operate with costs that place us in the first quartile of ANEEL’s ranking of
operational efficiency (among 25% of the more efficient companies)
Restructure the management of Intangible Assets until 2014
IFRS Adoption
In compliance with Law 11,638/07, AES
Tietê S.A. and its controlled companies
presented its financial statements consistent
with the International Financial Reporting
Standards – IFRS.
Among the effects of the applicability of the
IFRS on the income, we highlight:
Financial and
Economic
Performance
In 2011, AES Tietê presented a gross
revenue of R$ 1.98 billion, 7.6% higher to
that registered in the previous year, of R$
1.8 billion. This result is explained by the
increase of 7.4% in the average price of
power sold through the bilateral agreement
with AES Eletropaulo, from R$ 155.79/MWh,
in 2010, to R$ 167.29/MWh, in 2011. This
increase results from the adjustments made
in July 2010 (5.2%) and July 2011 (8.7%)
and from the increase of 83.9% in the
power volume sold through other bilateral
agreements (553.9 GWh in 2011 compared
to 301.2 GWh in 2010).
Thus, the EBITDA of the Company totaled
R$ 1.47 billion in the year, 11.1% higher
than in 2010.
The net income assessed in 2011 was
R$ 844.86 million, a result 14.6% higher
compared to the previous period.
• adoption of the amount allocated as to
initially assess its property and equipment,
which increase the Company’s expense
with depreciation, which started to be
calculated by the economic life of the
assets instead by the tax useful life;
• granting, until 2029 (end of the concession
of AES Tietê’s plants) of the amount paid
to the granting authority for the use of
public property use (PPU);
• declaration, in the shareholders’ equity, of
obligations and rights resulting from the
benefit plan (AES Corp.’s share options)
granted to executives.
2011 results – highlights
Consolidated IFRS (R$ thousand) 2010 2011 Variation
Gross revenue 1,844,496 1,983,779 7.60%
Net income 1,754,323 1,885,956 7.50%
Operational costs and expenses* (433,867) (419,540) -3.30%
Gross Profit 1,151,888 1,302,323 13.10%
EBITDA 1,320,455 1,466,416 11.10%
Financial results (57,132) (46,582) -18.50%
– Financial income 86,470 53,980 -37.60%
– Financial expenses (143,602) (100,562) -30.00%
Net income 737,339 844,864 14.60%
*Excluding depreciation.
Revenue
AES Tietê registered, in the year, R$ 97.8
million as deductions of revenue, increase of
8.5% with respect to the amount assessed
in 2010 (R$ 90.2 million).
The net income totaled R$ 1.89 billion,
increase of 7.5% compared to 2010,
resulting mainly from adjustments of the
price of power sold through the bilateral
agreement with AES Eletropaulo, made
in July 2010 and July 2011 and from the
increase of the power volume sold through
other bilateral agreements, as previously
referred to.
58 AES Tietê

Operational costs and expenses
The operational costs and expenses totaled
R$ 419.5 million, a reduction of 3.3%
compared to the costs registered in 2010
(excluding depreciation). This variation is
mainly explained by three factors:
• decrease of R$ 7.6 million in the operation
provisions, resulting from:
(a) reduction of R$ 6.1 million in the labor
provisions (added to the reversals
of provision) compared to that registered
in 2010;
(b) partial reversal, in the amount of R$ 3.7
million, of provision related to ANEEL Order
No. 288/02, which has issued at the end
of 2009, in the amount of R$ 20.9 million,
and was supplemented by R$ 4.5 million
in the first quarter of 2010. Such provision
was made due the re-booking, made by the
Electric Power Commercialization Chamber
(CCEE), of operations performed in the
short-term market in 2002, bounding AES
Tietê to AES Sul. Based on studies performed
by experts on the incidental financial on this
process, the Company concluded that the
amount of the provision is only subject to
a monetary adjustment, thus reverting the
amount related to interest and penalties;
(c) registration of provisions for environmental
contingencies, in the amount of R$ 3.5 million,
regarding a lawsuit filed by a prefecture that
requires AES Tietê to reforest 72 hectares,
in addition of lawsuits that challenge the
Company’s responsibility regarding the
preservation of the reservoir borders.
• reduction in expenses referred to energy
purchased for resale (R$ 9.9 million),
principally as a function of the lower prices
prevailing on the spot market (R$ 29.55/
MWh in 2011, compared to R$ 70.24/
MWh in 2010);
• a decrease of R$ 3.6 million in material
and third-party services expenses, basically
due to the biannual maintenances in the
floodgates that took place in 2010.
On the other hand, the cost of transmission
and connection charges increased by 6.4%,
rising from R$ 92.5 million in 2010, to R$
98.4 million in 2011. This increase was due
to adjustments to the connection charges,
TUSD-g and TUST-rb, of the Company’s
power plants.
Ebitda
AES Tietê reported EBITDA of R$ 1,47 billion
in 2011, with margin of 77,8%, showing
an increase of 11.1% when compared to
that verified in 2010. The performance
is explained, principally, by the annual
adjustment in the price of energy sold
through the bilateral contract with
AES Eletropaulo, and through the reduction
of R$ 14.3 million in costs and expenses
mentioned previously.
Financial results
In 2011, the Company reported a negative
financial result of R$ 46.6 million, compared
to a result, also negative, of R$ 57.1 million
in the previous year. The performance was
affected by the positive effect of replacing
the debt with Eletrobrás with debentures,
and the capitalization of debt interest in
2011 (R$ 20.9 million). Such variation
was partially offset by the lower financial
revenue obtained this year.
Financial revenues in 2011 were down
37.6% compared to the previous year.
This variation was influenced by the lower
average balance of investments ( R$ 435.9
million in 2011, compared to R$ 580.9
million in 2010) and by the receipt of R$
27.7 million referring to interest and fines
involved in the litigation between Furnas
and the Company. Disregarding this effect,
the financial revenue in 2010 would have
totaled R$ 58.8 million, R$ 4.8 million
higher than the financial revenue reported in
2011 (R$ 54.0 million).
Financial expenses and monetary variation
amounted to R$ 100.6 million in 2011,
R$ 43.0 million lower than the amount
recorded in 2010. This reduction was
influenced by the positive effect of the
replacement of the debt with Eletrobrás,
indexed by the IGP-M + 10% p.a, by
debentures adjusted by the CDI rate +
1.2% p.a.; and by the capitalization of debt
interest which took place in 2011.
Net income
The net income earned by AES Tietê in 2011
was of R$ 844.9 million, result 14.6% higher
than that obtained in 2010. This result was
principally influenced by the adjustment to
the price of energy sold to AES Eletropaulo,
by the reduction in operational costs and
expenses, and the better performance of the
financial results.
Shareholder compensation
AES Tietê proposed the full distribution
of the basis for the payment of dividends
(R$ 922.2 million) for 2011 as earnings,
corresponding to 109.2% of the net income
for the year. This allocation was approved by
the general shareholders’ meeting , of April
2012, when occurred:
• ratification of interest on equity capital, in
the amount of R$ 30.1 million, deliberated
through meeting of the Board of Directors
held on December 7, 2011, as well as the
definition of the effective payment date;
• approval of the supplementary dividend
proposal, relative to the 4Q11, and the
payment date;
• ratification of the interim dividends,
relative to 1Q11, 2Q11 and 3Q11, paid on
May 26, 2011, September 22, 2011, and
November 25, 2011, respectively, in the
amount of R$ 639.0 million.
To calculate the value of the dividends to
be distributed by AES Tietê, it is necessary
to the profit the realization value of the
book value evaluation adjustment (this
realization is comprised by the depreciation
and/or write-off of assets reevaluated), in
the amount of R$ 75.6 million, as well as
the amount referring to prescribed dividends
and interest-on-equity capital (JSCP) up to
December 31, 2011 (R$ 1.7 million).
Thus, the supplementary dividend amount
proposed by the Company’s management is
of R$ 253.1 million, and the JSCP, of R$ 30.1
million, corresponding to R$ 0.71 per ordinary
share and R$ 0.78 per preferred share.
Dividends in 2011
(R$ thousandslion)
Income for the fiscal year 844.9
Realization of revaluation reserve 75.6
Prescribed dividends and JSCP 1.7
Statutory reserve constitution (5%) -
Dividends distribution base 922.2
Interim dividends already distributed 639
Interest on equity capital already
allocated
30.1
Supplementary dividends proposed 253.1
Sustainability Report 2011
59

430 thousand GWh
Was the consumption of electric
power in Brazil in 2011, a 3.6% growth
compared to 2010.
Indebtedness
As of December 31, 2011, AES Tietê’s gross
debt totaled R$ 924.2 million, basically
represented by the issue of debentures(see
hereafter), at a cost of the CDI rate +1.2%
p.a. and falling due in 2015. This amount is
practically stable compared to the position
as of December 31, 2010 (R$ 922.1 million)
– such stability among periods is resulting
from the fact that the repayments are
carried out in annual and equal installments
upon the third, fourth and fifth years.
In 2011, cash and equivalents amounted to
R$ 441.9 million, R$ 123.2 million less than
the balance registered at the end of 2010.
This variation is explained by the higher
disbursements for payment of dividends
during 2011 (R$ 878.6 million in 2011,
compared to R$ 771.3 million in 2010).
Thus, the net debt at the end of 2011
amounted to R$ 482.2 million, 35.1%
higher compared to the position at the end
of 2010, basically due to the lower cash
and equivalents average balance (R$ 441.9
million in 2011 compared to R$ 565.1
million in 2010). As of December 31, 2011,
the “net debt/EBITDA” ratio, considering
the EBITDA over the preceding 12 months,
was 0.3x
Investments
Investments in 2011 amounted to
R$ 175.3 million, R$ 93.1 million higher
than that realized in 2010. This performance
is also higher than the Company’s historic
average, as a result of the program for the
modernization of its generation units, which
seeks to maintain operational excellence
and ensure available energy generation.
Investiments history
56
13
43
2009
82
12
70
2010
175
19
156
2011
Investiments
Capacity
expansion
Performance
in the capital
markets
In 2011, the AES Tietê common shares
(GETI3) ended the exercise quoted at R$
23.64, up 10.0%, while the preferred shares
(GETI4) ended the exercise quoted at R$
26.88, up 12.0%. On this same period,
IBOVESPA depreciated 18.3% and IEE
appreciated 19.0%.
The Company’s shares were traded in
100.0% of BM&FBOVESPA’s trading sessions
during 2011. During the period, 117.5
thousand business with the common shares
were recorded, involving approximately 39
million of shares. The daily average volume
traded in the year was of R$ 3.4 million,
compared to a daily average volume of
R$ 4.2 million traded in 2010. As for the
preferred shares, 357.3 thousand business
in 2011, involving approximately 99 million
of shares. The average volume traded in the
year was of R$ 9.5 million, 1.4% below the
average recorded in 2010.
On December 31, 2011, the Company’s
market value was of R$ 9.6 billion..
Main Investments in 2011 Expected Performed
Maintenance and modernization R$ 145.2 million R$ 127.6 million
SHPP Jaguari-Mirim R$ 5.5 million R$ 19.4 million
IT projects R$ 7.1 million R$ 7.5 million
Total R$ 157.8 million R$ 175.3 million
60 AES Tietê

new stance
Since 2011, AES Tietê passes through a
moment of stance change with respect
to the purchase and sale of energy
market. Nowadays, the Company is a
trader company and already starts to
draw up its commercialization plan for
the next years, aiming at creating its
own customers portfolio and making an
effective transition for the new scenario
of power commercialization post 2015.
This process initiated the definition at
the end of 2010, with the restructuring
of AES Brasil’s commercial area, which
will focus mainly on the execution
of this new strategy. The idea is to
consolidate the Company’s image and
add a new aspect to the company.
The company’s challenge is to expand
the operation in the free market through
new energy bilateral agreements. In
order to do this, a project was created,
which through researches, identifies
the best opportunities in the national
market, following AES Performance
Excellence guidelines, a structured set
of quality methodologies and tools
that may be used to improve business
proceedings and identify solutions for
its daily challenges.
Investments
estimated
for 2012
In 2012, AES Tietê will be continuing its
modernization program for its generation
units, aiming to maintain the
R$ 141,.2 million for maintenance and
modernization of the generation units are
expected, especially for the plants at Água
Vermelha, Ibitinga, Caconde and Nova
Avanhadava, until 2016. In addition, the
allocation of R$ 16 million for IT is expected
to, especially in versions update and
implementation of additional functionalities
in the Company’s information systems.
The investments expected for 2012 do not
include the development of new projects.
Commercial
performance
In 2011, AES Tietê assumed a new position
in the purchase and sale market of electric
power and started to position in an active
way as trader. To take advantage market
opportunities and improve profitability of
energy from its SHPP, the Company also has
been signing since 2009, short and longterm
bilateral agreements to sell energy.
Such agreements registered an increase of
83.9% in 2011, amounting to 553.9 GWh
(read box below). Currently, there are 18
agreements effective, provided that 17 are
signed with free customers.
The billed energy by AES Tietê in 2011,
amounted to 15,122 GWh, recording an
increase of 2.7%, compared to the previous
year. A large proportion of this energy is
allocated to compliance with a bilateral
agreement with AES Eletropaulo (11,108
GWh), being adjusted by the IGP-M index
every July. The current tariff is R$ 173.68/MWh.
The excess volumes are in the first instance
allocated to the Energy Reallocation System
(MRE) and, subsequently, to the Electric
Energy Sale Chamber’s (CCEE) Spot Market.
In 2011, there was an increase of 4.2% in
billed energy by CCEE.
Billed energy (consolidated) – GWh 2010 2011
2011 x 2010
Variation
Billed Energy 14,728.8 15,122.3 2.70%
AES Eletropaulo bilateral agreement 11,107.7 11,107.7 0.00%
CCEE 3,319.8 3,460.7 4.20%
- Spot 1,339.6 1,518.6 13.40%
MRE 1,980.3 1,942.1 -1.90%
Other bilateral agreements 301.2 553.9 83.90%
Sustainability Report 2011
61

creating value
Seeking more efficient results, in 2011 AES Tietê continued the
project Creating value, an AES Brazil’s initiative that aims at
optimization in the use of financial resources.
This project As a result, the Company had a decrease in the
hierarchical levels.
As for the seasonality review of the agreements allowed greater
financial return on the energy volume marketed.
Yearther front was the improvement in management of agreements
with third parties. The mapping, review and renegotiation these
agreements were made, which allowed establishing a better
relationship, more transparent, with our suppliers.
In 2011, with initiatives of resources efficient use, o Grupo AES Brasil
saved R$ 125 million. With the Creating Value, the expectation is
saving R$ 400 million up to 2015.
Statement of Added value (R$ thousand) 2011
A - Revenues 1,983,696
Sales of goods and services 1,983,779
Bad debt provision (83)
B - Inputs Acquired From Third Parties (286,876)
Costs of the merchandise and services (189,838)
Materials, electric energy, outsourced services and other (97,038)
C – Gross Added value (A-B) 1,696,820
D – Withholdings (164,093)
E - Net added value by the entity 1,532,727
F – Added Value transferred from others 53,980
Financial income 53,980
G - Total added value to be distributed 1,586,707
Distribution of Added Value
GRI: EC1
6% 4%
53%
37%
Employees
Government
Shareholders
Interest and rents
62 AES Tietê

GRI: EC1
Financial-economic Indicators – DVA in detail
Generation of wealth (R$ thousands)
R$
thousands
2009 2010 2011
Change%.
R$
thousands
Change%.
R$
thousands
Change%.
Operating revenue (gross revenue of energy and services
sales)
1,754,602 4.29 1,844,497 5.12 1,983,779 7.55
Power supply - 0.00% - 0.00% - 0.00%
Residential - 0.00% - 0.00% - 0.00%
Low income residential - 0.00% - 0.00% - 0.00%
Commercial - 0.00% - 0.00% - 0.00%
Industrial - 0.00% - 0.00% - 0.00%
Rural - 0.00% - 0.00% - 0.00%
Public lighting - 0.00% - 0.00% - 0.00%
Public service - 0.00% - 0.00% - 0.00%
Public authorities - 0.00% - 0.00% - 0.00%
Other amortization Extraordinary Tariff Recomposition
(RTE), unbilled
- 0.00% - 0.00% - 0.00%
Transfer for distribution activities - 0.00% - 0.00% - 0.00%
Electric power supply 1,754,557 4.29% 1,844,450 5.12% 1,983,763 8.00%
Making the transmission and distribution system available - 0.00% - 0.00% - 0.00%
Other operating income 45 -43.75% 47 4.44% 16 -66.00%
Provision/Reversal of allowance for doubtful accounts 244 0.00% 6,157 0.00% (83) 0.00%
Other income (expenses) - 100,00% 0.00% 0%
Revenue related to the construction of own assets 54,740 38.38% 81,855 49.53% 175,374 114.00%
Year 2009 2010 2011
Basic R$ thousands Change%.
R$
thousands
Change%. R$ thousands Change%.
(Inputs acquired from third parties: purchase of power,
material, third party services etc.)
(345,129) 23.64% (394,171) 14.21% (462,249) 17.00%
Materials (4,747) 56.51% (5,688) 19.82% (6,232) 10.00%
Other operational costs (83,184) 390.85% (39,990) -51.93% (22,165) -45.00%
Cost of purchased energy and transmission (157,629) -14.84% (193,834) 22.97% (189,838) -2.00%
Third party services (44,829) 29.90% (72,804) 62.40% (68,640) -6.00%
Construction of own assets (54,740) 38.38% (81,855) 49.53% (175,374) 114.00%
Depreciation and amortization (172,253) 165.42% (168,568) -2.14% (164,093) -3.00%
Net value added generated by the company 1,292,204 -6.17% 1,369,770 6.00% 1,532,727 12.00%
(+) Added value received in transfer
(financial income, equity account result)
77,611 -19.88% 86,470 11.41% -53,980 -38.00%
Equity account result - 100.00% - 0.00% - 0.00%
Financial income 77,611 -17.87% 86,470 11.41% 53,980 -38.00%
Total value added to distribute 1,369,815 -7.07% 1,456,240 6.31% 1,586,708 9.00%
Distribution of the wealth – per interested parties [GRI EC1] R$ thousands Change%.
R$
thousands
Change%. R$ thousands Change%.
Employees 51,794 3.78% 57,636 4.00% 60,378 4.00%
Government (taxes, fees and contributions and sector
charges)
505,828 36.93% 516,676 35.00% 580,223 37.00%
Sustainability Report 2011
63

In 2011, AES Tietê obtained
a net income of R$ 844.9
million, result 14.6% higher
than that obtained in 2010
Year 2009 2010 2011
Financing/third parties 106,031 7.74% 144,588 10.00% 101,243 6.00%
Shareholders/retained 706,162 51.55% 737,340 51.00% 844,864 53.00%
Added value distributed 1,369,815 100.00% 1,456,240 100.00% 1,586,708 100.00%
Distribution of the wealth – governments and sector charges
Taxes, fees and contributions R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
ICMS 740 0.05% - 0.00% - 0.00%
PIS/Pasep 11,302 0.83% 11,576 1.00% 12,598 9.00%
Cofins 52,159 3.81% 53,423 4.00% 58,139 9.00%
INSS 7,295 0.53% 7,862 1.00% 7,519 -4.00%
ISS - 0.00% - 0.00% - 0.00%
Year 2009 2010 2011
IPTU - 0.00% - 0.00% 2 0.00%
Social charges – other 2,529 0.18% 3,610 0.00% 3,377 -6.00%
Other 1,603 0.12% 163 0.00% 116 -28.00%
IRPJ, CSSL and CPMF payable of the year 349,006 25.40% 357,418 25.00% 410,877 15.00%
Sector charges R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
RGR (Global Reversal Reserve) - 0.00% - 0.00% - 0.00%
CCC - Fuel Consumption Bill - 0.00% - 0.00% - 0.00%
CDE - Energy development account - 0.00% - 0.00% - 0.00%
Consumer charges – PROINFA - 0.00% - 0.00% - 0.00%
CFURH 60,608 4.42% 60,906 4.00% 63,676 5.00%
TFSEE 4,447 0.32% 4,834 0.00% 5,128 6.00%
ECE + EAEE - 0.00% - 0.00% - 0.00%
P&D, efficiency, Fn/aCT and EPE 16,139 1.18% 16,884 1.00% 18,790 11.00%
Other 0,00% - 0,00% - 0,00% -
(=) Amount distributed (total) 1,369,815 100.00% 1,456,240 100.00% 1,586,708 9.00%
Sector default R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
Purchased energy NA NA NA NA NA NA
Sector charges R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
RGR NA NA NA NA NA NA
CCC NA NA NA NA NA NA
CDE NA NA NA NA NA NA
CFURH NA NA NA NA NA NA
TFSEE NA NA NA NA NA NA
ESS NA NA NA NA NA NA
P&D NA NA NA NA NA NA
Total (A) NA NA NA NA NA NA
Percentage of default NA NA NA NA NA NA
64 AES Tietê

Total default (A)/net operating revenue NA NA NA NA NA NA
Investments R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
Maintenance and modernization 30,671 1.20% 64,393 110.00% 127,592 51.00%
Construction of new SHPP 13,386 -34.38% 11,678 -13.00% 19,390 38.00%
Other investments 12,591 46.41% 6,090 -52.00% 7,467 57.00%
Other indicators R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
Gross Operating Revenues (R$) 1,754,602 4.29% 1,844,496 5.00% 1,983,779 8.00%
Deductions from revenue (R$ thousands) (84,728) 1.48% (90,173) 6.00% (97,823) 8.00%
Net operating income (R$ thousands) 1,669,874 4.43% 1,754,323 5.00% 1,885,956 8.00%
Service Operating costs and expenses (R$ thousands) (587,108) 42.46% (602,435) 3.00% (583,633) -3.00%
Unrecoverable revenues (R$ thousands) - 0.00% - 0.00% - 0.00%
Service result (R$ thousands) 1,082,766 -8.77% 1,151,888 6.00% 1,302,323 13.00%
Financial results (R$ thousands) (27,597) -82.72% (57,132) 107.00% (46,582) -18.00%
IRPJ/CSSL (R$ thousands) (349,006) 3.54% (357,417) 2.00% (410,877) 15.00%
Net profit (loss) (R$ thousands) 706,163 1.98% 737,339 4.00% 844,864 15.00%
Interest on equity capital (R$ thousands) 30,689 -2.00% 30,062 -2.00% 30,062 0.00%
Distributed dividends (R$ thousands) 757,361 14.55% 787,488 4.00% 892,111 13.00%
Operational costs and expenses per MWh sold (R$
thousands)
(0,04) 27.10% (0,04) 2.00% (0,04) -6.00%
Wealth (net added value) per employee (R$ thousands) 3,756 -13.26% 4,138 10.00% 4,143 0.00%
Wealth (net added value) per gross operating revenue (R$
thousands)
0,71 -10.75% 0,71 -1.00% 0,71 0.00%
EBITDA or LAJIDA (R$ thousands) 1,255,019 0.30% 1,320,455 5.00% 1,466,416 11.00%
EBITDA or LAJIDA margin (R$ thousands) 75,20% -3.95% 75,30% 0.00% 77,80% 3.00%
Current liquid (current assets/current liabilities) 1,10 0.00% 1,50 36.00% 1,20 -20.00%
General liquidity (current assets+ realizable in long-term) /
(current liabilities+ payable in long-term)
0,50 -28.96% 0,40 -1.00% 0,40 -5.00%
Gross margin (net income/ gross operating revenue) (%) 40,20% -2.21% 40,00% -1.00% 42,60% 7.00%
Net margin (net income/net operating revenue) (%) 42,30% -2.35% 42,00% -1.00% 44,80% 7.00%
Shareholders’ equity profitability (net income/shareholders’
equity) (%)
35,00% -74.66% 37,20% 6.00% 43,20% 16.00%
Capital Structure R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
Capital stock (R$ thousands) 2,016,011 302.37% 1,981,002 -2.00% 1,954,076 -1.00%
Third party capital with interest (loans and financings) (R$
thousands)
969,036 -20.28% 922,071 -5.00% 924,173 0.00%
Customer’s default (overdue bills up to 90 days/gross
operating revenue of the last 12 months)
- 0.00% - 0.00% - 0.00%
Sustainability Report 2011
65

Efficient use
of power
resources
AES TIETê
commitment
(2012-2016)
Reduce the own consumption of
electric power in 20% until 2016
From the total
of R$ 175.3
million invested
by AES Tietê,
R$ 141.2 million
were allocated
to the plants
modernization
and maintenance
process
AES Tietê, aware of the efficient use of
power resources relevance, invested
R$ 175.3 million, provided that R$ 141.2
million were invested in the operating units
modernization and maintenance.
The idea is that, up to 2013, all plants
became remotely operated, based on a new
supervision and control system. The new
tool shall be installed in the Operations
Center of Generation and Floodgates, in the
city of Bauru in the State of São Paulo.
With the implementation of the new
technology, it is possible to make faster and
more accurate diagnosis, which contributes
for the reduction of the time required for
repairs and for the increase of machines
availability. Now, four plants are already
remotely operated by COGE, in addition to
the Small Hydroelectric Plants São Joaquim
and those installed in the State of Minas
Gerais. In 2012, Caconde, Ibitinga and
Mogi-Guaçu plants, as well as the Barra
Bonita, Bariri, Ibitinga, Promissão and Nova
Avanhandava floodgates, should migrate to
the new system.
AES Tietê made also a survey of all critic
points, subject to failures, in its generator
units. The initiative is part of the plants
modernization plan, which aims at making
a general and preventive maintenance of all
mapped equipment and modernizing the
supervision, command and control systems.
New operations
In 2011, a new small hydroelectric power
plant (SHPP) – SHPP São Joaquim – started
its operation –and, for the beginning of
2012, the SHPP São José is expected to
start operation. The units are installed in
Jaguari-Mirim River, in São João da Boa Vista
(SP), and added 7 MW to AES Tietê’s energy
generation capacity.
4AES Tietê’s hydroelectric plants
re remotely operated by the
Operations Center of Generation
and Floodgates (COGE)
66 AES Tietê

Efficient use
of natural
resources
AES TIETê
commitment
(2012-2016)
Increase in 40% the waste recycling
and reduce in 25% the disposal for
landfills up to 2016
prioritize suppliers that have
certificate of origin of acquired
material (energy efficiency and
socioenvironmental aspects) up to
2016
Prioritize partners that receive
approved waste with tracking up to
2016
Reduce in 10% the water
consumption, in 10% the CO2
emissions and in 5% the paper
consumption and prioritize the use
of renewable fuel in the fleet up to
2016
Merge at least 20% of recycled and
reused material and/or equipment
in the power grid up to 2016
Structure, up to 2013, the Risk
Management and Opportunities
Identification System associated
with weather changes.
AES Tietê, aware of the natural resources
relevance for the full development and
maintenance of its energy generation
activities, counts on the System of
Environmental Management (SGA),
which focuses mainly in prevention,
correction, mitigation and control of
environmental impacts . SGA provides
a system of continuous improvement
through development of goals, targets
and management programs, standardizing
the company’s proceedings and activities,
especially those that offer higher risks to the
environment.
The system also refers to themes that
involve management of services and
material suppliers , taking into account
issues related to the compliance with
the environmental laws and regulations
and the Company’s policies, in addition
to prevention of impacts and accidents.
Yearther attention point of SGA is the
impacts that AES Tietê’s activities cause
in the surrounding communities. All this
actions are guided by the Grupo AES Brasil’s
Sustainability Policy, which promotes an
operation in consonance with the prevailing
environmental laws and regulations and
with respect to the natural resources.
Environmental
management
Environmental Management System (SGA)
of AES Tietê is guided by Sustainability
Policy of Grupo AES Brasil, which defines
the commitment to be undertaken by all
professionals of the Grupo and anticipates
investments in environmental e projects
de research and development voltados à
conservação technology.
SGA objective is to ensure that rules
related to environment are met and to
organize company’s activities, specifically
with respect to those representing
potential impacts. It also comprises themes
as qualification and management of
service and material suppliers, compliance
with environmental laws and regulations
and Company’s policies of prevention of
environmental impacts and accidents and
continuous improvement of proceedings.
Sustainability Report 2011
67

Emission
inventories
GRI: EN16; EN17; EN19
Since 2007, AES Tietê accounts and disclose,
in its inventory, emission of gas causing
greenhouse effect (GEE) resulting from
its activities of electric power generation.
Mapping is made pursuant to guidelines of
Brazilian Program of GHG Protocol and, in
2011, a reduction of 4% in the GEE emission
was registered.
In 2011, an external audit verified the
effectiveness of this process inside the
company. After the evaluation, both strong
points and improvement opportunities were
identified. Emission inventory is disclosed in
several reports and to different public.
Monitoring of
vehicle fleet
AES Tietê performs a strong management work of vehicle fleet use
that provides services to the company.
In terms of fuel consumption and speed control, leaders have
access, through an electronic equipment, to report of driver conduct
evaluation, as well as about consumption of fuel used. This action,
in addition to provide a more secure conduct to the employees,
enables reduction of renewable and non-renewable resources use,
through economy of fuel use.
From time to time, a monitoring of CO 2
emission in all units is
performed. In addition, 30% of diesel fleet receives visual inspections
to verify black smoke emission. Those which are out of the standards,
in accordance with Ringelmann* scale, go to maintenance.
*Measure basic scale for smoke opacity.
Fugitive emissions 10 correspond to 55% of all
AES Tietê emissions and originate from SF 6
gas,
used as insulating in some substations.
*Escala básica de medida para a opacidade de fumaça.
In addition to these emissions, AES Tietê maps
indirect emissions of business trips. In 2010
were 278 tons of equivalent CO 2
; in 2011, it
was possible to measure flights only as of June,
as a result of travel agency exchange. From
this month until the end of the year, 142 tons
of equivalente CO 2
were emitted.
Other action that reflects the concern
regarding climatic changes is the participation
in Municipal Committee of Climate Change
and Ecoeconomy of Municipal Government
of São Paulo and in the Energy Chamber
of Environmental Company of State of Sao
Paulo (Cetesb), in addition to CDP Investors,
greater global database on corporative climatic
governance and inventory of GEE emissions.
AES Tietê also integrates the Companies for
Climate platform, organized by Fundação
Getulio Vargas, and publishes its inventory on
an annual basis in the public registration of
initiative emissions.
The company also monitors fugitive emissions
of gas non-greenhouse controlled by Montreal
Protocol and has effect on the ozone layer.
In 2011, 0.30 tons equivalent of CFC-11 was
emitted, related to refrigerant gas R22 use in
our air conditioning system equipment.
10
Emissions of gas and steam of equipment under pressure. They
occur as a result of leaks and other unintentional or irregular
releases of gas, especially upon industrial activities.
Emission of greenhouse gas in tCO 2
eq 2009 2010 2011
Direct - 266 254
Generators fuel - 43 26
Transportation (own fleet) - 70 84
Fugitive emissions (SF 6
) - 153 145
Indirect - 9 10
Consumption of electric power - 9 10
Total 49 275 264
Emissions of ozone layer depleting gases 2009 2010 2011
Consumption (kg) 6.70 0.40 5.40
Ozone depletion potential 0.37 0.02 0.30
Equivalent tons of CFC-11 0.37 0.02 0.30
more information
about Companies for Climate on the internet:
empresaspeloclima.com.br.
68 AES Tietê

Environmental Management
System has as a purpose to
organize AES Tietê activities,
specifically those representing
potential impacts
Comments from
Consumers
“The report does not enlighten the
measures adopted to protect water
resources and to recover areas damaged
on account of the generation of power.”
water
GRI: EN8
Water consumption in AES Tietê
hydroelectric plants had an increase
of 26% compared to 2010.
water consumption (m 3 )
Comment from a representative of the
community during the 3rd Cycle of
Discussions with the Consumers
2009
2010
2011
94,014
105,035
132,311
*Consumption does not consider the water used for power generation.
water consuption (m³)* 2009 2010 2011
Surface water 5,022 4,971 2,564
Ground water 87,905 99,557 129,218
Supply companies 1,087 507 529
Waste
Managements
GRI: EN22
With respect to waste management,
AES Tietê has as focus prevention of soil and
water contamination and follows guidelines
of Environmental management System
(SGA) and AES Corp.
All waste (hazardous and non hazardous)
generated by the Company operations
is submitted to a segregation process,
identification, packaging and final destination
process, in compliance with environmental
legislation and the best management practices.
Total 94,014 105,035 132,311
*Water captured from rain or from effluents of other organizations are not consumed. There is no water consumption for cooling or process in
thermoelectric or nuclear power, as there is no this type of plan in the organization.
Total of generated Wastes 1 2009 2010 2011
Non-hazardous (t) 50,60 116,50 71,50
Recycling (t) 39,80 104,00 57,10
Landfill (t) 10,80 12,50 14,40
Hazardous
Co processing (t) 16,50 10,70 27,40
Decontamination (units) 20.000 13.478 4.806
Re-refining (I) 48.400 109.510 70.129,50
*Wastes disposal was confirmed directly by the organization. There is no waste sent to composting, incineration, underground injection or
stocked. Also, there is no generation of radioactive wastes.
Sustainability Report 2011
69

Environmental
education
In order to the local population be aware
of the relevance of natural resource
preservation and care with Rio Tietê, the
company initiated a process, in 2011, for the
publication of an environment spelling book
and re-edition of an environment dictionary.
The work was made in partnership with
ONG Mãe Natureza – Movimento de
Amparo Ecológico, in Barra Bonita (SP),
and is part of the Environmental Education
Program, created to disseminate knowledge
and attitudes related to natural resources.
Digital
certificate
With adoption of digital certificate system
to agreements execution, in August 2011,
AES Brasil innovated in the relationship with
its suppliers chain and started counting
on one more tools for the environmental
resources management.
The main advantages of the new technology
are related to paper economy, increase of
employees productivity and time reduction
of contracting process and file space. The
digital certificate has judicial recognition
and serves as legal document.
Other highlighting action of environmental
education related to the society is
the monitored visits of students and
communities’ people to the plants. In 2011,
2,816 people were benefited with the action.
In the archeology program, during the
year of 2011, it was created social medias
(spelling books, blog and virtual museum)
and, in December, cultural workshops
initiated with participation of reservoirs
environment municipalities, aiming at
disclosure of the program and community
engagement. In order to align our employees
knowledge, all of them were trained in the
environmental program, which address
themes as management of chemical and
waste products (hazardous, non-hazardous
and recyclable). Additionally, in all plants
there is an environmental facilitator,
professional responsible for daily monitoring
of amount of waste generated and
discharged in the units.
In the other extremity, it is made the
homologation of all companies where the
hazardous waste are allocated, which need
to meet minimum standards required by
AES Brasil, as certification and licenses of
installation and operation. In 2011, four
industries are no longer part of the suppliers
chain after been submitted to this evaluation.
In order to access tools and enter into new
agreements with the company, the supplier
will need to acquire the digital certificate,
a kind of electronic signature which serves
to identify someone or an entity. It is a
computer file in which all information that
ensure document authenticity are stored.
GRI EN30
4%
is reduction of greenhouse
gas emission registered with
AES Tietê in 2011
Investments and expenditures in
environmental protection
2009 2010 2011
Waste disposal and mitigation
Waste treatment and disposal 87,225 89,112 114,106
Cleaning costs 0 0 50,980
Prevention and environmental management
External services of environmental management 0 0 7,400
External certification of environmental
management
0 10,045 37,700
Research and development 102,000 737,460 354,995
Other costs of environmental management 21,452,376 12,179,153 11,948,241
Environmental protection
Costs of prevention and environmental
management
32,400 32,400 32,400
Total 21,674,000 13,048,170 12,545,822
70 AES Tietê

With monitors visits, 2,816
students and communities
people could know AES Tietê
plants in 2011
Environmental Dimension GRI EN13; EN28
Recovery of degraded areas 2009 2010 2011 Meta 2011
Area preserved and/or recovered by sustainable handling of vegetation on transmission and
distribution lines (in ha)
NA NA NA n/a
Preserved area/ total of preserved area in the concession area required by law (%) 39.17 39.48 39.48 n/a
Contribution for the increase of municipalities green area by Programa de Arborização
Urbana (in ha)
NA NA NA NA
Isolated protected network (ecological net or green line) in the urban area (in km) NA NA NA NA
Percentage of protected and isolated network/ total distribution network in the urban area NA NA NA NA
Expenditures with management of environmental impact (forestry, sustainable handling
with equipment and protected network) (R$ thousand)
21,674.00 13,048.17 12,545.82 n/a
Number of accidents by breach of the environmental safety rules 0 0 0 0
Number of notifications and/or fines by breach of environmental rules 0 0 1 0
Value incurred in notifications and/or fines by breach of environmental rules (R$ thousand) 0.00 0.00 0.00 0,00
Waste generation and treatment 2009 2010 2011 Meta 2011
Emission GRI EN16; EN19
Annual volume of greenhouse gas (CO 2
, CH 4
, N 2
O, HFC, PFC e SF 6
) issued in the atmosphere
(in tons of equivalent CO 2
)
49,00 268,08 890,16 406,24 n/a
Annual volume of destructive emissions of ozone (in tons of equivalent CFC) 0.37 0.02
0.28
0.30
n/a
Effluents GRI EN21
Total volume of effluents n/a n/a n/a n/a
Total volume of effluents with treatment n/a n/a n/a n/a
Percentage of treated effluents 100.00 100.00 100.00 100,00
Solids GRI EN22; EN30 2009 2010 2011 Meta 2011
Annual amount (in tons) of generated solid waste (garbage, waste, dump etc.) 11.00 12.50 15.40 n/a
Percentage of waste forwarded to recycling with no bond to company 80.00 92.00 92.00 n/a
Percentage of waste recycled by unit or entity bound to company (specific project) 0.00 0.00 0.00 n/a
Expenditures with waste recycling (R$ thousand) 0.00 0.00 0.00 n/a
Percentage of reused consumption material (raw materials, equipment, wires and electric
cables)
0.00 0.00 0.00 n/a
Expenditures with final destination of non-hazardous waste (R$) 0.00 0.00 234.00 n/a
Handling of hazardous waste GRI EN22; EN30 2009 2010 2011 Meta 2011
Percentage of equipment replaced by insulating mineral oil with no PCB (Ascarel) 0.00 100.00 NA n/a
Percentage of decontaminated lamps with respect to total replaced in the company 100.00 100.00 100.00 n/a
Percentage of decontaminated lamps with respect to total replaced in the consumer units NA NA NA n/a
Expenditures with toxic waste treatment and destination (incineration, landfill and
biotreatment) (R$)
87,224.50 89,112.28 202,258.65 n/a
Sustainability Report 2011
71

Use of resources in the production process and in organization
management proceedings
Total consumption of power, per source GRI EN3; EN4
2009 2010 2011 Meta 2011
Hydroelectric (%) 100.00 100.00 100.00 n/a
Fossil fuel (%) 0.00 0.00 0.00 n/a
Alternative sources (gas, wind power, solar power etc.) (%) NA NA NA NA
Total consumption of power (kWh) 25,789.50 25,247.38 38,269.88 n/a
Energy consumption by kWh distributed (sold) NA NA NA NA
Total consumption of fossil fuel by company’s vehicles fleet, per km
traveled (l/km): GRI EN3; EN29
2009 2010 2011 Meta 2011
Gasoline 0.09 0.10 0.20 n/a
Diesel 0.19 0.14 0.24 n/a
Alcohol 0.12 0.09 0.10 n/a
Natural gas NA NA NA NA
Total consumption of water, per source (m 3 ) GRI EN8 2009 2010 2011 Meta 2011
Supply (public) 1,087.00 507.00 529.00 n/a
Underground source (well) 87,905.08 92,748.81 129,217.80 n/a
Superficial capture (watercourse) 5,021.91 5,632.79 2,564.30 n/a
Total consumption of water (m 3 ) 94,013.99 98,888.60 132,311.10 n/a
Water consumption per employee (m 3 ) 298.46 314.33 397.24 n/a
Reduction of costs obtained by reduction of energy consumption, consumption water and
material (R$ thousand)
0.00 2.27 0.00 n/a
Origin of the products – Consumption material 2009 2010 2011 Meta 2011
Percentage of material purchased in conformity with the environmental standards verified
by the company/total material purchased
n/a 5.90 100.00 n/a
Percentage of acquired material with Green Stamp and others (PROCEL, INMETRO etc.) n/a n/a NA NA
Percentage of acquired material with forest certification (IMAFLORA, FSC and others) 0.00 50.00 50.00 n/a
Environmental education and awareness GRI EN30 2009 2010 2011 Meta 2011
Environmental education – Community – In the organization
Number of employees trained in the environmental education programs 115 199 188 n/a
Percentage of employees trained in the environmental education programs/total of
employees
36.00 81.58 36.99 n/a
Number of hours of environmental Training/total of hours of Training 0.44 2.56 0.60 n/a
Applied resources (R$) 6,235.68 0.00 67,478.04 n/a
Environmental education – Community GRI SO1; EC8 2009 2010 2011 Meta 2011
Number of fundamental and high school education units 107 93 39 -
Percentage of participating schools/total number of school of the concession area n/a n/a n/a -
Number of participant students 4.370 5.619 2.633 -
Percentage of students served/total number of students in the schools in the concession
area
n/a n/a n/a -
Number of trained teachers n/a n/a n/a -
Number of participant units of technical and higher education 1 27 7 -
Percentage of participant schools/total number of school of the concession area n/a n/a n/a -
Number of participant students 15 736 183 -
Environmental education – Community 2009 2010 2011 -
Percentage of students/total number of students in the schools in the concession area n/a n/a n/a -
Applied resources (R$) 73,033.41 114,368.60 78,380 -
R&D in environment GRI EU8 2009 2010 2011 Meta 2011
Applied resources (R$ thousand) 102.00 737.46 684.09 833.23
Number of patents registered with INPI 0 0 0 0
72 AES Tietê

Environmental performance indicators for electric power generating companies
Maximum consumption of electric power of the generating
2009 2010 2011
units and auxiliary plants¹ (KWh)
UHE Barra Bonita 1,880,760 1,924,470 1,180,170
UHE Bariri 540,319 565,200 6,039,716
UHE Ibitinga 1,679,174 1,612,570 6,579,880
UHE Promissão 3,889,442 4,222,490 6,901,843
UHE Nova Avanhandava 4,280,280 3,668,870 5,390,179
UHE Caconde 768,000 647,800 557,396
UHE Euclides da Cunha 954,400 1,034,500 1,698,500
UHE Limoeiro 953,135 1,124,660 1,089,104
UHE Mogi-Guaçu 299,000 291,110 572,181
UHE Água Vermelha 10,545,000 1,0155,700 8,145,974
AES Tietê 25,789,510 2,5247,380 38,154,941
Water consumption per kWh generated 2 (m³/s) 2009 2010 2011
UHE Barra Bonita 0.0058 0.0055 0.0054
UHE Bariri 0.0053 0.0054 0.0054
UHE Ibitinga 0.0053 0.0057 0.0057
UHE Promissão 0.0049 0.0047 0.0048
UHE Avanhandava 0.0039 0.0037 0.0037
UHE Água Vermelha 0.0021 0.0022 0.0022
UHE Caconde 0.0012 0.0012 0.0011
UHE Euclides da Cunha 0.0013 0.0014 0.0014
UHE Limoeiro 0.0049 0.0046 0.0046
UHE Mogi-Guaçu 0.0100 0.0095 0.0096
AES Tietê 0.0030 0.0031 0.0031
Erosion of reservoir edges – Eroded area units (ha) per year 2009 2010 2011
AES Tietê n/a n/a 45.99 ha
Restoration of ciliary forest 4 – seedling units or areas planted/ recovered per year (ha) 2009 2010 2011
AES Tietê 1.100 30 0
Reservoirs water and settling quality 5 – Units of water, sediment
and level of eutrophication quality parameters
2009 2010 2011
AES Tietê 42 42 42
Rescue of fish in engines 6 – kg fish per equipment stoppage 2009 2010 2011
AES Tietê 90.15 1,116.71 1501.00
Fish Repopulation 7 – Number of fingerling released in reservoirs per year 2009 2010 2011
AES Tietê 2,500,000 2,750,000 2,500,000
Consumption of lubricating oils and greases 8 – Liters of lubricating oil used monthly per turbine
water (m 3 /s)
2009 2010 2011
AES Tietê 0.0078 0.0040 0.0016
Withdrawal of waste in reservoirs (trash, macrophytes, industrial and domestic
water and settlements) 9 – Tons/year or m 3 /year according to the type of
extracted from reservoirs
2009 2010 2011
AES Tietê n/a 0 0
Launching of sanitary water without management and lubricant and hydraulic
oil leakages from engines 10 Tons/year or m 3 /year, according to the type of oil
2009 2010 2011
AES Tietê 0 0 0
1. Measure the energy consumption used in generating and auxiliary plants, so this consumption may be monitored in weather.
2. Measure the relationship between hydro availability and the demand used to generate power and compares it to the weather per plant.
3. Measure the preservation actions of the reservoir banks and Permanent Preservation Areas (APP).
4. Measure the recovery and preservation actions of riparian forests in the concession areas and APPs.
5. Measure the changes to the water and sediment quality in the reservoir to assess the factors exogenous to the concession area and that generate impacts on the reservoirs.
6. Measure the quantity of fish removed in each equipment stoppage.
7. Measure the quantity of fingerling released in reservoirs.
8. Measure the consumption of oil and lubricating grease that generates waste for the environment.
9. Measure recovery and preservations actions of the reservoir in order to guarantee the useful life of the engineering project.
10. Measure the corrective and preventive actions for the quality of the turbine water.
Sustainability Report 2011
73

74 AES Tietê

Development and Valorization
of Employees, Suppliers
and Communities
Know, engage in a
transparent way and
positively influence
employees, suppliers
and communities to the
collective construction
of an agenda which
generates value to
everybody
AES Tietê’ employees are essential for the
development of continuous improvement
policy, focused on ensuring the quality of
customer service and the satisfaction of
customer. Therefore, the Company makes
them feel part of the business, involving
them and encouraging the participation in
important day to day company’s issues. The
focus is to make the professional to feel
good with his/her activities and be aware
that his/her work benefits the sustainability.
An example of this is the event Pé na
Estrada, a program that join components of
the senior management and employees to a
chat that has a purpose to submit results of
the previous year, the strategy for the next
period, the investment plan and the goals to
be fulfilled.
Before the event, that in 2011 reached the
fourth edition, the employees participate
of round tables, in which they show
improvement proposals that may be used
in the Group’s strategic plan. Based on ideas
and suggestions presented at the time,
AES Brasil formulated a plan with 65
initiatives, of which ten were focused in
AES Tietê.
Sustainability Report 2011
75

Development and
evaluation of
employees
Commitment AES
Tietê (2012-2016)
Each an index above 85% of
satisfaction in AES Brasil work
environment until 2016
New head office
To increase synergy and interaction between AES Brazil Administrative areas in
São Paulo, the Grupo will promote a relocation of head office in 2012.With this
measure, the company intends to accelerate the decision making and reduce
operating costs by reducing the displacement time between the units, for
example.
The theme was discussed internally over months. It was carried out several
studies to evaluate places, possibilities and benefits, and the City of Barueri, in
Great São Paulo, was the chosen place. It will host the Administrative employees
located in the capital.
AES Tietê people
management
focus is that
each employee
feels good with
his/her activities
and be aware
that his/her
work benefits
the society
To talk about subjects related to relocation, as infrastructure available in the site
and transportation services, the Company created a committee, comprised by
representatives of several areas. The group tried to identify options that meet the
employees’ expectations and needs.
In transportation issues, for example, visits to the companies in the new head
office surroundings that passed by the same process were carried out, in order to
listen lived experiences. The region mapping was also made – in order to identify
points of interest, as parking lot and restaurants – and viability studies.
The company also carried out an internal research with employees to identify
and find ways to meet expectations as to the new workplace. This research
results will guide the project development, in order to provide an innovative work
environment which valorizes the collaborative activity and show the integration
between the teams and proximity between areas.
Comments from the relation network
“The decision of a new head office, with thousands of employees involved,
was not approached (on the previous report). Where is the information
about the decision procedure?”
Comment of an employee during the 3rd Cycle of Relation Network
Discussions
76 AES Tietê

climate survey
GRI: LA2
Know its employees’ opinion with
respect to work environment is also
a priority to AES Brasil. Through a
specialized consultancy, the company
carries out annual researches of
organizational environment, considering
six dimensions: competence, leadership,
communication, affiliation to the
company, safety, and code of conduct.
The AES Brasil organizational climate
reached 79% of satisfaction in 2011.In
AES Tietê, the index reached 77% in the
same period.
In 2011, AES Brasil innovated and
included questions specifics to evaluate
its employees’ perception about the
concerning with the quality in the
customer service to internal and external
customers and the compliance with their
relationships web requirements.
The results indicated that 78.6% of AES
Brasil employees and 79.7% of AES Tietê
employees agree that the company is
concerned with the quality of customer
service to internal and external
customers.
With respect to the relationship with
its interested parties, 72.7% of AES
Brasil employees and 79.2% in AES Tietê
evaluated positively the compliance with
the needs of their main relationships web.
Employees’
Profile
GRI: LA1
In 2011, AES Tietê staff counted with 355
own employees and 963 contracted, all
located in the region Southeast of the
country and in full-time. From them,
355 have an agreement for indefinite
period and 19 (trainees and apprentices), of
determined time.
In relation to 2010, the number of
employees grew 56.5%. With this great
number of people working in operations,
the big concern of the company is to
maintain and respect the diversity between
its employees. Therefore, it adopts inclusion
policies that take into account racial, age,
gender and social issues. This work starts
in the admission process and involves all
human resources and leaderships areas.
Number of employees
OWN
Subcontracted
2009 315 2009 339
2010 313 2010
529
2011 355 2011
963
Sustainability Report 2011
77

Diversity and
inclusion
GRI: LA1; LA13
AES Tietê adopts inclusion policies, ensuring
racial, age, gender and social equity in its
workforce through the performance of
human resources and leaderships areas since
the admission process.
The percentage of female professionals
in AES Tietê is 14.1%. In management
positions the proportion is of 26.70% and, in
vice presidency, of 33.34%.
Additionally, the leaderships are encouraged
to support the inclusion of disabled people.
To receive them, the company performs a
mapping of suitable activities and locations
to this public, in addition to hire technical
schools that prepare them to the work
market and to internal opportunities. In
2011, 15 disabled people participated of
a preparatory course for the work market,
and it has already been initiated a new class
with 15 disabled people in 2012.Among
the offered courses are the quality control
analyst, Administrative assistant, supply
assistant and products programmer, offered
by SENAI (National Service for Industrial
Learning). Disabled employees represent
1% of the employees on the Administrative
sector and 1% of the production sector.
Percentage of black people by functional and gender level
Board
0%
Administrative
Production
0%
Men
Women
5%
5%
6,70%
7%
The Company also runs the Programa de
Empregabilidade de Pessoas com Deficiência
that aims to increase the workforce
awareness to receive these employees.
Percentage of employees, by functional level
and age group – 2011– 2011
Below 30
years
Between 30
and 50 years
Above 50
years
Board - 40.00% 60.00%
Executive board - 100.00% -
Management 4.00% 92.00% 4.00%
Administrative 39.00% 58.00% 3.00%
Production 24.00% 63.00% 13.00%
Trainees 100.00% - -
Percentage of employees, by functional
level and gender – 2011
Men Women
Board 3.30% 96.70%
Executive board - 100.00%
Management 32.00% 68.00%
Administrative 41.00% 59.00%
Production 1.00% 99.00%
Trainees 50.00% 50.00%
78 AES Tietê

AES Tietê adopts
inclusion
policies to
honor the
commitment
of maintaining
and respecting
the diversity
between its
employees
GRI: LA1; LA13
General information 2009 2010 2011
Total number of employees 315 313 374
Employees up to 30 years old (%) 22.0 23.3 25.6
Employees between 31 and 40 years old (%) 32.0 33.2 33.2
Employees between 41 and 50 years old (%) 36.0 33.9 31.6
Employees above 50 years old (%) 10.0 9.6 9.6
Number of female employees in relation to total employees (%) 11.1 12.1 14.1
Women holding management positions in relation to total management positions (%) 11.8 21.4 26.7
Black female employees in relation to total employees (%) 0.6 1.3 0.6
Black male employees in relation to total employees (%) 7.3 6.7 6.2
Black employees holding management positions in relation to total management positions (%) 0.3 0.0 0
Trainees with respect to total employees (%) 1.9 3.6 2.3
Employees under apprenticeship program (%) 3.8 3.7 3.1
Disabled employees 3 3 3
Investments in specific programs específicos for people with HIV (R$ thousand) 0 0 0
Investments in drugs and alcohol prevention and treatment programs (R$ thousand) 0 0 0
Sustainability Report 2011
79

45%
of the work opportunities
offered by AES Eletropaulo in
2011 were filled by internal
recruiting.
feel free
Through Feel Free – Programa de
Crescimento Profissional, which brings
information about hierarchical levels,
knowledge, formation and experience
required to exercise each position, AES
Brasil Group’s professionals have the
chance to draw career plans and to
establish targets for their professional
growth. The program helps in the
definition of classifications in salary
ranges and increases by promotion,
in addition to act together with the
recruitment and internal selection plans,
succession plans, Training plans and
development and allocation of resources.
Since its creation, in 2009, the Feel Free
was responsible for 20 classifications,
193 merits (amendments to the
compensation without position change)
and 55 promotions only in AES Tietê.
Internal
recruiting
Invest in talents and in its development for
the good performance of the business. That
is what AES Brasil believes. Because of it, it
priorizes the internal recruiting with respect
to the new opportunities.
Only in 2011, through the Programa de
Recrutamento e Seleção Interna, 45% of
the spaces were occupied by employees
who already worked in the company, in
other functions. The main objective of the
program is to strenghten the succession
plan, as well as to encourage the employees
to create a career plan so that, in the future,
they may occupy new positions inside the
organization.
So that the spaces may reach everyone in
a democratic manner, the company uses
the internal communication tools, such
as intranet, board and bulletins, to do the
disclosure.
When AES is not able to fill internally out
all spaces, an external selection process is
opened, coordinated by human resources
area, with active participation of the
requesting area manager.
Trainees
In December, 2011, AES Brasil formed its
first trainee panel. From the 20 professionals
who started in January, 2010, three
developed the program inside AES Tietê, and
two of these youth were contracted to act in
the company. In each stage of the Training,
which has a duration of two years (divided
into four semesters), the trainees know a
specific area of the company and delivered
a high impacting project, which is part of its
performance evaluation. The formation is
complemented with great exposure to the
high leadership and technical and behavioral
courses which enable to develop systematic
vision and management skills. AES’s leaders
also act as mentors of these professionals,
helping them in several questions about how
to develop themselves in their career and
deal with the adversities.
The Trainee Program has as purpose to
prepare successors for strategical positions,
in addition to contribute for the personal
and professional development of the
participants.
The pursuit is to find highly qualified youth,
questioning and creative, who bring new
looks to former proceedings, with focus
on always promoting the change and on
improving the company.
80 AES Tietê

AES Brasil Group’s companies invest
in the development of talents aiming
at ensuring the good business
performance, so that it priorizes the
internal recruiting with respect to
the new opportunities
Currently we have four active trainees in
AES Tietê, provided that three newly hired
employees through an admission process
which counted on almost 10 thousand
candidates.
turnover rate
Turnover rate,
by gender
Turnover rate, by
age group
Turnover
GRI: LA2
In 2011, the company had 56 hirings and
43 layoffs, being 14 women and 29 men.
The higher turnover rates were identified
among men (67%) and employees between
30 and 50 years old (58%). During the
period, the turnover rate was 14.42% of all
disconnections. The target established by all
AES Brasil Group’s companies is of up to 6%.
14
29
25
4
14
Male – 67%
Female – 33%
Under 30 years – 33%
Between 30 and 50 years – 58%
Above 50 years – 9%
Behavior before layoffs 2009 2010 2011
Number of employees in period end 315 313 355
Number of hirings during the period 46 31 56
Labor complaints initiated by total of dismissed
employees during the period GRI: SO8
9.00 4.00 10.00
Labor complaints 2009 2010 2011
Amount claimed in judicial (thousand R$) 24,318 50,020 52,806
Amount provisioned for the liability (thousand R$) 3,260 5,081 3,218
Number of claims 90 86 78
Number of employees related to in the proceedings 90 143 135
Sustainability Report 2011
81

In AES Tietê, employees with
differentiated historical performance
participated in an evaluation which
identifies potentialities and
development needs
Compensation
GRI: LA14; EC5
AES Tietê is concerned about keeping
attracting and competitive in the market;
therefore, it adopts a compensation policy
in accordance with Hay methodology.
Additionally, it uses Balanced Scorecard to
spread global targets and to encourage its
employees to reach always better results.
The market comparatives take into account
the electric power segment for technical
positions and, for other levels, same size
companies are deemed.
Profile of compensation
% of employees by range of salary 2009 2010 2011
Up to 5 Minimum wages 9.90 18.21 16.62
From 6 to 10 Minimum wages 47.40 47.92 42.54
From 11 to 15 Minimum wages 23.40 18.21 25.07
Above 15 Minimum wages 19.30 15.65 15.77
Salary average, by category (R$) 2009 2010 2011
Executive board positions 28,861.00 31,073.33 30,817.17
Management positions 11,715.00 12,634.11 14,359.60
Administrative positions 5,779.00 6,186.76 4,919.43
Production positions 3,597.00 3,819.32 1,291.97
Company’s salary policy includes nominal
salary (fixed compensation), additional
compensations and benefits, in addition
to profits and results sharing (PLR). Fixed
compensation is tied to the position
and job duties, according to the level of
responsibility. On the other hand the
variable compensation is based on the
individual performance evaluation and on
Company’s result and it is paid through
Programa de Participação nos Lucros e
Resultados.
Ratio between base salary for women and men, by functional level
Management
Administrative
87%
124%
Considering all AES Tietê’s units, no employee
receives the equivalent to minimum wage.
The lowest salary paid by the organization is
5% higher than the minimum established by
law. In turn, with respect to the operational
positions, the employees received an
addition of 10% in salary.
Production
Trainees
110%
110%
82 AES Tietê

Benefits
GRI: LA3
AES Tietê believes that employees should
receive incentives and be satisfied in order
to develop any type of activity. Therefore,
the company offers to all employees a
number of benefits, services and policies
that are continuously improved by the
organizational and market researches, by
using the Hay methodology.
Compensation, benefits and career 2009 2010 2011
Compensation
Gross payroll (thousand R$) 33,969.00 53,634.55 54,289.52
Compulsory social charges (thousand R$) 12,509.00 15,187.04 14,473.07
Benefits
Education (thousand R$) 855.80 1,397.90 1,079.47
Food (thousand R$) 2,203.00 2,360.19 2,609.53
Transportation (thousand R$) 1,938.00 1,157.30 1,234.83
Health (thousand R$) 1,516.00 2,146.23 2,057.28
Pension fund (thousand R$) 1,551.02 1,630.91 1,503.42
Others (thousand R$) 0.00 0.00 0.00
Participation in GRI EC5 results GRI: EC5 2009 2010 2011
Total investment in interest program in the results of the
company (thousand R$)
6,912.00 8,693.91 8,587.08
Amounts distributed with respect to the gross payroll (%) 20.30 16.21 15.82
Company’s shares held by employees (%) n/a n/a n/a
Division of the highest compensation by the lowest
compensation in cash paid by the company (includes interest 23.90 61.20 75.00
in the results and bonus)
Division of the lowest compensation of the company by the
minimum wage in effect (includes interest in the results and
bonus program)
3.00 1.00 1.10
Main benefits
Life insurance
Offered to all employees, without monthly payments. Death for any reason and disability. All
Capital R$49.213.309,50—Mapfre Seguros
Funeral allowance
Offered to all employees and direct dependents by Mapfre Seguros. Without monthly All
payments. Up to R$3 thousand
Personal support program
Existing channel to deal with personal, psychological or social issues, conflicts, finances, All
chemical dependence etc. With confidentiality and no cost
Meal ticket
Paid in the amount of R$ 510 to all active employee. Gradual discounts between R$ 0.01 to All
R$ 40.66, according to salary
Food ticket Paid in the amount of R$110 to all employees, with discount of R$5 in payroll All
Transportation ticket Paid to the employee. Discount of up to 6% of salary All
Food ticket for Christmas Benefit offered to all employees, in the amount of R$510 All
Lunch ticket
Paid to the employee who perform overtime – in the amount of R$6.82 for three to five hours, All
R$13.69 for five to eight hours and R$23.15 for more than eight hours.
Pension fund
The employee may choose the plans: mixed plan benefit offered by Fundação CESP and by All
Itaú, contribution and benefit defined and Plan PGBL or VGBL
Health care
Benefit operated by Bradesco Health and by Fundação CEPS with co-interest and deductible. It All
is applicable to dependents and persons filed through 2000
Dental care
Benefit operated by Odontoprev, without monthly installment. It discounts co-interest. It is All
applicable to dependents and persons filed through 2000
Supplement of work accident O employee subject to temporary lease receives the salary supplementation as from the 16 th All
to the 23th month of leave
Allowance to employee with special Benefit paid to the employee with child with special needs duly confirmed by medical report. All
needs
Amount of R$ 410
Allowance to employee with physical Benefit paid to the employee with confirmed disability by medical report. Amount of R$ 195 All
disabilities
Day-care assistance
Offered to employees with children up to 7 years that are at school, nursery school or day All
nursery during working hours or for those employees legally responsible for the children.
Amount of R$ 385
Nursery care
Offered to employees with children up to 7 years that are at school, nursery school or day All
nursery during working hours or for those employees legally responsible for the children.
Amount of R$ 385
Check-up Annual benefit offered to management, without co-participation Executive board and
management
Continuing education Subsidy granted to the leadership and high-level professionals Executive board, management,
coordination and high-level
professionals
Language Subsidy of up to R$ 800 to Officers and R$ 250 to leaderships and analysts Executive board, management,
coordination and high-level
professionals
Loans Plan with Fundação CESP and Banco BMG, discounted directly from payroll All
Travel insurance Granted to senior executive officers for business travel Executive board
Sustainability Report 2011
83

Pension
fund plan
GRI: EC3; LA11
The interest in AES Tietê’s pension fund
plans is voluntary and covers all company’s
employees. The offered plans are Fundação
CESP, Previdência Itaú Unibanco and
MetLife 11 and have three choose options
– defined, additional and volunteer. The
contributions are stipulated in accordance
with the characteristics of each of them,
with disbursements made by the employees
and by the company.
The calculation of the benefit defined by
Fundação CESP is based on 70% of the
salary of the employee multiplied by the
corresponding rate in the Supplementation
Plan of Retirements and Pensions (PSAP),
in which case the company contributes
with 100% of the value. With respect to
the voluntary contribution, the calculation
is based on 30% of the beneficiary’s
compensation that may elect to contribute
between 1% and 100%. In this type, the
organization contributes based on the limit
of 5% of the value.
With respect to Itaú Unibanco, the pension
plan contribution is divided into two groups,
and the company contributes with 100% of
the basic contribution:
Group 1: members with contribution salary
greater than 10 URA (R$ 3,429.80) – basic
contribution of 1% plus supplementation of
1% to 10%.
Group 2: members with contribution
salary lower than 10 URA (salary below R$
3,429.80) – basic contribution of 1%.
In MetLife’s case, AES Tietê makes an annual
contribution to its executives, in December.
5%
above the minimum wage established
by law is the amount of the lowest
salary paid to an AES Tietê’s employee.
GRI: LA3
Participation in profit and revenue
Type of benefit Metrics SCOPE
Collective PLR
Performance with respect to
All employees (except for Officers and
corporative targets (established by
chief executive officer)
executive offices)
Individual PLR
Individual Performance Evaluation
All employees (except for managers,
Officers and chief executive officer)
Bonus
Business and individual performance Managers, Officers and chief executive
evaluation
officer
Long-term incentives
Long term incentive policy is of the
AES Corp., and the program has a
triennial cycle for assessment
Officers and chief executive officer
Preparation for retirement 2009 2010 2011
Investment in complementary pension plan (thousand R$) 300.48 1,630.91 1,713.94
Number of processed by complementary
pension plan program
262 294 277
Number of processed by program of
preparation for retirement
0 6 2
11
Previdência Itaú Unibanco and MetLife are not defined benefits;
however, the company contributes to the plans (company’s
general resources) and there is no social security fund. In these
cases, the plans cover benefits for total and permanent disability
and benefit due to death.
84 AES Tietê

315 employees did
internal courses,
and other
314 received
financial support
for external
capacitation
or formation,
amounting to
almost R$550
thousand in
investments
Performance
evaluation
GRI: LA12
In order to allow the employees and
leaders to better know the individual and
organizational performances, direct the
development of careers and reinforce
the positive behavior and results in the
different companies of Grupo AES Brasil, the
Company adopts an integrated performance
evaluation model that comprises 100%
of the employees and is one of the main
references of the management practice
of the persons within the organization, by
measuring the feedback procedure and the
development and compensation policies.
Firstly, all persons are responsible for a
self-evaluation, followed by the evaluation
of their peers and subordinated employees
(with respect to the leaderships) and, finally,
their managers, through the use of this
information as the basis for the analysis and
evaluation.
For evaluating the positions in operational,
Administrative, technical and analyst level,
five competences are deemed. They are:
safety; technical and functional; orientation
towards results; interpersonal relationship,
and commitment with the organization
and AES Values. For positions in specialist
analyst and trainees level, in addition to
aforesaid competences, it can be included:
communication; capacity of working
under pressure; and initiative. For the
supervisor and coordinator level, there are
management competences of people and
change management.
The performance evaluation process takes
place over the year; however, it has two
important semiannual cycles:
• Semiannual feedback – it is an
opportunity of full feedback, focused
exclusively on the behavior and
development.
• Performance evaluation – evaluation of
the annual performance of the employee,
including the findings (results) and his/her
behavior.
Both cycles have, in the last stage, a formal
feedback procedure between the leader
and employee. This stage aims at providing
meetings for the development through the
sharing of the evaluation with the employee,
by emphasizing the positive aspects
and improvement opportunities, by also
directing the Individual Development Plans.
In the last three years, AES Tiete reached in
these stages, the ratio of XX% of feedbacks
carried out by employee.
Based on the performance evaluation
findings, AES Brasil also seeks to identify
talents and successors for the company’s
strategic positions.
Professional Development 2009 2010 2011
Education Profile
Fundamental education 0.86% 3.19% 2.54%
High School 34.77% 43.13% 43.10%
Higher Education 54.02% 44.41% 43.38%
Post-Graduation (specialization, Masters, PhD) 10.35% 9.27% 10.98%
Illiterate in the workforce 0.00% 0.00% 0.00%
Amount invested in professional development and education 2.52% 2.61% 1.99%
Number of hours of professional development
for employees, per year
54 49 58
Sustainability Report 2011
85

In 2011, AES Tiete offered 19,235
training hours, development
and training in various subjects
related to business
Recognition to
the employees
To encourage and reward the employees
that excel in the development of their daily
activities, since 2009, AES Brasil has the
Recognition Program, which includes three
types of recognition. In AES Tiete, in 2011,
51 people were processed:
Dynamic awareness: oriented towards
employees and/or teams whose actions
had positive impact on the company
and generates above expected results for
the responsibilities of the position. The
nomination is made by the director of the
area, and the award is given on a monthly
basis. In 2011, 38 people were recognized
by leadership, in their work environments;
Management recognition: award for the
leaders that demonstrate the skills and
values in terms of leadership of Grupo
AES Brasil through actions that would
supersede the expectations and would
represent high effects to the business.
In 2011, two executive officers were
recognized at the quarterly meetings of the
executive board;
Recognition for AES Values: the employees
that stand out for presenting the AES
Values are rewarded. In AES Tiete, 11 people
were recognized in 2011.This recognition
happens during the Pé na Estrada event.
Trainings
GRI: LA10
To train capable professionals to operate
and control complex machines and power
plant facilities and their reservoirs, AES
Tiete created the Programa de Formação
Profissional para Usina Hidrelétrica, a
partnership with SENAI (National Service
of Industrial Learning) which contributes to
overcoming one of the greatest challenges
of the Brazilian energy sector, which is
finding specialized workers in the market.
The program classes are administered by
employees of AES Tiete and professors
from SENAI and have as different the
content, which is specifically focused on the
generation of energy business. Altogether, ten
employees pass their knowledge, acquired
throughout the years, to future professionals.
There are orientations of the company in
the preparation of class curriculum, which
includes internship in the plants.
After the conclusion of the course, with
duration of one year, the students receive
a registered certification in the National
Electricity System Operator (ONS), entity
responsible by coordination of National
Integrated Systems (NIS), under Brazilian
Electricity Regulatory Agency (ANEEL)
inspecting authority.
The program was implemented in 2010 and
already graduated 16 students in its first
class, in the city of Bauru. Last year, two
new classes were assembled, the first in
Araçatuba city and the second in the city of
Bauru. For 2012, the creation of new classes
in Bauru and Araçatuba and one class in
region of Mococa is expected .
In addition, on an annual basis the AES Tietê
employees receive trainings that involving
several subjects related to the essential skills
to the company business and to leadership
development such as ethics, compliance e
safety. In the aggregate, in 2011 55 hours of
training, development and qualification for
employees were counted.
The training and capacity programs are
divided into five categories in AES Tietê:
Development of leaderships: aims at
preparing the managers to promptly
respond to the daily chanlleges, support
their employees in the compliance with
their duties and disclosure the company’s
culture and values.
Education allowance for continuing
education and language: the employees of
AES Tietê have the right to receive education
allowance for post graduation courses,
master’s degree and doctorate whose theme
is related to the business’ strategy and the
learning and improvement of languages for
those cases when the qualification is a part
of their duties or for future tasks.
Yearther initiative of the company is the
partnership entered into with the School
Superior de Propaganda e Marketing
(ESPM) and with Fundação Instituto de
Administração (FIA/USP), which allows the
employees of the Company and its family
86 AES Tietê

members to attend to MBA in Business
Management, Finance and Electric Energy
Management for a value lower than that
practiced in the market.
The company also offers educational
allowance for those employees who
intends to attend to a technical course or a
graduation course.
Lecturers and workshops: the employees
may also attend to the lecturers and
external workshops. Based on this, the
company promotes internally events
related to the management of knowledge
and improvement, in addition to lectures,
information technology courses and selfdevelopment
actions through e-learning.
Technical and occupational training:
towards to operational positions, the
program is divided into three groups:
compliance with specific laws and
regulations of the electricity sector,
that represents 26% of the annual grid
technical-operational capacity; basic
capacity, minimum and mandatory
for professionals of the operational,
Administrative, technical and commercial
areas (approximately 400 courses,
which represent 50% of technical
capacity volume); and specialization for
management functions and proceedings
control, basic notions of people
management and integration activities.
In 2011, AES Tietê obtained the average
of 51.43 training hours per employee,
upper the 49 hours registered in 2010.
The category that more stood out was
the technical/supervision, which received
15,416 Training hours divided among 192
employees, an average of 80.29 hours of
training per employee.
51,43
hours of training per employee
were offered by AES Tietê in 2011
training 2011 GRI: LA10
Functional Category Total credit hours Total employees of the category Hours per employee
Executive board 8 5 1.60
Management 442 25 17.68
Head/coordination 1,698 30 56.60
Technical/supervision 15,416 192 80.29
Administrative 1,422 94 15.13
Operations 32 6 5.33
Trainees 208 3 69.33
Aggregate 9 8 1.13
Total 19,235 374 51.43
Sustainability Report 2011
87

Quality of life
Concerned with the employees quality of
life inside and outside of work environment,
AES Tietê invests in programs and actions
to identify hazard and risk factors related to
occupational health.
Through Safety and Occupational Health
and Safety Management System (OHSMS),
based on OHSAS 18001 and BBS – Behavior
Based on Safety, the company implements
control measures that aim to ensure health,
safety and ergonomics of the peoples.
One of the highlighting initiatives is the
program Viva Bem Viva Mais, divided
into three approaches, which aims to
reduce stress and promote quality of
life, contributing to the professional and
personal development of the employees:
Viva o corpo – focused on the care of
employee’s health, counts on actions in
two aspects: the Respire Saúde, that fights
smoking and aims employees and families.
Include informative and motivational
speeches and weekly sessions of group
psychological support, in addition to
medicine allowances, when necessary. To
other members of the family, psychological
treatments are offered from distance,
in addition to discounts in the purchase
of medicines. In 2011, the success index
of Respire Saúde in AES Brasil reached
98% (participants that quitted smoking).
Regarding Alimente-se Bem, it offers
educational speeches on the importance
of a balanced feeding and a healthier
routine. Employees also receive, every
15 days, personal support and physical,
diet, nutritional and body composition
evaluations, aiming to reduce weight and
improve health in general. In 2011, 421
people enrolled in the program, provided
that seven are hosted by AES Tietê.
Viva a mente – aims to reduce stress
and sedentarism, acting in two aspects.
For street walking and running, AES
Brasil makes 24 training points available,
where employees and their families can
practice the activities. In 2011, 172 people
enrolled the program; of this total, two
are AES Tietê’s employees. To improve the
performance of the runners, the Project
Verão was carried and aimed to guide them
about healthy feeding, hydration, nutrition
and sports, among others. Agita Julho
promotes, during school vacations, sports
championships between employees and
their families. It will be seven modalities
all – futsal, volley ball, court tennis, walking,
street running, trick and chess, besides
interacting activities for all. In 2011, the
event received 1.514 enrollments in total,
being 148 from AES Tietê.
Viva mais – campaigns to promote physical
and mental welfare, in four aspects. Labor
gymnastics is provided three days per
week, in all units of the company, focusing
on the control over ergonomic risks and
prevention against muscular problemas
caused by stress resulting from muscle
tension during work and from not corrected
wrong posture, as well as from movements
or efforts that harm articulation health.
The average of attendance during 2011
was 78%. In 2011, speeches and lectures
addressed subjects related to obesity and
hypertension, health of shoulders, STD/
AIDS prevention, ergonomics and hearing
protection. Of all, 46,443 people attended.
During the vaccine campaigns, 4,523 doses
of seasonal flu vaccine were distributed.
As to Program Gestação Saudável, which
offers important information to pregnant
employees of Grupo AES Brasil, distributed
in seven meetings every fifteen days, it
create awareness about the importance
to breast feed, physical activities, nutrition
and care of babies, among other subjects
relevant to the pregnant and baby’s health.
It counted on 68 participants, provided that
four are AES Tietê’s employees.
Yearther highlight in 2011 was the creation
of Blog Gestação Saúdavel, which includes
information related to the program, all
content addressed and pictures of meetings
and babies, in addition to answers to
possible questionings, aiming to provide
information to the pregnant wives of
employees of Grupo AES in practical and
interactive manner.
Program Viva
Bem Viva Mais
aims at reducing
the stress
and promoting
quality of life, by
contributing to
the professional
and personal
development of
employees
Communication with the staff
In addition to the organizational research,
which is held annually, AES Brasil have
other communication channels thereby
the employees can express their opinion,
clarify doubts and know the company
better. It is: evaluation research of inside
communication, carried quarterly with
approximately 600 employees of the Group,
selected randomly; e-mail comunicacao@
aes.com, an open channel that the employee
can access whenever he/she wants; and
Rede Ligado, comprised by five integrated
communication channels, as follows:
Conexão Ligado: mural updated every six
months with information about Grupo
AES Brasil, indicators, internal selection,
news related to subjects as environment,
safety, quality of life, culture and family,
internal classified advertisements, photo
sharing and employees’ testimonies.
88 AES Tietê

98%
of the participants of
Respire Saúde program
QUITTED smoking
Safety and Environment Mural: mural
monthly updated with safety and
environment information and indicators of
AES Eletropaulo’s operational areas.
Revista Ligado: monthly publication that
provides the main news of the month with
respect to the Grupo AES Brasil’s companies
as to the strategic, safety, environment,
social responsibility and services side of
view, among other subjects, with a parlance
especially towards to operational employees.
Portal Ligado: corporate intranet launched in
2010, which includes daily news, important
information about the Company’s corporate
areas, procedures and policies, in addition to
the possibility to interact with employees.
In the main page of Portal Ligado is found
Videojornal, a space reserved for publication
of interviewing videos with personalities in
evidence in the media, AES Brasil’s executive
and employees. The channel’s reporters can
work for the Internal Communication staff
or other Grupo’s employees interested.
Boletim Ligado: bulletin sent by e-mail to
all employees with News about awarding,
policies and important procedures of the
company, organizational changes and
messages from the execute officer. It is
classified by subjects, in accordance with
the Management Excellence Model. Its
frequency is not defined.
Gestor Ligado: informative bulletin
send by e-mail to all Grupo’s managers,
including information about leadership and
communication campaigns.
Sustainability Report 2011
89

DESENVOLVIMENTO
DEVELOPMENT AND
VALORIZATION OF
SUPPLIERS
AES Tietê’s
sustainability
commitments
(2012-2016)
Implement the Contracted Companies’
Development and Improvement
Management Program until 2014
Have 100% of service suppliers
qualified in sustainability, encouraging
them to adopt sustainable practices
and seek certification of its products
and services until 2016
Implement the Furtherance Program
for Small and New Suppliers until 2014
Implement a contracting model of
suppliers at total cost until 2012
Among the commitments made by
AES Brasil in its Sustainability Platform
is the creation of a clear and transparent
relationship with all of its stakeholders. In
the case of the suppliers, the company set
up a performance evaluation system for
those which are deemed to be of critical
importance, because they have a direct
impact on the company’s business and
because they entail recurring agreements
with significant monetary values. The
entire process is based on the ISO 9001
certification procedures.
Implemented in July 2011, the Suppliers’
Performance Index (IDF) includes
participation by managers from areas of
all of the group’s companies. Every month
these managers are required to
fill in a questionnaire that includes
aspects related to safety, the environment,
social responsibility, quality, management,
productivity, relationship and contractual
clauses.
This new tool, which was developed
AES Brasil’s Executive Board for Supplies,
utilizes a scoring system that measures the
degree to which the supplier meets the
company’s demands. If the supplier fails
to achieve the minimum score, it will be
required to follow an improvement action
plan, developed by the manager who carried
out the supplier’s performance evaluation.
In addition to this, the group is developing
a satisfaction survey with all of its critical
suppliers. The idea is to carry out this
analysis before the end of the first half of
2012, and to make this a recurring practice.
Incentive and
recognition
In order to reinforce its commitment
to the development and appreciation
of its suppliers, in December 2011 AES
Brasil held the first edition of the AES
Brasil Best Suppliers Award. With the
slogan “Great partnerships deserve great
recognition”, the award is based on the
IDF and recognizes the best practices of
our partners, taking into consideration
criteria in relation to Safety,
Environment, Social Responsibility,
Quality, Management, Productivity,
Relationships and Contractual Clauses.
Out of the 60 suppliers who took part
(and which account for 114 service
provision agreements), 22 were selected
as finalists and five were chosen as the
winners, in the categories: IT Services;
Administrative and Support Services;
Construction Projects and Services in
relation to the Electric Energy System
(an AES Eletropaulo supplier and an
AES Sul supplier were recognized) and
Customer Service.
AES Brasil also awarded one supplier
with the Sustainability Highlight,
recognizing and encouraging the
sustainable practices of its partners.
90 AES Tietê

The Suppliers’ Performance Index
(IDF) promotes continuous and
sustainable development and
encourages good market practices
In addition to allow continuous and
sustainable development of the commercial
partners, IDF was already used to reward the
best suppliers, as to recognize and stimulate
good practices in the market. In 2011, 60
suppliers went through the evaluation and
XX were rewarded. The goal for 2012 is to
evaluate a hundred suppliers.
Profile of
the Suppliers
In 2011, AES Tietê held commercial
relationship with 2,085 companies of
small, medium and large sizes, national
and multinational to supply materials,
equipment and services to meet the
technical, operational and Administrative
needs of the plants.
60
suppliers for AES BRASIL, among
those considered fundamental,
were analyzed by the performance
evaluation system in 2011
Comments from the
stakeholders
“We want to be multiplier agents, but
we want to have a basis for this, to
take this to meetings or associations.
I myself have learnt a great deal that I
previously used to ignore.”
Comment from a customer during the
3rd Dialogue Cycle with Stakeholders
The providers of service are qualified for,
mainly, maintenance activities of the plants,
environmental preservation, vigilance and
safety, clean and reform of equipment. More
than 90% of the hired staff is comprised by
suppliers and regional service providers. In
2011, 963 professionals acted for AES Tietê
through service providers.
Subcontracted workers 2009 2010 2011
Number of subcontracted/contracted workers 339 529 963
Total Cost (R$ thousand) 50,071 70,215 29,554
Subcontracted/contracted workers regarding total workforce (%) 52.00 62.83 73.07
Compensation profile n/a n/a n/a
Educational level profile with respect to the total of subcontracted (%)
Fundamental education n/a n/a n/a
High school n/a n/a n/a
Under graduation and post-graduation n/a n/a n/a
Sustainability Report 2011
91

Contracting
policy
GRI: EC6; EU16; HR2
AES Tietê adopts specific rules to choose
its suppliers by applying, already in the
beginning of the registration process,
where information about the basic safety
and environmental guidelines and Value
Guide is available. In this stage, the
Company requires legal entity, fiscal and tax
documentation and specific inquiries are
carried regarding the company’s financial
health and the compliance with social and
environmental laws and regulations.
To choose its suppliers, AES Tietê counts on
a simpler registration policy for companies
located in the local community, by requiring
different documentation, but without
prejudice to the ethics, quality and safety
requirements. This allows the contracting
of these companies, increasing the local
economy. In 2011, of all expenses with
suppliers, 67% were used in local supplying,
that is, within the State of São Paulo.
In these proceedings, suppliers’ needs
and expectations are pointed, which are
subsequently analyzed and used to improve
the practices related to the relationship.
Thus, we seek means to adjust the
company’s expectation to the suppliers’
execution ability in a sustainable manner.
During the effectiveness of the agreements,
events, meetings and workshops are carried
out to ensure the continuity of supply
without harming the parties. The main
subjects addressed are ethics and safety.
AES Tietê
carries PERIODIC
inspections
to ensure
that suppliers
comply with the
technical, ethics
and social and
environmental
contracting
requirements
Compliance with requirements, by suppliers,
is assured through periodic inspections
of receipt, industrial assessment, ethics
inquiries, social and environmental
compliance with and responsibilities and
technical audits carried by specialized
companies.
For more complex proceedings, AES Tietê
may require specific environmental licenses,
evidences of compliance with the conditions
and requirements of Occupational Safety
and Trainings regarding the regulatory rules
NR-10 and NR-33, prototype evaluation,
industrial homologation and compliance
inquiries.
92 AES Tietê

Contractual
Compliance
Review
To ensure the highest ethical standard in
the commercial relationships and anticorruption,
Grupo AES Brasil’s Ethics and
Compliance department analyzes the
reputation of the commercial partners,
ensuring the ethical conduct of its business
and mitigating potential reputation risks
to the company. Thus, before completing
an operation, the Ethics and Compliance
Program sets forth a series of analysis and
investigations, referred to as compliance due
diligences of involved partners. Additionally,
an Exhibit is included in the agreements,
referred to as Compliance Exhibit, which
provides for the commitments of the
business partner with respect to not getting
involved in corrupt acts and provides for the
termination of the agreement in cases of
failure to comply with the terms.
Registry of new suppliers depends on
the submission of legal documents and
certifications. Additionally, carry audits
at the suppliers, in which one of the
aspects evaluated is child and slave labor.
Safety inspections carried out also include
evaluation of these issues. Since 2010,
AES Brasil, group of which AES Tietê is part,
is signatory of the National Pact for the
Eradication of Slave Labor.
Selection and assessment of suppliers 2009 2010 2011
Suppliers inspected by the company / total suppliers(%) – as to
child labor and forced labor
n/a 0.00 0.00
Suppliers inspected by the company / total suppliers (%) – as to
health and safety conditions
100.00 100.00 100.00
Non-qualified suppliers (non-compliance with the company’s
social responsibility criteria) / total suppliers (%)
0.00 0.00 0.00
Support to suppliers’ development 2009 2010 2011
Number of qualification courses provided to suppliers 570 855 837
Number of Training hours provided to suppliers 1,791 2,766 3,009
In 2011, 265 operations, involving a total
amount of R$ 183 million in AES Tietê
were analyzed – provided that this amount
corresponds to the amount analyzed, and
not contracted, by the company, as some
agreements are effective for more than one year.
In AES Tietê, the risks to occur child labor
or similar to slave occur in small family
suppliers that provide service to the
company and can use this type of labor.
In order to avoid the occurrence of child or
slave labor in its network, AES Tietê makes
information regarding the Code of Ethics
available to suppliers and includes a specific
contractual clause regarding this subject.
265
operations, involving a total
amount of R$ 183 million,
were assessed by the Ethics and
Compliance Program in 2011.
Sustainability Report 2011
93

DEVELOPMENT AND
VALORIZATION OF
COMMUNITIES
In 2011, AES Tietê
injected
R$ 12 million
into social
inclusion,
citizenship and
income generation
projects
AES tietê
sustainability
commitments
(2012-2016)
Define policy, strategy and sources
for the private social investment,
seeking to get closer to Grupo AES
Brasil’s core business, up to 2013
Define own mechanism for revenue
generation of Culture and Citizenship
House up to 2013
Participate from preparation e
implementation of three public
policies aimed at sustainability up
to 2016
identify and recognize the best
practices in company sustainability
up to 2014
AES Tietê is aware of its role in the
socioeconomic development of the
company, considering the relevance of the
energy generation service for everyone.
Through own and encouraged resources, the
company invests in projects that promote
the social inclusion and citizenship, the
education for conscious and insurance use
of energy, culture, sports and generation of
income in the low income communities.
In 2011, the financial contribution was of
R$ 120 million, between own and
encouraged resources.
Social projects
GRI: EC8; SO1
In AES Tietê, the implementation process of
a social project in a certain local involves
an analysis of the region’s socio-economic
profile, through São Paulo State index of
social Vulnerability (IPVS), to evaluate the
size of the population to be benefited.
Once the company identifies the
community to be benefited, based on IPVS
analyses, a work of alignment with the
Public Authorities and the local leaders is
done in order to relate the expectations of
the community with the AES Tietê’s social
responsibility strategy. By the end of the
process, the Company monitors the project
results through surveys with the people
benefiting from it.
Culture and Citizenship House
The objective of AES Brasil’s main project, that
is the Culture and Citizenship House, is to
transform the reality of thousands of children,
young people and adults, by means of activities
that are focused on art, culture, citizenship, the
quality of life and income generation.
Focused primarily on low-income
communities, in 2011 the project assisted,
directly, about 5,600 people in its activities
and indirectly, 226.9 thousand people,
through presentations and talks made. In
AES Tietê facilities, these figures were of 3.7
thousand people assisted by the activities
and 135.5 thousand assisted by the
presentations and talks.
Acting in the two spheres of social
responsibility (Education, Culture and Sport
and Inclusive and Social Business), the project
has seven units: São Paulo and Osasco, with
investment from AES Eletropaulo; Barra Bonita,
Lins, São José do Rio Pardo and Caconde,
under the responsibility of AES Tietê; and
Novo Hamburgo, in Rio Grande do Sul state,
sponsored by AES Sul.
The programming covers two areas of activity,
which involve related themes, namely the safe
and efficient usage of electric energy and the
responsible consumption of natural resources.
The first of these, which is offered between
Monday and Friday, from 8.00 a.m. to 5.00
p.m., is aimed at children and teenagers and
includes activities such as storytelling, circus
arts, visual and digital arts, music, theater,
dance and artistic gymnastics. The pedagogical
methodology applied was developed by a
multidisciplinary team of curators.
The other area, which is aimed at young
people and adults, promotes access to
vocational and entrepreneurship courses,
workshops for income generation, lectures
and cultural events.
94 AES Tietê

Environment and
Citizenship Day
To commemorate Environment Day,
discuss sustainability practices and assist
in the awareness of the population on
the care with environment and the
actions to preserve it, in 2011 Culture
and Citizenship House units, located
in AES Tietê area, prepared a special
programming. Lins and São José do Rio
Pardo units had activities that addressed
themes such as seedlings planting,
awareness talks; dance shows and plays
and ecological walks. About 3.3 thousand
people participated in the activities.
AES Tietê also carried out fingerlings
release, as well as sent letters to 95
municipalities, basin committees and
environmental agencies divulging the
environmental programs and company’s
contacts and making seedlings of native
species produced in Promissão’s Nursery
available. More than 200 thousand
seedlings got out the nursery for
promotion and donation.
For more information about the
Culture and Citizenship House go to the site
www.casadeculturaecidadania.com.br.
Sustainability Report 2011
95

When implementing a social
Project in a location, AES Tietê
makes an analysis of the region’s
socio-economic profile, through
São Paulo State index of social
Vulnerability (IPVS)
Energia do
Bem Volunteer
Program
Energy for Good is an AES Brasil volunteer
program aimed at engaging and offering
support to direct and outsourced company
employees and their family members who
want to, voluntarily, contribute to the
development of the communities in which
the Grupo is inserted. In 2011, the project
counted on the participation of 1,108
employees from AES Brasil and 149 from
AES Tietê.
Empreendendo na Comunidade:
implemented in 2010, the goal is to
encourage social enterprise among
employees through the presentation of
social projects to be developed in the
communities.
To support the program, AES Brasil’s
companies offer a portal to divulge
volunteering opportunities, and the
donation is up to four hours per month from
working hours for voluntary work, including
transportation by a company-licensed taxi
to the institution closest to the workplace.
Other projects
AES Tietê sponsored, with encouraged
resources the project Circuito de Tênis,
promoted by São Paulo Tennis Federation.
Ten municipalities were contemplated with
tournaments between first class players and
amateurs in the municipalities’ clubhouses.
Additionally, clinics for children from public
school network’s education and from Culture
and Citizenship House units were carried out,
benefiting 5,500 children and adolescents.
The Grupo provides support to volunteer
projects in three aspects:
Distributing Energia do Bem: aims at
mobilizing employees to take part in periodic
and emergency campaigns, such as the
Campanhas do Agasalho e de Natal (Clothes
Donation and Christmas Campaigns),
encouraging donations for social projects in
aid of children and adolescents.
Agindo para Transformar: incentives social
engagement and the employees’ voluntary
participation in partner institutions. It also
includes the selection and monitoring of
social projects registered in the Municipal
Councils for Children’s and Adolescents’
Rights (CMDCAs), which receive 1% of
income tax owed by the company.
For further information about the
program Energia do Bem access
www.energiadobem.com.br.
Number of volunteers – AES Tietê
YEAR
Volunteers
2009 168
2010 153
2011 149
5,600
persons were directly benefited
from the project Culture and
Citizenship House in 2011.
Comments from the
stakeholders
“AES Brasil has a set of education
programs that target conscious
consumption along with programs that
cater to the community in relation
to safety at electrical installations
and in the electricity networks. These
programs are very daring given that
for all intents and purposes they are
intended to transform the population’s
behavior and attitude.“
Comment from a customer during the
3rd Dialogue Cycle with Stakeholders
96 AES Tietê

Management of the company’s impact on the surrounding community GRI: SO1 2009 2010 2011
Number of community complaints – impacts caused by the company’s activities 0 0 0
Number of improvements implemented in the company’s processes as of community complaints 0 0 0
involvement of the company in claims related to third parties GRI: SO8 2009 2010 2011
Resources invested in education (R$ thousand) 1,852 1,779 2,024
Resources invested in health and sanitation (R$ thousand) 0 0 0
Resources invested in culture (R$ thousand) 6,961 7,459 8,045
Other resources invested in social actions ( R$ thousand) 1,569 1,870 1,789
Amount used in social action (do not include legal obligations, taxes, or benefits associated with the position of
company’s employee) (%)
14.50 16.07 11.00
Of the total used in social action percentage corresponding to donations in products and services (%) 5.00 0.00 0.00
Of the total used in social action, percentage corresponding to donations in cash (%) 0.00 0.00 0.00
Of the total used in social action, percentage corresponding to investments in own social project (%) 77.58 72.14 49.00
Employees who carry out voluntary work in community external to the company/total employees (%) 53.33 53.67 42.00
Number of monthly hours donated (waived from normal working hours) by the company to employees’ volunteer work) n/a 572 49
Consumers enrolled with Programa Bolsa Família/number of consumers of low income segment (%) NA NA NA
Company involvement in cultural, sports projects, etc. (Rouanet Law, state incentives) GRI: EC4 2009 2010 2011
Amount of resources used in projects (R$ thousand) 9,415 8,216 8,173
Number of projects benefitted by sponsorship 22 27 15
Amount of resources used in the largest project ¹ (R$ thousand) 8,230 7,786 4,784
*
Culture and Citizenship House. Proponent: H. Melilo.
Government and society GRI: SO1
Management of the company’s impact on the surrounding community 2009 2010 2011
Resources allocated to federal, state and municipal governmental programs (not provided for in law) (R$ thousand) 0 0 0
Number of initiatives, events and campaigns focused on the citizenship development (voting exercise, conscientious
consumption, anti-corruption practices, children’s rights etc.)
3 214 n/a
Advertizing resources set aside for institutional campaigns for the development of citizenship (R$ thousand 238.00 212.30 119.64
Resources invested in tax incentive-based programs/total of Resources allocated to social investments (%) 85 70 69
Sustainability Report 2011
97

ANNUAL BALANCE SHEET 2011
Company: AES TIETÊ S.A.
1 – Calculation Basis Amount n 2011- R$ - thousand Amount in 2010- R$ - thousand
Net income (RL) 1,885,956 1,754,323
Operating result (RO) 1,302,323 1,151,888
Gross payroll (FPB) 71,274 72,098
2 – Internal social indicators
Amount
(thousand)
% on FPB % on RL
Amount
(thousand)
% on FPB % on RL
Meals 2,610 3.66% 0.14% 2,360 3.27% 0.13%
Compulsory social charges 14,473 20.31% 0.77% 13,498 18.72% 0.77%
Pension fund 1,980 2.78% 0.10% 1,896 2.63% 0.11%
Health 2,386 3.35% 0.13% 2,146 2.98% 0.12%
Labor safety and health 4,900 6.87% 0.26% 11,484 15.93% 0.65%
Education 0 0.00% 0.00% 0 0.00% 0.00%
Culture 0 0.00% 0.00% 0 0.00% 0.00%
Professional education and development 1,080 1.52% 0.06% 1,398 1.94% 0.08%
Day-cares or day-care assistance 20 0.03% 0.00% 20 0.03% 0.00%
Participation in profits or results 9,104 12.77% 0.48% 8,694 12.06% 0.50%
Other 0 0.00% 0.00% 0 0.00% 0.00%
Total – Internal social indicators 36,553 51.29% 1.94% 41,496 57.55% 2.37%
3 – External Social Indicators
Amount
(thousand)
% on RL % on RL
Amount
(thousand)
% on RL % on RL
Education 2,024 0.16% 0.11% 1,779 0.15% 0.10%
Culture 8,045 0.62% 0.43% 7,459 0.65% 0.43%
Health and sanitation 0 0.00% 0.00% 0 0.00% 0.00%
Sports 1,762 0.14% 0.09% 1,566 0.14% 0.09%
Hunger fight and food safety 0 0.00% 0.00% 0 0.00% 0.00%
Other 27 0.00% 0.00% 304 0.03% 0.02%
Total contributions to society 11,858 0.91% 0.63% 11,108 0.96% 0.63%
Taxes (social charges excluded) 78,258 6.01% 4.15% 73,288 6.36% 4.18%
Total – External Social Indicators 90,116 6.92% 4.78% 84,396 7.33% 4.81%
4 – Environmental indicators
Amount
(thousand)
% on RO % on RL
Amount
(thousand)
% on RO % on RL
Investments related to production/operation in companies 12,546 0.96% 0.67% 12,311 1.07% 0.70%
Investments in external programs or projects 0 0.00% 0.00% 737 0.06% 0.04%
Total investments in environment 12,546 0.96% 0.67% 13,048 1.13% 0.74%
As to setting out annual goals for minimizing waste
and consumption in general production/operation and
increasing efficiency on the use of natural resources, the
company
( ) has no goals ( ) meats 51% – 75%
( ) meats 0% – 50% (x) meats 76% – 100%
( ) has no goals ( ) meats 51% – 75%
( ) meats 0% – 50% (x) meats 76% – 100%
5 – Operating staff indicators 2011 2010
Number of employees at the year-end 355 313
Number of people hired during the year 56 30
Number of outsourced employees 963 529
Number of trainees 8 11
Number of employees above 45 years old 100 87
Number of women working for the company 50 38
% lead positions occupied by women 26.70% 21.40%
Number of Black people who work for the company 24 25
% lead positions occupied by Black people 0.00% 0.00%
Number of disabled or people with special needs 3 3
98 AES Tietê

6 – Relevant information as to the exercise of
corporate citizenship
Amount in 2011- R$ - thousand Goals 2012
Relation between the highest and the lowest
compensation in the company
75 None
Total number of labor-related accidents 2 0
Social and environmental projects developed by company
were defined by ( ) management
( X )
management
( ) all employees ( ) management
( X )
management
( ) all employees
Safety and salubrity standards in the workplace were
defined by
As to union-related freedom, the right to collective
bargaining and internal representation of company’s
workers
( X )
management
( ) does not get
involved
Pension fund contemplates: ( ) management
Participation of profits or results contemplates ( ) management
When selecting suppliers, the same ethics and social and
environmental responsibility standards are adopted by the
company
As to employees’ participation in voluntary work programs,
the company
Total number of consumer complaints and criticism
% of complaints and criticism met or resolved
( ) are not
considered
( ) does not get
involved
in the company
0
in the company
0%
( ) all employees ( ) all + Cipa
( ) follows OIT
rules
( X )
management
( X )
management
(X) encourages
and follows OIT
( ) are suggested ( X ) are required
( ) supports
( X )
management
( ) does not get
involved
( ) all employees ( ) management
( ) all employees ( ) management
( X ) organizes
and encourages
in Procon 0 in Court 0
in Procon 0% in Court 0%
( ) are not
considered
( ) does not get
involved
in the company
0
in the company
0%
Total added value to distribute (R$ thousand): In 2011: 1,586.71 In 2010: 1,376.42
Distribution of added value (DVA)
7 - Other information
37% government 4% employees
53% shareholders 46% third parties
( ) all employees ( ) all + Cipa
( ) follows OIT
rules
( X )
management
( X )
management
(X) encourages
and follows OIT
( ) all employees
( ) all employees
( ) are suggested ( X ) are required
( ) supports
( X ) organizes
and encourages
in Procon 0 in Court 0
in Procon 0% in Court 0%
31% government 5% employees
54% shareholders 10% third parties
Sustainability Report 2011
99

AES Tietê’s sustainability report
is published for the sixth year
in a row under the guidelines of
the Global Reporting Initiative
(GRI), meeting level B in terms of
compliance with the guidelines
Content
index
The summary below shows where to find, during the report, the
following information:
• Forms of management requested by Global Reporting Initiative
• Global Reporting Initiative performance indicators
• Correlation between GRI indicators and Global Pact principles
• Indication whether the indicator is fully or partially answered
• Indication of when indicator was not answered
Profile Information
Strategy and Analysis
Indicator Description Reported Page Reason for omission
1.1 Mensagem do presidente 4 and 5
1.2
As metas estão colocadas ao longo do
relatório, junto com os Indicatores de
13, 30, 31, 32, 33, 34 and 36
desempenho
The goals are all over the report associated with performance indicators
Organizational Profile
Indicator Description Reported Page Reason for omission
2.1 Organization’s name AES Tietê
2.2 Main brands, products and/or services 7 and 8; Generation and commercialization of electric power
2.3 Organization’s operational structure 7 and 8
2.4
Organization’s principal place of
business location
São Paulo (SP), Brazil
100 AES Tietê

2.5
2.6
Countries in which the company
operates and in which its main
operations are located
Type and judicial nature of the
property
8; The agreement of concession enables the company to maintain plants in the State of São
Paulo. The company also maintain plants in Minas Gerais through its controlled company,
AES Minas PCH
AES Tietê S.A. is a joint-stock company controlled by Companhia
Brasiliana de Energia.
2.7 Assisted markets 7
2.8 Organization’s size 7, 8, 12 and 15
2.9
Main changes during period covered
by the report
There were no changes with respect to previous report
2.10
Premiums received in the period
covered by the report
5 and 15
Parameters to the Report
Indicator Description Reported Page Reason for omission
3.1
Period covered by the report to the
submitted information
1º de janeiro a 31 de dezembro de 2011
3.2 Date of the last most recent report 2011, regarding 2010
3.3 Reports emission cycle Anual
3.4
Contact data in case of questions
related to the report or its content
3
3.5
Process for definition of report
content
3
3.6 Report limit All AES Tietê operations
Representation about any specific
3.7
limitations as to the scope or the
There are no specific limitations as to the scope other limit of this report
report limit
3.8 Base to the report preparation All AES Tietê operations
3.9
Measurement techniques of data and
Measurements follow orientations of GRI guidelines. Otherwise, explanatory notes informs
calculation basis
the techniques used
3.10
Reformulations of information
45; There were reformulations of information. When reported, explanatory notes inform the
provided for in previous reports
change and justify it
3.11
Significant changes to the scope, limit
or methods of measurement applied
There was no change during the period covered by the report
in the report
3.12
Table that indentifies the location of
information in the report
100 to 107
3.13
Current policy and practice related
23; Global Reporting Initiative verified the adherence level of this report to its guidelines,
to the external verification pursuit to
however, there was no verification in the indicators for a third party.
the report
Governance, Commitment and Engagement
Indicator Description Reported Page Reason for omission
4.1
Organization’s governance structure,
including committees of governance
20
high body
4.2
Presidency of the highest governance
body
21
4.3
Independents and non-executive
members of the highest governance
20
body
4.4
Mechanisms for the shareholders and
employees do recommendations
18 and 23
4.5
Relation between compensation and
performance of the organization
(including social and environmental)
The compensation of the officers and executive board members, as well as benefits of any nature and representation amounts, is determined in general shareholders’ meeting.
4.6
Proceeding to ensure that conflicts of
interest are avoided
It is forbidden for management to:
- intervene in any social operation where their interests conflict with those of the company;
- intervene in the decisions that the other members of management take in relation to this matter, being obliged to inform the others of this fact;
- stating, in the minutes of a meeting of either the Board of Directors or of the Executive board, the nature and extent of their interest.
The AES Brasil group offers training focused on ethics and compliance called “Positive Behavior”, which concentrates on situations in which conflicts of interest may
occur. It is aimed at the company’s professionals and the goal is that 100% of them take the course each year
Indicator answered in full Indicator answered to a partial degree • Indicator not reported
Sustainability Report 2011
101

4.7
Qualification of the members of the
highest governance body
20
The Board of directors’ members of AES Tietê show professional competence and experience recognized in the sectors of power, finances, capital markets and public
administration
Representations of mission and values,
4.8
conduct codes and relevant internal
13
principles
4.9
Responsibilities for the
implementation of economic,
20 and 34
environmental and social policies
4.10
Proceedings to the performance selfassessment
of the highest governance
body
The company does not have a process for evaluating the performance of the members of the Board of Directors nor any qualifications.
Explanation about if and how the
4.11
organization applies the precaution
principle
AES Tietê does not consider precaution principle in the strategies, policies and position of the organization.
4.12
Letters, principles or other initiatives
externally developed
17, 18 and 38
4.13
Participation in associations and/or
national/international organisms
38,
4.14
Relation of stakeholders groups
engaged in the organizations
31
Employees, suppliers, customers (corporate and residential) and representatives from different sectors of society (such as public authorities, NGOs and other institutions).
4.15
Base for the identification and selection
of stakeholders with who it engages
The stakeholders are determined and chosen internally, bearing in mind the strategic importance of each one of the groups selected to the company’s activities.
4.16
Approaches to stakeholders
engagement
30 and 34
4.17
Main themes and concerns discussed
through stakeholders engagement
31
Information on Management Approach
Management Approach Aspects Online Page/PDF
EC
EN
LA
HR
SO
PR
Economic performance
Presence in the market
Indirect economic impacts
Materials
Energy
Water
Biodiversity
Emissions, Effluents and Waste
Compliance
Transportation
General
Employment
Relation between Workers and Governance
Health and safety at work
Training and education
Diversity and equality opportunity
Purchasing process
Non discrimination
Liberty of Association
Child labor
Forced/slave labor
Safety practices
Indian rights
Community
corruption;
Public policies
Anticompetitive behavior
Compliance
Health and Safety of the customer;
labeling of goods and services
Marketing and communication
Customer privacy
Compliance
7, 28, 47, 49, 73
and 94
37 and 68
36, 37, 42, 45 and 91
37
36 and 45
36
102 AES Tietê

Performance indicators
ECONOMIC PERFORMANCE
Indicator Description Reported Page Reason for omission
Global
Pact
Economic performance
EC1 Direct economic value generated and distributed 62 and 63 -
EC2
Financial implications and other risks and opportunities
resulting from climatic changes
• 7
EC3
Coverage of the obligations of the pension plan of
benefit
84 -
EC4
Significant financial assistance received from
government
97 -
Presence in the market
EC5
Variation in the proportion of the lowest salary
compared to the local minimum salary
82 1
EC6
Policies, initiatives and proportion of expenditures with
local suppliers
92 -
EC7 Local hiring • 6
Indirect economic impacts
EC8
Impact of investment in infrastructure offered for
public benefit
94 -
EC9 Description of significant indirect economic impacts • -
ENVIRONMENTAL PERFORMANCE
Indicator Description Reported Page Reason for omission
Global
Pact
Materiais
EN1 Material used, by weight or volume • 8
EN2
Percentage of the material used originating from
recycling
• 8 and 9
Energy
EN3
Direct energy consumption detailed by primary energy
source
72 and 73 8
EN4
Indirect energy consumption detailed by primary
energy source
73 8 and 9
EN5
Power saved as a result of improvements in
conservation and efficiency
• 8
EN6
Initiatives to provide products and services with low
energy consumption
• -
EN7
Initiatives to reduce indirect consumption and
reductions obtained
• -
Water
EN8 Total of water removed by source 70 and 73 8 and 9
EN9
Water sources significantly affected by removing of
water
• 8
EN10
Percentage and total volume of recycled and reused
water
• 8
Biodiversity
EN11 Location and size of owned area 55 8
EN12
Significant impacts on activities, products and services
biodiversity
• 8
EN13 Habitats protected or restored 55 and 72 -
EN14 Strategies to management of impacts on biodiversity • -
EN15
Number of species included in the IUCN Red List and
other preservation lists.
• -
Emissions, Effluent and Waste
EN16 Total of direct and indirect emission of greenhouse gas 69 and 72 8
EN17 Other material indirect emissions of greenhouse gas 69 8
EN18
Initiatives to reduce emissions of greenhouse gas and
the reductions achieved
• 7, 8 and 9
EN19 Emissions of ozone depleting substances 69 and 72 8
EN20 NOx, SOx, and other significant atmospheric emissions • 8
EN21 Total discharge of water, by quality and allocation 72 8
Indicator answered in full Indicator answered to a partial degree • Indicator not reported
Sustainability Report 2011
103

EN22 Total weight of Waste, by type and disposal method 70 and 72 8
EN23 Volume and number of significant spills 8
No significant spills were record in AES Tietê operations in the last three years.
EN24 Weight of transported waste deemed dangerous • -
EN25
Description of protection and biodiversity index of
water bodies and habitats affected by water disposal
-
and drainage
No water body was significantly affected by effluents capture or disposal.
Products and services
EN26 Initiatives to mitigate environmental impacts • 7, 8 and 9
EN27
Percentage of products and packages recovered by
product category
• 8 and 9
Conformity
EN28
Monetary value of significant fines and total number
of non-monetary sanctions
72 8
Transportation
EN29
Significant environmental impacts referring to
products and employees transportation
69 and 73 8
General
EN30
Total investments and costs in environmental
protection
72 and 73 7, 8 and 9
SOCIAL PERFORMANCE – LABOR PRACTICES
Reason for
omission
Global
Pact
Indicator Description Reported Page
Employment
LA1
Total of workers by type of job, work agreement and
region
77, 78 and 79 -
LA2
Total number of turnover rate of employees by age
group, gender and region
81 6
LA3
Comparison between benefits for full-time and
temporary employees
83 and 84 -
Relationship between Employees and Governance
LA4
Percentage of employees included in collective
negotiation agreement
1, 2 and 3
In AES Tietê, 100% of the employees are included by collective negotiation agreement.
LA5 Description of notifications (terms and procedures) -
The collective negotiation agreements do not include a minimum period to notifications in relation to significant operational changes. If any change happens, it would be
previously discussed with the union.
Health and safety at work
LA6
Percentage of employees represented in safety and
health committees
44 1, 2 and 3
LA7 Injuries, occupational diseases and days lost rate 41, 44 and 45 1
LA8 Education, prevention and risk control programs 41 1
There are no specific programs to education, training, counseling, prevention, risk control and treatment in relation to serious diseases. All employees are trained to
exercise their functions in order to reduce the risks. The activities that have greater risks for occupational or specific diseases are installation and maintenance operations
carried out next to electric power distribution network.
LA9
Issues regarding health and safety covered by
agreements with unions
1
The formal agreements with unions cover health and safety issues, such as supply of personal protective equipment (EPI); formation of health and safety joint
committees composed by the governance and employees; participation of workers’ representative in inspections of health and safety; inspections and investigations of
accidents; training and educations on the issue; complaints system; right to refuse unsafe work; periodical visits; compliance with ILO (International Labor Organization);
and measures or structures to solve problems and commitments related to the desired performance standards or practice level to be applied.
Training and education
LA10 Average of Training hours, per year 35, 84, 86 and 87 6
LA11
Programs for management of competencies and
continued education
84 -
LA12
Percentage of employees that receive performance
analyses
85 -
Diversity and Equality of Opportunity
LA13
Composition of groups responsible for corporate
governance and proportion by groups and gender
78 and 79 1 and 3
LA14
Proportion of minimum wage between men and
women by functional category
82 1, 2 and 3
104 AES Tietê

HUMAN RIGHTS
Indicator Description Reported Page
Reason for Global
omission Pact
Purchasing Process
HR1
Percentage and number of investment agreements
which include human right clauses
• -
HR2
Percentage of contracted companies submitted to
1, 2, 3
92
evaluations referring to human rights and 4
AES Tietê counts on 67 significant suppliers. All of them count with agreements that include criteria or are submitted to human rights evaluations. There were no
suppliers refused by these evaluations.
Hours of employee training in policies and procedures
HR3
related to human rights, including the percentage of • -
employees trained
Non discrimination
HR4 Total number of discriminations and the actions taken • 1, 2 and 3
Freedom of Association
HR5 Policy of freedom of association and application grade 1, 2 and 3
There were no operations identified in which the right to exercise freedom of association may be at significant risk. It is reported on the AES Tietê Collective Bargaining
Agreement a Policy of Union Relationships clause, recognizing the union as the employees’ legitimate representative. This ensures that the union exercise its
representations through releasing union leaders, performing meetings, access of union leaders to AES Tietê facilities, union membership, distribution of informative,
participation in corporative meeting and availability of Cipas minutes.
Child labor
HR6
Actions taken to contribute to the extinguishment of
1, 2, 3
child labor
and 5
The operations that run the risk of instances of child labor are the small family business that provide services to the industry and which may utilize this type of labor. In
order to avoid instances of child labor throughout its productive chain, AES Eletropaulo provides suppliers with information regarding the Code of Ethics and includes a
specific contractual clause in relation to this topic. The registration of new suppliers is dependent upon the presentation of documents and legal certificates. In addition
to this, audits of suppliers are carried out, and on these occasions one of the aspects evaluated is that of child labor. The safety inspections that are carried out also
include the evaluation of this question.
Forced/slave labor
HR7
Actions taken to contribute with the extinguishment
1, 2, 3
of forced labor
and 4
The operations that run the risk of instances of forced labor are the small family business that provide services to the industry and which may utilize this type of labor.
In order to avoid instances of forced labor throughout its productive chain, AES Eletropaulo provides suppliers with information regarding the Code of Ethics and includes
a specific contractual clause in relation to this topic. The registration of new suppliers is dependent upon the presentation of documents and legal certificates, as well
consulting the Labor Ministry’s list of companies with forced labor. In addition to this, audits of suppliers are carried out, and on these occasions one of the aspects
evaluated is that of forced labor. The safety inspections that are carried out also include the evaluation of this question. Since 2010, AES Brasil, the group to which AES
Eletropaulo belongs, has been a signatory of the National Pact for the Elimination of Forced Labor.
Safety practices
HR8 Percentage of safety personnel trained in human rights • -
Indians Rights
HR9
Total number of events of violation of the Indians
rights and the actions taken.
• -
SOCIETY
Indicator Description Reported Page
Reason for Global
omission Pact
Community
SO1
Programs and practices to evaluate and manage the
impacts of the operations in the communities
54, 73, 94 and 97 -
Corruption
SO2
Units subject to assessment of risks related to
corruption
10
AES Tietê business units are not submitted to risk assessment regarding corruption.
SO3
Percentage of employees trained in the anti-corruption
policy and procedures
• 10
SO4 Actions taken in response to incidents of corruption • 10
Políticas públicas
SO5 Positions as to public policies • 10
SO6
Policies of financial contribution to political parties or
institutions
• 10
SO7 Number of lawsuits for unfair competition -
Conformity
SO8
Description of significant fines and sanctions resulting
from non-compliance with laws and regulations
81, 97 -
Indicator answered in full Indicator answered to a partial degree • Indicator not reported
Sustainability Report 2011
105

RESPONSIBILITY FOR THE PRODUCT
Indicator Description Reported Page
Reason for
omission
Global
Pact
Health and Safety of the customer;
PR1
Evaluation of health and safety impacts during the
products and services cycle life
• 1
PR2
Non-conformity related to impacts caused by products
and services
-
In 2011, AES Tietê did not receive any official notifications or penalties in relation to consumer health and safety as a result of the inspections carried out by the
Government Attorney’s Office. It is our opinion that this result is due to the improvement process that entailed various actions for a greater control of the legal documents.
Despite this fact, a number of internal protocols generated improvement recommendations. The SMS Scorecard Validation process (internal protocol based on the DuPont
methodology, which evaluates the safety culture level within the company) resulted in 35 recommendations. The validation of the implementation of AES Corp.’s Safety
Standards generated 20 recommendations. These recommendations resulted in the carrying out of improvement proceedings. The targets established for 2012 are as follows: zero
governmental fines related to safety; 100% implementation of the recommendations resulting from internal audits (SMS Scorecard and AES Corp’s Safety Standards.); maintain
the level of implementation of AES Corp’s Safety Standards above 90%; maintain the SMS Scorecard above 80%; and adhere to OHSAS 18001:2007 by December 2012.
Labeling of goods and services
PR3
Type of information about products and services
required by labeling products
• 8
PR4
Non-conformity related to products and services
labeling
• -
PR5
Practices related to customer satisfaction, including
researches results
77 -
Marketing and communication
PR6
Programs of adhesion to laws, rules and volunteers
code
• -
PR7
Events of non-conformity related to products and
services communication
• -
PR8
Proved complaints related to violation of privacy of
customers
-
There were no cases identified in 2011.
Compliance
PR9
Fines for non-conformity related to products and
services supply and use
• -
Sectoral Indicators
Indicator Description Reported Page Reason for omission
EU1
Installed capacity (MW) described by energy source
and regulatory system
8 and 9
EU2
Net energy of energy described by primary energy
source and by regulatory system
8
EU3
Number of residential, industrial, institutional and
commercial consumer units
EU4
Length of transmission and distribution lines of
AES Tietê does not have transmission or
underground areas
•
distribution lines
This indicator is not applied to Brazil, because it is an
EU5
allocation of issue permissions, which does not exist in •
the country
Management way to ensure the availability and
EU6
reliability of the supply of electricity in short and
28
long-terms.
Management programs at demand’s side, including
EU7
residential, commercial, institutional and industrial •
programs
Research and development related activities and
EU8
expenses aimed at ensuring electricity supply reliability
47, 49 and 73
and promoting sustainable development
The Company does not have nuclear electric centers in its
EU9 Supply for decommissioning of nuclear power plants • investment portfolio and, therefore, it is not necessary a
supply for decommissioning
Planned capacity compared to the projection of
EU10
electricity demand in long-term, described by energy •
source and regulatory system
EU11
Average efficiency of generation of thermoelectric
plants, by energy source (%)
•
EU12
Percentage of transmission and distribution loss with
respect to the total energy
•
Global
Pact
106 AES Tietê

EU13
EU14
EU15
EU16
EU17
EU18
Biodiversity of replacement habitats compared to
biodiversity of affected areas
Programs and proceedings which ensure the availability
of qualified workforce
Percentage of employees entitled to retirement in
the next five and ten years, described by functional
category and region
Policies and requirements regarding the employees’
and subcontracted and subcontractor worker’s health
and safety
Days worked by subcontracted and subcontractor
workers engaged in construction, operation and
maintenance activities.
Percentage of contractor and subcontractor
employees who have undergone relevant
health and safety training
•
•
•
EU19
Stakeholder participation in the decision making
process related to energy planning and infrastructure •
development
EU20
Contingency planning measures and management plan
and training programs for disasters/emergencies, as •
well as recovery/restoration plans
EU21
Contingency planning measures, disaster/emergency
management plan and training programs, as well as •
recovery/restoration plans
EU22
Programs, including those in partnership with
government, to improve or maintain access to
•
electricity services
EU23
Programs, including those in partnership with
government, to improve or maintain access to
•
electricity and customer support services
EU24
Practices aimed at addressing language, culture, low
literacy and special needs barriers to accessing and •
safely using electricity and customer support services
EU25
Number of accidents and fatalities among users of
the service involving company assets, including legal
judgments and settlements, in addition to pending
•
legal cases related to diseases
EU26
Percentage of the population unattended in regulated
distribution or service areas
•
EU27
Number of residential disconnections for nonpayment,
broken down by duration of disconnection •
and by regulatory system
EU28 Frequency of interruptions in the power supply •
EU29 Average duration of interruptions in the power supply •
EU30
Average plant availability factor, broken down by
energy source and by regulatory system
•
AES Tietê does not have biodiversity programs regarding
the replacement of habitats of areas affected by the
reservoirs
45 and 92
45; From the safety point of view, 100% of the
professionals who are contracted undergo some type of
instruction or training. All of them are required to take
the standardized Occupational Safety course. Those
professionals hired who operate in the SEP (Electrical
Power System) have all the training that is required by
the legislation to operate in this category, such as NR-10
and CMRDA (Construction and Maintenance of Aerial
Distribution Network).
Indicator answered in full Indicator answered to a partial degree • Indicator not reported
Sustainability Report 2011
107

KPMG Risk Advisory Services Ltda.
R. Dr. Renato Paes de Barros, 33
04530-904 – São Paulo, SP – Brasil
Caixa postal 2467
01060-970 - São Paulo, SP – Brasil
Central Tel 55 (11) 2183-3000
Fax Nacional 55 (11) 2183-3001
Internacional 55 (11) 2183-3034
Internet www.kpmg.com.br
Limited assurance report of the independent auditors
To
The Board of Directors and the Other Interested Parties of
AES Tietê
São Paulo – SP
Introduction
We were engaged to perform limited assurance procedures to the information disclosed in the report “3 rd Dialogue Cycle with AES Stakeholders” for the
fiscal year ended December 31, 2011, prepared under the responsibility of the company’s management.
Our responsibility is to provide a limited assurance report in relation to this information.
Procedures applied
Our limited assurance work was carried out in accordance with the Brazilian Standard NBC TO 3000 – Assurance Engagements Other than Audit
and Review, issued by the Federal Accounting Council (CFC), and with ISAE 3000 – the International Standard on Assurance Engagements, issued by
the International Auditing and Assurance Standards Board – IAASB, both for assurance engagements other than audit or review of historical financial
information.
The limited assurance procedures included: (a) planning the work, taking into consideration the relevance, the coherence and the volume of quantitative
and qualitative information along with the operating systems and internal control systems that serve as a basis for the preparation of the report “3 rd
Dialogue Cycle with AES Stakeholders”; (b) obtaining an understanding of the engagement methodology and of the consolidation of the indicators by
means of participation in dialogue panels with the stakeholders that took place between October and November of 2011; and (c) comparing, on a test
basis, the qualitative information with the information disclosed in the “3rd Dialogue Cycle with AES Stakeholders”.
Preparation Criteria of the information
The information disclosed in the report “3 rd Dialogue Cycle with AES Stakeholders” was drawn up in accordance with the guidelines for sustainability reports
issued by the Global Reporting Initiative (GRI G3) and with the principles of the AA 1000 APS standard (2008).
Scope and Limitations
The objective of our work was to apply limited assurance procedures to the information disclosed in the report “3 rd Dialogue Cycle with AES Stakeholders”,
not including the assessment of the suitability of its sustainability policies, practices and performance.
The procedures applied do not represent an examination in accordance with Brazilian and international audit regulations. In addition, our report does not
provide limited assurance regarding the extent of future information (such as for example targets, expectations and ambitions) and descriptive information
which is subject to subjective evaluation.
Conclusion
Based on our review, we are not aware of any significant change that should be made to the information included in the report “3 rd Dialogue Cycle with AES
Stakeholders” for the fiscal year ended December 31, 2011 in order for this information to be prepared in accordance with the records and files that served
as a basis for its preparation.
São Paulo, April 17, 2012
KPMG Risk Advisory Services Ltda.
CRC 2SP023233/O-4
Eduardo V. Cipullo
Accontant CRC 1SP135597/O-6
KPMG Risk Advisory Services Ltda., a Brazilian limited liability
company and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity.
108 AES Tietê

Sustainability Report 2011
109

Credits
Overall Coordination
Paulo Camillo Vargas Penna
Vice-President of Institutional Relations, Communication and Sustainability
Márcia Magno
Executive Communication and Sustainability Board
Content Guidance
Luciana Alvarez
Sustainability Management
Content coordination
Luiz Pires
Expert in Sustainability
GRI consultancy services, wording and edition
Comunication Report
Revision
Assertiva Produções Editoriais
English version
Brauns&Brauns Language Consultancy
Graphic project, layout development and graphic production
Report Comunicação
Infographics and illustrations
Flávia Ocaranza
Photos
AES Brasil’s Image Bank
Na Lata Photograph Agency
Typefaces
Bliss (Jeremy Tankard Typography, 1998)
Claire Hand (Studio Teamscope, 2011)
110 AES Tietê