Energias do Brasil SA and subsidiaries - EDP no Brasil | Investidores

EDP – Energias do Brasil S.A.
and subsidiaries
Consolidated financial statement
December 31, 2009 and 2008

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
MANAGEMENT REPORT 2009
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2009 MANAGEMENT REPORT
2009 was a decisive year for the future of EDP Energias do Brasil. In an external environment
marked by the volatility of the markets and credit restrictions, we made significant changes in the
Company, making it stronger and more competitive, and continued to travel our strategic path of
oriented growth, superior efficiency and controlled risk.
Naturally, our operations were subject to the uncertainty scenario triggered by the international
financial crisis, and sought to prioritize the maintenance, as far as possible, of operating profit
margins and to ensure the financing required for our expansion plan.
We advanced in our strategic determination to increase revenues. We opened Pequena Central
Hidrelétrica de Santa Fé, in Espírito Santo State, proceeded with the construction of the Pecém
Thermoelectric Plant, in Ceará State, in strict compliance with the schedule established, moved
forward with the repowering projects of three other plants, and, in partnership with EDP
Renováveis S.A, launched the implementation of the new wind power park of Tramandaí, to be
constructed in Rio Grande do Sul State. This venture falls within the commitment we made to
expand our renewable energy portfolio.
In order to properly guarantee our growth plan, we obtained financing from the Brazilian Bank for
Economic and Social Development - BNDES ( (R$ 1.4 billion) and the BID (US$ 327 million) for the
Pecem I Thermoelectric Power Plant; we also obtained from the BNDES a credit line of R$ 900
million of the credit revolving facility type, an innovation in the electric energy sector, and issued
Promissory Notes in the amount of R$ 230 million. The success of these transactions in a year
marked by a financial crisis evidenced the recognition of our financial strength by the capital
market. Incidentally, this recognition was reinforced by the assignment of the investment grade
rating to our Distributors EDP Bandeirante and EDP Escelsa by Moody's rating agency.
The company also drew more attention to itself through the public stock offering corresponding to
9.9% of total capital, which had been held in treasury since late 2008. Demand was four times
greater than supply. We attracted new investors from Brazil, USA, Canada and several European
countries, increasing the diversity of our shareholding portfolio. We raised R$ 441.8 million, an
amount we immediately used to reduce and extend our debt, making it cheaper. Further, we
significantly increased the liquidity of our shares on the Stock Exchange.
Within the company, our actions were based on the challenge of promoting changes to our
employees' behavior and efficiency gains, which are key aspects of the Business Transformation
Program we launched: "Winning Program". This Program entailed the reduction of hierarchical
levels and area heads, a revision of production processes and the development of a new business
philosophy. Under this Program, we established management commitments among Executive
Officers and each of the persons responsible for the Company's units, defining individual
audacious aspirations and targets directly related to the Company's transformation.
In addition to this internal transformation, which was beneficial for the health, competitiveness and
strength of our Company, 2009 was, beyond doubt, a positive year for the other relationship
publics. 2009 was the year when we fully consolidated the EDP brand in the Brazilian market. We
believe to have consistently evolved from various perspectives, consolidating what it means to be
"EDP".
The returns delivered to stockholders were better than those for 2008. Operating revenue reached
R$ 4.65 billion, a figure which is consistent with that recorded in 2008; manageable expenses
decreased by 10% as compared with 2008; EBITDA grew by 4%, reaching R$ 1.42 billion; net

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2009 MANAGEMENT REPORT
income amounted to R$ 625 million, an increase of 61% over that for 2008; this results not only
from our good operating performance, but also from the sale of our ownership interest in the
company ESC 90 Telecomunicações, fulfilling our goal of concentrating our operations in our main
business.
This good performance was reflected in the quotation of the shares of EDP Energias do Brasil on
the stock exchange, which appreciated by 60% during the year.
We invested in programs and revised processes to improve our relationship with customers, with
initiatives included in the Mais Cliente Project. We carried out Energy Efficiency projects aimed at
lower income customers and health institutions, which involved the distribution of 263 thousand
efficient bulbs, the regularization of 13 residential connections, enabling a global saving of over
27,000 MWh per year.
As far as our suppliers are concerned, we intensified our partnerships and made our goods and
service purchase processes more encompassing and competitive.
In the environmental scenario, we increased the commitment of all employees to the Econnosco
Project, which combines the raising of awareness of our employees to responsible consumption
and the saving of natural resources. As regards the community, the projects of the EDP Institute
placed emphasis on education and local development through initiatives which consolidate our
closeness with the communities, and served over 157 thousand people throughout 2009.
For the fourth consecutive year, we were named to the BM&BOVESPA Sustainability Index, having
attained a score of excellence in 3 of the 6 categories which comprise this index.
In preparation for the future, we launched the 2020 EDP Program aimed at promoting, within and
outside the Company, innovation and entrepreneurship in the electric energy sector. To this
program, we associate the award we consider as the largest one in Brazil. Over the next ten years,
we intend to award prizes to the ideas and projects which contribute toward the creation of new
patterns in the electric energy sector. Under the EDP 2020 Program, we intend to combine today's
flexible approach to the indispensable long-term vision in order to ensure the Company's
sustainability.
We are now faced with the challenges of completing and extending the transformation started in
2009, revising and improving our processes, developing the ongoing growth projects and
increasing compliance of the entire Company with our strategy.
We enthusiastically work under the belief that we can make EDP a company which fully satisfies its
Customers, Stockholders, Employees, Business Partners, the Society and the Communities in
which we operate in 2020 and all the years before and after that.
António Pita de Abreu
Chief Executive Officer
CORPORATE ORGANIZATION CHART
EDP Energias do Brasil is a holding company with investments in the electric energy sector,
consolidating generation, distribution and trading assets in six states: The Company operates in
the energy generation sector in six Brazilian states (Espírito Santo, Mato Grosso do Sul, Tocantins,
Ceará, Santa Catarina and Rio Grande do Sul) and in the distribution sector in two Brazilian states
(São Paulo and Espírito Santo).

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2009 MANAGEMENT REPORT
A subsidiary of EDP Energias de Portugal, one of the largest European operators in the energy
sector, EDP Energias do Brasil went public in the New Market of the São Paulo Stock Exchange in
July 2005, adhering to the highest standards of corporate governance. The organization chart
below summarizes the Group's current ownership structure:
MACROECONOMIC SCENARIO AND THE ELECTRICITY SECTOR
2009 was marked by instability moments in the international economic scenario arising from the
financial crisis that emerged in 2008. In order to cope with the crisis, the Brazilian government
adopted measures to encourage consumption, such as the reduction of the core interest rate (with
the core interest rate - the SELIC rate - at its lowest historic threshold - 8.75% per year), the grant
of new tax incentives (Federal VAT (IPI) reduction for cars and household appliances),
infrastructure investments and credit expansion. Data on the third quarter showed that Brazil's
GDP dropped 1.2% as compared with the same quarter of 2008; however, it grew by 1.3% as
compared with the second quarter of 2009. For 2009, we expect no growth in relation to 2008.
ENERGY CONSUMPTION
The national electric energy consumption in the network totaled 388,204 GWh in 2009, a decrease
of 1.1% as compared with 2008. The Brazilian electric energy market suffered the strong impact of
the world financial crisis, but its effects were concentrated in the industrial class as a consequence
of the immediate and severe downturn in the activities of this sector.
The domestic demand, on the other hand, remained strong, mainly as a result of the measures
taken by the government to mitigate the effects of the crisis, among which is the lowering of taxes
and taxes on cars and household appliances, interest reduction and credit expansion. Accordingly,
despite the crisis, the consumption of the residential and business classes increased by
approximately 6% in 2009 as compared with 2008.

REGULATORY ENVIRONMENT
TARIFF REVIEWS
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2009 MANAGEMENT REPORT
In 2009, pursuant to methodology set forth in Resolution 338/2008, the Brazilian Electricity
Regulatory Agency - Aneel approved on a definitive basis the periodic tariff reviews of the
distributors of EDP Energias do Brasil.
EDP Escelsa – On October 6, 2009, ANEEL permanently ratified the Escelsa's fourth periodic
tariff review (period of August 2007- August 2010), the main changes introduced, in view of what it
had established temporarily in 2007 and 2008, were:
(i) Company of Reference: went from R$221 million to R$210 million. On May 12, 2009, as a result
of Public Inquiry nº 035/2009, Aneel had published a value of R$ 202 million;
(ii) Xe Component of X Factor: index used in the calculation of the annual tariff readjustments, was
altered from 1.45% to 0.00%;
(iii) Percentage of Unrecoverable Losses of Income: it was altered from 0.50% to 0.60% of the pretax
income (with taxes).
These alterations are retroactive to August 07, 2007 and the values of the Gross and Net
Regulatory Remuneration Bases were maintained.
ANEEL decided on the administrative appeals lodged previously by EDP Escelsa, against
Homologatory Resolution 528/2007 and Homologatory Resolution 686/2008, relating to provisions
related to the Tariff Structure, the Supply Revenue and to adjustments in the calculation of deficit
of the Luz para Todos (“Light for All”) Program.
Having computed all the effects, the tariff review index, approved by Aneel is –-6.44 %, substituting
the temporary amount, set in August 2007, of - 6.92%.
EDP Bandeirante - On October 6, 2009, Aneel approved on a definitive basis the second periodic
tariff review of EDP Bandeirante (period October 2007-October 2011), whose principal changes in
relation to prior provisional decisions made in 2007 and 2008, are as follows:
(i) Company of Reference: goes from R$263 million to R$247 million. On July 13, 2009, Aneel
disclosed, as result of the Public Consultation nº 047/2009, a value of R$235 million;
(ii) Xe Component of X Factor: an index used in the calculation of the annual tariff readjustments,
altered from 0.74% to 1.01%;
(iii) Percentage of Unrecoverable Losses of Income: goes from 0.50% to 0.60% of the pre-tax
income (with taxes).
These alterations are retroactive to October 23, 2007 and the values of the Gross and Net
Regulatory Remuneration Bases are maintained.
Having computed all the effects, the tariff review index, now approved by Aneel is - 9.79%,
substituting the temporary amount, set in October 2007, of - 8.80%.
TARIFF ADJUSTMENTS
EDP Escelsa – On August 04, 2009, Aneel approved the average readjustment of electricity tariffs
of EDP Escelsa in 15.12% for the period from August 7, 2009 to August 6, 2010. Considering the
financial adjustments already included in the EDP Escelsa's tariffs, related to the recovery of prior
periods, the average tariff readjustment in electric energy bills will be 10.01%.

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2009 MANAGEMENT REPORT
As defined by Aneel, this adjustment also considered the percentage difference in view of the
definitive approval of EDP Escelsa's tariff review occurred on July 28, 2009.
EDP Bandeirante - At the public meeting held on October 21, 2008, Aneel approved the average
adjustment of EDP Bandeirante's tariff from 5.46% for the period from October 23, 2009 to October
22, 2010, where 3.11% refers to the economic annual tariff adjustment and 2.35% refers to
financial items, which, including the effect of the financial items withdrawn from the basis, of
4.44%, correspond to an average effect to be perceived by captive consumers of 1.02%.
As defined by Aneel, this adjustment also included the percentage difference in view of the
definitive approval of EDP Bandeirante's tariff review occurred on October 6, 2009.
AUCTIONS
On August 27, 2009, Auction A-3 was carried out, which sold only average 11 MW at average sale
price of R$ 144.5/MWh. Energy of two power plants, a PCH and a thermal sugarcane power plant,
was negotiated. Of the total amount sold, only average 1 MW refers to hydric source, derived from
the expansion of PCH Rio Bonito, in Santa Maria da Vitória river, ES. There was no negative
goodwill and the PCH's energy was sold at R$ 144/MW, under a 30-year agreement. The thermal
power plant winner of the auction was UTE Codora, which sold energy with ICB (cost-benefit rate)
of R$ 144.60/MWh, for 15 years.
On December 8, 2009, the Ministry of Mines and Energy - MME decided to cancel Auction A-5,
scheduled for December 21, 2009. According to the MME, the cancellation was due to the failure
to obtain, within the period required for the auction, the previous environmental license for granting
of concession for operation of seven hydroelectric resources, totaling 905 MW of installed power.
In addition, it was noted that the demand to the market of the distributors, as of 2014, was not
significant, and could be covered by the energy to be contracted in Auction A-3 of 2011.
On December 14, 2009, the first auction exclusively of wind power was conducted, valid for 20
years, commencing on July 1, 2012. 753 lots of 1 megawatt (MW) were negotiated at the average
price of R$ 148.39 MWh. The 71 winning projects will be installed in Sergipe, Ceará, Rio Grande
do Norte, Bahia and Rio Grande do Sul.
ALTERATIONS OF A CORPORATE NATURE
CENAEEL – On February 2009, EDP Renováveis Brasil S.A., of which 45% is held by the Company,
concluded the acquisition of Cenaeel, holder of the wind turbine farms of Água Doce (9.0 MW) and
Horizonte (4.8 MW), located in the State of Santa Catarina.
ESC 90 – On June 2009, the sale of all the quotas of ESC 90 Telecomunicações Ltda. to Net
Serviços de Comunicação S.A
ELEBRÁS - In July 2009, it was concluded the acquisition of Elebrás Projetos Ltda., which holds
several wind projects in Rio Grande do Sul.
INVESTCO/LAJEADO - In November 2009, it was concluded the corporate reorganization of
Tocantins Energia S.A, EDP Lajeado Energia S.A. and Lajeado Energia S.A. ("Tocantins", "EDP
Lajeado" and "Lajeado Energia", respectively). The purpose was to allow the rationalization and
simplification of the corporate structure and activities of EDP Lajeado and Lajeado Energia, also in
view of the conduction of business and management of assets of the common invested company,
Investco, bringing administrative, economic and financial benefits, reduction of expenses and
combined operating expenses and improved cash flow. As a result, the ownership interest directly
held by EDP Lajeado and Lajeado Energia in Investco were held exclusively by Lajeado Energia.

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2009 MANAGEMENT REPORT
EDP Energias do Brasil became holder of 55.86% of the total capital of Lajeado Energia, which, in
turn, holds 62.43% of the total capital of Investco.
BUSINESS AREAS
(*) The operating information has not been reviewed by the Independent Auditors.
GENERATION
Main strategic vector for the growth of business of EDP Energias do Brasil, the generation area
ended the year 2009 with installed capacity of 1,738 MW. The growth in relation to the 1,702 MW
installed capacity in 2008 was mainly due to the start-up of operations of the Small Hydroelectric
Plant (PCH) of Santa Fé of 29 MW, conclusion of the purchase of Cenaeel and conclusion of the
repowering of UHE Suíça.
Enerpeixe – Participates with 60% of the capital in the hydroelectric power plant Peixe Angical,
located on Rio Tocantins, constructed in partnership with Furnas Centrais Elétricas. The installed
capacity of the plant is 452 MW.
Energest – Directly and indirectly controls the electric power generation assets of EDP Energias
do Brasil owning 15 plants in service, with total power of 371.2 MW. The plants are located in the
States of Espírito Santo (303.0 MW of installed capacity) and Mato Grosso do Sul (68.2 MW of
installed capacity). Energest is also responsible for the management of the hydroelectric plants
Mascarenhas and Suíça and of the PCH Santa Fé, such as the Small Hydroelectric Power Plants
belonging to the companies Cesa, Costa Rica and Pantanal Energia.
Investco – Its activity consists of the exploration of Usina Hidrelétrica Luis Eduardo Magalhães
(“UHE Lajeado”), located in Rio Tocantins, in the municipalities of Lajeado and Miracema do
Tocantins, state of Tocantins. The Plant has installed power of 902.5 MW, distributed around five
generator units with power of 180.5 MW each.
Lajeado Energia - After the corporate reorganization, EDP Energias do Brasil became holder of
55.86% of total capital. In turn, Lajeado Energia became holder of 73.0% of the voting capital and
62.43% of the total capital of Investco. The division of the sum of electric energy traded occurs in
proportion to interest in the voting capital.
Cenaeel – Acquired in June 2008, it has two wind farms in service in Santa Catarina, totaling 13.8
MW of installed capacity. 45% indirectly held by the Company.
In the accumulated of the year, the volume of energy sold totaled 7,985 GWh, an increase of 25%
against 6,411 GWh in 2008 due to the consolidation of the volume sold by Lajeado Energia and
Investco (+1,419 GWh) during the entire year of 2009 and the beginning of delivery of energy by
PCH Santa Fé (+140 GWh).
Investments in generation totaled R$ 409.8 million in 2009, 31.2% inferior to the year 2008. The
variation of the investment is explained as follows: (i) conclusion of the works of PCH Santa Fé; (ii)
investments for the repowering of Energest; (iii) investments for the construction of UTE Porto do
Pecém; and (iv) investments in UHE Peixe Angical with the charge transformer and higher
amounts invested in the plant reservoir due to environmental reasons.
The net revenue from the generation business, disregarding eliminations, amounted to R$ 983.7
million, growth of 25.1% in comparison with 2008. The EBITDA, of R$ 734.9 million, recorded
growth of 29%. The net income increased 18.7% in relation to 2008, totaling R$ 341.7 million.

PROJECTS UNDER CONSTRUCTION
UTE PORTO DO PECÉM I
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2009 MANAGEMENT REPORT
The strategy to increase the installed capacity of EDP Energias do Brasil also includes the
construction of UTE Porto do Pecém I, in the state of Ceará, in which it holds interest of 50% in
partnership with MPX Energia. UTE Porto do Pecém I will use imported mineral coal and will have
an installed capacity of 720 MW, of which 615 MW were sold by the Group in the A-5 auction held
by the Electric Energy Trading Chamber (CCEE), in October 2007.
The deployment schedule establishes the commercial go-live of the plant before January 2012, the
date on which the energy delivery commitment undertaken in the Regulated Market begins.
UTE Porto do Pecém I is part of the Growth Acceleration Program ("PAC") of the Federal
Government and represents an important step towards diversification of the electric and energy
matrix of Brazil, ensuring the trustability of the offer of electricity in the country. The power plant will
use technology of clean coal burning, complying with the strictest requirements of the Brazilian
legislation and international organizations.
In October 2009, the long-term financing from the National Bank of Economic and Social
Development ("BNDES") and the Interamerican Development Bank ("IBD") was disbursed to UTE
Porto do Pecém I. For further details, see section "Indebtedness".
REPOWERING
In 2009, the repowering of UHE Suíça (2.9MW) and two machines of PCH Rio Bonito (3.8 MW)
were concluded. The conclusion of the repowering of the last machine of PCH Rio Bonito (1.9 MW)
is scheduled for the first quarter of 2010. After conclusion, it will add 5.7 MW to the installed
capacity. The conclusion of the repowering of UHE Mascarenhas (17.5 MW) is scheduled for the
year 2012.

EXPANSION OF CAPACITY
DISTRIBUTION
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2009 MANAGEMENT REPORT
The distribution activities are developed by two concessionaires of the service, which cater to
around 2.7 million customers, in regions that house a total population of approximately 7.8 million
people:
EDP Bandeirante - Operates in the regions of Alto Tietê, Vale do Paraíba and Litoral Norte of the
state of São Paulo, where there is a base of 1.5 million clients, covering a population of around 4.6
million inhabitants in a total area of 9.6 thousand Km 2 . The region concentrates companies from
important economic sectors, such as aviation and paper and pulp manufacture.
EDP Escelsa - has 1.2 million clients and covers a population around 3.2 million inhabitants, in a
total area of 41.2 thousand Km 2 , which represents approximately 90% of the total State area. The
main economic activities of the region are iron metallurgy, iron mining, production of paper, oil and
gas.

OPERATING PERFORMANCE
DISTRIBUIÇÃO
Captive Market
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2009 MANAGEMENT REPORT
• Energy sold to end customers: had a growth of 1.5% in 2009, leveraged by the growth of the
residential and commercial classes and by the recovery of the industrial class;
• Residential and Commercial: grew due to a higher number of clients and higher consumption
per capita, incentivated by tax benefits granted by the federal government for purchase of
electric-electronic apparels;
• Industrial: recorded a decrease of -6% in 2009, as a result of lower production level by the
industries affected by the global crisis. However, there was a recovery in consumption over
2009.
Free Market
• Energy in transit: in 2009, it was mainly affected by the global crisis, which reflected in the
reduction of processed products of export clients. However, despite the decrease
there was a recovery of consumption by these consumers over 2009;
• In general, the reductions in the contracted demand of free clients, which could cause
reduction of revenue, no longer represented a threat to the business, due to the
cancellation of many reduction requests and due to the demand increases requested in the
period, and offset the reductions actually made.
INVESTMENTS
Volume - MWh Chg. Clientes (unid.)
Chg.
12M09/ 12M09/
12M08 12M09 12M08
12M08 12M08
Residencial 4,704,227 4,402,483 6.9% 2,282,266 2,209,541 3.3%
Industrial 3,906,216 4,156,412 -6.0% 20,876 20,098 3.9%
Comercial 2,781,321 2,642,237 5.3% 191,440 186,957 2.4%
Rural 609,038 625,410 -2.6% 150,226 145,677 3.1%
Outros 1,425,446 1,399,027 1.9% 22,803 20,299 12.3%
Energia Vendida Clientes Finais 13,426,248 13,225,570 1.5% 2,667,611 2,582,572 3.3%
Suprimento convencional 417,047 404,224 3.2% 1 1 0.0%
Suprimento 32,878 - -100.0% 2 - -
Energia em trânsito (USD) 7,423,297 8,563,206 -13.3% 107 105 1.9%
Consumo próprio 13,695 12,765 7.3% 253 222 14.0%
Total Energia Distribuída 21,313,165 22,205,766 -4.0% 2,667,974 2,582,900 3.3%
Note:
Other = Public entities + Public lighting + Public services
UDS: Usage of the Distribution System
12M09
Market Evolution
The investments made by EDP Energias do Brasil in distribution in 2009 amounted to R$ 369.0
million, a reduction of 22.9% in relation to 2008.
Of the total, (i) R$ 159.5 million (43%) were set aside for the expansion of lines, substations and
distribution networks for connection of new customers and in the installation of measurement
systems; (ii) R$98.4 million (27%) were allocated to the network improvement for replacement of
equipment, obsolete and depreciated meters, reconductoring of networks at the end of their useful
lives; (iii) R$ 43.4 million (12%) were set aside for urban and rural universalization and for
Programa Luz para Todos (Light for All Program), favoring the connection and the access of

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2009 MANAGEMENT REPORT
consumers to the electricity services; and (iv) R$ 67.6 million (18%) were invested in
telecommunications, IT and other activities.
Investments (R$ thousand) EDP EDP Total Total
Bandeirante Escelsa 2009 2008*
Network expansion 66,267 93,278 159,545 151,117
Network improvement 52,136 46,302 98,438 107,341
Universalization (rural+urban) 10,809 32,637 43,446 85,037
Telecom, IT and Others 18,353 49,214 67,567 135,392
Sub-Total 147,565 221,431 368,996 478,887
(-) Special Obligations (9,962) (37,918) (47,880) (32,662)
Net investment 137,603 183,513 321,116 446,225
*Includes R$ 90.4 million related to investments made in Enersul
LUZ PARA TODOS (LIGHT FOR ALL) PROGRAM
In 2004, the federal government commenced “Programa Nacional de Universalização do Acesso e
Uso da Energia Elétrica – Luz para Todos" (National Program for Universal Access to and Use of
Electric Energy – Light for All) with the objective of taking electricity to the rural population. The
Program is coordinated by the Ministry of Mining and Energy with the participation of Eletrobrás
and of its subsidiary companies.
The EDP Bandeirante gave the economic and social development of the rural areas where it
operates a strong push, having thus far served 10,295 customers. In 2009, 1,420 connections
were made.
At EDP Escelsa, the Light for All Program connected 6,581 consumer units, in compliance with the
goal agreed with the MME.
INTEGRATION PROJECT
The Integration Project, one of the most important projects of unification of Energias do Brasil
Group's systems, lasted three years (June 2006 to June 2009), and was developed in two principal
separate phases (Wave 1 and Wave 2).
Wave 1 was implemented in November 2007 and refers basically to the update of SAP R/3
(administrative, financial and HR systems) version plus BW (management reports) in all the
companies of the Group, as well as the implementation of CRM (commercial-attendance system)
and technical and functional upgrade of CCS (commercial systems) version at EDP Bandeirante.
Wave 2, implemented in June 2009, comprised the principal stage of this project, which was the
implementation of the new commercial system (CCS/CRM) at EDP Escelsa.
Thus, the process of "Unification of Management Systems" (administrative, technical and
commercial) of the Group in Brazil was concluded.
QUALITY
The service rendering quality indicators remained within the limits of the standards established by
the regulatory agency, reflecting investments in network expansion and modernization, the
integration and automation of operating centers.

QUALITY INDICATORS
Distributor DEC
2009
FEC
TMA
(hours) (times) (minutes)
EDP Bandeirante 12.8 6.4 186
EDP Escelsa 11.4 6.9 190
DEC: Equivalent Duration of Interruption by Customer;
FEC: Equivalent Frequency of Interruption by Customer;
TMA: Average Service Delivery Time
COMMERCIAL LOSSES
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2009 MANAGEMENT REPORT
Commercial losses increased in the two distributors in relation to December 2008, of 0.53 p.p. at
EDP Bandeirante and 1.55 p.p. at EDP Escelsa. In both distributors, there was a decrease in the
physical volume of technical losses. However, there was an increase in the percentage of Escelsa
due to the lower volume of energy distributed to captive industrial clients.
In 2009, the distributors of EDP Energias do Brasil, EDP Bandeirante and EDP Escelsa, disbursed
a total of R$ 37.1 million in programs to curb losses. Of the total sum of resources allocated to
these programs, R$ 22.3 million were for operating investments (replacement of meters,
installation of special network, remote metering and correction of clandestine connections) and R$
14.8 million for manageable expenses (inspections and removal of irregular connections).
In 2009, our concessionaires performed approximately 174 thousand inspections that resulted in
the removal of about 115 thousand clandestine connections and recovery of revenues around R$
25.1million. We point out that to analyze the efficiency of the initiatives to curb commercial losses,
we would have to consider, not only recovered revenues but also the cost of opportunity of not
having actions directed to prevent fraud and illegal connections.
The consolidated net revenue of EDP Bandeirante and EDP Escelsa totaled R$ 3,472.4 million, a
growth of 9.1%. EBITDA (Earnings before taxes, financial income or expenses, depreciation,
amortization and non-operating income) amounted to R$ 748.1 million, 10.5% greater than the
previous year. Net income totaled R$ 366 in 2009, growth of 11.6% in relation to 2008.
SALES
12.0%
6.6% 6.7%
Electricity Losses
average of the last 12 months
12.5% 12.4% 12.4%
5.4% 5.8% 5.7% 5.9% 6.3%
6.7% 6.5%
Enertrade is responsible for the energy trading activities and rendering of services to the free
market, both inside and outside of the concession areas of the two distributors of EDP Energias do
Brasil that operate in the regulated market.
6.6%
Dec 2008 Mar 2009 Jun 2009 Sep 2009 Dec 2009
Commercial Technical
12.9%

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2009 MANAGEMENT REPORT
In 2009, energy sold totaled 8,586 GWh against 7,282 GWh in 2008, a growth of 18%.
The growth in the volume sold is the result of a strategy implemented over 2009 of benefiting from
the opportunities in the short-term segment, in addition to contracts sold in the Adjustment Auction,
which made Enertrade reach monthly records of energy sold. Another factor that contributed to the
favorable result was the different recovery pace of production in several economic sectors, which
allowed the power industry to present good opportunities for sale, mainly in the short term.
Net revenue totaled R$ 763.2 million, growth of 7.8%. EBITDA was R$ 35.5 million and net income
totaled R$ 25.0 million in 2009.
The balance of Supply of energy includes amounts billed against Ampla Energia e Serviços S.A.
totaling R$ 57,3, whereas of this sum R$27.7 million refers to a right obtained by an arbitral award
of March 2009 issued by Câmara FGV de Conciliação e Arbitragem. This arbitration judgment
recognizes that the contract in the period from August 29, 2006 to March 13, 2009 was charged
with encumbrance, and that Ampla failed to comply with the price defined in the period from
November 15, 2003 to August 28, 2006. The Company recognized the collection in an onerous
manner, rectifying operating revenue at R$ 41.4 million and annulling the corresponding allowance
for doubtful accounts, without an impact on operating income (expenses). Having Ampla failed to
recognize the effects of the arbitration judgment, the Company decided to record an allowance for
doubtful accounts for the amount under discussion, accounted for in the statement of income for
the year under Allowance for Doubtful Accounts.
This contract with Ampla does not affect the Ebitda, but results in lower Net Revenue and margins.
The decrease in Ebitda and net income by 30% results from a lower sales margin due to the
financial crisis and unusual hydrological condition. Opposite to the result of 2009, in 2008
Enertrade had good margins, having taken advantage of the high prices of the Price of Settlement
of Differences (PLD) in 1Q08 due to the delay of rains and expectation of strong economic growth.
During the year, Enertrade began to implement the area of technical and commercial services, and
closed the year with 25 new clients. The purpose of the commercial company is to open new
markets and to support clients in the provision of services, such as construction of substations,
lines, branches and electrification of condominiums.
ANALYSIS OF ECONOMIC/FINANCIAL PERFORMANCE
• Consolidated Revenue
In 2009, net operating revenue totaled R$ 4,648.3 million, virtually in line with the same period of
the prior year. The main determinant conditions of the growth of net revenue in 2009 were:
• In generation:
-Growth of 24.6% in the volume of energy sold mainly due to the consolidation of the volume sold
by Lajeado Energia and Investco (+1,419 GWh) during the entire year of 2009 and the beginning
of delivery of energy by PCH Santa Fé (+140 GWh); and
- Average increase of 3.3% in tariffs practiced.
• In distribution:
- Growth of 1.5% in the volume of energy sold to end customers was due to the growth of the
residential and commercial classes and by the recovery of the industrial class;
- Increase of average tariffs due to tariff adjustments at EDP Bandeirante and EDP Escelsa;
- Volume of energy in transit in 2009 was 13.3% lower compared to 2008, mainly due to the global
crisis. However, revenue from the use of the distribution and transmission system (TUSD) grew

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2009 MANAGEMENT REPORT
6%, since major part of revenue from free clients refers to the contracting of use of the network, as
well as tariff adjustments.
• In trading:
- The growth of 17.9% in the volume of energy sold explains the 7.8% increase in net revenue,
which totaled R$ 763.2 million.
Revenue from the use of the distribution system - other (TUSD - other) amounted to R$ 559.4
million, or 6% above the amount recorded in 2008, despite the financial crisis and lower
consumption by free clients.
• Consolidated Operating Expenses
Operating expenses totaled R$ 3,533.4 million in 2009, which represents a reduction of 4.3%
over 2008.
Non-manageable expenses are related mainly to the purchase of energy, charges for use of the
electricity network and the inspection fee of Aneel. At the distributors, their tariff coverage is
ensured by the Regulator through the tariff adjustments and mechanism of the Memorandum
Account of Variation of Costs of installment “A” – CVA.
The electricity purchased for resale amounted to R$ 2,169.9 million, virtually stable in the periods
compared, reflecting:
(i) increase in the value of energy purchased from Itaipu (+R$ 17.1 million), despite the decrease in
the quotas allocated to the Group distributors, this increase is mainly due to the appreciation of the
average dollar rate practiced in 2009 compared to 2008;
(ii) increase of energy purchased at energy auction (+ R$ 48.2 million);
(ii) increase of energy purchased of Proinfa (+ R$ 39.3 million);
(iv) short-term energy CCEE (-R$ 97.9 million), since in 2008 we had the combination of two
effects: higher purchase of energy at prices higher than those practiced in 2009.
In 2009, the balance of the caption "System service charges" was significantly lower compared to
2008 due to a higher volume of rain in the period resulting in lower need of energy delivered by
thermoelectric power plants by the National Electric System Operator (ONS).
Manageable expenses, excluding depreciation and amortization, exhibited a significant reduction
of 9.8%, amounting to R$ 745.7 million. At the end of 2009, we also presented the 8th consecutive
quarter of reduction in this caption, in line with the announced strategy. The detailed analysis of the
variations of the sub-accounts of manageable expenses is presented below.
The reduction of R$ 14.0 million in the account of personnel expenses results mainly from the
combination of the following effects:
(i) reversal of provision at Bandeirante in December 2008, due to the revaluation of actuarial
calculation based on inflows and outflows, payments and calculations made by specialized
advisory firm regarding the adjustment of the Balance of the Actuarial Liability, procedure that was
not performed in 2009 (+R$ 11.8 million);
(ii) standardization of the Profit Sharing (PLR)/Bonus methodology for recent hires with monthly
accrual of the benefit (+R$ 6.0 million);
(iii) Transformation Program (+R$ 9.7million);
(iv) in February 2008, we made overtime payments against the overtime bank at Escelsa, which
reflected in the comparison with year 2009 (+R$ 3.7 million);
(vi) reduction of personnel and overtime expenses due to the withdrawal of Enersul (-R$ 45.0
million).

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2009 MANAGEMENT REPORT
In the caption materials, the decrease of R$ 22.7 million between the compared periods is mainly
due to the factors below:
(i) in December 2008, we recognized at Bandeirante R$ 11.7 million related to the "Reluz" Program
in Guarulhos, with a corresponding entry in Revenue from Services Provided. We do not have this
effect in 2009;
(ii) reduction of materials due to the withdrawal of Enersul (-R$ 9.3 million).
In the third-party services item, the reduction of R$ 42.2 million includes the effects:
(i) increase in support activities: legal area, call-centers, conservation and repair of the
distributors's networks (+R$ 13.6 million);
(ii) increase in telecommunications and reading/billing expenses (+R$ 8.6 million);
(iii) in all service captions due to the withdrawal of Enersul (-R$ 61.6 million).
In item allowance for doubtful accounts (PDD), the decrease of R$ 40.3 million reflects the
events:
(i) increase of R$ 30.3 million at the distributors, where we highlight at EDP Bandeirante the
recognition over the short-term energy balance accounted for through CCEE (+R$ 11.7 million)
and at Enertrade (+R$ 1.4 million);
(ii) reversal in generation due to the non-use of tax credits at Lajeado and Energest (- R$ 8.2
million);
(iii) in sale, negative variations amount to R$ 51.4 million and reflect the effects of the arbitration
judgement over recent years in connection with the contract with Ampla;
(vi) Enersul: withdrawal due to the swap of assets (-R$ 10.8 million).
And in contingencies, the increase of R$ 14.5 million may be described basically by three effects:
(i) recognition of provision in the parent company for possible losses at Enersul provided for in the
swap agreement (+R$ 20.2 million);
(ii) increase in labor and civil lawsuits at the Group companies (+R$ 5 million);
(iii) swap of assets (-R$ 10.8 million).
In the caption other, the increase of R$ 23.1 million is composed of the following effects:
i) recognition of losses on lawsuits at the distributors (+R$ 22.7 million);
ii) + R$ 4.9 million related to the marketing campaign for disclosure of the new trademark;
iii) adjustment in the tariff charged by the banks for receipt of the electric energy bills (+R$ 1.9
million);
iv) withdrawal of Enersul (-R$ 8.3 million).
• EBITDA and EBITDA Margin
In 2009, the consolidated EBITDA (Earnings before taxes, financial income or expenses,
depreciation, amortization and non-operating income) amounted to R$ 1,418.9 million,
representing an increase of 4.1% in relation to the same prior-year period. The consolidated
EBITDA margin increased 1 p.p., reaching the threshold of 30.5%.
In generation, the operation of swap of assets conducted in September 2008, the increase in
energy tariffs and the start-up of operations of PCH Santa Fé contributed to the EBITDA growth in
2009. The EBITDA of generation, excluding eliminations, amounted to R$ 734.9 million, up 29.0%
over 2008.
At the distributors EDP Bandeirante and EDP Escelsa, EBITDA totaled R$ 748.1 million in 2009, a
growth of 10.5% in relation to 2008. The higher EBITDA of the distribution area was due to the

16
2009 MANAGEMENT REPORT
tariff adjustments made in August 2009 (EDP Escelsa) and October 2009 (EDP Bandeirante). We
point out that the consolidated amounts of 2008 still include Enersul.
In sales, the reduction of EBITDA in relation to 2008 results from the reduction of margin due to the
financial crisis and unusual hydrological condition.
• Financial result
The consolidated net financial result in 2009 was negative by R$ 165.7 million, which represents
an improvement in relation to the negative result of R$ 320.9 million in 2008. The following
contributed toward this result: (i) positive financial revenue due to the recording of R$ 74.8 million
related to the recovery of credits held by the Company against ESC 90; (ii) lower Selic rate
resulting in the reduction of income and expenses; (iii) lower interest on own capital; and (iv) net
foreign exchange result reflects the appreciation of the Real against the dollar.
• Net income
Due to the effects analyzed, consolidated net income attained R$ 625.1 million in 2009, 60.8%
greater than in 2008. This result reflects the positive impact of R$ 121 million in 2009 related to the
disposal of ESC 90 and the negative impact of R$ 129 million in 2008 related to the additional
amortization of goodwill at Enersul.
• Indebtedness
The consolidated gross debt totaled R$ 3,138.3 million in December 2009, virtually stable in
relation to December 2008.
The net debt, adjusted based on cash/investment amounts and on the net balance of regulatory
assets, reached R$ 1,985.3 million in December 2009, which is 19% lower compared to December
2008, mainly due to the increase of the cash/investment balance at the end of 2009. The
consolidated position of cash/investments increased to R$ 1,102.0 million due to the following
factors: a) conclusion of the offer of shares totaling R$ 442 million, which was used for payment of
debt contracted at the time of the swap of assets in the amount of R$ 250 million; b) disbursement
by the BNDES and IDB of long-term loans to Porto do Pecém I, in the amounts of R$ 700 million
and US$ 260 million, respectively. The IDB fund was used to pay the bridge loan of the project; c)
release by the BNDES of R$ 86.4 million to EDP Bandeirante and R$ 103.8 million to EDP Escelsa
in connection with CALC; and d) amortizations of debentures of EDP Bandeirante, EDP Escelsa
and Investco during 2009.
With the payment of debt related to the withdrawal right, the BNDES and IDB disbursements to
Porto do Pecém I, with respective payment of the bridge loan and releases of CALC to EDP
Bandeirante and EDP Escelsa, the average term of the consolidated debt increased from 3 years
to 4.3 years.
Of the total gross debt at the end of December 2009, 7.6% were denominated in foreign currency,
99.2% of which protected against exchange variance by means of hedge instruments, resulting in
net exposure of 0.1%.
Said long-term loan in US$, in turn, has already been subject to the contracting both of exchange
hedge and of an interest rate swap (from Libor to fixed rate).
The average cost of the Group's debt was 7.5% per year. The net debt /EBITDA ratio closed the
month of December at 1.4 times.
Short-term debt amounts to R$ 782 million falling due in 2010. Of this total, R$ 513 million refer to
distribution and R$ 269 million to generation. In distribution, there are promissory notes of EDP

17
2009 MANAGEMENT REPORT
Bandeirante falling due in May in the amount of R$ 230 million and amortization of debentures of
EDP Bandeirante and da EDP Escelsa, totaling R$ 176 million. In generation, maturities refer to
financing operations contracted for the construction of the power plants.
Detail of the financing disbursed in 2009
UTE Porto do Pecém I
The loan with BNDES establishes a loan in the amount of R$1.4 billion (in nominal R$, excluding
interest during construction), with a total period of 17 years, consisting of 14 years of amortization
and grace period for payment of interest and principal up to July 2012. The contracted cost is TJLP
+ 2.77% p.a., and during the construction phase interest will be capitalized. Of this total, R$ 700
million have already been disbursed and used for settlement of the bridge loan in Reais contracted
in February 2008.
The IDB loan amounts to US$ 327 million, of which US$ 260 million has been disbursed. The
amount disbursed consists of US$117 million of the direct loan (“A Loan”) and US$143 million of
the indirect loan (“B Loan”). The amount released corresponds to capex in foreign currency already
incurred plus approximately 75% of the disbursements in foreign currency estimated upon
implementation of the project over the next 6 months.
Still, the financing agreement with BID establishes an A Loan in the total amount of US$ 147
million, and B Loan in the total amount of US$ 180 million, with total term of 17 years in the A Loan
and 13 years in the B Loan, with a grace period for payment of interest and principal up to July
2012. The initial rates of the A Loan and B Loan are Libor + 350 bps and Libor + 300 bps,
respectively, with step ups throughout the period.
The disbursements were used to settle the bridge loan.
Credit Limit Opening Contract - CALC - BNDES
In December 2009, the BNDES released R$ 86.4 million to EDP Bandeirante and R$ 103.8 million
to EDP Escelsa in connection with the revolving credit contracted in 2009 in the amount of R$ 900
million, under Credit Limit Agreement ("CALC").
EDP Energias do Brasil is the first electric power company to obtain this type of direct financing
(without intermediation of a financial agent), created by the BNDES in 2005, aimed at simplifying
the procedures of access to financing facilities to companies or large groups representing low
credit risk.
The resources approved were made available for withdrawal during five years, with total financing
term of each withdrawal of up to ten years. The interest rates are formed in the same manner as
other direct operations at BNDES: financial cost (TJLP in the case of investments in distribution) +
remuneration rate of BNDES + credit rate risk established in accordance with the Group's rating at
BNDES.
EDP Energias do Brasil will use these resources basically for financing the investments of its
distributors (EDP Bandeirante and EDP Escelsa), and for the construction of Small Hydroelectric
Power Plants (“PCHs”) besides the repowering of existing plants.
RATINGS OF EDP ENERGIAS DO BRASIL AND ITS DISTRIBUTORS
On March 4, 2009, Moody's Latin America ("Moody's") raised the Issuer Ratings of EDP
Bandeirante and EDP Escelsa to Baa3 from Ba2 in the global scale and to Aa1.br from Aa3.br in
local scale. At the same time, Moody's raised the issuer ratings in local currency of EDP Energias
do Brasil to Ba1 from a corporate rating in local currency Ba2, and to issuer rating in local scale
Aa2.br from Aa3.br. The outlook for these ratings is stable.
The rise of EDB Energias do Brasil's ratings reflects the improvement of the Company's credit
indicators, the significant role in the growth strategy of EDP Energias do Portugal and the
continuity of healthy cash generation in the medium term.

INVESTMENTS
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2009 MANAGEMENT REPORT
The investments of EDP Energias do Brasil totaled R$ 785.8 million in 2009, 27 below to the funds
allocated to the business areas in the previous year.
In distribution, there was a reduction mainly on account of the withdrawal of Enersul from the
consolidation perimeter of EDP Energias do Brasil.
The variations in generation are as follows: (i) the conclusion of the works of PCH Santa Fé; (ii)
investments for the repowering of the Energest; (iii) investments for the construction of UTE Porto
do Pecém; and (iv) investments in UHE Peixe Angical with the charge transformer and higher
amounts invested in the plant reservoir due to environmental reasons.
THE CAPITAL MARKET
On December 31, 2009, the shares of EDP Energias do Brasil closed at R$ 33.55, presenting an
increase of 60.2% in 2009, performance below the Ibovespa (82.7%) and in line with the Electric
Energy Index - IEE (59.1%). The market value of the Company upon closing of 2009 was R$ 5.3
billion.
The shares were present on all the floors of 2008, with traded volume of 73.7 million and daily
average of 299.7 thousand securities. The financial volume totaled R$ 2,053.8 million, representing
daily average of R$ 8.3 million.
OFFERING OF SHARES
Investments* (R$ million) 2009 2008 Chg.
Distribution 368,996 478,887 -22.9%
Bandeirante 147,565 160,089 -7.8%
Escelsa 221,431 224,765 -1.5%
Enersul - 94,033 -100.0%
Generation 409,307 595,269 -31.2%
Enerpeixe 21,080 12,311 71.2%
Energest 67,348 92,250 -27.0%
Lajeado / Investco 12,368
8,766 41.1%
Santa Fé 41,758 74,936 -44.3%
Pecém 266,753 407,006 -34.5%
Other 7,471 2,217 237.0%
Total 785,774
1,076,373
-27.0%
On October 28, 2009, the Company's Board of Directors approved the realization of the Secondary
Public Distribution of Common Shares.
The offering of shares ended on November 24, 2009, with distribution of 15.5 million shares at the
price of R$ 28.50 per share.
The proceeds from the offering were used to: (i) payment of debt contracted at the time of the
swap of assets involving Lajeado/Investco and Enersul in the amount of R$250.0 million in order to
acquire 13,110,225 shares of the Company, as result of the withdraw right exercised by minority
shareholders; (ii) increase in the financial flexibility and benefit from future investment
opportunities, such as new projects of generation of energy and repowering.
For further details on the offering, see the definitive offering memorandum at our website
www.edpbr.com.br/ri

OWNERSHIP STRUCTURE
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2009 MANAGEMENT REPORT
On December 31, 2009, the Company's capital stock was represented in full by 158,805,204
nominative common shares. Of all the shares, 55,622,847 common shares are free float, pursuant
to the definition of the Listing Regulation of the Novo Mercado (New Market) of Bovespa, are in
circulation. At the end of the year, 280,225 shares were held in treasury.
REMUNERATION OF SHAREHOLDERS
EDP Energias do Brasil has the policy of distributing dividends and/or interest on own capital in the
minimum amount equivalent to 50% of the Company's adjusted net income, calculated in
conformity with article 189 of the Corporation Law, with Brazilian accounting practices and with the
rules of CVM (Securities Commission).
Notwithstanding the adoption of the dividend distribution policy referred to above, the Company
can distribute dividends and/or interest on capital in a sum lower than 50% of its adjusted net
income in any year, when required to do so by legal or regulatory provision or, also, when
recommendable in view of the financial situation and/or outlook of the company, of the
macroeconomic conditions, of reviews and tariff adjustments, of regulatory changes, growth
strategy, contractual limitations and other factors considered relevant by the Board of Directors and
by the shareholders of EDP Energias do Brasil.
In addition, on a date to be defined the Company's Board of Directors will approve in the Ordinary
General Meeting (AGO), the payment of a supplementary dividend of R$ 296,318 thousand,
corresponding to R$ 1.87 per share.
We point out that the shareholder compensation in 2009 will be 13% higher despite the Secondary
Public Distribution of Shares, which were not entitled to revenue in 2008 because they were held in
treasury.
CORPORATE GOVERNANCE
The commitment to best practices in the relationship with its audiences leads EDP Energias do
Brasil to adopt corporate governance characterized by transparency, extension of shareholders'
rights, approval of accounts and ample disclosure of information. To reinforce this mode, the
holding company maintains only common shares (voting) listed, since July 2005, in the Novo
Mercado of Bovespa - the segment of companies that undertake governance commitments in
addition to the determinations of corporation law.
EDP Energias do Brasil is bound by arbitration in the Market Arbitration Panel, pursuant to the
Arbitration Clause contained in its By-laws.
BOARD OF DIRECTORS
The Board of Directors is formed by eight members, including an executive director and four
independent board members, two of whom are appointed by minority shareholders. They are
elected by the General Meeting for a term of office of one year, with possibility of reelection. The
board is responsible for establishing the general policies and guidelines of business, including the
long-term strategy; elect the members of the Board of Executive Officers and supervise its
operations, besides the activities defined by law and in the By-laws of the Company.
The Board of Directors of the Company is currently formed by the following members:
Chairman: António Luis Guerra Nunes Mexia
Vice-Chairman: António Manuel Barreto Pita de Abreu

Board Member Nuno Maria Pestana de Almeida Alves
Board Member: Ana Maria Machado Fernandes
Board Member Francisco Roberto André Gros
Board Member Pedro Sampaio Malan
Board Member Modesto Souza Barros Carvalhosa
Board Member Francisco Carlos Coutinho Pitella
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2009 MANAGEMENT REPORT
The Board of Directors has three Advisory Committees, which are: Audit Committee,
Remuneration Committee and Sustainability and Corporate Governance Committee. They are
responsible for advising the Board of Directors in decisions regarding the subject matters
submitted. All are formed exclusively by three board members that can request information and
suggestions from members of the Board of Executive Officers or from members of Company
Management.
Audit Committee - This committee is responsible for keeping track of and evaluating the external
and internal audit activities, monitoring the business risks and keeping track of accounting and
information transparency practices. Of a permanent nature, it also establishes procedures for
receipt, retention and handling of complaints about subjects received by the Communication and
Denouncement Channel of EDP Energias do Brasil. It is formed by three members, one of them an
independent board member (Francisco Gros, who occupies the position of chairman of the
Committee), one appointed by the controlling shareholder (Nuno Alves) and one appointed by the
minority shareholders (Francisco Pitella).
Remuneration Committee - Collegial deliberative advisory committee, of a non-permanent
nature, with the duty of advising the Board of Directors in decisions relating to the remuneration
policies of EDP Energias do Brasil and of its subsidiaries. Two of its members are appointed by the
controlling shareholder (António Mexia, who presides over the Committee, and Nuno Alves) and
one is an independent board member (Pedro Malan).
Sustainability and Corporate Governance Committee - Of a permanent nature, it is charged
with looking out for the perpetuity of the Organization, with a view of the long term and
sustainability, incorporating considerations of a social and environmental kind in the definition of
businesses and operations. It should also guarantee the adoption of the best practices of corporate
governance and of the highest ethical principles, aiming to increase the value of society, facilitate
access to capital at lower costs and contribute, equally, toward its perpetuity. One of its most
important duties is the proposition of the system for appraisal of the Board of Directors and of its
members, besides the analysis and the monitoring of business between related parties. The
chairman of the Committee is an independent board member (Pedro Malan), and the other two
members are Ana Maria Fernandes, representative of the controlling shareholder, and Modesto
Carvalhosa, appointed by the minority shareholders.
The résumés of the board members can be found on our website www.edpbr.com.br.
BOARD OF -EXECUTIVE OFFICERS
The Board of Executive Officers is formed by four members elected by the Board of Directors for a
term of office of three years. It is responsible for managing business and adopting necessary or
convenient acts, and for executing the decisions of the Board of Directors.
On December 14, 2009, the Board of Directors of the Company approved:
(a) the appointment of Mr. Miguel Nuno Simões Nunes Ferreira Setas to the position of Distribution
Vice President Officer of the Company, since Mr. João José Gomes de Aguiar will take over the
position of President of one of the companies of the EDP Group in Portugal on January 1, 2010;
and

21
2009 MANAGEMENT REPORT
(b) that Mr. Luiz Otavio Assis Henriques will accumulate the positions of Generation Vice-President
Officer and Sales Vice-President Office.
Accordingly, the Board of Executive Officers is composed as follows since January 1, 2010, with
no changes to the mandate of the Company's Board of Executive Officers, that is, up to January 8,
2011:
Chief Executive Officer:António Manuel Barreto Pita de Abreu
Director Vice President of Finance and Investor Relations: Miguel Dias Amaro
Vice President for Generation:Luiz Otavio Assis Henriques
Vice President for Distribution:Miguel Nuno Simões Nunes Ferreira Setas
Vice President for Sales:Luiz Otavio Assis Henriques
Officer of Management Control:Miguel Dias Amaro
The résumés of the officers can be found at our website www.edpbr.com.br.
SUSTAINABILITY AND CORPORATE RESPONSIBILITY
Recognized as one of the 20 model companies in corporate responsibility, EDP in Brazil was listed
for the second consecutive year in the Sustainability Guide of "Exame" magazine. It also received
the Climate Changes Award of "Época" magazine, which honors companies leaders in climate
policies.
These highlights reveal the search for balance between the Company's operations and its strategic
public, with different initiatives to deepen the dialogue, expand and improve practices and
relationships with employees, clients, suppliers, communities, entities and government agencies.
All actions are in line with the Sustainable Development Principles, the Sustainability Policy and
the Ethics Code that guide the Company's operations.
Strategic Public was also involved in the campaign for the Anti-Corruption Day, which covered
behaviors and examples of anti-ethical actions that may occur in the everyday life and included
initiative common to the companies’ members of the Integrity and Anti-Corruption Pact, which is
the case of EDP in Brazil.
As a result of these actions, EDP Energias do Brasil's shares remained for the fourth consecutive
year in the Corporate Sustainability Index (ISE) of the Bovespa and, since 2007, the Company's
Annual Sustainability Report follows the G3 guidelines of the Global Reporting Initiative (GRI),
especially the 2008 report, which reached the A+ level, which is the highest level of GRI
application.
BUSINESS EXCELLENCE MANAGEMENT
The strategy of EDP Energias do Brasil is based on the growth potential of the Brazilian electric
energy sector, especially that of renewable energies. Therefore it is aligned with the country's need
for energy and with the promotion of sustained growth, an essential course for its business. There
are three pillars that define its work and activity: oriented growth, controlled risk and superior
efficiency.
• Oriented growth
(a) In generation: experience in the development and management of generation projects,
combined with our ability to form partnerships with other major companies of the segment,

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2009 MANAGEMENT REPORT
places EDP Energias do Brasil in a strategic position to benefit from opportunities in this
segment, whose opportunities lay in: (i) hydroelectric energy (participation in auctions of new
resources; development of feasibility studies in progress with focus on medium size
hydroelectric power plants and PCHs; and acquisition of existing assets of hydroelectric
energy); (ii) thermoelectric energy (construction of UTE Porto do Pecém I, in Ceará, mineral
coal power plant which will add 360 MW to the installed capacity in 2011); and (iii) renewable
energy (in addition to the feasibility studies of PCHs, the Company has a portfolio of wind
power projects in partnership with EDP Renováveis).
(b) Distribution: concentration of efforts on maintenance of investments in the electric power
distribution system, its organic growth, operating efficiency improvement, and the Company's
preparation for the coming tariff review cycles proposed by Aneel, in order to ensure the
financial balance of our concession agreements and our costs.
(c) Sales: focus on keeping the loyalty of our customers located in and out of our distribution
areas and opting for the condition of "free customers", by providing them with electric power
by means of our energy trader, Enertrade, and advising them regarding solutions for their
energy needs and thus adding value to the services we provide. The trading business is
characterized by having a low fixed cost and offering opportunities of profit generation in
trading margins.
• Controlled Risk: to ensure the creation of value for the shareholders, EDP Energias do Brasil
strives to sustain a high standard in corporate governance and sustainability, which involves
keeping market, financial and regulatory risks under control. In its efforts to create value for its
shareholders, EDP Energias do Brasil positions itself as a core participant in the development of
the Brazilian electric sector, and identifies the best business opportunities in the segments where
it operates, always in a manner that is consistent with its strategic planning and adhering to strict
return on investment criteria. Regarding sustainability, EDP Energias do Brasil has assumed the
commitment to conduct is business and use its resources in a sustainable manner, under
international sustainability standards.
• Superior Efficiency: with the objective of increasing the quality and the efficiency of operations,
the Group's programs observe a strong discipline of investments and aim to maximize operating
efficiency and to guarantee continuous improvement in management quality. Early in 2009, the
Company launched the VENCER ("winning") Transformation Program, for the purpose of
conducting EDP Energias do Brasil to a new and higher performance standard by implementing
a new organizational model, appointing new heads for key areas, revising production processes,
developing a new corporate culture that would induce new personal and professional behaviors,
establishing ambitious goals and profit targets, and carrying out a series of strategic structuring
initiatives for the future. These initiatives are distributed among four strands: “Growth and
Results”, “Organization and Efficiency“, “People and Culture“, and “Innovation and Sustainability“.
The first of the already completed initiatives, included in the strand "Organization and Efficiency",
was implementing an organizational restructuring that allowed: (i) reducing the number of
organizational layers - from five to three; (ii) reducing by 40% the number of managerial
positions; (iii) fostering horizontal mobility for the holders of those positions; (iv) reducing the
average age of management position holders, with a resulting rejuvenation of the top structure;
and (v) reducing personnel costs.
CUSTOMER RELATIONSHIP MANAGEMENT
EDP strives for a continuous improvement of its products and services to ensure customer
satisfaction, health and safety. Modern control systems allow monitoring the network in real time
so as to manage complaints, identify causes and provide prompt action to reestablish the power
supply. In December, the service quality indicator collecting and calculating system received a
recommendation for approval for NBR ISO 9001:2008 certification.

23
2009 MANAGEMENT REPORT
The total number of complaints (including all the Company's channels, Aneel, Justice and
Consumer Defense bodies) had a 1.7% decrease for the year, with a total of 342.5 thousand
occurrences. A statistical report is periodically prepared to consolidate those complaints and feed
the areas with strategic information, allowing process improvements and the correction of possible
deviations.
EDP Bandeirante achieved a significant evolution in customer recognition: 80.6% in the Perceived
Quality and Customer Satisfaction Index of the Brazilian Association of Power Distribution
Companies (Abradee) and 69.6% in the Consumer Satisfaction index of the National Agency of
Electric Energy (Aneel), compared to 72.8% and 67.2%, respectively, in the previous year. At EDP
Escelsa, a minor decrease was observed in both indicators (from 80% to 79.1% in the Abradee
index and from 63.1% to 60.9% in the Aneel index).
Awareness campaigns regarding the hazards and risks of undue use of electric power included
posters and plates affixed in commercial establishments, schools, train stations and public
squares, lectures in schools and kite shows, among other actions, in addition to printed alerts on
electricity bills.
PEOPLE MANAGEMENT
Facing the challenges of working for human growth, creating a stimulating environment and
reinforcing corporate identity and culture, the Company's human resources management
concentrated its focus on the Vencer Program. The initiative resulted in a profound revision of the
organizational structure and was supported by a 360º evaluation of all holders of managerial
positions. As a result, the Company achieved a reduction from five to three hierarchical levels and
management positions were cut down by 40%, rejuvenating the structure and including highpotential
young individuals. At the closing of 2009, the companies of the EDP Group in Brazil
employed 2,362 people.
Contributing toward the well-being of collaborators and maintaining an environment that favors a
productive life have been two of the main concerns of EDP Energias do Brasil. The main projects
in 2009 were:
• "Conciliar": seeks the balance between personal life, family life and professional life of
employees, and also included corporate volunteer actions. That comprises the Runners' Club
and the Sports Festival, both for stimulating the practice of exercise. Thus, the Conciliation
Program deepens its objectives of ensuring equality of opportunity; promote the health and wellbeing
of people; developing competencies; providing incentive to social responsibility and the
practice of volunteering; "Boca Livre": a monthly space for discussion of themes considered as
relevant, such as conscious consumption, climate change, child and slave labor, among other.
Training and Education
In education and training, the initiatives were as follows:
• "Sou EDP": aims to stimulate integration and to bring about alignment between the organization
and its collaborrators, in order to promote greater commitment to results and to guarantee the
execution of the strategy.
• "Jovens de Elevado Potencial" (Youths of High Potential) and "Especialistas de Alta
Performance" (Specialists of High Performance): both with the objective of identifying talents,
defining specific initiatives for the development of competencies and implementing a retention
program.
Safety and Health at Work

24
2009 MANAGEMENT REPORT
In health and safety, action fronts operated with the purpose of expanding awareness of risks and
safe attitudes for employees and service suppliers to carry out their tasks. They comprise the
Unified Project for Occupational Safety and Health and Quality of Living as well as educational,
enablement, monitoring, wearing unified safety equipment, among other measures.
INSTITUTO EDP
The EDP Institute has a platform for relationship with all parties interested in the social and
environmental dimension, and should increase the efficacy of EDP Brazil's work in this area.
Social and cultural programs supported and stimulated by EDP in Brazil have received investments
of R$ 8.5 million, with a focus on initiatives in the areas of education, social work, and local
development. These actions are carried out based on the vision that the Company's influence on
the communities where it operates depends on its contribution for the individuals' educational and
cultural progress, and consequently their economic progress.
Projects to be funded by the Company go through a public selection, which is made based on a
published announcement. One of the evaluation criteria is the possibility of integrating the project
to the Company's business, which is electricity. In 2009, Company-supported social organizations
carried out several actions on that theme, such as lectures, community meetings, leaflets and
events in order to publicize the correct and safe use of electric power.
The following projects merit special emphasis as the most important:
• “Letras de Luz”: in partnership with Victor Civita Foundation, organized theater plays in schools,
and trained teachers to work in reading workshops. This program was the EDP's biggest
incentive to reading in Brazil, with the training of 1,150 multipliers; 33,338 spectators in theatrical
presentations and donation of 202-item libraries to 40 municipalities, totaling 15,480 books;
• “Dentista do Bem“ (Do Good Dentist): offers free dental treatment to low-income children and
adolescents in public schools, through the voluntary work of dental surgeons. EDP Bandeirante,
through the EDP Institute, also sponsored the "Mouth to Mouth" documentary, concerning the
problems of dental health in Brazil.
• “EDP nas Escolas“ (EDP at Schools): benefited 19,760 first to fifth year students in 72
municipal public schools in the states of São Paulo, Espírito Santo, Santa Catarina, Mato Grosso
do Sul and Tocantins, by distributing school kits, and conducted a campaign on dental hygiene
and healthy nutrition. It also made physical improvements in the school facilities.
• ”Programa EDP Solidária” (Solidary EDP Program): supported social projects focusing on
health, education and local development and provided direct services to approximately 17,902
people.
• “EDP in Sports”: provided incentives to karate practicing projects for 100 Down Syndrome
children, and also sponsored the International Judo Challenge, an event carried out by the
Brazilian Judo Confederation in October 2009.
• "EDP Culture Program": carried out projects aiming the dissemination of arts and social
inclusion by arts, in initiatives that have directly affected over 120,000 people.
• The contest "Art with Energy, People Energy and Transforming Energy": distributed awards
to 15 public-school students' drawings, aiming to stimulate the development of creativity and
citizenship, as part of the Company's objective of stimulating the publicizing of the energy theme
through art.

Research & Development (R&D)
25
2009 MANAGEMENT REPORT
The actions developed by R&D are designed to provide more safety, quality and reliability to the
electric system, guaranteeing that society receives the supply of electricity and has facilitated
access at more accessible prices.
In EDP Bandeirante, ten R&D projects were concluded and another twelve commenced in 2009,
maintaining 23 projects under execution, with investments in the amount of R$ 4 million.
Among EDP Bandeirante's projects started this year, EDP Bandeirante's participation in four Aneel
strategic projects related to major issues of the Brazilian electric system and requiring a great
coordinated and joint effort by several companies in the sector.
A project in the final stages of development is an electronic electricity metering module which can
not only measure the power consumed but also cut the power supply and make reconnections
remotely, in addition to identifying frauds and monitoring the end consumer. This product, together
with another device developed by the Company's R&D and already being tested, will be installed in
power distribution poles and will function as a metering center to improve the control of nontechnical
losses, in addition to providing new services to consumers.
Among the projects completed in 2009 we highlight the development of an intelligent device to
reduce power demand by white-line equipment, which will be able to provide significant energy
savings to customer companies.
In consideration of our social responsibility, we have developed a vibrating platform for
osteoporosis prevention, the efficacy of which is being evaluated.
In EDP Escelsa, projects were concluded and another four new R&D projects associated with
another 10 multi-year projects in progress totaled investments of R$ 2.4 million.
Among the projects completed last year we highlight the development of a device for measuring all
energy quality parameters, with remote communication, and implementation of a system for realtime
monitoring. That project also resulted in a prototype meter in study, whose production costs
are lower than those currently found in the market.
Among the projects in the completion stage, we highlight the study of the impacts of the absence of
the neutral conductor in electrical networks, and the proposal of corrective measures for
significantly increasing safety for electricians and users by reducing neutral conductor voltages and
a proper control of touch and step voltages to reduce the possibility of accidents.
Energy Efficiency
For the purpose of increasing customer satisfaction, the Company implemented, in 2008, the
Quality Management System within the Energy Efficiency Program of EDP distribution companies
in Brazil, with an ISO 9001:2000 certification. A highlight in 2009 was the pull-ahead of the upgrade
to the most recent version of the standard (version of 2008), which aims to effectively identify and
manage the Company's several interconnected processes.
The distributors develop regular study programs and energy efficiency projects on facilities of
industrial, commercial and residential customers and public services. The Company's initiatives
targeting lower-income communities are grouped under the programs "Good Energy in the
Community" and "Good Solar Energy in the Community", which have contributed toward energy
use efficiency and reduction of clandestine and irregular installations and consequently energy
losses.

26
2009 MANAGEMENT REPORT
In 2009, 18 energy efficiency projects were completed in public hospitals and charity organizations
in the states of São Paulo and Espírito Santo, providing savings of approximately
1,545 MWh/year in cooling and lighting systems. Among traffic light system modernization
projects, we highlight the one implemented in the city of Taubaté, state of São Paulo, with the
donation of LED lamps which resulted in energy consumption savings of about 90%.
In the state of Espírito Santo, the Efficient Community program covered 61 Greater Vitória districts
and comprised educational actions for the efficient and safe use of energy, installation of 104,598
compact fluorescent lamps, replacement of 103 inefficient refrigerators, donation of 5,904
residential metering boxes and 3,707 kits of electric materials for internal installations. The overall
energy savings amounted to 11,176 MWh/year.
A project developed in partnership with Housing and Urban Development Company (in
Portuguese, CDHU) replaced 1,680 electric showers by solar water heating systems, and installed
9,000 efficient and economical lighting points at a housing complex in the city of Mogi das Cruzes,
state of São Paulo. The result was energy savings of 9,195 MWh/year in lighting systems.
Environmental Responsibility
In 2009, environmental investments and expenses amounted to R$ 29 million and focused on the
implementation of the Environmental Management System, the obtaining of permits for ventures
and the installation of compact and isolated networks . These networks improve the system's
performance, and make our relationship with the vegetation of urban areas more harmonious, with
a smaller impact on the environment.
The initiative made it possible for the Company's Small Thermoelectric Power Plants (PCHs) to be
certified by the ISO14000 Standards in Mato Grosso do Sul and Espírito Santo States. The
certification of the Peixe Angical Hydroelectric Power Plant (UHE) in Tocantins State by the ISO
14000:2004 and OHSAS 18000:2007 Standards was also confirmed. In 2010, proceeding with the
environmental certification plan of the EDP companies in Brazil, we expect to perform audits on
distribution assets for compliance with the aforementioned standards.
In the prevention of environmental liabilities, the companies continuously monitor soils and
underground water at all facilities and holds periodic noise measurement campaigns at
substations.
In 2009, EDP Brazil joined over 500 companies from all over the world to underwrite a global
agreement on climate changes disclosed at a meeting on Climate Change held at the
headquarters of the United Nations in New York (The Copenhagen Communiqué on Climate
Change). This agreement requested ambitious and strong world consensus on climate changes to
be completed at the 15th Conference of the Parties (COP 15) at the United Nations Convention on
Climate Changes in Copenhagen, Denmark.
The following projects merit special emphasis as the most important:
• Programa Econnosco: provided for significant savings in electric energy consumption at the
buildings of EDP's companies in Brazil. Fifty sustainability ambassadors, volunteer professionals
trained by the EDP Institute in partnership with the Akatu Institute for conscientious consumption,
are responsible for making the program known. The program also encourages recycling and the
use of the ecological footprint concept, which calculates the impact of individuals, organizations
and populations on the environment.
• Clean Development Mechanism (MDL) of the Kyoto Protocol: it currently relies on five
registered programs and two programs under validation. Aware of the importance and amplitude

27
2009 MANAGEMENT REPORT
of climate changes, EDP actively participates in various forums to contribute toward the
construction of an efficient international system to fight global climate changes.
Also in 2010, EDP increased its participation in voluntary carbon markets with the sale of Verified
Emission Reductions (VERs) to a European company. The revenues were fully allocated to socialenvironmental
projects implemented by the EDP Institute.
AWARDS AND ACKNOWLEDGEMENTS
EDP ENERGIAS DO BRASIL
• Model company for Sustainability - Magazine Guia Exame Sustentabilidade 2009
• 11th Abrasca Award - Honorable mention of the 2008 Annual Report in the social and
environmental responsibility category of corporations with a net revenue of R$ 1 billion or more.
• 150 Best Companies in People Management Practices - Editora Gestão & RH
• Exame Melhores & Maiores
• Época Mudanças Climáticas Award (Epoca Magazine Climate Change Award) - Ours was
one of the 20 Brazilian companies chosen as leading companies in Climate Policies - Epoca
Magazine.
• The fifty most sustainable companies according to the press - Imprensa Magazine
DISTRIBUTORS
EDP Bandeirante
• National Award for Conservation and Rational Use of Energy –Eletrobrás/Procel and
Petrobras/Conpet
• TOP Vale award - best core services provider -Valeparaibano Newspaper
• Aneel's Consumer Satisfaction Index – IASC 2009 – third place in the category of Brazilian
companies in the Southeast region with over 400 thousand consumer units – Aneel
• “Brazil's Most Admired Companies" – Carta Capital magazine
• Child-Friendly Company - Abrinq Foundation
• Winning the Transparency Trophy – In the category of publicly-held companies with sales up
to R$ 4 billion– Anefac
EDP Escelsa
• Gold Quality Award - Program for Increasing the System Competitiveness of Espírito Santo
State (Compete)
• PNQ - National Quality Award: the Company is among the 21 companies which classified for
the visit stage (last stage) for the second consecutive year - National Quality Foundation (FNQ).
• Child-Friendly Company – Abrinq Foundation
Enertrade
• The Company ranked number 459 in the category of the 500 best-selling companies –
Exame Magazine
• The Company is among the 20 most profitable companies - Exame Magazine
• 2nd company as regards the classification of the wealth generated by employee - Exame
Magazine

AUDITORES INDEPENDENTES
28
2009 MANAGEMENT REPORT
In compliance with CVM Instruction nº 381, of January 14, 2003, about the need for disclosure by
the Audited Entities, of information about the rendering of services by the independent auditor, the
Company informs that the only services rendered in the year 2009, by the independent auditors
were those related to the independent audit examinations of the financial statements.
FINANCIAL STATEMENTS
In compliance with the Brazilian Securities Commission's Instruction No. 480/09, article 25, we
hereby declare that we have reviewed and agree with the financial statements for the years ended
on December 31, 2009 and 2008 and the corresponding independent auditor's report.
ACKNOWLEDGMENTS
Management is grateful to all those that worked and contributed to allow EDP Energias do Brasil to
achieve a prominent position in the national scenario. We especially wish to express our gratitude
for the faith of our shareholders, the efforts and competence of our collaborators, the support and
encouragement of customers, suppliers, partners and other stakeholders.
.

EDP – ENERGIAS DO BRASIL S.A.
BALANCE SHEETS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais)
(Values in thousand of reais)
Parent Company Consolidated
ASSETS
Current
Note 12/31/2009 12/31/2008 12/31/2009 12/31/2008
Cash and cash equivalents 5 233,440
79,443 1,102,022
499,882
Consumers and concessionaires 6 988,505
779,301
Income and social contribution taxes 9 75,036
78,403 413,567
360,918
Deferred income and social contribution taxes 10 128,495
126,221
Dividends 26 459,317 476,553
Inventories 13,199
10,098
Collaterals and committed deposits 12 2,168
2,080
69,587
76,936
Prepaid expenses 7 4
48
2,615
8,407
Account for compensation in variation of installment "A" costs 8 113,722
Credit from sale of investment 15.1.2 39,086
39,086
Other credits 14 883
3,244 166,891
809,934 639,771 3,037,689
29
116,596
144,645
2,123,004
Noncurrent
Long-term assets
Accounts receivable 18
Consumers and concessionaires 6 94,431
123,226
Income and social contribution taxes 9 31,078
31,084
Deferred income and social contribution taxes 10 507,351
412,374
Related parties 11 175,871 144,087
22,104
Advances for future capital increase 13 69,217
Collaterals and committed deposits 12 5,122
2,944 130,797
Prepaid expenses 7 1,064
Account for compensation in variation of installment "A" costs 8 43,608
Other credits 14 51,992
7,227
71,875
Permanent
302,202 196,998 880,204
Investments 15 3,251,806 2,845,078
24,032
Tangible fixed assets 16 2,038
1,993 6,416,645
Intangible fixed assets 17 318,500 490,458 1,168,909
Deferred charges 126
3,572,344 3,337,529 7,609,712
Total 4,684,480 4,174,298 11,527,605
See the accompanying notes to the financial statements
42,740
153,632
2,608
94,563
112,875
952,484
42,103
6,003,885
1,348,455
7,394,443
10,469,931

EDP – ENERGIAS DO BRASIL S.A.
BALANCE SHEETS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais)
30
Parent Company Consolidated
LIABILITIES Note 12/31/2009 12/31/2008 12/31/2009 12/31/2008
Current
Suppliers 18 10,416
13,093
Financial charges on debt 20 7,700
Income and social contribution taxes 9 31,106
15,612
530,414
24,522
464,470
456,679
21,667
401,968
Deferred income and social contribution taxes 10 1,969
Dividends 26 297,629
223,451
391,888
Debentures 19.6 209,331
Loans and financings 20 250,000
548,140
Post-employment benefits 21 27,181
Account for compensation in variation of installment "A" costs 8 47,592
Tariff repayment 4.2 37,186
Estimated employee benefits and social charges 22 4,244
Regulatory and sector charges 23 156,882
Provisions for contingencies 24 7,627
Other accounts payable 14 2,208
Noncurrent
Long-term liabilities
345,603
4,218
2,208
516,282
51,211
174,438
2,670,882
Financial charges on debt 20 1,329
Income and social contribution taxes 9 34,146
142,163
Deferred income and social contribution taxes 10.2 15,546
Debentures 19 451,929
Loans and financings 20 1,903,076
Post-employment benefits 21 104,017
Account for compensation in variation of installment "A" costs 8 58,384
Related parties 11 7,024
Estimated employee benefts and social charges 23 14,939
Provisions for contingencies 24 24,469
Provisions for unsecured liabilities 9,787
510
64,396
54,172
136,899
Reversal and amortization reserve 17,248
Other accounts payable 14 62
75,488
25
119,103
101,398
2,946,928
Minority interest 1,641,091
Shareholders' equity 25
Capital 3,182,716
Capital reserves 96,656
Profit reserves 1,020,809
Other comprehensive income (30,178)
Treasury shares (6,614)
3,182,716
35,348
693,299
(372,450)
3,182,716
96,656
1,020,809
(30,178)
Retained earnings 5,315
4,263,389
Total 4,684,480
See the accompanying notes to the financial statements
3,538,913
4,174,298
(6,614)
4,268,704
11,527,605
313,118
218,504
848,118
30,871
64,693
47,562
157,672
5,255
169,426
2,737,502
34,451
654,180
1,355,008
108,102
18,430
2,847
263,295
51,383
17,248
71,317
2,576,261
1,613,250
3,182,716
35,348
693,299
(372,450)
4,005
3,542,918
10,469,931

Operating revenues
EDP – ENERGIAS DO BRASIL S.A.
STATEMENTS OF INCOME
YEARS ENDED DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Note 2009
31
Parent Company Consolidated
Restated
2008 2009
Electricity supplied and billed 2,555,205
Electricity supplied to be billed 925,980
Avaliability of the distribution and transmission system 3,331,040
Other operating revenues 183,408
Deduction from operating revenues
6,995,633
CCC and CDE quota (363,514)
Research and development (42,653)
Global reversal reserve quota (42,186)
Restated
2008
2,616,395
562,432
3,553,490
220,697
6,953,014
(360,061)
(47,107)
(40,082)
Emergency capacity charges 4
Taxes and contributions on revenue (1,898,932)
Net operating revenues 27
Electricity service cost
Electricity cost
(2,347,285)
4,648,348
Electricity purchased for resale (1,924,113)
Electricity netw ork use charges (511,641)
Operating costs
28
(2,435,754)
Personnel (146,210)
Materials and third-party services (166,608)
Depreciation and amortization (251,507)
Other operating costs (28,112)
Service cost rendered to third parties 28
28
(592,437)
(3,028,191)
(2,918)
Gross operating profit 1,617,239
Operating expenses
Selling (41,986)
General and administrative (65,372)
Depreciation and amortization (21,770)
Other operating expenses (22,220)
28
(109,362)
Service income (109,362)
Income from equity interest 638,309
Financial revenues 244,465
Financial expenses (48,048)
Financial result 29
196,417
Operating profit 725,364
Other revenues 52,345
Other expenses (2,092)
Other result 50,253
Income before income tax and social contribution 30
775,617
Current income and social contribution taxes (2,881)
(49,095)
(148,449)
(6,659)
(204,203)
(204,203)
604,463
174,867
(141,565)
33,302
433,562
(410)
(410)
433,152
(80)
(322,028)
(52,453)
(85,814)
(502,281)
1,114,958
(1,742)
279,275
(445,011)
(165,736)
947,480
55,449
(28,127)
27,322
974,802
(163,928)
Deferred income and social contribution taxes (60,514)
(2,881)
Net income before reversal of interest on equity 772,736
Reversal of interest on equity (148,909)
Net income before minority interest 623,827
(80)
433,072
(44,743)
388,329
(224,442)
750,360
50,816
801,176
Minority interest (160,267)
Founders´ shares (15,772)
Net income for the year 623,827
Net income of, per thousand of shares - R$ 3,935.20
See the accompanying notes to the financial statements.
388,329
2,715.11
625,137
(1,895,276)
(2,342,522)
4,610,492
(1,921,750)
(454,766)
(2,376,516)
(152,697)
(207,693)
(269,817)
(38,201)
(668,408)
(3,044,924)
(18,947)
1,546,621
(95,992)
(284,968)
(176,829)
(72,054)
(629,843)
916,778
-
223,942
(544,818)
(320,876)
595,902
10,734
(14,909)
(4,175)
591,727
(149,712)
(77,264)
(226,976)
364,751
133,497
498,248
(102,998)
(6,471)
388,779

Balances on January 1, 2008 25
EDP - ENERGIAS DO BRASIL S.A.
STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY
YEARS ENDED DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Capital Capital Profit Treasury
Other
comprehensive Advances for future
Note nº reserves reserves shares income
capital increase Total
3,182,716
35,348
32
716,551
(24,290)
Acquisition own shares (504,404)
Cancellation treasury shares (156,244)
Net income for the year 388,329
Profit allocation -
Legal reserve 18,513
156,244
(18,066)
(18,513)
Profit retention reserve 114,479
(114,479)
Interim dividends (103,061)
Proposed dividends (134,210)
Balances on December 31, 2008 25
3,182,716
35,348
Sale of treasury shares 61,308
693,299
(372,450)
365,836
Other comprehensive income - Porto do Pecém (31,764)
Other comprehensive income - Denerge 1,586
-
-
3,892,259
(504,404)
-
388,329
-
-
(103,061)
(134,210)
3,538,913
Net income for the year 623,827 623,827
Profit allocation -
Legal reserve 31,192
(31,192)
-
Profit retention reserve 296,318
(296,318)
-
Proposed dividends (296,317) (296,317)
Balances on December 31, 2009 25 3,182,716 96,656 1,020,809 (6,614)
(30,178)
- 4,263,389
See the accompanying notes to the financial statements
427,144
(31,764)
1,586

EDP – ENERGIAS DO BRASIL S.A.
STATEMENT OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Parent company Consolidated
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Operating activities (Reclassified)
Net income for the year 623,827 388,329 625,137 388,779
Minority interest
Expenses (revenues) not affecting cash and cash equivalents
160,267 102,998
Consumers and concessionaires 37,858 66,755
Deferred taxes and social contributions, net 60,514 77,264
Current taxes and social contributions 2,747
Recoverable taxes and social contributions 1,725
835
Depreciation and amortization 21,770 148,449 303,960 446,646
Residual value of assets and rights of permanent assets written-off 345
(44) 41,727 25,330
Prepaid expenses (9,098) (6,763)
Suppliers 31,916 (7,178)
Loans, financings and debt charges 29,244 12,413 230,335 330,852
Post employment benefits - CVM nº 371 (11,955) (10,490)
Provisions for contingencies 26,361 22,145 65,193 53,829
Tariff deferral (16,245)
Tariff restitution - adjustment of ratified value 53,048 10,554
Founders' shares 15,772 6,471
Equity interest (638,309) (604,463) 1,742
Investment loss 5,210
3,043
Write-off/provison for loss - tangible and intangible fixed assets / investments / deffered (49,066)
(49,066)
Provision for unsecured liabilities (1,512) (5,302) (1,512) (5,302)
Regulatory and sector charges 44,545 50,108
Reversal of accounts payable provision (74,764)
(74,865)
Energy efficiency and research and development - provision 1,305
Collaterals and restricted deposits 32,536 (2,122)
Other (541) 3,982
Assets (increase) decrease
(62,104) (33,263) 1,560,543 1,522,093
Consumers and concessionaires (261,355) (119,283)
Recoverable taxes and social contributions 3,367
(47,802) (16,741)
Inventories (5,422) (4,277)
Collaterals and restricted deposits (2,266)
(393) (2,472) (75,206)
Prepaid expenses 44
205 92,038 97,787
Other credits (10,797)
(883) (44,039) (18,586)
Liabilities (decrease) increase
(9,652) (1,071) (269,052) (136,306)
Suppliers (2,676)
95,279 41,393
Current taxes and social contributions (16,648) (17,192) (31,084) 6,181
Deferred taxes and social contributions (2,450)
Tariff return (15,862)
3
Estimated liabilities 26 (2,449) 3,334 (2,242)
Provisions for contingencies (15,627) (8,324)
Other liabilities (6,206) (2,121) (7,884) 39,309
(25,504) (21,762) 28,156 73,870
Cash generated from (used in) operating activities (97,260) (56,096) 1,319,647 1,459,657
Investment activities
Treasury shares 427,144 (504,404) 427,144 (504,404)
Write-off the investment (204,395) (153,199) (52,364) (153,746)
Barter of subsidiaries, net of cash (12,104)
Additions to investment (950)
(781) (785,774) (713,977)
Received to permanent assets written-off 2,984
Additions to deferred charges 2,828
Dividends received 490,342 648,415
Write-off the investment 94,624
94,624
Obligation linked to concession 47,880 32,661
Cash generated from (used in) investment activities 806,765 (9,969) (265,506) (1,348,742)
Financing activities
Related parties (46,424) 10,949
Advance for future capital increase 30,354
Dividends paid (222,140) (203,641) (292,870)
Loans, financings and debentures - inflows 250,000 1,156,644
Loans, financings and debt charges - payments (286,944) (4,713) (1,346,129)
Cash generated from (used in) financing activities (555,508) 52,595 (452,001)
Increase / (Decrease) in cash and cash equivalents 153,997
Cash and cash equivalents at the end of the year 233,440
Cash and cash equivalents at the beginning of the year 79,443
153,997
See the accompanying notes to the financial statements
33
(13,470)
79,443
92,913
(13,470)
602,140
1,102,022
499,882
602,140
8,030
17,583
(221,967)
461,389
(565,222)
(300,187)
(189,272)
499,882
689,154
(189,272)

EDP – ENERGIAS DO BRASIL S.A.
STATEMENT OF ADDED VALUES
YEARS ENDED DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Parent company Consolidated
2009 2008 2009 2008
Generation of value added 50,253
(410) 7,014,402 6,890,690
Operating revenue 6,995,633 6,953,014
Allowance for doubtful accounts and net losses (36,680) (70,916)
Other revenue 50,253
(410)
55,449
8,592
(–) Inputs acquired from third parties (63,529) (36,623) (2,933,566) (2,886,019)
Costs of purchased energy (1,924,113) (1,909,517)
Use charges of distribution and transmission system (511,641) (466,999)
Materials (617)
(483)
(24,236) (46,670)
Third-party services (28,667) (29,333)
(284,527) (328,059)
Other operating costs (34,245) (6,807)
(189,049) (134,774)
Gross value added (13,276) (37,033) 4,080,836 4,004,671
Depreciation and amortization (21,770) (148,449)
(303,961) (446,646)
Net generated value added (35,046) (185,482) 3,776,875 3,558,025
Financial revenues 95,556 27,064
279,275 223,942
Minority interest (160,267) (102,998)
Equity accounting result 638,309 604,463
(1,742)
Total value added to distribute
Distribution of value added
698,819 446,045
3,894,141 3,678,969
Employees 21,283 14,341
226,406 245,207
Payroll 12,437 8,182
157,760 180,574
Benefits 7,076 4,985
47,685 44,727
F.G.T.S. 1,770 1,174
20,961 19,906
Taxes, fees and contributions 16,655 16,192
2,646,316 2,631,973
Federal 16,655 16,192
1,418,222 1,395,379
State 1,223,423 1,229,628
Municipal 4,671
6,966
Remuneration own capital 37,054 27,183
380,510 406,539
Interest 34,275 24,749
371,677 396,348
Rents 2,779 2,434
8,833 10,191
Remuneration own capital 296,317 237,271
312,089 243,742
Interest on equity 103,061
103,061
Dividends 296,317 134,210
296,317 134,210
Founders' shares 15,772
6,471
371,309 294,987
3,565,321 3,527,461
Income for the year after dividends 327,510 151,058
328,820 151,508
698,819 446,045
3,894,141 3,678,969
See the accompanying notes to the financial statements
34

1 - Operational context
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
EDP - Energias do Brasil S.A. (“Company” or “Energias do Brasil” or “Parent Company”), a public held company
incorporated on July 24, 2000, has as its corporate purposes the participation in other corporations as a shareholder or
quota holder, as well as in businesses and enterprises in the electricity industry in Brazil or overseas; to manage
electricity generation, transmission, distribution and commercialization assets in their various forms and types; to study,
plan, develop and implement electricity generation, transmission, distribution and commercialization projects in their
various forms and types.
Direct and indirect participation are as follow:
% Participation
12/31/2009
12/31/2008
Company Consolidation method Direct Indirect Direct Indirect
Distribution
Bandeirante Energia S.A. (Bandeirante) full 100 0.00 100 0.00
Espírito Santo Centrais Elétricas S.A. (Escelsa) full 100 0.00 100 0.00
Generation
Energest S.A. (Energest) full 100 100 0.00
Castelo Energética S.A. (CESA) full 0.00 100 0.00 100
Costa Rica Energética Ltda. (Costa Rica) full 0.00 51 0.00 51
Pantanal Energética Ltda. (Pantanal) full 0.00 100 0.00 100
Santa Fé Energia S.A. (Santa Fé) full 0.00 100 0.00 100
EDP Lajeado Energia S.A. (EDP Lajeado) full ( * ) 0.00 59,93 0.00
Lajeado Energia S.A. (Lajeado)
Tocantins Energia S.A. (Tocantins)
full on 9/1/2008 55.86 47,23 53,69
full on 9/1/2008 ( * ) 0.00 50,88 0.00
Ipueiras Energia S.A. (Ipueiras)
full on 9/1/2008
proportional untill
100.00 0.00 50,88
Investco S.A. (Investco)
8/31/2008 and full on
9/1/2008 4.57 34.87 4,53 39,50
Enerpeixe S.A. (Enerpeixe) full 60 0.00 60 0.00
Enernova S.A. (Enernova) full 100 0.00 100 0.00
Terra Verde Bioenergia Participações S.A. (Terra Verde) full 92 0.00 92 0.00
EDP Renováveis Brasil S.A. (EDP Renováveis) equity by subsidiary
Enernova 0.00 45 0.00 45
Porto do Pecém Geração de Energia S.A. (Porto do Pecém)
proportional on
10/14/2008 50 0.00 50 0.00
Central Nacional da Energia Eólica S.A. (Cenaeel) equity by subsidiary
Enernova 0.00 45 0.00
Elebrás Projetos Ltda equity by subsidiary
Enernova 45
Trading
Enertrade - Comercializadora de Energia S.A. (Enertrade) full 100 0.00 100
Transmission
Evrecy Participações Ltda. (Evrecy) full 0.00 100 0.00 100
Others
Enercouto S.A. (Enercouto) full 100 100 0.00
Escelsa Participações S.A. (Escelsapar) full 100 0.00 100 0.00
( * ) Merge of EDP Lajeado and Tocantins in Lajeado Energia since 11/30/2009.
1.1 – Concessions
The Company has the right to indirectly explore the following energy generation, distribution and transmission
concessions/licenses/permits:
35

1.2 – Acquisition of Cenaeel
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
C o mpany State C apa city (M W) (*) A s sure d ene rgy (M Wa) (*)
B e gin End
Energest ES / MS 749.59
Porto Pecém CE 720.00
Enerpeixe TO 452.00
Investco TO 902.50
Terra Verde SC 140.00
On February 16, 2009, EDP Renováveis Brasil S.A., of which 45% is held by subsidiary Enernova, concluded the
acquisition of Cenaeel for R$38,331, holder of the wind farms of Água Doce and Horizonte, located in the State of Santa
Catarina, with installed capacity of 13.8 MW (23 wind turbine generators with 600 kW each), as well as the possibility of
expanding this capacity a further 70 MW.
This wind energy project represents the first private investment in Brazil's wind power. It started in 2004 with the
installation of the wind farm of Horizonte (4.8 MW), the remuneration of which is associated with a contract of sale of
electric energy with Celesc and, in 2006, installed the wind farm of Água Doce (9 MW), the remuneration of which is
associated with the PROINFA program.
1.3 – Sale of ESC 90 Telecomunicações Ltda.
On June 30, 2009, the Company finalized the sale of all the quotas of ESC 90 Telecomunicações Ltda. ("ESC 90") in its
possession, to Net Serviços de Comunicação S.A., all as established in the Contract of Sale of Corporate Shares
executed with NET Serviços de Comunicação S.A..
The conclusion of the Operation was dependent upon prior approval from the Brazilian Telecommunications Agency -
ANATEL, which was granted without any restrictions on June 8, 2009 and published in the Official Federal Gazette in the
edition of June 19, 2009, in Section 1, page 57.
The total amount of the Operation contracted on the base date of April 30, 2008 (for 100% of the capital stock) was
R$94,624. Considering that the Operation involved the recovery of credits held by the Company against ESC 90, and
allowed the reversal of provisions formed previously, it brought about a positive effect on the Company's net income in
the amount of R$120,989, recorded in the accounts of Financial Result in the amount of R$74,764 and Other operating
income in the amount of R$46,225.
The contract provided for a clause of price-level restatement and of adjustments in the amount of the operation that was
subject to settlement for this year in the amount of R$ 3,891.
The operation completed is within the strategic planning defined by the Company of concentrating its activity in the
electricity generation, transmission, distribution, and commercialization segments, with the sale of assets not related to
its core business.
1.4 - Partial spin-off of Castelo Energética S.A. ("CESA") with transfer of the transmission assets and startup of
operations of Evrecy Participações Ltda. ("Evrecy").
As of June 1, 2009, through the Extraordinary General Meeting, the shareholders of the indirect subsidiary CESA
decided on the performance of the partial spin-off of aforesaid Company, as a result of the transfer of the transmission
36
473.90
631.00
271.00
526.60
Publication of controlled Energest.
07/01/2008 07/01/2043
11/07/2001 11/07/2036
01/15/1998 01/15/2033
06/25/2009 06/25/2039
Evrecy ES / MG 07/17/1995 07/17/2025
Bandeirante SP 10/23/1998 10/23/2028
Escelsa ES 07/17/1995 07/17/2025
(*) Not review ed by independent auditors
C o nc essio n / A utho rizatio n / R egis try

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
concession regulated by Transmission Concession Contract nº 020/2008, of the Brazilian Electricity Regulatory Agency -
ANEEL, from indirect subsidiary CESA to indirect subsidiary Evrecy, subject matter of Authorizative Resolution nº 1823,
as of March 3, 2009, of ANEEL, in order to generate greater operating, financial, administrative and economic efficiency
of the companies. CESA and Evrecy are companies directly controlled by the subsidiary Energest S.A.
The spun-off of assets of the indirect subsidiary CESA absorbed by the indirect subsidiary Evrecy and valued on the
base date of April 30, 2009, amounted to the total sum of R$21,462, as detailed in the corresponding appraisal report.
The net assets converted from the indirect subsidary CESA to the indirect subsidiary Evrecy, on June 1, 2009,
corresponds to the portion of capital stock in the amount of R$21,462.
As a result of the partial spin-off of the indirect subsidiary CESA and the consequent transfer of the spun-off assets to the
indirect subsidiary Evrecy, there was a reduction of the capital stock of the indirect subsidiary CESA from R$44,920 to
R$23,458, without cancellation of shares.
1.5 – Acquisition of Elebrás
On March 14, 2009 EDP Renováveis Brasil acquired Elebrás, for the price of R$22,310, which includes 4 projects in
portfolio, with an installed capacity above 500 MW.
Out offf the different projects in portfolio of Elebrás, that of Tramandaí, which has an installed capacity of 70 MW, is in
the initial phase of construction, having already formalized a PPA in the sphere of PROINFA.
1.6 – Corporate restructuring - Merger of Tocantins Energia S.A. and EDP Lajeado Energia S.A. in Lajeado
Energia S.A.
On November 30, 2009, the Extraordinary General Meetings of the subsidiary Tocantins Energia S.A. ("Tocantins"), of
the subsidiary EDP Lajeado Energia S.A. ("EDP Lajeado") and of the subsidiary Lajeado Energia S.A ("Lajeado"),
companies from the EDP Group - Energias do Brasil, decided on the corporate reorganization through the merger of the
subsidiary Tocantins and of the subsidiary EDP Lajeado in the subsidiary Lajeado, an operation that had the following
goals:
• To rationalize and simplify the corporate structure of the companies involved, take advantage of the synergies of
the energy trading business and of the management of assets of the common investee, Investco S.A.
• To optimize the allocation of own funds or funds obtained from third parties, with the purpose of guaranteeing the
best possible return to the shareholders .
Aforesaid corporate reorganization involved the following events:
(I) Takeover of the holding Tocantins by the subsidiary Lajeado;
(II) Capital increase at the subsidiary EDP Lajeado, by transfer of all the shares held in Lajeado Energia by the
Company;
(III) Takeover of the subsidiary EDP Lajeado by the subsidiary Lajeado.
Through Authorizative Resolution nº 2,218, of December 1, 2009, the Brazilian Electricity Regulatory Agency - ANEEL
approved the transfer of all the interest held by the subsidiary EDP Lajeado to the subsidiary Lajeado, in the concession
of UHE Luiz Eduardo Magalhães, which also established the amortization of goodwill by the curve determined between
the expectation of future results and the concession term of the subsidiary Lajeado.
The takeover entailed the capital increase of the subsidiary Lajeado, from R$ 513,810 to R$ 756,866, thus corresponding
to an increase of R$ 243,056, through the issuance of one hundred forty-two million, twenty-nine thousand, three
hundred twenty-four (142,029,324) new shares, attributed at the time to the shareholders State Government of
Tocantins, Centrais Elétricas Brasileiras S.A. - Eletrobrás and the Company, in proportion to their interest in the capital
stock of the subsidiary EDP Lajeado on the date of the Takeover, with one hundred thirteen million, six hundred ninety
37

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
thousand and forty-one (113,690,041) common shares assigned to the Company and twenty-eight million, three hundred
thirty-nine thousand, two hundred eighty-three (28,339,283) class A preference shares assigned to Eletrobrás.
The value of the net assets taken over by the Company, in the amount of R$ 127,827, was fully recognized in the Special
Reserve of Goodwill in the Takeover, recorded in the Shareholders' Equity of EDP - Energias do Brasil, as provided for in
art. 6 of CVM Instruction 319/99, without alteration of the sum of subscribed and paid in capital of the subsidiary Lajeado.
Due to the aforesaid corporate restructuring and with the consummation of the legal steps of the takeover, the
subsidiaries EDP Lajeado and Tocantins were lawfully dissolved and the subsidiary Lajeado assumed active and passive
responsibility relating to the subsidiaries EDP Lajeado and the Tocantins, becoming the legal successor for all intents
and purposes.
The balances of assets and liabilities and the corresponding net assets taken over by the subsidiary Lajeado, originating
from the equities of the subsidiary EDP Lajeado and of the subsidiary Tocantins, are presented below:
Assets
Current 94,058
Noncurrent
Long-term assets 22,154
Investments 426,124
Property, plant and equipment 44
Intangiible assets 460,924
2 - Presentation of the financial statements
These financial statements were approved at a Senior Management Meeting on February 23, 2010 and are presented
with amounts expressed in thousands of Reais, except when otherwise indicated, and prepared in conformity with
accounting practices adopted in Brazil, based on the provisions of Corporation Law, of the Pronouncements, Guidelines
and Interpretations issued by the Committee of Accounting Pronouncements, on the rules established by the Securities
Commission - CVM and specific legislation enacted by the Brazilian Electricity Regulatory Agency - ANEEL.
The main accounting practices adopted in the preparation of these financial statements correspond to the rules and
guidelines that are in force for financial statements as of and for the year ended December 31, 2009, which will be
different from those to be used in the preparation of financial statements as of and for the year ending December 31,
2010, as described in Note 3.1 below.
The Company and its subsidiaries adopt the chart of accounts contained in the Accounting Manual of the Public Electric
Energy Service, created by Resolution nº 444, of October 26, 2001, determinations of Order SFF/ANEEL nº 4,722 of
December 18, 2009 and subsequent updates.
As a result of the exchange of the previous subsidiary Enersul with assets of Grupo Rede, the statements of income and
of cash flows and the notes, contained in the financial statements as of December 31, 2009 and 2008, include the
balances and transactions by the full consolidation method of the previous subsidiary Enersul, up to August 31, 2008, of
the new subsidiaries Tocantins Energia and Lajeado Energia as from September 1, 2008 and, for the subsidiary
Investco, up to August 31, 2008 by the proportional consolidation method and, as from September 1, 2008, by the full
consolidation method.
2.1 – Reclassifications and prior-period adjustments
Before Merger Balance on Merger
Merger effects
After Merger
Parent company Tocantins EDP Lajeado Elimination
887,092
42,981
6,594
78,888
3
78,891
The following reclassifications, for purposes of comparability, were made in the amounts previously presented in the
financial statements as of December 31, 2008:
57,024
38
1,312
341,769
168
569,107
911,044
(164,285)
(375,963)
(540,248)
Effects CVM nº
319 (note 1.2)
127,827
-
Parent company
194,063
157,887
682,496
215
654,068
1,336,779
Total 1,003,304 128,466 969,380 (540,248) 127,827 1,688,729
Liabilities and Shareholders' equity
Current 78,031
Noncurrent 37,307
683
48,895
50,165
1,525
128,879
Shareholders' equity 887,966 78,888 917,690 (540,248) 127,827
1,472,123
Total 1,003,304 128,466 969,380 (540,248) 127,827 1,688,729
87,727

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
• The subsidiary Escelsa reclassified from the Memorandum account of variation of installment "A" costs to Other
accounts payable in Current liabilities and non-current liabilities the sum of R$8,164 and R$32,859 respectively,
referring to Other regulatory liabilities. The sum of R$2,261 was also reclassified in non-current liabilities from
Other accounts payable to the account of regulatory and sector charges;
• The subsidiary Bandeirante reclassified in non-current liabilities, in Other accounts payable to the account of
Regulatory and sector charges the sum of R$586 relating to research and development;
• The subsidiary Enerpeixe reclassified the balance of financial investments, realized as guarantee of the loan
agreements with BNDES, of the O&M contract and of the short-term energy (CCEE) from the account of Cash
and cash equivalents to Collaterals and restricted deposits, in the sum of R$ 51,631;
• PIS/COFINS credit - as of this year the Company and its subsidiaries started to classify the deductible credits
from the bases of PIS and of COFINS, determined under the terms of Laws nºs 10,637/02 and 10,833/03, as
deduction of Operating expenses, previously recorded in the group of Deductions from Revenue and for
comparative purposes, they performed prior-year reclassifications the effects of which are demonstrated below:
Operating revenues
• Projects under development - according to the guidelines of CPC04 the balances of 2008 relating to projects
under development were reclassified from Property, plant and equipment to intangible assets, as demonstrated
below:
3 - Summary of significant accounting policies
Enertrade EDP Lajeado Energest Bandeirante Escelsa Enersul Consolidated
Taxes and contributions on revenue 64,256 8,585 2,163 116,663 73,235 28,762 293,664
Electricity cost
Electricity purchased for resale (63,009) (876) (1,870) (90,429) (60,481) (24,588) (241,253)
Electricity netw ork use change (1,247) (1,417) (293) (25,926) (12,751) (4,169) (45,803)
Rent expenses
Other operating costs - (6,292) - (308) (3) (5) (6,608)
Total - - - - - - -
Noncurrent
3.1 - Rules and interpretations of rules that are not yet in force
Reclassification PIS/Cofins - Year ended December 31, 2008
Reclassification projects under development - Year ended December 31, 2008
CESA Energest Investco Pantanal Santa Fé Consolidated
Property, plant and equipment (776) (14,481) (12,450) (518) (1,725) (29,950)
Intangible 776 14,481 12,450 518 1,725 29,950
Total - - - - - -
In the convergence process of accounting practices adopted in Brazil to International Financial Reporting Standards
("IFRS"), several pronouncements were issued during the year 2009 with mandatory application for fiscal years started
on or after January 1, 2010. In addition to those, other rules and interpretations were also published that alter accounting
practices adopted in Brazil, within the convergence process with International Standards. The Standards below are only
those that could (or should) impact the Company's financial statements in a more relevant manner. Under the terms of
the new Standards, the amounts of the year 2009, presented herein, should be restated for comparative purposes, upon
the publication of the financial statements of the year 2010. The Company did not adopt the Standards in advance in the
year ended December 31, 2009.
39

Pronouncements
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
CPC 16 - Inventories
CPC 17 - Construction contracts
CPC 18 - Investments in affiliates
CPC 19 - Interest in jointly controlled venture
CPC 20 - Costs of loans
CPC 22 - Information by segment
CPC 25 - Provisions, contingent liabilities and assets
CPC 26 - Presentation of the financial statements
CPC 27 - Property, plant and equipment
CPC 30 - Revenues
CPC 32 - Taxes on income
CPC 33 - Employee benefits
CPC 35 - Separate financial statements
CPC 36 - Consolidated financial statements
CPC 37 - Initial adoption of international accounting standards
CPC 38 - Financial instruments: recognition and measurement
CPC 39 - Financial instruments: presentation
CPC 40 - Financial instruments: disclosures
Interpretations
ICPC 01 - Concession contracts
ICPC 08 - Accounting of the dividend payment proposal
ICPC 09 - Individual, separate and consolidated financial statements and application of the equity method of accounting
ICPC 10 - Clarifications on CPC 27 and CPC 28
The Company and its subsidiaries are in a process of evaluating the potential effects relative to the pronouncements,
interpretations and guidelines, which might have a relevant impact on the financial statements for the year ended
December 31, 2009 to be presented in comparison to the financial statements for the year ending December 31, 2010,
and on the following years.
Technical interpretation ICPC 01 establishes the criteria of recognition and measurement of the concession contracts,
classifying the rights of the companies to which it applies as an intangible asset and/or financial asset recorded at their
fair value.
Considering the complexity of the alterations required by aforesaid technical interpretation upon the application in the
electric energy generation, transmission and distribution businesses, the Company is still evaluating its impacts on its
financial statements, at the same time as it keeps track of the discussions and debates in the market, especially at the
accounting entities and professional bodies and at the regulatory agencies, which might express an opinion about the
aspects for the application of such interpretation.
In view of the foregoing, the Company understands that at this time it is not possible to evaluate and reliably quantify the
effects of the application of ICPC01 on its financial statements.
3.2 - Summary of significant accounting practices
a) Cash and cash equivalents (Note 5)
Cash and cash equivalents include cash, bank deposits, other highly liquid short-term financial investments that are
promptly convertible into a known sum of cash and are subject to an insignificant risk of change of value.
b) Consumers and concessionaires (Note 6)
Trade accounts receivable are recorded in the amount invoiced by the subsidiaries, adjusted to present value when
applicable, including the respective direct taxes under the responsibility hereof, which include:
(i) The amounts billed to final consumers, distributor concessionaires and trading companies, as well as the revenue
referring to energy consumed and not billed;
(ii) The calculation of the present value is performed for scheduled payments of debts of consumers of the distributor
subsidiaries, based on the capital remuneration rates, regulated by ANEEL and applied to the tariffs of electricity
40

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
public utility service distributors, through the regulatory WACC in force. The contra entry of the adjustments to
present value of accounts receivable is against net income for the year (Note 6.4);
(iii) The amounts receivable relating to the energy traded in the Electricity Trading Board - CCEE (Note 6.1);
(iv) Allowance for doubtful accounts - The amounts were allocated pursuant to Accounting Instruction 6.3.2, of the
Accounting Manual of the Electricity Public Utility Service, as follows:
Client clan Overdue more than
Residential 90 days
Commercial 180 days
Other 360 days
Furthermore, there was a careful individual analysis of the balance of consumers and concessionaires, and the amount
formed is considered sufficient to cover losses considered probable.
c) Inventories
Materials in stock are recorded at average cost of purchase, which does not surpass the market value, whereas those
applicable to operation and maintenance are classified in current assets, and those earmarked for projects and works,
are classified in Noncurrent assets, in Fixed assets.
d) Account for compensation in variation of Installment “A” costs - CVA (Note 8)
These costs are allocated to income as the corresponding revenue is billed to consumers, as determined in
Interministerial Rulings 296 and 116, of October 25, 2001 and April 4, 2003, respectively, in Law 10,438, of April 26,
2002, and in the supplementary Resolutions of ANEEL.
e) Investments (Note 15)
Investments in subsidiaries and associated companies with a percentage of the voting capital above 20% or with
significant influence, and in other companies that are part of the same group or that are under common control, are
valued by the equity method.
Other investments that do not fit in the above category are valued at cost, less provision for devaluation, when
applicable.
f) Property, plant and equipment (Note 16)
Stated at acquisition or construction cost, restated up to December 31, 1995, less accumulated depreciation, calculated
using the straight-line method based on the book balances recorded in the respective Reference File Units - UC, as
determined by DNAEE Ruling 815, of November 30, 1994, at the annual rates contained in the table attached to ANEEL
Resolutions 02, of December 24, 1997 and 44, of March 17, 1999.
On account of the provisions of the Accounting Instructions of the Accounting Manual of the Electricity Public Utility
Service and in CVM Resolution 193, of July 11, 1996, the financial charges relating to the financing obtained from third
parties, effectively invested in construction in progress, are recorded in this subgroup as cost of the respective works.
The same procedure was adopted for interest on own capital (when applicable), up to 1997 at Bandeirante and 2001 at
Escelsa, which financed the works in progress as provided in the specific legislation of the Electricity Public Utility
Service.
The main annual depreciation rates practiced by the Company and subsidiaries are as follows:
41

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Distribution activity
Type of equipment % Type of equipment %
Paralell capacitor bank lower than 69kV 6.7 Voltage regulator equal or higher than 69 kV 3.5
Serial capacitor bank 5.0 Recloser 4.3
Switch lower than 69kV 6.7 Distribution transformer 5.0
Reactance compensator 3.3 Power transformer 2.5
Conductor lower than 69kV 5.0 Meter transformer 3.0
Circuit breaker 3.0 Auxiliary services transformer 3.3
Construction - power house 2.0 Parallel capacitor bank equal or higher than 69kV 5.0
Construction - other 4.0 Switch equal or higher than 69kV 3.3
Structure (pole, tower) lower than 69kV 5.0 Conductor equal or higher than 69kV 2.5
Meter 4.0 Structure (pole, tower) equal or higher than 69kV 2.5
Panel, control desk and switchgear 3.0 Voltage regulator lower than 69 kV 4.8
Generation activity Other activity
Type of equipment % Type of equipment %
Gate 3.3 Edification 4.0
Edification - power house 2.0 Equipment geral 10.0
Edification - Others 4.0 Vehicles 20.0
Generator 3.3
Reservoir, barrage and water main 2.0
Turbine of hydroelectric 2.5
Urbanize e improvement 4.0
The special obligations, shown as adjustment accounts of Fixed assets, refer mainly to funds received from consumers
earmarked for the execution of ventures necessary for the fulfillment of requests for supply of electric energy. These
obligations are directly related to the Concession of the Electricity Public Utility Service and, in accordance with
Regulatory Resolution 234 of October 31, 2006, and Directive Release SFF/ANEEL 1,314/2007, of June 27, 2007 begin
to be amortized as of the 2nd periodic tariff review, by a rate defined by ANEEL corresponding to the average
depreciation rate of the assets in service linked to the electric distribution system and also in the proportion of the
corresponding disabled assets.
In compliance with the requirements of ANEEL, through Order nº 294, of February 1, 2008, effective from January 1st,
2008, the subsidiaries implement the capitalization procedure of the portion of 10 (ten) percent of the expenditures with
central administration, with a basis on the direct costs of personnel and outsourced services allocated to orders in
progress (note 16.3), mainly those related to the increases to Fixed assets in progress, recording in contra account, by
transfer, to credit from the statement of income - Operating expenses - General and administrative. Under the terms of
the current tariff regulations, these expenditures are recognized as indirect additional costs incorporable to fixed assets,
forming an integral part of the Regulatory Remuneration Basis of the distributor subsidiaries, and are therefore computed
in the calculation basis of the electricity and distribution system usage tariffs.
Repairs and maintenance are allocated to net income during the period in which they are incurred. The cost of the main
renewals is included in the book value of the asset when it is likely that the future economic benefits that surpass the
standard of performance initially evaluated for the existing asset will flow to the Company. The main renewals are
depreciated over the course of the remaining useful life of the related asset.
g) Intangible assets (Note 17)
Intangible assets involve assets acquired from third parties, including by means of business combination, and those
generated internally by the Company and its subsidiaries, substantially represented by expenditures in the
implementation of software and development of projects. The following criteria are applied:
• Acquired from third parties by means of business combination: Goodwill determined in acquisitions involving
business combinations;
• Intangible assets acquired from third parties: these are measured by the total cost of purchase, less amortization
expenses.
• Intangible assets generated internally: they are only recognized as assets only in the development phase provided
the following aspects are demonstrated:
a) Technical viability to conclude the intangible asset so that it is available for use or sale;
b) Intention to conclude the intangible asset and to use it or sell it;
c) Capacity to use or sell the intangible asset;
d) Demonstrate the existence of market or other means of accruing economic benefits;
e) Availability of technical and financial resources;
42

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
f) Capacity to accurately measure the expenditures attributable to the intangible asset during its development.
• Goodwill absorbed – refers to the spun-off portion of goodwill absorbed in the subsidiaries Bandeirante, Escelsa and
Lajeado Energia, resulting from the acquisition of shares of the abovementioned Companies, which was accounted
for in accordance with CVM Instructions nº 319/99 and nº 349/99 and, pursuant to the determination of ANEEL, is
being amortized by the curve between the expectation of future results and the concession period of the Companies.
• The permanent rights of way are recorded at cost.
h) Other current and non-current assets
These are show at cost or realizable value, including, when applicable, income accrued up to the balance sheet date.
i) Suppliers (Note 18)
Mainly includes balances payable to suppliers of electric energy and of charges on the use of the electricity network.
Obligations in foreign currency are recognized at fair value through net income for the year, restated by the quotation of
the currency on the balance sheet date.
j) Loans and financing, debt charges and debentures (Notes 19 and 20)
Loans and financing and debentures in national currency are measured by the amortized cost using the effective interest
rate method.
k) Provisions for contingencies (Note 24)
These are recognized in the balance sheet as a result of a past event, and it is probable that an economic resource will
be required to settle the obligation. Provisions are recorded considering the best estimates of the risk specific to the
liability.
l) Other current and non-current liabilities
Stated at the known or estimated amounts, plus, when applicable, the corresponding charges, monetary and exchange
variations incurred up to the balance sheet date.
m) Income and social contribution taxes (Notes 9, 10 and 30)
Current income and social contribution taxes recorded in income are calculated, at the subsidiaries CESA, Costa Rica,
Pantanal, Santa Fé and Evrecy with a basis on the deemed taxable income, at the rates applicable according to the
legislation in force, and at the parent company and other subsidiaries, current income tax is calculated with a basis on
the taxable income (adjusted income), at the rates applicable according to the legislation in force 15%, plus 10% on the
taxable income that exceeds R$240 per annum, and current social contribution is calculated with a basis on taxable
income before income tax, through the application of the rate of 9%, both considering the offsetting of tax loss
carryforward and negative social contribution basis, respectively, limited to 30% of the taxable income.
Deferred income and social contribution tax assets were recorded under the heading of deferred income and social
contribution taxes, as of the tax loss carryforward, negative social contribution basis and temporary differences,
considering the rates in force of the aforementioned taxes, in accordance with the provisions of CVM Resolution 273, of
August 20, 1998 and CVM Instruction 371, of June 27, 2002 and consider past profitability record and expectations of
future taxable income based on a technical viability study.
For purposes of calculating the taxable income and its effects on the financial statements, the Company and its
subsidiaries considered the adoption of the Transitory Tax Regime - RTT, as determined in MP nº 449/08 (converted into
Law no. 11.941/09), the option for which was confirmed upon the delivery of the income statement for the year 2008,
delivered on October 15, 2009.
n) Post-employment benefits (Note 21)
The sponsorship costs of the pension plans and any deficits (surpluses) of the plans are accounted for in compliance
with CVM Resolution nº 371/00 and NPC nº 26 of IBRACON.
43

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Costs, contributions and actuarial liabilities, when applicable, are determined annually, with a basis on an appraisal
carried out by independent actuaries, the last of which was executed for the base date of December 31, 2009.
Actuarial gains and losses are recognized in the amount that exceeds the limit of 10% in relation to the total assets or
liabilities of the plan, whichever is higher (corridor criterion).
o) Reserve for reversal and amortization
Refers to resourced derived from the Reserve for reversal and amortization, set up until December 31, 1971 under the
terms of the regulation of SPEE (Federal Decree 41,019/57), applied by the subsidiary Bandeirante in the expansion of
the Electricity Public Utility Service, and interest of 5% per annum is charged on the Fund for reversal. Its potential
settlement will occur in accordance with determinations of the Granting Power.
p) Treasury stock (Note 25)
As determined by CVM Instructions 10/80 and 358/02, treasury stocks are recorded at average cost of purchase.
q) Earnings per share
The earnings per share are calculated by the division of the net income for the year by the number of outstanding shares
of the capital stock.
r) Income determination
Income and expenses are recognized on the accrual basis.
Revenue is recognized in the statement of income when all the inherent risks and benefits are transferred to the buyer.
Revenue from electric energy operations and services rendered is recognized in net income in keeping with its
realization. Revenue is not recognized if there are significant uncertainties as to its realization.
The billing of electric energy to all the consumers and concessionaires is executed monthly, in accordance with the
reading calendar and supply agreements, respectively.
The energy supplied and not billed, corresponding to the period lapsed between the date of the last reading and the
closing of the balance sheet, is estimated and recognized as unbilled revenue.
s) Accounting estimates
The preparation of financial statements in accordance with accounting practices adopted in Brazil, with a basis on the
provisions contained in the Corporation Law, requires that Company Management and its subsidiaries use estimates to
record certain transactions that affect assets, liabilities, income and expenses.
The final results of these transactions and information, at the time of their effective realization in subsequent periods,
may differ from these estimates, due to the lack of precision inherent to the process of their determination. The Company
reviews the estimates and assumptions at least quarterly, except for the Post-employment benefit plans, as mentioned in
note 3.2n.
The main estimates related to the financial statements refer to the recording of impacts resulting from:
• Provision for allowance for doubtful accounts;
• Unbilled supply revenue;
• Transactions carried out in the sphere of the Electric Energy Trading Chamber (“CCEE”);
44

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
• Loss or gain of revenue – low income;
• Regulatory assets and liabilities resulting from review and tariff adjustments;
• Recovery of deferred income and social contribution taxes on tax loss carryforward, negative bases and temporary
differences;
• Recovery of credits PIS/COFINS – COSIT 27;
• Measurement of financial instruments;
• Provisions for contingencies; and
• Post-employment benefit plans.
t) Reduction to the recoverable value
The Management of the Company and of its subsidiaries reviews the net book value of property, plant and equipment
and other non-current assets, including goodwill and intangible assets, on an annual basis to identify whether there was
any evidence of unrecoverable losses of the occurrence of events or alterations in the circumstances indicating that the
book value might not be recoverable. When such evidence is identified, and the net book value exceeds the recoverable
value, provision is formed adjusting the net book value to the recoverable value.
The goodwill and the intangible assets with undefined useful life have the recovery of their value tested annually
regardless of the presence of indicators of loss of value.
u) Financial instruments (Note 32)
Non-derivative financial instruments include financial investments, investments in debt and equity instruments, accounts
receivable and other receivables, cash and cash equivalents, loans, financings and debentures, as well as accounts
payable and other debts.
Non-derivative financial instruments are initially recognized at their fair value plus or minus any transaction costs directly
assignable. Subsequent to the initial recognition, non-derivative financial instruments are measured as described below:
• Instruments held to maturity
If the Company or its subsidiaries have the intention and capacity to hold to maturity their debt instruments, these are
classified as held to maturity. Investments held to maturity are measured by the amortized cost using the effective
interest rate method, less any reductions in their recoverable value.
• Instruments available for sale
The investments of the Company and its subsidiaries in equity instruments and instruments of certain assets relating to
debt instruments are classified as available for sale. Subsequent to initial recognition, they are valued at their fair value
and their fluctuations, excepting reductions in their recoverable value, and the differences in foreign currency of these
instruments, are recognized directly in shareholders' equity, net of tax impacts. When an investment fails to be
recognized, the gain or loss accumulated in shareholders' equity is transferred to net income.
• Financial instruments at fair value through the result
An instrument is classified at fair value through the result if it is held for trading, that is, designated as such upon initial
recognition. Financial instruments are designated at fair value through the result if the Company manages these
investments and makes the purchase and sale decisions based on their fair value in accordance with the investment
strategy and risk management documented by the Company. After initial recognition, assignable transaction costs are
recognized in net income when incurred. Financial instruments at fair value through the result are measured at fair value,
and their fluctuations are recognized in net income.
• Loans and receivables
Loans and receivables are measured by the amortized cost using the effective interest rate method, reduced by any
reductions in the recoverable value.
• Derivative financial instruments
The Company and its subsidiaries, in addition to the procedures adopted in the financial statements of December 31,
2008, started to qualify certain financial instruments as hedge accounting instruments, which have the following
accounting guidelines:
Derivative financial instruments and hedge accounting
Derivative financial instruments are recognized on their trade date at their fair value. Subsequently, the fair value of
the derivative financial instruments is reevaluated on a regular basis, while the gains and losses resulting from this
45

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
revaluation are recorded in net income for the period, excepting as refers to the cash flow hedge derivatives. The
recognition of variations of fair value of the hedge derivatives, in net income for the period, depends on the nature of
the covered risk and on the hedge model used.
Hedge accounting
The Company and its subsidiaries use financial instruments of hedge of the interest rate, foreign exchange variation
and financing risk. The derivatives that do not qualify as hedge derivatives are recorded as trading derivatives.
The hedge derivatives are recorded at fair value and gains or losses are recognized according to the hedge
accounting model adopted, as follows:
i) there is formal documentation of the hedge on the start date of the relationship;
ii) the hedge is expected to be highly effective;
iii) the hedge effectiveness can be measured reliably;
iv) the hedge is evaluated on a continual basis and effectively determined as being highly effective throughout the
financing period; and
v) in relation to the hedge of an anticipated transaction, this must be highly probable and must present exposure to
cash flow variations that could ultimately affect the result.
Cash flow hedge
The effective part of the variations of the fair value of designated derivatives that qualify as cash flow hedge is
recognized in shareholders' equity – asset revaluation reserve. The gains or losses of the ineffective portion of the
hedge relation are recognized by counter entry in net income for the period, at the time the ineffectiveness occurs.
The amounts accumulated in shareholders' equity are passed through net income in the periods in which the
hedged item affects results. However, when the predicted transaction that is hedged results in the recognition of a
non-financial asset or liability, gains or losses recorded in shareholders' equity are recognized by counter entry of
the initial cost of the asset or liability.
When a hedge instrument expires or is sold, or when the hedge relation fails to fulfill the criteria for hedge
accounting, any accumulated gain or loss recorded in shareholders' equity on the date is kept in shareholders' equity
until the foreseen transaction is recognized in net income. When the transaction is not expected to take place, the
accumulated gains or losses recorded by counter entry of shareholders' equity are immediately recognized in net
income for the period.
Effectiveness
For a hedge relation to be classified as such, its effectiveness should be demonstrated. Hence the Company and its
subsidiaries carry out prospective tests on the start date of the hedge relation and on each balance sheet date,
perform tests prospectively and retroactively in order to demonstrate its effectiveness and showing that alterations in
the fair value of the hedged item are offset by alterations in the fair value of the hedge instrument, with respect to the
hedged risk. Any ineffectiveness determined is recognized in results as soon as it occurs.
v) Foreign currency
The functional currency of the Company and its subsidiaries is the Real, according to the rules described in CPC 02 -
Impacts on the Changes in Exchange Rates and Translation of Financial Statements, approved by CVM Resolution nº
534.
Transactions in foreign currency, that is, all those that are not performed in the functional currency, are translated by the
exchange rate of the dates of each transaction. Monetary assets and liabilities in foreign currency are translated into the
functional currency at the foreign exchange rate of the closing date. Gains and losses of variations in the exchange rates
on monetary assets and liabilities are recognized in the statement of income. Non-monetary assets and liabilities
acquired or contracted in foreign currency are translated with a basis on the exchange rates of the dates of the
transactions or on the dates of valuation at the fair value when this is used.
3.3 - Consolidated financial statements
The consolidated financial statements were prepared in accordance with the standards established by CVM Instruction
247, of March 27, 1996 and subsequent amendments, covering EDP - Energias do Brasil S.A., its subsidiaries (as
described in Note 1). The accounting criteria adopted in their/its determination were applied uniformly among the various
companies of the group .
46

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The main consolidation practices adopted were as follows:
• Elimination of the investment of the parent company in the subsidiary companies;
• Elimination of the balances of accounts between the parent company and the subsidiary companies and of the
accounts maintained among these subsidiary companies;
• Highlighting of minority interest in the balance sheets and in the statements of income.
• The subsidiary under joint ownership Porto do Pecém is being consolidated by the proportional method as from
October 14, 2008.
The reconciliation of the results for the year and shareholders’ equity is shown below:
12/31/2009
Shareholders'
equity Net income
Parent company 4,263,389 623,827
Enercouto provision (*) 5,315
1,310
Consolidated 4,268,704 625,137
12/31/2008
Shareholders'
equity Net income
Parent company 3,538,913 388,329
Enercouto provision (*) 4,005
450
Consolidated 3,542,918 388,779
(*) Refers to allowance for loss of the future advance for capital increase at Enercouto.
3.4 - Investments in subsidiary under joint control – Porto do Pecém
The balance sheet of December 31, 2009, of the subsidiary under joint control in pre-operating phase Porto do Pecém, is
presented below:
Summary of Balance sheet on December 31, 2009
Assets Liabilities Operating expenses (16,874)
Current 513,618 Current 188,620 Net financial result 68,046
Noncurrent 1,433,794 Noncurrent 1,243,414 Non-operating result 5,834
Permanent Shareholders' equity 515,378 Income tax and
and application of resources social contribution 14,306
Total 1,947,412 Total 1,947,412 Total 71,312
47
Summary of Income statement
year ended December 31, 2009

4 - Regulatory assets and liabilities
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
A summary of the consolidated regulatory assets and liabilities contained in the Balance Sheet is presented as follows:
Consolidated
Current Noncurrent
Note 12/31/2009 12/31/2008 12/31/2009 12/31/2008
Consumers and concessionaires 5
Light for All Program 24,213
17,992
Other regulatory assets 41,923
46,524
29,569
15,246
Other credits 13
Loss of revenue - low income 61,791
53,927
Other 272
PIS and COFINS - rate Increase
Account for compensation in variation
5,793
of Installment "A" costs 7
Installment “A” 34,725
CVA - assets 113,722
81,871
43,608
94,563
Total regulatory assets 241,921
240,832
Suppliers 17
Free energy (37,416)
(5,343)
(-) Provision for losses - transfer of free energy
Account for compensation in variation
(221)
(283)
of Installment "A" costs 7
Installment “A” (36,351)
(21,078)
(-) CVA - liabilities
Tariff return
(11,241)
(43,615)
Tariff return - BRR 2003 (37,186)
Other accounts payable 13
Pis and Cofins from generators (1)
Revenue gains - low income (22,804)
(47,766)
Other regulatory liabilities (4,976)
(12,357)
Total regulatory liabilities (150,195) (130,443)
Total regulatory assets (-) liabilities 91,726
110,389
4.1 - Breakdown of the RTE ratified by ANEEL, representative of Installment “A”
Items Ratification Instrument
Number Amount ratified
Installment “A” Resolutions n.ºs 480/02,
481/02 and 01/04 99,704
Consolidated
Accumulated
compensation
RTE - Extraordinary tariff adjustment refers to the amounts applicable to each electricity distribution concessionaire,
through extraordinary tariff readjustment of 2.9% applicable to residential consumers (excepting those with a low income),
rural consumers and Street Lighting and of 7.9% for the other consumers, which was aimed to neutralize the effects of
loss of income at the distributors and to reimburse costs with free energy supplied at the generators, and to offset deficits
of unmanageable tariff costs that comprise installment "A" at the distributors, occurring between January 1 and October
25, 2001, during the Emergency Program for Reducing Electricity Consumption - PERCEE, which was effective for the
period between June 2001 and February 2002.
With the end of the maximum period for reimbursement of the sums ratified by ANEEL, corresponding to the installments
of Loss of revenue and of Free energy on March 31, 2007 for subsidiary Bandeirante and on September 30, 2009 for
subsidiary Escelsa , and backed by ANEEL Regulatory Resolution nº 1, of January 12, 2004, republished on June 1,
2004, they began the amortization of the ratified amount corresponding to Installment "A", without maximum term for full
reimbursement.
The subsidiary Bandeirante consulted ANEEL about the deductibility or non-deductibility of the PIS and COFINS taxes
on the amounts amortizable as Installment “A” and is awaiting a reply.
The collection relating to RTE - Extraordinary Tariff Adjustment was suppressed as of the tariff adjustment of October
2008 in subsidiary Bandeirante, and of August 2009 in subsidiary Escelsa. The balance to be returned to the consumers
of the subsidiaries Bandeirante and Escelsa on December 31, 2009, including PIS and COFINS taxes, is R$36,351,
whereas the repayment of the sum of R$19,714 was defined for the subsidiary Bandeirante in the tariff adjustment of
48
174,019
Amount
amortized
(310,074)
73,177
(58,384)
(55,467)
(113,851)
(40,674)
Balance to amortize
109,809
(18,430)
(46,314)
(64,744)
45,065
12/31/2009 12/31/2008
(36,351)
13,647

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
October 20, 2009. This sum is being returned in twelve installments as of October 2009. The amount of R$16,637 or the
subsidiary Escelsa will be returned on a convenient date to be defined by ANEEL.
Free energy - ANEEL published Resolution nº 387, of December 15, 2009, determining that the concessionaires should
recalculate the value of the liabilities and of the onlending of the portion of RTE corresponding to Free energy. As a result
of this fact, the subsidiaries Bandeirante and Escelsa recorded liabilities in the amount of R$32,072, making a counter
entry of the amount of R$29,885 debited to Financial income (expenses) and R$2,187 debited to Operating income
(expenses).
4.2 – Readjustments and periodic tariff review
4.2.1 – Periodic tariff review of 2007 and tariff readjustment of 2009 - subsidiary Escelsa
2007 Tariff Review
The Brazilian Electricity Regulatory Agency - ANEEL, in a public meeting of the board of executive officers that took
place on July 28, 2009, permanently ratified the fourth periodic tariff review of subsidiary Escelsa (period of August 2007
to August 2010), according to methodology established by Regulatory Resolution 338/2008.
The main changes introduced by ANEEL, in view of what it had established temporarily in 2007 and 2008, are:
(i) The amounts recognized as costs included in the Company of Reference in 2007, previously assigned in R$ 221
million, was altered and ratified to R$ 210 million. On May 12, 2009, as a result of Public Inquiry nº 035/2009, ANEEL
had published a value of the Company of Reference of R$ 202 million.
(ii) Xe Component of X Factor, an index used in the calculation of the annual tariff readjustments, goes from 1.45% to
0.00%;
(iii) Percentage of Unrecoverable Losses of Income, goes from 0.50% to 0.60% of the pre-tax income (with taxes).
These alterations are retroactive to August 7, 2007 and the values of the Gross and Net Regulatory Remuneration Bases
are maintained.
ANEEL also decided on the administrative appeals lodged previously by the subsidiary Escelsa, against Homologatory
Resolution 528/2007 and Homologatory Resolution 686/2008, relating to provisions related to the Tariff Structure, the
Supply Revenue and to adjustments in the calculation of deficit of the Light for All (“Luz para Todos”) Program.
Having computed all the effects, the tariff review index, approved by ANEEL, is –6.44%, substituting the temporary
amount, set in August 2007, of –6.92%.
The net financial income, included in the annual tariff adjustment of the subsidiary Escelsa, was R$ 2,000.
It is worth clarifying that the tariffs of the subsidiary Escelsa homologated through the annual adjustment on August 7,
2009 involved the following effects:
(i) the introduction of the difference between the new percentage of -6.44% and the temporary percentage of -6.92%
determined in August 2007, as referred to previously; and
(ii) the annual adjustment index for the period from August 7, 2009 to August 6, 2010.
Having computed all the effects, the tariff review index, approved by ANEEL, is -6.44%, substituting the temporary
amount, set in August 2007, of -6.92%. Accordingly, the subsidiary Escelsa recorded the amount of R$15,595 in this
quarter, reducing the net income for the year in Operating Income as a counter entry to Current Liabilities in Tariff
Repayment, referring to the period from August 2007 to July 2009. The amount to be refunded as of September 30, 2009
is R$12,995.
2009 Tariff Readjustment
At a public meeting held on August 4, 2009, the Brazilian Electricity Regulatory Agency - ANEEL approved the report that
authorized the average readjustment of the tariffs of subsidiary Escelsa in 15.12% for the period beginning August 7,
2009 to August 6, 2010, including all consumer classes (residential, industrial, commercial, rural, etc.). Considering the
financial adjustments already included in the tariffs of the subsidiary Escelsa, related to the recovery of prior periods, the
49

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
average tariff readjustment in electric energy bills was 10.01%, being 9.49% for low voltage consumers and 11.18% for
high voltage consumers. Furthermore, as of August 7, 2009, after the end of the recovery process of the liabilities
associated with the Extraordinary Tariff Adjustment - RTE, the application of the percentages of 2.9% for residential and
rural consumers and Public Lighting, and of 7.9% for the other consumers, came to an end. The tariffs of application,
considering these facts, were ratified through Homologatory Resolution nº 860 of August 4, 2009.
In the tariff readjustment process, ANEEL considered the variation of costs that the companies experienced over the
course of the previous twelve months. The calculation formula includes manageable costs, which are subject to the
incidence of IGP-M adjusted by X Factor and non-manageable costs, such as electricity purchased from generators, Fuel
Consumption Account (“CCC”), Global Reversal Reserve (“RGR”), inspection rate and transmission charges, besides
financial adjustments recognized by ANEEL in the Installment A Items Variation Account (“CVA”) and other instruments.
The breakdown of the adjustment, applied in 2009 to the subsidiary Escelsa, is demonstrated below:
• Installment A with 8.34%, 4.83% relative to the purchase of energy, 1.49% relative to sector charges and 1.64%
relative to transmission charges;
• Installment B with 0.38%; and
• Financial items with 6.78%, which include the adjustments resulting from the conclusion of the process of the 2nd
Periodic Tariff Review of the subsidiary Escelsa, communicated on October 6, 2009.
4.2.2 - Periodic tariff review of 2007 and Tariff adjustment of 2009 - subsidiary Bandeirante
2007 Tariff review
At an Ordinary Public Meeting of Senior Management held on October 6, 2009, ANEEL permanently ratified, through
Homologatory Resolution nº 889, of October 6, 2009, the second periodic tariff review of the subsidiary Bandeirante
(period of October 2007 to October 2011), pursuant to methodology established by Normative Resolution 338/2008.
The main changes introduced by ANEEL, in view of what it had established temporarily in 2007 and 2008, are:
(i) The amounts recognized as costs included in the Company of Reference in 2007 previously assigned in R$263
million, were altered and ratified to R$247 million. ANEEL had disclosed a value of the Company of Reference of R$235
million on 7/13/2009, as a result of Public Inquiry nº 047/2009;
(ii) Xe Component of X Factor, an index used in the calculation of the annual tariff readjustments, goes from 0.74% to
1.01%; and
(iii) Percentage of Unrecoverable Losses of Income, goes from 0.50% to 0.60% of the pre-tax income (with taxes).
These alterations are retroactive to October 23, 2007 and the values of the Gross and Net Regulatory Remuneration
Bases are maintained.
Having computed all the effects, the tariff review index, approved by ANEEL, is-9.79%, substituting the temporary
amount, set in October 2007, of-8.80%. Accordingly, the subsidiary Bandeirante recorded the amount of R$35,194 in this
quarter, reducing the net income for the year in Operating Income as a counter entry to Current Liabilities in Tariff
Repayment, referring to the period from October 2007 to September 2009.
2009 Tariff Readjustment
The Brazilian Electricity Regulatory Agency - ANEEL, in a public meeting of the board of executive officers that took
place on October 20, 2009, approved the average annual tariff readjustment of 5.46%, to be applied to the tariffs of the
subsidiary Bandeirante, as from October 23, 2009, with 3.11% relating to the annual economic tariff readjustment and
2.35% referring to the pertinent financial components, which, having computed the effect of the financial items removed
from the base, of 4.44%, correspond to an average impact of 1.02% to be perceived by captive consumers.
ANEEL has informed that high and low voltage consumers will have different average adjustments, as shown in the
following table, of 0.33% for low voltage consumers and of 2.00% for high voltage consumers.
In the annual tariff readjustment process, provided for in the Concession Contract, ANEEL considers the variation of
costs that the companies experienced over the course of the previous twelve months. ANEEL has informed that high and
low voltage consumers will have different average adjustments, as shown in the following table, of 0.33% for low voltage
consumers and of 2.00% for high voltage consumers.
50

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The breakdown of the readjustment, applied in 2009 to the subsidiary Bandeirante is shown below:
• Installment A with 3.11%, 0.09% relative to the purchase of energy, 1.65% relative to sector charges and 1.38%
relative to transmission charges;
• Installment B with 0.002%; and
• Financial items with 2.35%, 3.66% relative to financial adjustments of “CVA” and -1.31% referring to other financial
adjustments, which include the adjustments resulting from the conclusion of the process of the 2nd Periodic Tariff
Review of the subsidiary Bandeirante, communicated on October 6, 2009.
4.2.3 – Periodic tariff review – Annual revenue allowed (“RAP”) of indirect subsidiary Evrecy
ANEEL, by means of Homologatory Resolution nº 843, of June 25, 2009, approved the new amounts of the annual
revenues allowed ("RAP"), for the year 2009 and 2010, of the electric energy transmission concessionaires. The new
revenues, which took effect as from July 1, 2009, were corrected by the variation of the General Market Price Index
(“IGP-M”) of the year and also include a portion of adjustment resulting from the difference between the amount collected
by the transmission tariffs of the prior year and the “RAP” approved for that period.
With the publication of Normative Resolution nº 386 of December 15, 2009, the methodology of the second tariff review
cycle of the energy transmission companies was established. This methodology will be applied in 2010 with effects
retroactive as of July 1, 2009, which corresponds to the review date provided for in the Company's concession contract.
5 – Cash and cash equivalents
Parent Company Consolidated
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Cash and banks 29,595 47,307 292,711 279,372
Interest earning bank deposits - fixed income funds 203,845 32,136 809,311 220,510
Total 233,440 79,443 1,102,022 499,882
Highly liquid short-term financial investments are promptly convertible into a known sum of cash.
These financial investments refer substantially to bank deposit certificates and fixed income funds, remunerated at rates
that range between 98.5% and 103.1% of the Interbank Deposit Certificate (“CDI”).
The calculation of the fair value of financial investments, when applicable, is performed taking into consideration the
market quotations of the instrument, or market information that permits this calculation, taking into consideration the
future rates of similar instruments.
51

6 – Consumers and concessionaires
Current
Consumers
B illed to finals consumers
Billed supply
Residential 93,499
Industrial 34,809
Commerce, Services and Other
35,033
Activities Rural 10,632
Public power
Federal 4,023
State 5,182
M unicipal 5,324
Public lighting 6,031
Public service 8,982
Free customers 7,554
Unbilled supply 245,852
Debt paid in installments 54,578
Collection to classification process 1,881
Other credits 28,615
Regulatory assets
Other regulatory assets 64,366
606,361
Concessionaires
Supply - conventional 179,571
Short-term energy 5,271
Charges on electricity network usage 8,901
Regulatory assets 1,770
Other 13,662
209,175
T o tal current 815,536
Noncurrent
Consumers
Billed supply
Industrial 6,929
Commerce, Services and Other
Public Activities P ower
54
M unicipal 3
Debt paid in installments 55,470
( - ) Present value adjustment (17,763)
Other credits
Other regulatory assets 29,569
74,262
Concessionaires
Short-term energy 14,301
Other 20,169
34,470
T o tal no ncurrent 108,732
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The allowance for doubtful accounts is considered sufficient to cover eventual losses in the realization of these assets by
management of the Company and its subsidiaries.
6.1 – Short-term Energy
Refers mainly to the transactions of sale of energy, realized in the in the sphere of the Electric Energy Trading Chamber
– “CCEE”.
Part of the values of the assets of the distributor subsidiaries is subject to modification depending on the decision of
lawsuits in progress, filed by companies from the sector, relating to the interpretation of rules of the market in force. The
subsidiary Bandeirante recorded Allowance for Doubtful Accounts this year in counter debited from Net Income in the
account of Operating Expenses in the amount of R$11,699.
6.2 – Concessionaires – Others
Balances Overdue Overdue Allowance Net Net
falling up to 90 for more than for doubtful balance on balance on
due days 90 days Total accounts 12/31/2009 12/31/2008
97,215
31,700
27,831
7,960
1,006
789
3,280
3,227
6,126
10,623
189,757
-
189,757
-
-
-
26,172
10,795
18,941
3,206
207
470
4,814
6,773
11,263
19,560
102,201
-
102,201
-
-
-
The amounts of R$20,169 (R$20,170 in 2008) in noncurrent assets and of R$19,335 (R$19,335 in 2008) in Current and
Noncurrent liabilities (Note 14), refer to sums receivable and payable, respectively, between the subsidiary Bandeirante
52
Consolidated
216,886
77,304
81,805
21,798
5,236
6,441
13,418
16,031
26,371
7,554
245,852
84,761
1,881
28,615
64,366
898,319
179,571
5,271
8,901
1,770
13,662
209,175
1,107,494
6,929
54
3
55,470
(17,763)
29,569
74,262
14,301
20,169
34,470
108,732
(34,564)
(9,675)
(14,452)
(143)
(94)
(256)
(1,180)
(501)
(39)
(29,673)
(90,577)
(28,412)
(28,412)
(118,989)
-
(14,301)
(14,301)
(14,301)
182,322
67,629
67,353
21,655
5,142
6,185
12,238
15,530
26,332
7,554
245,852
55,088
1,881
28,615
64,366
807,742
151,159
5,271
8,901
1,770
13,662
180,763
988,505
6,929
54
3
55,470
(17,763)
29,569
74,262
20,169
20,169
94,431
144,536
38,095
46,488
14,306
3,403
5,100
11,313
15,623
13,489
6,121
214,571
35,696
1,570
33,526
53,869
637,706
101,793
9,802
8,504
10,647
10,849
141,595
779,301
17,764
54
3
72,782
(16,335)
15,246
89,514
13,542
20,170
33,712
123,226

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Energia S.A. and Companhia Piratininga de Força e Luz - “Piratininga”, as a result of the partial spin-off of the subsidiary
Bandeirante carried out on October 01, 2001, pursuant to the terms established in the spin-off protocol.
There are no disagreements between the parties regarding the balances currently recorded, receivable and payable,
which should be settled in a timely manner.
6.3 – Concessionaires – Conventional Supply
The balance of Supply of energy includes amounts billed against Ampla Energia e Serviços S.A. - "AMPLA" (previously
called Companhia de Eletricidade do Rio de Janeiro – “CERJ”), both past due and falling due, totaling R$ 57,258 on
December 31, 2009 (R$68,637 in 2008), whereas of this sum R$27,684 (R$65,753 in 2008) refers to a right obtained by
an arbitral award of March 19, 2009 in response to proceedings nº 03/2005 and 04/2006, issued by “Câmara FGV de
Conciliação e Arbitragem”.
This arbitral award recognized that in the contract of energy sale signed by Enertrade and AMPLA, for the period from
November 15, 2003 to August 28, 2006, AMPLA did not fulfill the defined price, and for the period from August 29, 2006
to March 13, 2009 the Company recognized the overcharge, rectifying operating revenue at R$ 41,440 and annulling the
corresponding allowance for doubtful accounts, without an impact on operating income.
With AMPLA not having recognized the effects of the arbitral award, the Company decided to maintain the allowance for
doubtful accounts corresponding to the amount under discussion.
6.4 – Adjustment to present value
The adjustment to present value, regulated by CPC Pronouncement 12, was calculated by the subsidiaries Bandeirante
and Escelsa with a basis on the regulatory WACC rate, applied by ANEEL in the tariff reviews of the distributors. This
rate is compatible with the nature, term and risks of similar transactions under market conditions and, on December 31,
2009, corresponded to 15.07% per annum (15.07% per annum in 2008), having a negative impact on the consolidated
result for the year before the effects of taxes of R$1,117 (R$3,641 negative in 2008).
7 – Prepaid expenses
Parent Company Consolidated
Current Current
Noncurrent
12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2009 12/31/2008
PIS/COFINS - rate increase 5,793
Insurance 4
48 2,615 2,171
Other 443
Total 4
48 2,615 8,407
8 – Account for compensation in variation of Installment “A” costs – CVA
Bandeirante
Consolidated
Assets Liabilities
53
1,064
1,064
1,376
1,232
2,608
Current Noncurrent
Current Noncurrent
12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2009 12/31/2008
From 1/1/2001 to 10/25/2001 19,714
From 9/24/2006 to 9/23/2007 6,635
From 9/24/2007 to 9/23/2008 4,937
From 9/24/2007 to 9/30/2008 64,643
57,920
From 9/24/2007 to 12/31/2008 25,508
Escelsa
69,580
64,555
From 1/1/2001 to 10/25/2001 34,725
From 7/8/2006 to 7/7/2007 5,724
From 7/8/2007 to 7/7/2008 303
From 7/8/2007 to 9/30/2008 43,839
11,592
25,508
From 8/8/2007 to 12/31/2008 18,100
44,142 52,041 18,100
Total 113,722 116,596 43,608
680
47,557
48,237
46,326
46,326
94,563
1,875
1,710
23,299
16,637
7,656
24,293
47,592
21,078
10,728
21,602
53,408
3,461
7,824
11,285
64,693
53,879
53,879
4,505
4,505
58,384
7,572
7,572
10,858
10,858
18,430

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The electricity distribution contracts establish, in the composition of tariffs practiced by the concessionaires, values for
each item of exogenous costs, booked to operating expenses, components of the variable denominated Installment “A”,
of the Tariff Readjustment Index – “IRT”, demonstrated as follows:
• Pass-through tariff of electricity from Itaipu Binacional;
• Transportation tariff of electricity from Itaipu Binacional;
• Collection quota to the Fuel Consumption Account – “CCC”;
• Tariff for use of the electricity transmission facilities of the basic grid;
• Charges for Services Systems – “ESS”;
• Purchased electricity;
• Reversal Global Reserve Quota – “RGR”;
• Electricity services inspection fee;
• Connection charges;
• Energy Development Account – “CDE”;
• Energy Purchase Agreement in the Regulated Market – “CCEAR”; and
• Incentive Program for Alternative Sources of Electricity – “PROINFA”.
The records for offsetting of positive or negative differences between the amounts paid of each item and the respective
amounts of coverage considered in the electric energy tariffs, are executed according to the accrual basis of accounting,
in assets and/or liabilities, with against entries in income according to their nature.
Changes in CVA for the year are shown as follow:
Item
Balance in
12/31/2008
Installment "A" 13,647 - (1,122) (48,876) (36,351)
CVA 114,389
53,269
11,761
(91,714)
87,705
128,036
Installment “A”: from January 1 to October 25, 2001 – amounts corresponding to RTE – Extraordinary Tariff Adjustment
mentioned in Note 4 .
9 – Income and social contribution taxes
Appropriation
53,269
Monetary
restatement
54
10,639
Amortization
(140,590)
Balance in
12/31/2009
51,354
Parent Company
Consolidated
Current Noncurrent
Current Noncurrent
12/31/2009 12/31/2008 12/31/2009 12/31/2009 12/31/2008 12/31/2009 12/31/2008
Recoverable - Assets
Income and social contribution taxes - current 43,791
51,373
225,152
226,676
ICMS 132
53
36,827
26,719
28,383
31,084
PIS and COFINS 235
235
37,500
25,807
PIS and COFINS - "COSIT 27" 75,730
40,054
Income tax w ithheld in interest on equity 23,630
23,343
23,630
23,343
Other 7,248
3,399
14,728
18,319
2,695
Total 75,036
78,403
413,567
360,918
31,078
31,084
Payable - Liabilities
Income tax and social contribution - current 2,987
144,242
ICMS in rate differencial 5
415
ICMS 142,927
PIS and COFINS 12,776
87,963
ISS
PIS, COFINS e CS - In third-parties
662
services
Income tax w ithheld at source in
18
third-parties services 38
Income tax w ithheld in interest on equity 14,777
31,104
Installment tax - Law 11.941/09 14,634
34,146
45,484
Other 704
835
11,617
Total 31,106
15,612
34,146
464,470
177,245
3
107,444
63,446
30
42,274
11,526
401,968
35,039
106,129
995
142,163
34,451
34,451

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
9.1 – Taxation of operations in the Electric Energy Trading Chamber - CCEE
As a result of the terms of article 32 of Provisional Measure n.º 66, of August 29, 2002, converted into Law n.º 10,637, of
December 30, 2002 and of Normative Instruction n.º 199, of September 12, 2002, electric energy distributors, as agents
members of the Electric Energy Trading Chamber (“CCEE”), exercised the option for the special taxation regime of PIS
and of COFINS on income earned in operations carried out within the sphere of that Institution.
The main effects refer to the calculation basis levied on the net positive results and on the continuity of the application of
the rate of 0.65% and 3% for PIS and COFINS, respectively.
9.2 – PIS and COFINS
The balances of PIS and COFINS assets and liabilities, on December 31, 2009, consider the recording by subsidiaries
Bandeirante and Escelsa of extempore credits, in the amount of R$75,730 (R$40,054 in 2008), resulting from the
interpretation provided by the Internal Revenue Service in Answer to Inquiry COSIT 27/2008, corresponding to the
credits calculated on expenditures with materials applied or consumed in the electricity supply activity and in the activity
of depreciation charges of machinery, equipment and other fixed assets, to be offset with debits of these contributions. In
accordance with ANEEL Technical Note 115/2005, the subsidiaries recognized in Current liabilities, in Other liabilities, an
equal sum to be returned to the consumers, since said credits will influence the effective rate to be charged in the future
(Note 14).
9.3 – IRRF - interest on own capital
Refers to the Withholding Tax, at the rates of 15% and 25%, levied on the amounts proposed to the shareholders as
Interest on Shareholders' Equity, excepting for the shareholders provenly immune or exempt up to the date of December
31, 2009, in conformity with the legislation. No Interest on Own Capital was proposed this year by Company
Management. The sum of R$14,777 was withheld in 2008.
9.4 - Installment payment of taxes - Law nº 11,941/09 and Provisional Measure 470/09
At a Senior Management Meeting on November 26, 2009 the participants approved adhesion to the program for
reduction and installment payment of taxes in conformity with Law nº 11,941/09 and by Provisional Measure nº 470/09,
as well as that of the subsidiaries Bandeirante, Escelsa, Energest and Enertrade. The formalization that occurred in the
months of October and November 2009 at the Internal Revenue Service – “SRF”, which generated a reduction of
contingent liabilities (Note 24), relative to tax proceedings within the federal sphere, as shown below:
Parent Company Consolidated
12/31/2009 12/31/2009
Balance on 66,705 150,470
Constitution of provision -
11,106
Constitution of legal charges 12,102 76,366
Balance w ith review of probability law yers 78,807 237,942
Benefit - Reversal program REFIS (12,519) (67,400)
66,288 170,542
2008 tax payment not included in REFIS program (17,508) (17,508)
Installment 48,780
Accordingly, it was recorded in this liability account on December 31, 2009, as follows:
55
153,034

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Parent Company Consolidated
12/31/2009 12/31/2009
Tax and social contribution -
33,910
PIS/COFINS 45,362 93,667
INSS -
21,926
Other 3,418
3,531
Total 48,780 153,034
Of the total sum of this adhesion, the amortization will be through offsetting with funds from judicial deposits and the
other part with tax credits originating from tax loss and negative basis of social contribution, in the amount of R$2,546
and the rest settled in 30 installments.
10 – Deferred income and social contribution taxes
10.1 – Assets
The tax credits detailed below, calculated on tax losses carry-forward, negative social contribution basis and other
amounts constituting temporary differences used for reducing the future tax burden, were recognized based on historical
taxable profits and on budgets for generating taxable profits for the next fiscal periods at the subsidiaries Bandeirante,
Escelsa, Enertrade, Energest, and Lajeado, within a maximum period of 10 years.
Current Noncurrent
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Income tax on tax losses carry-forw ard 34,722
38,747
99,294
114,221
Negative bases of social contribution 12,500
13,987
46,226
53,382
Income and social contribution taxes on other temporary addition 60
Income and social contribution taxes on other temporary differences 61,571
61,796
46,696
71,871
Income and social contribution taxes on provision for pension deficit - "PSAP" 2,745
3,113
20,211
24,900
Income and social contribution taxes on incorporated tax credit - Goodw ill 16,785
7,909
249,137
140,299
Income and social contribution taxes on other temporary differences - "RTT" 112
669
45,787
7,701
Total 128,495
Based on the technical studies of the projections of taxable income, computed in accordance with the provisions of CVM
Resolution 273, of August 20, 1998, the recovery of noncurrent tax credits is estimated in the following years:
The Management of the Company and its subsidiaries prepared a projection of future taxable income on December 31,
2009, also considering its discounts at present value, demonstrating the capacity to realize these tax credits in the
periods indicated and, for the subsidiaries Bandeirante and Escelsa, as required by CVM Instruction nº 371, of June 27,
2002, aforesaid studies were approved by the respective Boards of Directors. These estimates are periodically reviewed
in order to allow the Company to record in its financial statements an eventual alteration in the budget for recovery of
these credits on a timely basis. Consequently, the estimates might not materialize in the future on account of the
uncertainties inherent to these forecasts.
56
Consolidated
126,221
507,351
2011 2012 2013 2014 2015 2016 to 2018 Noncurrent
223,274
99,746
81,190
78,717
18,936
5,488
412,374
507,351

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Under the tax legislation in force, the tax loss and the negative basis of social contribution can be offset with future
income, up to the limit of 30% of the taxable income, and are not subject to a statutory limitation period.
10.1.1 – The taxable credit arising from the Provision for the Pension Plan Deficit – “PSAP”, refers to the portion of
liabilities related to benefits exceeding assets relative to the defined benefit pension plans at the Bandeirante subsidiary,
the provision for which was effected on December 31, 2001 with a counterparty in Shareholders’ Equity, deductible on
the occasion of the monthly payments, expected to be terminated by 2017. The installment regarding the calculation of
surplus to the legal limit of deduction equivalent to 20% in relation to the payroll of base salaries only the portion of
funding of the active participants.
10.1.2 – Tax credit arising from goodwill derives from:
a) during 2002, at the subsidiary Bandeirante, as a result of the incorporation of the portion spun off from the former
controlling company Enerpaulo - Energia Paulista Ltda., represented by the goodwill paid by “Enerpaulo” on the
acquisition of shares issued by Bandeirante.
b) at the subsidiary Escelsa, from the merger that occurred in April 2005, of the spun-off portion of the parent company
EDP Energias do Brasil S.A., represented by the goodwill paid by the merged companies EDP 2000 Participações Ltda.
and EDP Investimentos Ltda. upon the acquisition of shares issued by IVEN, which was parent company of Escelsa at
the time.
c) at the subsidiary Lajeado, from the takeover of the subsidiaries EDP Lajeado Energia S.A. and Tocantins Energia
S.A., which occurred in November 2009, represented by the goodwill paid by the Company.
The amounts were accounted for according to CVM Instructions 319/99 and 349/99, and in accordance with ANEEL’s
instructions, and will be amortized according to the curve between the expectation of future results and the term of the
Companies’ concession. This translates into a future average annual tax credit realization of R$6,049 to subsidiary
Bandeirante up to 2027, R$1,974 to subsidiary Escelsa up to 2025, and R$ 1,496 to subsidiary Lajeado up to 2016.
10.1.3 – The forecasted future taxable income indicates that the subsidiaries Bandeirante and Escelsa have a calculation
base sufficient to recover the full balance of tax credits in the period as demonstrated. However, the credits up to
December 31, 2009 related to PSAP and goodwill, mentioned in Explanatory Notes 10.1.1 and 10.1.2, will be realized
financially up to 2017 and 2032, respectively, according to the amortization rules of the amounts related to them.
10.2 – Liabilities
Income tax 11,431
Social contribution 4,115
Total 15,546
12/31/2009 12/31/2008
1,448
521
1,969
Current 1,969
Noncurrent 15,546
Total 15,546
Consolidated
1,969
As the subsidiary Porto do Pecém declared its option to adopt the transitory regime in 2008, this option is mandatory for
the calendar year 2009, and thus for IRPJ and CSLL tax calculation purposes, the provisions in force up to 12.31.2007,
prior to the application of Law 11,638/07, under article 16 of Law 11,941/09, remain by operation of law.
57

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Hence for calculation purposes of the Taxable Income of 2009, the company adopted the provisions of Law 6,404/76,
updated up to 12.31.2007, which includes the concept of Pre-operating Expenses, Deferred Charges and Deferred
Income, for taxation purposes.
Therefore, although taken to net income for the year, by operation of the adoption of “RTT”, the results of the preoperating
phase will only be taxable as of the start of the operations, according to criteria in force up to 12.31.2007.
11 – Related parties
Besides the amounts receivable as dividends from its subsidiaries and associated companies, presented in note 26, and
the amounts of advances for future capital increase disclosed in note 13, the other balances of assets and liabilities, as
well as the transactions of the Company with its subsidiaries, key management professionals and other related parties,
which influenced net income for the period, result from transactions performed under normal market conditions for the
respective types of operation.
Related parties
Bandeirante 243
CESA 87,440
Energest 59,989
Enersul -
Enertrade 20,588
ESC90 -
Escelsa 351
Escelsapar 2,900
Investco 4,355
Ipueiras 5
Lajeado Energia -
Parent Company Consolidated
Assets Liabities Income for the year
Assets Income for the year
12/31/2009 12/31/2008 12/31/2009 12/31/2008 2009 2008 12/31/2009 12/31/2008 2009 2008
175,871
351
82,849
35,793
-
104
22,090
233
2,667
-
-
-
144,087
399
-
-
-
-
-
-
-
3
28
6,594
7,024
371
-
-
-
-
4
135
-
-
-
-
510
Enertrade - The subsidiary has loan agreements in the sum of R$20,201, with R$5,500 signed on November 9, 2009,
and R$5,000 signed on December 7, 2009, both maturing on August 21, 2010 and R$9,701 signed on December 10,
2009 aiming at conversion of the dividends maturing on November 9, 2010, whereas all the contracts are restated with
interest of 100% of the Interbank Deposit Certificate (CDI).
Energest - The subsidiary has loan agreements in the sum of R$57,286, with R$22,250 signed during the year 2009,
restated with interest of 100% of the Interbank Deposit Certificate (CDI) and R$35,036 signed on December 29, 2006,
aiming at conversion of the dividends. For this agreement there is no incidence of interest and the maturity date is on
December 29, 2011.
CESA - The subsidiary has loan agreements in the sum of R$60,224, with R$15,000 signed on May 15, 2003 and
R$9,240 signed on May 30, 2003, restated with interest of 100% of the Interbank Deposit Certificate (CDI) and R$35,984
signed on December 29, 2006, aiming at conversion of the dividends. For this agreement there is no incidence of interest
and the maturity date is on December 29, 2011.
Investco - During a Senior Management Meeting held on November 23, 2009, the subsidiary approved the conversion of
the amount of dividends payable of R$4,336 in a loan agreement where the agreed terms were settlement in a single
installment by or before November 9, 2010 and interest levied of 100% of the average rate of Interbank Deposit
Certificates (CDI).
Escelsapar - Refers to a loan in the amount of R$ 2,900 maturing on October 22, 2011 without financial charges.
10
4,592
1,650
-
199
79,780
-
165
-
-
-
86,396
The remuneration of the key management staff in the three-month period ended December 31, 2009, as required by
CVM Resolution nº 560, of December 11, 2008, attained the sum of R$3,997 (R$ 5,805 in 2008), an amount comprised
only of short-term benefits, without the costs of contract rescissions.
58
-
5,095
-
-
8
11,369
-
189
-
-
-
16,661
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22,104
-
-
-
-
-
22,104
-
-
-
-
-
79,780
-
-
-
-
-
79,780
-
-
-
-
-
11,369
-
-
-
-
-
11,369

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Those present at the Ordinary General Meeting held on April 8, 2009 approved the annual and overall remuneration of
the members of the Board of Directors, of its Committees and of the Senior Management of up to R$4,560, for April 2009
to March 2010.
The amounts with the subsidiaries Bandeirante, Escelsa and Enertrade refer to the sharing of expenses with personnel,
material and outsourced services, approved by ANEEL through Order 2,194, of July 13, 2007 and, with the other
companies, refer basically to financial loans.
12 – Pledges and restricted deposits
13 – Advances for future capital increases
Parent Company
Current Noncurrent Current
Noncurrent
Note 12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2009 12/31/2008
Judicial deposits 24 2,168 2,080
5,122 2,944
2,203
Collaterals and committed deposits 67,384
Total 2,168 2,080
5,122 2,944 69,587
Parent Company
Assets
12/31/2009 12/31/2008
Energest 35,040 35,040
Enernova 31,077 7,700
Terra Verde 3,100
-
Enecouto 5,315 4,005
Enercouto (provision) (5,315) (4,005)
Total 69,217 42,740
59
Consolidated
2,080
74,856
76,936
117,735
13,062
130,797
132,067
21,565
153,632

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
14 – Other receivables - Assets and Other accounts payable – Liabilities
Other credits - Assets
Advances to employees 97
Advances to suppliers 53
14.1 – Tariff modicity – low income
The Law 10,438, of April 26, 2002, set the instructions to be applied in the inclusion in residential subclass classified as
low income, of the unit with consume less than 80KWh per month, with the Instrument 4,336, of August 15, 2002, which
extended the determinations of this law to consumers with 80 to 220 KWh of consume per month.
The subsidiary Bandeirante is involved in an inspection process by the São Paulo State Sanitation and Energy
Regulatory Agency (“ARSESP”), with a Notification having been drawn up in which the Regulatory Agency determined
the review of registration criteria of customers classified in the low income tariff category. As a result overcharged tariffs
are being refunded, and liability in the amount of R$47,640 was recorded in this account on December 31, 2009, of
which the amount of R$24,836 was refunded to consumers in this semester, and the amount of R$4,679 will be refunded
as of January, 2010 to reclassified consumers that are still active in the registration. The remaining balance will be
R$18,125, available to inactive consumers. Considering that the legislation and regulations of this subject matter provide
for the reimbursement of these amounts through the subsidy mechanism, the same sum was recorded in contra account,
in assets.
The balance on December 31, 2009, of the subsidiary Escelsa, in the amount of R$ 12,790, corresponds to estimates for
the period from June to December 2009.
14.2 – Assignment of Credit – Tangará Energia S.A.
Refers to the repricing balance of the Credit Assignment contract made by and between the subsidiary Lajeado Energia
S.A. and Tangará Energia S.A., on August 31, 2004, approved by ANEEL through Directive Releases nºs 467/2000-
SFF/ANEEL and 1,706/2004-SFF/ANEEL, with the following conditions:
Payment term: 120 months
Grace period: 18 months
End: February 29, 2016
Remuneration: 100% of CDI
Value contract: R$18,199
12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2009 12/31/2008
Credit receivable - customers 167
Loss of revenue - Low income 61,791
Expenditure to refund 34
Energy efficiency program 3,568
RGR to offset 777
Assets available for sale 20,051
Deactivation in progress 16
Services in progress 683
Services rendered to third-parties 5,394
Charges and consignments on payroll 1,809
Deactivation and sales 7,228
Infrastructure shared 1,138
105
53
405
13,350
Advance UTE Resende e Norte capixaba 6,844
2,511
NDF - Nondeliverable forw ard contracts 60,669
Agreement of collect 2,255
Assignment of Credit - Tangará Energia S.A. 3,626
Assignment of Credit - Caiuá Distribuição de Energia S.A. 2,373
Other regulatory assets 272
Capital reduction 24,887
Other 170
Total 883
Other accounts payable - Liability
3,244
6,911
51,992
60
6,462
765
7,227
3,148
1,248
10,402
6,976
47,741
9,233
166,891
Received advances - Assets sale 10,037
Public lighting contribution 11,798
Amounts payable to Piratininga 382
Other credits - consumers 14,636
Other credits - concessionaries 4,161
Payroll 4,707
Others regulatory liabilities 4,976
Gain of revenue - Low income 22,804
ICMS credit assignment 2,390
Interest on compulsory loan 373
Collect from third-parties to pass-through 7,676
Accrual - Cable TV and Telephone 2,398
Tariff return - COSIT 27 75,729
Capital reduction 24,007
Others 2,208
Total 2,208
Parent Com pany
2,208
2,208
62
62
25
25
12,371
174,438
Consolidated
Current Noncurrent Current Noncurrent
2,594
2,379
167
53,927
5,166
2,863
2,091
5,548
14,043
11,710
1,551
774
72
1,820
3,347
14,287
144,645
9,837
10,368
382
17,395
3,054
4,050
12,357
47,766
308
431
2,525
2,282
40,054
18,617
169,426
13,350
1,520
84
14,449
6,844
4,950
18,276
12,402
71,875
18,953
55,467
2,971
101,398
2,525
84
9,825
6,462
19,954
4,435
8,921
112,875
18,953
46,314
6,050
71,317

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
A promissory note was provided as guarantee in the amount of the debit balance, with the collateral signature of
DENERGE - Desenvolvimento Energético S.A
14.3 – Credit Assignment – Caiuá Distribuição de Energia S.A.
Refers to the balance of the consolidation and repricing of the Credit Assignment contract made by and between the
subsidiary Lajeado Energia S.A. and Caiuá Distribuição de Energia S.A., on December 31, 2006, approved by ANEEL
through order nº 181-SFF/ANEEL of January 29, 2007, with the following conditions:
Payment term: 86 months
Grace period: 24 months
End: February 29, 2016
Remuneration: 100% of the CDI plus 2% per annum of interest
Value contract: R$23,532
A promissory note was provided as guarantee in the amount of the debit balance, with the collateral signature of
DENERGE - Desenvolvimento Energético S.A.
15 – Investments
15.1 – Movement of investments in the period:
EDP Energias do Brasil
Investiments
Bandeirante 680,031
Escelsa 685,145
Balances on
12/31/2008 Additions Write off Equity pick-up Dividends
241,906
(285,811)
15.1.1 - Merger of subsidiaries EDP Lajeado and Tocantins Energia by Lajeado Energia, according to note 1.6.
61
Other
comprehensive
income Merger
-
Other
Investments
Enersul -
Investco (I) 42,559
EDP Lajeado (VI) 155,203
Lajeado Energia 225,200
Tocantins Energia (VI) 76,865
Enerpeixe 631,267
Energest 201,303
Enertrade 31,917
4,275
Ipueiras 1
Porto do Pecém 80,156
Denerge 37,500
Negative Goodw ill Escelsa (2,388)
Other 320
Total 2,845,078
173,642
177,918
(24,887)
(24,887)
124,115
4,930
27,344
35,031
5,423
72,616
73,243
25,043
35,656
645,307
(I) Investco changed from proportional consolidated to full consolidated since September, 2008 (note 1.1).
(II) Escelsapar has provision for negative equity in the amount of R$ 2,382 (R$ 1,942 in December, 2008).
(III) Enercouto has a provision for negative equity in the amount of R$ 470 (R$ 418 in December, 2008).
(IV) Enernova has a provision for negative in the amount of R$ 5,529 (R$ 429 in December, 2008).
(V) Terra Verde Bioenergy has a provision for negative in the amount of R$ 1,406.
(VI) Companies incorporated by Lajeado Energia 11/30/2009.
EDP Energias do Brasil
Denerge 37,500
Negative Goodw ill Escelsa (2,388)
Other 320
Lajeado Energia
(71,054)
(2,291)
(15,114)
(49,363)
(13,775)
(10,642)
(25,043)
(473,093)
Balances on
12/31/2008 Additions Write off Equity pick-up
Parent Company % Direct participation
(31,764)
1,586
(30,178)
(167,433)
341,698
(40,154)
134,111
-
-
-
-
33,883
(17,247)
-
-
-
(39,086)
-
(22,450)
Other
comprehensive
income Merger
Negative Goodw ill Investco (544)
Other 204
EDP Lajeado
Negative Goodw ill Investco (544)
Other 281
Enernova
902
EDP Renováveis 22,257
Other Investments
Enercouto 1,271
Bandeirante 681
Escelsa 4,982
Total 42,103
23,159
(979)
(1,009)
(1,988)
Consolidated
(1,742)
(1,742)
1,586
1,586
544
(204)
-
Balances on
12/31/2009 12/31/2008 12/31/2009
636,126
738,206
-
49,473
-
586,449
-
690,108
263,904
31,917
1
257,690
-
(2,388)
320
3,251,806
Other
Investments
(39,086)
(39,086)
100.00
100.00
4.53
59.93
47.23
50.88
60.00
100.00
100.00
50.00
100.00
100.00
4.57
55.86
60.00
100.00
100.00
100.00
50.00
Balances on
12/31/2009
-
(2,388)
320
(544)
204
-
-
20,515
1,271
681
3,973
24,032

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
15.1.2 - The addition in the “Other investments” item, in the amount of R$ 39,086, refers to the acquisition of 5.63% of
preference shares, corresponding to 3.16% of all the shares of Denerge S.A., a closed capital company that holds
interest in companies from the Brazilian electricity sector. In the sphere of this transaction, the Company will have the
option to convert these shares of Denerge into preference shares of Rede Energia S.A., in a period of up to two years, at
the price of a potential public offering or at the unit price of R$ 5.68 if the public offering does not take place. The value of
the shares of Denerge was reclassified to Current assets in the account of Assets available for sale.
15.2 – Direct interest on investments
EDP Energias do Brasil
Bandeirante 39,091,735
Common Preferred Common Preferred
16 – Property, plant and equipment
39,091,735
EDP Lajeado (i) 124,488
Enercouto 1
Energest 1,000,572
Enernova 1
Enerpeixe 465,165
Enertrade 26,217
Escelsa 5,876
Escelsapar 10
Investco 35,947
Ipueiras 14,722
Lajeado Energia 113,690
Porto do Pécem 99,856
Composition Shares (Thousand) % Share of the Company
12/31/2009 12/31/2008 12/31/2009 12/31/2008 Equity Cumulative result
1
1,000,572
1
465,165
26,217
5,876
10
62,723
80,156
32,804
Paid-in
capital
100.00
100.00
100.00
100.00
60.00
100.00
100.00
100.00
4.57
100.00
Terra Verde Bioenergia 92.00
Tocantins Energia (i) 4,012
(I) Subsidiaries EDP Lajeado and Tocantins incorporated in Lajeado Energia by 11/30/2009.
Average annual
depreciation
rates % Historical Cost
Fixed assets in service - tangible
Management
Buildings, civil w orks and improvements 10.00
7
Machinery and equipment 11.28
785
Vehicles 7.15
799
Furniture and fixtures 9.77
1,574
Total fixed assets in service
Construction in progress
3,165
Management -
653
Total construction in progress 653
Total 3,818
55.86
50.00
62
Voting
capital
100.00
100.00
100.00
100.00
60.00
100.00
100.00
100.00
100.00
100.00
50.00
92.00
Paid-in
capital
100.00
59.93
100.00
100.00
100.00
60.00
100.00
100.00
100.00
4.53
47.23
50.00
50.88
Voting
capital
100.00
100.00
100.00
100.00
100.00
60.00
100.00
100.00
100.00
78.81
50.00
70.02
12/31/2009 12/31/2008 12/31/2009 12/31/2008
636,126
(469)
263,905
(5,529)
1,150,181
31,916
738,207
(2,382)
1,082,286
1
1,400,188
515,378
(1,528)
Parent Company
12/31/2009
680,031
443,551
(416)
201,304
(429)
1,052,112
31,916
685,144
(1,942)
1,017,213
5
815,353
160,310
151,071
241,906
(202,509)
(52)
73,243
(5,100)
121,026
25,043
124,115
(440)
95,096
(4)
101,848
71,312
(1,518)
10,595
12/31/2008
Accum ulated
Depreciation Net Value Net Value
(2)
(454)
(611)
(713)
(1,780)
-
-
(1,780)
5
331
188
861
1,385
653
653
2,038
205,716
27,741
(44)
99,341
(430)
130,668
35,813
122,398
(1,741)
70,237
(14,717)
30,232
1,486
6
317
145
732
1,200
793
793
1,993

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Average annual
depreciation
rates %
Historical
Cost
Fixed assets in service - tangible
Distribution
Land 49,510
Buildings, civil w orks and improvements 3.80 100,356
Machinery and equipment 3.79 3,701,797
Vehicles 9.81
17,952
Furniture and fixtures
Generation
7.40
6,083
3,875,698
Land 133,551
Reservoirs, dams and mains 2.01 1,740,751
Buildings, civil w orks and improvements 2.18 694,123
Machinery and equipment 2.97 1,411,794
Vehicles 13.99
3,188
Furniture and fixtures
Transmission
8.25
1,175
3,984,582
Land 1
Buildings, civil w orks and improvements -
510
Machinery and equipment
Commercialization
1.84
79,351
79,862
Land 36
Buildings, civil w orks and improvements 3.91
3,791
Machinery and equipment 4.12
3,835
Vehicles 8.68
1,458
Furniture and fixtures
Management
5.43
968
10,088
Land 897
Buildings, civil w orks and improvements 2.68
13,645
Machinery and equipment 5.78
94,089
Vehicles 15.69
27,853
Furniture and fixtures
Activities not linked to concession
7.09
13,775
150,259
Land 273
Machinery and equipment 17
Furniture and fixtures 10.00
382
672
Total fixed assets in service
Tangible in progress
8,101,161
Distribution 271,204
Generation 877,667
Transmission 283
Commercialization 1,800
Management 9,325
Total tangible in progress 1,160,279
Activities linked to concession 0.72 (427,829)
Total tangible 8,833,611
Movements during the year are demonstrated as follow:
63
Consolidated
12/31/2009
12/31/2008
Accumulated
Depreciation Net Value Net Value
-
(60,299)
(1,688,081)
(12,938)
(4,877)
(1,766,195)
-
(202,876)
(125,503)
(234,330)
(2,027)
(316)
(565,052)
-
(173)
(20,461)
(20,634)
-
(2,394)
(2,490)
(1,149)
(778)
(6,811)
-
(9,289)
(58,916)
(16,596)
(7,837)
(92,638)
-
(17)
(166)
(183)
(2,451,513)
-
-
-
-
-
-
34,547
(2,416,966)
49,510
40,057
2,013,716
5,014
1,206
2,109,503
133,551
1,537,875
568,620
1,177,464
1,161
859
3,419,530
1
337
58,890
59,228
36
1,397
1,345
309
190
3,277
897
4,356
35,173
11,257
5,938
57,621
273
-
216
489
5,649,648
271,204
877,667
283
1,800
9,325
1,160,279
(393,282)
6,416,645
49,005
41,235
1,878,909
5,119
1,639
1,975,907
127,196
1,477,671
564,506
1,182,344
1,551
731
3,353,999
-
357
55,092
55,449
44
1,720
1,526
459
243
3,992
915
5,051
30,335
11,408
5,785
53,494
273
-
255
528
5,443,369
262,067
648,528
548
170
13,582
924,895
(364,379)
6,003,885
Net Book Value
Parent Company
Transfer to
Net Book Value
on
fixed assets in
on
Tangible
Fixed assets in service - tangible
12/31/2008 Acquisitions service Depreciation Write-offs
12/31/2009
Buildings, civil w orks and improvements 6
(1)
5
Machinery and equipment 317
102
(87)
(1)
331
Vehicles 145
124
(66)
(15)
188
Furniture and fixtures 732
282
(149)
(4)
861
Total fixed assets in service 1,200
-
508
(303)
(20)
1,385
Fixed assets in progress 793
693
(508)
-
(325)
653
Total fixed assets - tangible 1,993
693
-
(303)
(345)
2,038

16.1 – Fixed assets related to concessions
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Net Book
Transfer to
Net Book
Value on
fixed assets
Transfer to
Value on
Tangible
Fixed assets in service - tangible
12/31/2008 Acquisitions in service Depreciation Write-offs
Intangible Reclassification 12/31/2009
Land 177,433
6,905
(71)
184,267
Reservoirs, dams and mains 1,477,671
92,674
(33,617)
1
1,147
1,537,876
Buildings, civil w orks and improvements 612,868
86
21,610
(19,140)
(956)
298
614,766
Machinery and equipment 3,148,208
133 355,236 (186,300) (31,125)
982
(544) 3,286,590
Furniture and fixtures 18,538
79
6,462
(6,898)
(440)
17,741
Vehicles 8,651
68
1,313
(1,576)
(48)
8,408
Total assets in service 5,443,369
366 484,200 (247,531) (32,639)
2,427
(544) 5,649,648
Fixed assets in progress-tangible 924,895 732,676 (484,200)
(10,439)
(1,447)
(1,206) 1,160,279
Total Tangible 6,368,264 733,042
(247,531) (43,078)
980
(1,750) 6,809,927
(-) Obligation linked to concession
Consumer´s contribution (243,667)
Participation from Union, States and (45,366)
Donations and subsides (75,346)
(364,379)
Net total 6,003,885
(41,142)
(5,187)
(1,551)
(47,880)
685,162
1,338
39
(1,377)
-
-
According to Articles 63 and 64 of Decree 41,019 of February 26, 1957, the assets and installations used in generation,
transmission, distribution, and commercialization of electricity, are related to these services and cannot be disposed,
sold, assigned or mortgaged without prior and formal authorization of the Regulatory Agency.
ANEEL Resolution n.º 20 of February 3, 1999, regulates the removal of fixed assets from the Electricity Public Utility
Service concessions, granting prior authorization to separate fixed assets not of use to the concession, when available
for sale, determining that the amount from the sale should be deposited in a specific bank account for reinvestment in the
concession.
16.2 – Assets and rights used by the concessionaire
The assets of the Federal Government under the management of the subsidiary Escelsa constitute plots of land and old
buildings that are no longer in use, due to the practically impossibility of their usage, therefore unproductive, and their
values are recorded in the Extra-equity System.
16.3 – Capitalization of expenses with central administration
As mentioned in Note 3.2.f, the sum of R$18,951 (R$17,535 in 2008), accounted for against net financial results, in
Operating expenses - General and administrative expenses, was incorporated to Property, Plant and Equipment in the
year, as capitalization of portions of expenditures with central administration.
64
Consolidated
10,984
1,387
3,757
16,128
(231,403)
1,925
195
729
2,849
(40,229)
-
980
-
(1,750)
(270,562)
(48,932)
(73,788)
(393,282)
6,416,645

17 – Intangible assets
Intangible in service
Administration
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Average annual
amortization rates
% Historical Cost
Softw are 6.37 2,011
Total intangible in service 2,011
Intangible in progress
Administration 407
Total intangible in progress 407
Acquisition investment - Goodw ill
Enersul e Pantanal 0 13,373
Bandeirante 0 38,143
Enerpeixe 0 3,837
Lajeado Energia e Investco 0 280,627
Porto do Pecém 3,590
339,570
Total intangible 341,988
Intangible in service
Distribution
Average annual
amortization
rates %
Softw are 12.80
Historical
Cost
37,858
Permanent easement 12,701
Generation
Softw are 19.25
50,559
2,980
Permanent easement 471
Transmission
3,451
Permanent easement 126
Commercialization
Softw are 5.57
Administration
Softw are 17.88
126
53,844
53,844
232,783
Other 935
233,718
Total intangible in service 341,698
Intangible in progress
Distribution 1,943
Generation 28,299
Commercialization 175
Administration 1,530
Total intangible in progress 31,947
Activities not linked to concession
Goodw ill in the merger of parent company 412,644
(-) Provision for dividends maintenance (412,644)
-
Acquisition investment - Goodw ill
Enersul e Pantanal -
Bandeirante -
Enerpeixe -
Lajeado Energia e Investco -
13,373
38,143
3,837
1,020,004
Porto do Pécem 3,590
1,078,947
Total intangible 1,452,592
65
Parent Company
12/31/2009
12/31/2008
Accumulated
amortization Net Value Net Value
(1,821)
(1,821)
-
-
(2,901)
(10,811)
(723)
(7,232)
-
(21,667)
(23,488)
12/31/2009
Consolidated
190
190
407
407
10,472
27,332
3,114
273,395
3,590
317,903
318,500
286
286
181
181
11,062
28,789
3,231
443,319
3,590
489,991
490,458
12/31/2008
Accumulated
amortization Net Value Net Value
(31,387)
(2)
(31,389)
(1,222)
-
(1,222)
-
-
(52,990)
(52,990)
(90,495)
-
(90,495)
(176,096)
-
-
-
-
-
-
-
-
(2,901)
(10,811)
(723)
(93,152)
-
(107,587)
(283,683)
6,471
12,699
19,170
1,758
471
2,229
126
126
854
854
142,288
935
143,223
165,602
1,943
28,299
175
1,530
31,947
412,644
(412,644)
-
10,472
27,332
3,114
926,852
3,590
971,360
1,168,909
10,619
12,313
22,932
2,140
310
2,450
126
126
3,148
3,148
67,446
935
68,381
97,037
1,907
30,429
3,704
58,520
94,560
435,906
(435,906)
-
11,062
28,789
3,231
1,110,186
3,590
1,156,858
1,348,455

Intangible in service
Distribution
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Average annual
amortization rates %
Softw are 12.80
Historical
Cost
37,858
Permanent easement 12,701
Generation
Softw are 19.25
50,559
2,980
Permanent easement 471
Transmission
3,451
Permanent easement 126
Commercialization
Softw are 5.57
Administration
Softw are 17.88
The movement of intangible in the year is as follows:
126
53,844
53,844
232,783
Other 935
233,718
Total intangible in service 341,698
Intangible in progress
Distribution 1,943
Generation 28,299
Commercialization 175
Administration 1,530
Total intangible in progress 31,947
Activities not linked to concession
Goodw ill in the merger of parent company 412,644
(-) Provision for dividends maintenance (412,644)
-
Acquisition investment - Goodw ill
Enersul e Pantanal -
Bandeirante -
Enerpeixe -
Lajeado Energia e Investco -
13,373
38,143
3,837
1,020,004
Porto do Pécem 3,590
1,078,947
Total intangible 1,452,592
12/31/2009
Consolidated
Permanent right of way means rights of passage to transmission lines associated with distribution in the concession area
of the subsidiaries Bandeirante and Escelsa, and in private urban and rural areas, comprised of indemnity in favor of the
property owner. As they are permanent they are not amortized.
Software is represented by rights of use of intellectual property, comprised of acquisitions of the licenses and other
expenditures with services supplementary to the use of the software.
The economic grounds of goodwill consists of the expectation of future profitability, as a concession right, amortized over
the remaining period of the respective concessions, the recoverability test of which, carried out in the year 2009 at the
66
12/31/2008
Accumulated
amortization Net Value Net Value
(31,387)
(2)
(31,389)
(1,222)
-
(1,222)
-
-
(52,990)
(52,990)
(90,495)
-
(90,495)
(176,096)
-
-
-
-
-
-
-
-
(2,901)
(10,811)
(723)
(93,152)
-
(107,587)
(283,683)
Parent Company
6,471
12,699
19,170
1,758
471
2,229
126
126
854
854
142,288
935
143,223
165,602
1,943
28,299
175
1,530
31,947
412,644
(412,644)
-
10,472
27,332
3,114
926,852
3,590
971,360
1,168,909
10,619
12,313
22,932
2,140
310
2,450
126
126
3,148
3,148
67,446
935
68,381
97,037
1,907
30,429
3,704
58,520
94,560
435,906
(435,906)
-
11,062
28,789
3,231
1,110,186
3,590
1,156,858
1,348,455
Net Book Value
Net Book Value
on
Transfer to fixed
on
12/31/2008 Acquisitions assets in service Amortization Merger Reclassification 12/31/2009
Intangible in service 286
32
(128)
-
-
190
Intangible in progress 181
257
(32)
-
-
406
Goodw ill 489,991
(21,340) (134,111)
(16,636)
317,904
Total Intangible 490,458
257
-
(21,468) (134,111)
(16,636)
318,500
Net Book
Value on
Intangible in service 97,037
Intangible in progress 94,560
Goodw ill 1,156,858
Total Intangible 1,348,455
Net Book
Value on
12/31/2008 Acquisitions
Transfer to fixed
assets in service Amortization Write-offs
Merger Reclassification 12/31/2009
-
52,731
470
53,201
104,659
(105,639)
-
(980)
Consolidated
(36,812)
(2)
(35,180)
(71,994)
718
(8,076)
(40)
(7,398)
-
-
(134,111)
(134,111)
-
(1,628)
(16,636)
(18,264)
165,602
31,946
971,361
1,168,909

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
value in use, was executed in accordance with CPC 01, not indicating loss of value to be recognized. (Notes 3.2 (g), 3.2
(t) and Note 10.1.2)
18 – Suppliers
Parent Company Consolidated
Current Current
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Electricity supply 235,327 214,331
Free energy 37,416 5,343
CCEE (purchase of short-term energy) 2,690 28,635
Electricity netw ork utilization charges 55,650 46,429
System service charges 587 8,794
Other regulatory liabilities 221
283
Material and services 10,416 13,093 198,523 152,864
Total 10,416 13,093 530,414 456,679
19 – Debentures
Date Issuance characteristics
Amount of
Issuer Issuance Liquidation Frequency Series securities Compensation Amount
Bandeirante 3/1/2006 4/7/2006 3rd Single 25,000 104.4% of CDI 250,000
Escelsa 6/1/2006 7/5/2006 1st Single 26,400 104.4% of CDI 264,000
Escelsa 7/2/2007 7/10/2007 2nd Single 25,000 105.0% do CDI 250,000
Investco 11/1/2001 3/1/2002 1st Single 25,000 12.80% per year 264,791
19.1 – Issuers Bandeirante e Escelsa
On January 30, 2006, the Board of Directors of Bandeirante and Escelsa approved the contracting of long-term finance
lines, represented by the issue of debentures, being the third of Bandeirante, and the first of Escelsa.
All debentures issued are simple, book-entry nominative type, in a single series, for public subscription, with no
guarantees (unsecured), non-convertible, with no roll-over clause option, with a nominal unit value is R$10,000.00,
effective for 5 (five) years, semi-annual payments of interest and a grace period of 3 (three) years for the amortization of
principal.
Final maturity dates are as follow:
• Bandeirante: on March 1st, 2011, with equal and consecutive annual amortizations on March 1st, 2009, 2010, 2011.
• Escelsa: on June 1st, 2011, with equal and consecutive annual amortizations on June 1st, 2009, June 1st, 2010 and
June 1st, 2011.
The nominal value of the debentures shall be remunerated according to the interest rates mentioned above and applied
to the accumulated average daily Interbank Deposit rate – “DIs”, over extra group, expressed as an annual percentage,
based on 252 business day year, calculated and published daily by the Clearing House for the Custody and Financial
Settlement of Securities - CETIP (“DI” Rates) calculated exponentially and accumulatively pro rata temporis for the
business days incurred.
The remunerations corresponding to the capitalization periods are due semi-annually, on September 1, 2006, and
December 2, 2006, for Bandeirante and Escelsa, respectively, and the last coinciding with the final amortization dates.
The contracts include rescission clauses in the following situations:
(i) Non-compliance by the Issuer with any monetary obligation in the Indenture, not remedied in 1 (one) business day
as from the date of non-performance;
(ii) Non-compliance by the Issuer with the Covenants (Gross debt in relation to EBITDA and EBITDA of the period (+)
cash in the beginning of the period (+) credit lines contracted but not utilized at the end of the period (+) increase in
67

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
the debt amount which has been released during the period in relation to gross financing expenses of the period (+)
debt amount settled/to be settled during the period (-) financing income related to monetary restatement and
monetary increase of the energy sold during the period (-) financing income related to hedge and swap operations of
the period, which have been complied with to date);
(iii) Petition for bankruptcy by third parties against the issuer and not duly remedied within the legal term;
(iv) Petition for self-bankruptcy on the part of the Issuer;
(v) Settlement, dissolution or bankruptcy of the issuer or its direct controlling company;
(vi) If the issuer proposes an extra-judicial recovery plan to any creditor or creditor class, irrespective of having been
requested or judicial ratification obtained; or if the issuer files a request for judicial recovery irrespective of the
approval of the recovery processing or its concession by the appropriate judge ; or if the Issuer files a request for
judicial recovery irrespective of the approval of the recovery processing or its concession by the appropriate judge;
and
(vii) Cancellation of the electricity distribution concession.
19.2 – Issuer - Escelsa
On June 14, 2007, the Board of Directors of Escelsa approved the contracting of long-term finance lines, represented by
the second issue of debentures. On June 14, 2007, the Board of Directors of Escelsa approved the contracting of longterm
finance lines, represented by the second issue of debentures.
On July 2, 2007 the second debentures issuing were promoted. Those debentures are simple, book-entry nominative
type, in a single series, for public subscription, with no guarantees (unsecured), non-convertible. The debentures of this
issue are not subject to scheduled repricing.
The debentures issued totaled 25,000, with a nominal unit value is R$ 10,000.00, integrally subscripted in a total amount
of R$250,000, effective for 7 (seven) years, semi-annual payments of interest and a grace period of 5 (five) years for the
amortization of principal. Final maturity date is on July 2, 2014, being the first amortization of 33.33% on June 2, 2012,
the second amortization of 33.33% on July 2, 2013 and the third, of 33.34% on July 2, 2014.The issuing was concluded
on July 10, 2007.
As remuneration on the par value of the debentures, compensation interest will be levied and will correspond to 105% of
the accumulation of the daily average rates of the overnight Interbank Deposits - DIs, “over extra grupo”, expressed in
the form of a percentage per year, base 252 business days, calculated and divulged on a daily basis by the Clearing
House for the Custody and Financial Settlement of Securities - CETIP (DI rates) calculated exponentially and
cumulatively pro rata temporis by business days lapsed. The remuneration corresponding to the capitalization periods
will be due and paid semi-annually, with the first maturity on January 2, 2008 and the last on July 2, 2014.
The funds obtained in the distribution were set aside in full for the payment of senior notes issued by the issuer on July
15, 1997, with final maturity on July 15, 2007.
The contract contains clauses establishing termination in the same situations already described in Note 19.1 for the first
issue.
19.3 – Issuer - Investco
In October 2001, Brazilian Securities Commission - CVM registered the first issue of 25,000 non-convertible debentures
at a nominal unit value of R$10,000.00 with a maturity of 120 months as from the issuing date (November 1st, 2001),
restated as from the issuing date at the IGP-M. The annual pre-fixed rate of remuneration is 12.8% p.a, applied on the
outstanding balance of the restated nominal unit value.
The renegotiation conditions will be communicated by Investco and must be disclosed in the form of notices, in the
national edition of Gazeta Mercantil newspapers or in other newspapers of widespread circulation in the period of up to
ten (10) business days prior to the conclusion of each Remuneration Validity Period, and must contain terms and
conditions of the next remuneration period.
If the debenture holders do not agree with the established conditions or if publication does not occur in conformity with
the contract, the debenture holders may exercise the right to sell their debentures to Investco without prejudice of the
possibility of accelerated maturity requirement. Investco agrees to acquire the debentures at their restated unit value,
plus remuneration calculated pro rata defined for the overdue period when necessary.
68

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The 4th Addendum to the Indenture of these debentures was prepared on October 31, 2006, contemplating the
amendment of item 4.5.1 of Clause IV of the Indenture, deciding on the use of the IGP-M - General Market Price Index
for the restatement of the debentures that will be entitled to the payment of remunerative interest prefixed at the rate of
10.5% per annum, to take effect in the validity period of the remuneration, as from November 1, 2006.
These debentures carried a joint guarantee from EEVP - Empresa de Eletricidade Vale Paranapanema S.A. and EDP -
Energias de Portugal. The 5th Addendum to the Indenture of these debentures was prepared in November 2009,
releasing the intervening guarantor EEVP - Empresa de Eletricidade Vale Paranapanema S.A., with EDP - Energias de
Portugal thus remaining as sole guarantor of the debentures.
These funds were invested in fixed assets and working capital for completing the construction of the UHE Luís Eduardo
Magalhães - UHE Lajeado.
The contract contains clauses establishing accelerated maturity in the following conditions:
a) Non-payment of the principal or interest due on account of the debentures on the respective maturity and/or
amortization dates;
b) legitimate and repeated protest against the Issuer, the defaulted value added of which is higher than R$5,000,
unless the protest has been executed due to an error or malicious intention of a third party, provided that it is validly
proven by the Issuer, or if it is cancelled or if guarantees are provided in court, in any case, within the maximum
period of three business days after its occurrence;
c) filing for preventative composition with creditors formulated by the Issuer or by any one of the Intervenors
(including any equivalent proceeding existing in accordance with the Portuguese legislation, with respect to EDP);
d) dissolution or adjudication of bankruptcy of the Issuer, or by any one of the Intervenors (including any equivalent
proceeding existing in accordance with the Portuguese legislation, with respect to EDP);
e) non-performance by the Issuer or by the Intervenors of any obligation provided for in the indenture, not
remedied in thirty days after written notice sent by the Fiduciary Agent, with the exception of non-payment of principal,
interest and/or any other amount due under the terms of the indenture;
f) accelerated maturity of any debt of the Issuer or of its subsidiaries in an amount above R$5,000;
g) statutory change of the Issuer, as well as corporate reorganization involving the Issuer and/or its assets that
might, in any way, directly or indirectly affect the full performance of the obligations of the Issuer established in the
indenture;
h) start of enforcement of guarantee provided by the Issuer in favor of third parties, in an amount above R$5,000,
unless the enforcement has been proposed by proven error or mala fide, or if it is suspended or annulled in up to ten
business days after the service of process against the Issuer;
i) alteration of the controlling interest of the Issuer, unless: (i)against authorization from debenture holders
representing two thirds of the debentures outstanding, assembled at a Meeting of debenture holders especially
convened by the Issuer for this purpose;(ii) there is no modification or alteration of the obligations of the Intervenors,
under the terms of clause VII- Surety. In case of approval by the debenture holders, the Issuer shall redeem within ten
business days after the date of the Meeting of debenture holders, the debentures of the debenture holders that did
not agree with the alteration of the controlling interest of the Issuer, at their par value plus the remuneration calculated
pro rata . For the intents and purposes of this sub-item, a "Change of Controlling Interest", will occur if the
Intervenors, individually or jointly, cease their direct or indirect ownership of at least 51% of the voting capital of the
Issuer; and
j) the concession contract of the Issuer is revoked, suspended, dissolved, terminated or loses its effectiveness
and validity, except when replaced by another grant document under the terms of the legislation in force.
19.4 –On December 31, 2009, the subsidiaries are in full compliance with all the restrictive clauses of the covenants
provided in the debenture contracts.
69

19.5 Maturity of non-current installments:
Year Value
2011 202,654
2012 83,083
2013 83,083
2014 83,109
Total 451,929
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
19.6 – Changes in debentures for the year are shown as follow:
Principal
Balance at December 31, 2008 219,944
Charges and inflation adjustment 75,467
Amortization (288,286)
Transfer to current 203,646
Balance at December 31, 2009 210,771
Costs of transation
Balance at December 31, 2008 (1,440)
Amortization 1,395
Transfer to current (1,395)
Balance at December 31, 2009 (1,440)
Net balance at December 31, 2009 209,331
20 – Loans, financing and debt charges
Consolidated
Current Noncurrent
debt cost Charges
Local currency
Bank credit paper 132,00% of CDI 7,700
Total 7,700
70
657,320
(203,646)
453,674
(3,140)
1,395
(1,745)
451,929
Parent Company
12/31/2008
Noncurrent
Principal
250,000
250,000

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
20.1 – Additional information on debt service of EDP Energias do Brasil S.A.
Credit Bill – Contract executed in October 2008, in the amount of R$250,000, with Banco Bradesco S.A. Interest levied
on the amount of the loan at the rate of 132% of the CDI, capitalized daily and payable quarterly between January and
December 2009, principal falling due in a single installment in December 2009. This operation established as guarantee
the pledge of 13,110,225 shares issued thereby. The operation was settled in December 2009.
20.2 – Additional information on debt service of Bandeirante
Charges Principal
Current Noncurrent Current Noncurrent Current Current Noncurrent
Foreign currency
IDB - Interamerican
Development Bank bandeirante Libor + 4.375% p.a. + variation 154 11,287 14,120 531 27,054 34,100
Amortization of transaction cost bandeirante Libor + 4.375% p.a. + variation (1,438) (1,678) (1,438) (3,116)
Banco Santander Brasil S.A energest 4.81% + variation 966 24,786
BNDES energest UMBNDES + 3.50% p.a. 2 292 5 471 393
Banco Santander Brasil S.A cesa 4.81% + variation 537 13,771
BNDES cesa UMBNDES + 4.50% p.a. 2 311 493 6 418 1,080
BNDES pantanal UMBNDES + 4.50% p.a. 3 281 445 5 378 976
IDB pecem 1,063 213,204
Citibank pecém 431 184,623
1,224 10,733 226,584 2,481 250,063 33,433
Local currency
Eletrobrás bandeirante 5% p.a. + 1% to 1.5% a.a (adm. fee) 2,571 12,327 1,053 9,340
Bank credit paper bandeirante 105% of CDI 482 20,400 61,200 918 20,400 81,600
Interest on the fund for reversal bandeirante 5% p.a. 73 73
BNDES FINAME bandeirante 4% to 5% p.a. over TJLP 5 1,015 12 1,565 1,015
BNDES - Banco do Brasil bandeirante 3.3% p.a. over TJLP 106 5,936 20,778 135 5,929 26,683
BNDES - Banco Santander bandeirante 3.3% p.a. over TJLP 106 5,937 20,778 135 5,929 26,683
BNDES - BB/CALC bandeirante 2.32% to 4.5% p.a. over TJLP 170 86,364
BNDES - BB/CALC escelsa 2.32% to 4.5% p.a. over TJLP 199 103,790
HSBC - Promissory Notes bandeirante CDI + 1.3% p.a. 13,178 230,000
(-) BNDES - BB/CALC - amort. trans. cost escelsa (29) (183)
Eletrobrás escelsa 5% p.a. + 1% p.a. (adm. fee) 110 11,242 96,112 13 10,428 90,300
Bank credit paper escelsa 105% of CDI 1,402 8,080 32,320 2,188 40,400
BNDES escelsa 4.8% p.a. over TJLP 21 3,280 19 4,368 3,281
BNDES - Banco do Brasil escelsa 3.3% p.a. over TJLP 99 5,545 19,407 121 5,538 24,922
BNDES - Banco Santander escelsa 3.3% p.a. over TJLP 99 5,545 19,407 121 5,538 24,922
Bank credit paper energest 106.6% of CDI 1,552 48,000 2,460 48,000
BNDES energest 3.50% p.a. over TJLP 30 3,294 50 4,388 3,292
Santander - CDI energest 123.50% of CDI 669 21,354
BNDES cesa 4.50% p.a. over TJLP 47 4,189 6,284 65 4,184 10,461
Santander - CDI cesa 123.50% of CDI 371 11,864
BNDES pantanal 4.50% p.a. over TJLP 42 3,788 5,681 59 3,783 9,457
Eletrobrás costa rica 5.00% + 1.50% p.a. (adm. fee) 535 1,641 58 478 2,088
BNDES enerpeixe 4.5% p.a. over TJLP 1,528 56,454 286,971 1,776 56,386 343,013
Banco Itau enerpeixe 4.5% p.a. over TJLP 466 17,220 87,536 542 17,199 104,630
Bradesco enerpeixe 4.5% p.a. over TJLP 388 14,350 72,947 452 14,333 87,192
Unibanco enerpeixe 4.5% p.a. over TJLP 311 11,480 58,357 361 11,466 69,754
Banco do Brasil enerpeixe 4.5% p.a. over TJLP 388 14,350 72,945 452 14,333 87,190
BNDES pecem 1,329 346,809
Funding Cost pecem
BNDES - Banco do Brasil Santa Fé 1.90% p.a. over TJLP 634 4,032 62,380
Banco da Amazônia investco 11.5% a.a 247 7,632 636 405 17,169 8,268
BNDES investco 4.00% p.a. over TJLP 575 46,745 98,175 83 42,443 144,745
Leasing - Safra S.A. investco CDI + 1.45% p.a. 69 17 68 87
Citibank pecém 988 96,000
Bank credit paper energias 132.00% of CDI 7,700 250,000
23,298 1,329 516,878 1,620,679 19,186 592,978 1,247,323
Sw aps Results
IDB - Interamerican
Development Bank bandeirante 97.94% to 118.94% of CDI 10,610 10,994 12,688 11,196
JP Morgan bandeirante 59.80% to 71.60% of CDI 955
Citibank bandeirante 79.94% of CDI 400
Banco Santander Brasil S.A energest 111.90% of CDI (5,764)
Banco Santander Brasil S.A cesa 111.90% of CDI (3,202)
Citibank pecém 8,383 44,703 63,056
Pactual pecem 1,536 116
20,529 55,813 5,077 74,252
Total 24,522 1,329 548,140 1,903,076 21,667 848,118 1,355,008
IDB - Interamerican Development Bank - External loan contract with the participation of Brazilian, Portuguese and
Spanish banks, signed on March 5, 2004, amounting to US$100 million, drawn during the fiscal year 2004 with a two
year grace period before amortizations of principal and with final maturity in up to 8 years, being:
(i) Tranche “A” - US$38.9 million, with principal due quarterly from May 15, 2006 to February 15, 2012, remunerated at
interest calculated at annual LIBOR plus 4.375% annually, maturing quarterly as from May 15, 2004; and
(ii) Tranche “B” - US$61.1 million with principal due quarterly from May 15, 2006 to February 15, 2009, remunerated at
interest calculated at annual Libor plus 4%p.a., maturing quarterly as from May 15, 2004.Transaction settled on
February 15, 2009.
This financing is allocated to investment projects and is guaranteed by the Company’s electricity supply receivables, with
the establishment of covenants (total debt in relation to total debt plus shareholders’ equity, total debt in relation to
EBITDA and debt service coverage index, among other non-financial covenants), fully complied with to the present time.
Eventual non-compliance may result in anticipation of settlement of the contract, either partially or in full.
Exchange swap operations with hedge characteristic were executed for this loan with Banco J.P. Morgan S.A., on March
15, 2004 and Banco Citibank S.A., on November 13, 2003, for exchange of original charges of the financing at IDB, for
remuneration based on the interval of 109.50% to 109.7% of the CDI and 104.69% to 118.94% of the CDI, respectively,
maturing on the same dates of the financing agreement.
71
12/31/2009
Consolidated
12/31/2008
Charges Principal

Promissory Notes
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
On May 07, 2009, the Board of Directors of Bandeirante approved the contracting of a short-term facility, materialized by
the issuance of a Promissory Note.
The promissory notes were issued in certificated form and were deposited at Banco Bradesco S/A. The remuneration
corresponds to the accumulated variation of the average daily rates of the overnight interbank deposits (DI), calculated
and published daily by CETIP, capitalized from a spread corresponding to 1.30% per annum. The remuneration plus the
amount of principal will be settled on May 30, 2010 in a single installment. The value of each Note corresponds to
R$1,000 and 230 notes were issued in the total amount of R$ 230,000.
Eletrobrás
(i) “Reluz” Program
a) Contract signed on April 9, 2007. Funds released in the amount of R$61 and R$547, on June 11, 2007 and August
29, 2007, respectively. The restated debt balance carried an interest rate of 5% annually and a management fee of
1.5% annually, both maturing monthly as from July 30, 2007. The outstanding debt balance shall be paid in 60
equal monthly and consecutive installments, the first maturing on May 30, 2008 and the last one on April 30, 2013.
The loan is guaranteed by promissory notes and an assignment on company revenues.
b) Contract signed on December 12, 2007. Resources released in the amount of R$391 on June 18, 2008. The debt
balance carries an interest rate of 5% annually, which will be capitalized up to February 28 at a rate of 5% annually
and a management fee of 1.5% annually, paid monthly. The outstanding debt balance shall be paid in 60 equal
monthly and consecutive installments, the first maturing on March 30, 2009 and the last one on February 28, 2014.
The loan is guaranteed by promissory notes and an assignment on company revenues.
c) Contract signed on December 12, 2007. Resources released in the amount of R$295 on June 18, 2008. The debt
balance carries an interest rate of 5% annually, which will be capitalized up to February 20, 2009 and a
management fee of 1.5% annually, paid monthly. The outstanding debt balance shall be paid in 60 equal monthly
and consecutive installments, the first maturing on March 30, 2009 and the last one on February 28, 2014. The loan
is guaranteed by promissory notes and an assignment on company revenues.
d) Contract signed on December 12, 2007. Resource released in the amount of R$1,004 on February 17, 2009. The
debt balance carries an interest rate of 5% annually, which will be capitalized up to February 20, 2009 and a
management fee of 1.5% annually, paid monthly. The outstanding debt balance shall be paid in 60 equal monthly
and consecutive installments, the first maturing on March 30, 2009 and the last one on February 28, 2014. The loan
is guaranteed by promissory notes and an assignment on company revenues.
e) Contract signed on December 12, 2007. Resources released in the amount of R$3,203 on February 17, 2009. The
debt balance carries an interest rate of 5% annually, which will be capitalized up to February 20, 2009 and a
management fee of 1.5% annually, paid monthly. The outstanding debt balance shall be paid in 60 equal monthly
and consecutive installments, the first maturing on March 30, 2009 and the last one on February 28, 2014. The loan
is guaranteed by promissory notes and an assignment on company revenues.
f) Contract signed on December 12, 2007. Resources released in the amount of R$2,154 on February 17, 2009. The
debt balance carries an interest rate of 5% annually, which will be capitalized up to February 20, 2009 and a
management fee of 1.5% annually, paid monthly. The outstanding debt balance shall be paid in 60 equal monthly
and consecutive installments, the first maturing on March 30, 2009 and the last one on February 28, 2014. The loan
is guaranteed by promissory notes and an assignment on company revenues.
(ii) Light for All (“Luz para Todos”) Program
a) Contract signed on May 28, 2004. Line of credit amounting to R$ 11,523, in the form of finance and R$1,773 in the
form of a subsidy. Funds released in the amount of R$7,080 as financing and R$1,089, in the form of a subsidy.
The restated debt balance carried an interest rate of 5% annually and a management fee of 1% annually, both
maturing monthly as from July 30, 2004. The outstanding debt balance shall be paid in 120 equal monthly and
consecutive installments, the first maturing on August 30, 2006 and the last one on July 30, 2016. On the nondisbursed
balance there is a credit reserve commission of 1%p.a., maturing on the 30th of each month, up to the
termination of the credit. The loan is guaranteed by promissory notes and an assignment on company revenues.
b) Contract signed on June 25, 2007. Credit line in the amount of R$12,359. Funds released in the amount of
R$3,708. The restated debt balance carries an interest rate of 5% annually and a management fee of 1% annually,
72

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
both maturing monthly as from October 30, 2007. The outstanding debt balance shall be paid in 120 equal monthly
and consecutive installments, the first maturing on November 30, 2009 and the last one on September 30, 2019. On
the non-disbursed balance there is a credit reserve commission of 1%p.a., maturing on the 30th of each month, up
to the termination of the credit. The loan is guaranteed by promissory notes and an assignment on company
revenues.
Bank Credit Certificates - Agreements signed on December 5, 2006 worth a total of R$102,000, being R$ 51,000
signed with the Banco do Brasil S.A. and R$ 51,000 with Banco Santander Banespa S.A.. The principal value of the loan
carries an interest rate of 105% of CDI, capitalized daily. Principal payable in five annual installments, the first due on
December 5, 2009 and the last on December 5, 2013 with semi-annual payments of interest as from June 5, 2007 to
December 5, 2013. This operation carries a covenant of gross debt/EBITDA at a ratio not exceeding 3.5. The company is
in compliance to the present time. Contractual conditions are identical in the case of both institutions.
BNDES agreement n°. 88,425 / Agent Banco do Brasil - Signed in December 2007, for the deployment of an
Investment Program from May 2006 to December 2007, being the first release in February 2008, in the amount of
R$16,146 and the second release on May 2008, in the amount o R$19,367, with funds from BNDES (Finem/Finame)
through Banco do Brasil, amortizable in 72 monthly installments, with the first falling due on July 15, 2008 and the last
one on June 15, 2014 with interest of 3.3% per annum, indexed to TJLP. Guarantee, assignment of revenues equivalent
to 130% of the amount of the highest financing installment. This operation establishes covenant of the Gross Financial
Debt / EBITDA relation, at a rate no higher than 3.5, fulfilled up to now.
BNDES agreement n°. 88,425 / Agent Banco Santander - Signed in December 2007, for the deployment of an
Investment Program from May 2006 to December 2007, being the first release in February 2008, in the amount of
R$16,146 and the second release on May 2008, in the amount o R$19,367, with funds from BNDES (Finem/Finame)
through Banco Santander, amortizable in 72 monthly installments, with the first falling due on July 15, 2008 and the last
one on June 15, 2014 with interest of 3.3% per annum, indexed to TJLP. Guarantee, assignment of revenues equivalent
to 130% of the amount of the highest financing installment. This operation establishes covenant of the Gross Financial
Debt / EBITDA relation, at a rate no higher than 3.5, fulfilled up to now.
BNDES Banco do Brasil / CALC - Opening of revolving credit in the Credit Limit Opening Contract ("CALC") category
was approved in December 2008, in the amount of R$153,283, for deployment of the 2008 to 2010 program of
investments in expansion, modernization and improvements in the electric energy distribution system. The resources
approved were made available for withdrawal during 60 months. It is of the direct financing type (without financial agent
intermediation), created by BNDES in 2005, which aims to simplify the procedures of access to financing lines for
companies or large groups that represent a low credit risk. The 1st release to Bandeirante of R$ 86.4 million took place
on December 23, 2009 amortizable in 72 months and with a grace period up to May 15, 2011, with the first installment
falling due on June 15, 2011 and the last on May 15, 2017, with interest ranging between 2.32% and 4.5% per annum
above the TJLP (Long-term Interest Rate), falling due as of February 17, 2010 quarterly during the grace period and
monthly after this period. Guarantee, assignment of revenues equivalent to 130% of the amount of the highest financing
installment.
Result of the swaps
These financial operations are assessed at the fair value, as described in note 31.3.
JP Morgan Swap Operation - Hedge operation with Banco JP Morgan with a swap of Euro monetary variation where the
Company pays 73.6% of CDI at the liability point and the Bank pays 100% of foreign exchange variation at the asset
point, signed on March 15, 2004 for €12,720 thousand due on January 2, 2009. On July 11, 2005, this operation was
renegotiated at a reduced percentage of CDI of 59.8%. Transaction settled in January 2009.
Hedge operations with Banco JP Morgan with a swap of US Dollar variation, where the Company pays 71.6% of CDI at
the liability leg and the Bank pays 100% of foreign exchange variation at the asset leg, signed on July 28, 2004 in the
amount of US$ 586 thousand with final maturity on January 2, 2009. Transaction settled in January 2009.
Citibank Swap Operation - Hedge operations with Citibank with a swap of US Dollar monetary variation where the
Company pays 79.94% of CDI at the liability leg and the Bank pays 100% of the foreign exchange variation at the asset
leg, signed on November 13, 2003 for US$ 490 thousand with final maturity on January 29, 2009. Transaction settled in
January 2009.
.
73

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
20.3 – Additional information on debt service of Escelsa
BNDES (Domestic currency) - Agreement signed in August 2006 with onlending of funds through Banco Alfa for the
investment program in substations and electricity transmission and distribution. In fiscal year 2006, funds amounting to
R$17,320 were obtained. The principal amount carries an annual interest rate of 4.8% + TJLP (the long term interest
rate), payable monthly as from October 15, 2006, jointly with principal payments and a final maturity on September 15,
2010. The agreed guarantee represents a percentage of the monthly receivables from electricity services corresponding
to the minimum amount of 130% of the principal installments and debt charges.
BNDES agreement n°. 88,426 / Agent Banco do Brasil - Signed in December 2007, loan intended for the deployment
of a Program for Investments in expansion, modernization and improvement of the performance of the electricity
distribution network, being the first release of money in January 2008, in the amount of R$27,054, and the second
release in May 2008, in the amount of R$6,106, with funds from BNDES (Finem/Finame) through Banco do Brasil,
amortizable in 72 monthly installments, with the first falling due on July 15, 2008 and the last on June 15, 2014 and
interest of 3.3% per annum, indexed to TJLP. Guarantee, assignment of revenues equivalent to 130% of the amount of
the highest financing installment. This operation establishes covenant of the Gross Financial Debt / EBITDA relation, at a
rate no higher than 3.5, fulfilled up to now.
BNDES agreement n°. 88,426 / Agent Banco Santander - Signed in December 2007, loan intended for the deployment
of a Program for Investments in expansion, modernization and improvement of the performance of the electricity
distribution network, being the first release of money in January 2008, in the amount of R$27,054, and the second
release in May 2008, in the amount of R$6,106, with funds from BNDES (Finem/Finame) through Banco Santander,
amortizable in 72 monthly installments, with the first falling due on July 15, 2008 and the last on June 15, 2014 and
interest of 3.3% per annum, indexed to TJLP. Guarantee, assignment of revenues equivalent to 130% of the amount of
the highest financing installment. This operation establishes covenant of the Gross Financial Debt / EBITDA relation, at a
rate no higher than 3.5, fulfilled up to now.
BNDES BB/CALC - Opening of revolving credit in the Credit Limit Opening Contract ("CALC") category was approved in
December 2008, in the amount of R$164,091, for deployment of the 2008 to 2010 Program of Investments in expansion,
modernization and improvements in the electric energy distribution system. The resources approved were made
available for withdrawal during 60 months. It is a type of direct financing (without the intervention of a financial agent),
created by BNDES in 2005, aimed to simplify the procedures of access to facilities for large groups that represent low
credit risk and favorable operating history with BNDES. The first release to Escelsa of R$ 103.8 million took place on
December 23, 2009 amortizable in 72 months and with a grace period up to May 15, 2011, with the first installment
falling due on June 15, 2011 and the last on May 15, 2017, with interest ranging between 2.32% and 4.50% per annum
above the TJLP, falling due as of February 17, 2010, quarterly during the grace period and monthly after this period.
Guarantee, assignment of revenues equivalent to 130% of the amount of the highest financing installment.
Bank Credit Certificates – Agreements signed in February 2007 worth a total of R$40,400, being R$ 20,200 signed with
Banco do Brasil S.A. and R$ 20,200 with Banco Santander Banespa S.A. The principal value of the loan carries an
interest rate of 105% of CDI, capitalized daily. Principal payable in five annual installments, the first due on February 9,
2010 and the last on February 10, 2014 with semi-annual payments of interest as from August 9, 2007 to February 10,
2014. This operation carries a covenant of gross debt/EBITDA at a ratio not exceeding 3.5. The company is in
compliance to the present time. Contractual conditions are identical for both institutions.
Eletrobrás
(i) Light for All (“Luz para Todos”) Program - 1st stage - Contract ECFS 031/04 - Facility in the amount of R$30,968, as
financing (RGR) R$4,764, as economic subsidy granted by Eletrobrás and R$4,764 economic subsidy granted by the
State Government of Espírito Santo - Program created by Decree nº 4,873, of November 11, 2003, coordinated by
the Ministry of Mines and Energy and commissioned by Eletrobrás. Contract signed on May 21, 2004, whereas funds
in the amount of R$11,520 were released in 2004, of R$10,611 in 2005, of R$4,788 in 2006, and of R$3,264 in 2008,
totaling R$30,183. The principal amount carries an interest rate of 5% annually and a management fee of 1%
annually, both maturing monthly as from October 30, 2004. The principal is payable monthly as from August 30, 2006
to July 30, 2016.The loan is guaranteed by promissory notes and an assignment on company revenues. On the nondisbursed
balance there is a credit reserve commission of 1%p.a., maturing on the 30th of each month, up to the
termination of the credit.
(ii) Light for All (“Luz para Todos”) Program - 2nd stage - Contract ECFS 106/05 - Facility in the amount of R$50,304, as
financing (RGR), R$7,739, as economic subsidy granted by Eletrobrás and R$7,739 economic subsidy granted by
the State Government of Espírito Santo - Program created by Decree nº 4,873, of November 11, 2003, coordinated
by the Ministry de Mines and Energy and commissioned by Eletrobrás. Contract signed on November 20, 2005. And
in 2006, resources released in the amount of R$20,613, in 2007, R$ 26,218 and in 2008, R$415. The principal
74

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
amount carries an interest rate of 5% annually and a management fee of 1% annually, both maturing monthly as from
April 30, 2006. The principal is payable monthly as from May 30, 2008 to April 30, 2018.The loan is guaranteed by
promissory notes and an assignment on company revenues. On the non-disbursed balance there is a credit reserve
commission of 1%p.a., maturing on the 30th of each month, up to the termination of the credit.
(iii) Light for All (“Luz para Todos”) Program - 3rd stage - Contract ECFS 181/07 - Facility in the amount of R$75,764, as
financing and R$10,102, as economic subsidy granted by Eletrobrás - Program created by Decree nº 4,873, of
November 11, 2003, coordinated by the Ministry of Mines and Energy and commissioned by Eletrobrás. Contract
signed on June 25, 2007. Resources released in the amount of R$42,933 in 2008. The principal amount carries an
interest rate of 5% annually and a management fee of 1% annually, both maturing monthly as from April 30, 2008.
The principal is payable monthly as from April 30, 2010 to March 30, 2020.The loan is guaranteed by promissory
notes and an assignment on company revenues. On the non-disbursed balance there is a credit reserve commission
of 1%p.a., maturing on the 30th of each month, up to the termination of the credit.
(iv) Light for All (“Luz para Todos”) Program - 4th stage - Contract ECFS 258/09 - Facility in the amount of R$56,737, as
financing and R$7,565, as economic subsidy granted by Eletrobrás - Program created by Decree nº 4,873, of
November 11, 2003, coordinated by the Ministry of Mines and Energy and commissioned by Eletrobrás. Contract
signed on August 28, 2009. Resources released in the amount of R$19,291 in 2009. The principal amount carries an
interest rate of 5% annually and a management fee of 1% annually, both maturing monthly as from January 30, 2010.
The principal is payable monthly as from January 30, 2012 to December 30, 2021.The loan is guaranteed by
promissory notes and an assignment on company revenues. On the non-disbursed balance there is a credit reserve
commission of 1% p.a., maturing on the 30th of each month, up to the termination of the credit.
(v) “Reluz” Program – Various agreements signed with Eletrobrás with respect to the Conservation and Energy
Efficiency Projects Financing Program for the Municipalities of Vila Velha, Serra, Ibiraçu, Aracruz, João Neiva,
Alfredo Chaves, and Santa Maria de Jetibá for the contracted amount of R$17,969. Resources were released in the
amount of R$14,528. The agreements carry an annual interest rate of 5% p.a. and an annual management fee of 1%
p.a. on the outstanding debt balance, capitalized monthly during the grace period. The installments of the principal
will fall due monthly as of the end of the grace period. Maturity of the first installment on July 30, 2002 and the last on
November 30, 2013. The loan is guaranteed by promissory notes and an assignment on company revenues.
20.4 – Additional information on debt service of Enerpeixe
The balance of loans and financing reflects original financing from BNDES of R$ 670,000, authorized by the Board of
Directors of BNDES, number 691/2003 of November 10, 2003 and contracted on May 21, 2004, being R$ 335,000
directly and R$ 335,000 through financial institutions as follows:
Direct
installment Indirect installment
Sub-credit BNDES Itaú BBA
Banco do
Brasil Bradesco Unibanco Indirect total Total
"A" 26,184
"B" 235,671
"C" 7,314
"D" 65,831
The major loan conditions are as follow:
(i) Amortization:
a) For the sub-credits "A" and "C", 12 monthly and successive installments, with the first falling due on March 15,
2007 and the last on February 15, 2008, already settled;
b) For the sub-credits "B" and "D", 95 monthly and successive installments, with the first falling due on March 15,
2008 and the last on January 15, 2016.
(ii) Charges:
335,000
7,855
70,701
2,195
19,749
100,500
6,546
58,917
1,829
16,458
83,750
a) For the subcredits "A" and "C", readjusted 3-month floating rate based on the weighted average costs of all the
rates and expenses incurred by the BNDES in raising funding in foreign currency plus 4.5% annually, during the
75
6,546
58,917
1,829
16,458
83,750
5,237
47,134
1,463
13,166
67,000
26,184
235,669
7,316
65,831
335,000
52,368
471,340
14,630
131,662
670,000

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
period in which the guarantee granted by the indirect parent company EDP - Energias de Portugal S.A. is in full
force and effect;
b) For the subcredits "B" and "D", TLJP – the Long Term Interest Rate plus 4.5% annually during the period in which
the guarantee granted by EDP - Energias de Portugal S.A. is in full force and effect; and
c) The abovementioned spreads can be 6% annually as from the effective date of the guarantee of the direct parent
company EDP - Energias do Brasil S.A., in place of the guarantee of EDP - Energias de Portugal S.A., which may
occur as from January 2008 only upon request from the Company and Enerpeixe. This rate can be reduced to 5%
per annum, if EDP - Energias do Brasil S.A. presents a minimum price-earnings ratio of 38% and Enerpeixe
presents a rate of coverage of the debt service of 1.3.
The rate of coverage of the debt service is calculated from the division of the cash generation of the activity by the debt
service, based on information recorded in the financial statements, with semi-annual measurements in June and
December.
(iii) Guarantees and obligations:
a) Lien on shares corresponding to 60% of the capital stock of the beneficiary held by EDP - Energias do Brasil S.A.;
b) Lien on emerging rights of the concession, including among others:
• The beneficiary’s credit rights resulting from the sale of energy generated by UHE Peixe Angical for Bandeirante
Energia S.A., Espírito Santo Centrais Elétricas S.A. - ESCELSA, Empresa Energética de Mato Grosso do Sul
S.A. - ENERSUL and Centrais Elétricas Matogrossenses S.A. – CEMAT;
• The guarantees included in the Purchase and Sale of Energy Agreement - CCVEs.
c) Maintenance in a financial reserve account of a value equivalent to at least three months of installments of
amortization of principal, interest and charges as well as three months payment of the O&M Contract (Operation
and Maintenance Contract), during the amortization phase; and
d) Letter of guarantee of EDP - Energias de Portugal, governed by Portuguese laws.
The restrictive clauses of these contracts were in full compliance on December 31, 2009.
20.5 – Additional Information on debt service of Investco
BNDES
(i) Financing Agreement through the opening of a credit line signed with BNDES, with the guarantee of Investco’s
shareholders and its controllers on September 21, 2000 in the total amount of R$180,000, with an annual interest
rate of 4% above the TJLP, payable quarterly on January 15, April 15, July 15 and October 15 of each year in the
period between October 15, 2000 and October 15, 2002, and monthly as from November 15, 2002. The principal is
being amortized in 120 monthly and consecutive installments according to the Increasing Amortization System
(Price Table) as from November 15, 2002, and last maturity on October 15, 2012. Part of Investco’s common shares
was given in guarantee together with a promissory note and an assignment of contractual rights.
(ii) Credit Agreement Contract through onlending contracted with BNDES signed with Banco Itaú, Bradesco, BBA
Creditanstalt and Banco ABC, with the guarantee of Investco’s shareholders and its controllers on September 21,
2000 for the amount of R$120,000, with an annual rate of interest of 4% over the TJLP, payable quarterly during the
grace period of principal during the 24 initial months and 120 monthly and consecutive installments as from
November 15, 2002 and last maturity on October 15, 2012. Part of Investco S.A.’s common shares were given in
guarantee together with a promissory note and an assignment of contractual rights.
Banco da Amazônia - BASA
(i) Financing agreement signed on September 30, 1999, amortized monthly in 72 installments, between November
10, 2003 and October 10, 2009, in the total amount of R$50,000, with interest of 11.5% per annum, payable
monthly. During the grace period, only the amount corresponding to 50% of these charges is payable and the
remaining 50% capitalized and incorporated in the outstanding balance, to be paid with the amortization of the
principal installments. According to an addendum signed in December 2007, there was a lien of machinery and
equipment and a bank guarantee from Unibanco S.A. in the amount of R$ 18,937 as guarantee for this financing.
This financing was settled on October 10, 2009.
76

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
(ii) Financing agreement signed on December 28, 2000, 10 for the total amount of R$44,300, to be amortized in 84
months, including a 36-month grace period, the first installment of principal maturing February 10, 2004 and the
last on January 10, 2011 with an annual interest rate of 11.5%, payable monthly. During the grace period, 50% of
these charges are payable, and the remaining 50% capitalized and incorporated in the outstanding debt balance,
to be paid with the amortization of the principal installments. According to the addendum signed in December
2007, collateral in the form of equipment in guarantee and a bank guarantee from Unibanco S.A. were given, in the
amount of R$ 18,937.
These contracts do not have restrictive contractual clauses (covenants).
Safra Leasing
Safra Leasing S.A. - A commercial lease was signed on March 10, 2008 in the amount of R$198. The amortization
period of this contract is 36 months. The financial charges are variation of the CDI + 1.45% annually. The payment of the
first installment occurred on April 14, 2008 and the last installment has its maturity scheduled for March 14, 2011, the
asset leased by the Company was a microbus for exclusive use by the employees of the Plant.
20.6 – Additional information on debt service of Cesa – Castelo Energética S.A. and Pantanal Energética Ltda.
BNDES – Contract signed in February 2002 by CESA for the construction of three Small Hydroelectric Power Plants –
PCH’s - Viçosa and São João in the state of Espírito Santo and Paraiso in the state of Mato Grosso do Sul. In fiscal year
2002, funding amounting to R$ 39,280 in 2004, R$ 17,565 and R$5,635 in 2007 were released. Interest is levied on the
amount of principal at the rate of 4.5% per annum plus variation of TJLP, enforceable monthly, together with the
installments of the principal with final maturity on July 16, 2012. The guarantees are: (i) assignment of receivables
resulting from authorizations granted by ANEEL, either from the extinguishment of the authorizations, purchase and sale
of electricity and the right to generate electricity from its PCHs; and, (ii) the pledging of common nominative shares
comprising the total stake of Energest S.A in the Company. In the context of transfer of the concession of PCH Paraíso
from CESA to Pantanal, the balances of this financing corresponding to PCH Paraíso, as well as the respective
conditions established in the contract, were transferred to Pantanal.
Res. 2770 - Agreement for onlending of loan in foreign currency nº 231010028 signed on March 14, 2008, by CESA, with
Banco Santander S/A in the amount of USD 5,892, equivalent to R$10,000, for the period of 335 days with final maturity
on February 12, 2009, the interest rate of 4.81% p.a.. Amortization and interest will be paid in a lump sum upon
expiration of the agreement. Guarantee, surety in promissory note in foreign currency. Transaction settled in February
2009.
An exchange swap operation was performed for this loan with hedge characteristic, with Banco Santander S/A, on March
14, 2008, for exchange of original charges of the financing with the same bank by the remuneration of 111.90 % of CDI.
Transaction settled in February 2009.
Onlending of Funds Obtained in Reais Abroad - contract with Banco Santander S.A., nº 231006019, signed on February
12, 2009, by CESA S.A. in the amount of R$11,864, for the period of 60 days with final maturity on April 13, 2009, at the
rate of 123.50% of CDI. Amortization and interest will be paid in a lump sum upon expiration of the agreement.
Guarantee, surety in promissory note and EDP - Energias do Brasil S/A as Intervening Guarantor. Through a rider to the
contract, on April 13, 2009 this operation had its settlement term extended to June 12, 2009, maintaining all the other
clauses and conditions of the original contract ratified. On June 12 this operation had its maturity date renegotiated to
September 10, 2009, maintaining all the other clauses and conditions of the original contract. On September 10, 2009,
this operation had its settlement term extended to March 10, 2010, maintaining all the other clauses and conditions of the
original contract ratified.
20.7 – Additional information on debt service of Energest
BNDES – Contract signed in October 2001 with the pass through of funds from, Itaú (leader), Alfa and Sudameris banks,
to finance investments for the installation of the fourth turbine at UHE Mascarenhas. In fiscal year 2001, funds amounting
to R$24,102 were obtained. Interest is levied on the amount of principal at the rate of 3.5% per annum, plus variation of
TJLP (national currency) and of 3.5% per annum plus the variation of UMBNDES (foreign currency), enforceable
monthly, together with the installments of the principal with final maturity on October 15, 2010. The guarantee is an
assignment on revenues from electricity services provided in the amount equivalent to at least 1.4 (one decimal point
four) times the value of the largest installment due from the beneficiary. This operation establishes covenant of the
relation EBITDA/ Gross financing expenses, which has been complied with to date.
Res. 2770 - Agreement for onlending in foreign currency nº 231010058 signed on March 14, 2008, with Banco
Santander S/A in the amount of USD 10,606, equivalent to R$18,000, for the period of 335 days with final maturity on
77

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
February 12, 2009, at the rate of 4.81% per annum. Amortization and interest were paid in a lump sum upon expiration of
the agreement. Guarantee, surety in promissory note in foreign currency. Transaction settled in February 2009.
An exchange swap operation was performed for this loan with hedge characteristic, with Banco Santander S/A, on March
14, 2008, for exchange of original charges of the financing with the same bank by the remuneration of 111.90 % of CDI.
Transaction settled in February 2009.
Onlending of Funds Obtained in Reais Abroad - contract with Banco Santander S.A., nº 231006029, signed on February
12, 2009, by Energest S.A. in the amount of R$21,355, for the period of 60 days with final maturity on April 13, 2009, at
the rate of 123.50% of CDI. Amortization and interest will be paid in a lump sum upon expiration of the agreement.
Guarantee, surety in promissory note and EDP Energias do Brasil S.A. as Intervening Guarantor. Through a rider to the
contract, on April 13, 2009 this operation had its settlement term extended to June 12, 2009, maintaining all the other
clauses and conditions of the original contract ratified. On June 12 this operation had its maturity date renegotiated to
September 10, 2009, maintaining all the other clauses and conditions of the original contract. On September 10, 2009,
this operation had its settlement term extended to March 10, 2010, maintaining all the other clauses and conditions of the
original contract ratified.
Bank Credit Certificates – Agreement signed in February 2008 worth a total of R$48,000, signed with the Banco do
Brasil S.A. The principal value of the loan carries an interest rate of 106.6% of CDI, capitalized daily. Principal payable in
five annual installments, the first due on February 20, 2011 and the last on February 20, 2015 with semi-annual
payments of interest as from August 20, 2008 to February 20, 2015. This operation carries a covenant of gross
debt/EBITDA at a ratio not exceeding 3.5.
20.8 – Additional information on debt service of Costa Rica
Eletrobrás-Financing ECF-1,568/97 - Contract signed by Enersul, on November 4, 1997, in the amount of R$5,375, for
financing of the construction of the Hydroelectric Plant of Costa Rica, with resources from the Investment Fund of
Eletrobrás - FINEL, with interest of 6.5% per annum, ending on May 31, 2014, amortization in 180 monthly, equal and
successive installments, with guarantee in revenue and promissory note. Contract repassed to Costa Rica Energética,
through the “Private Contract for Commitment of Debtor Release”.
20.9 – Additional information on debt service of Santa Fé Energia S.A.
BNDES - Agreement signed in May 2009, with onlending of funds through Banco do Brasil. Funds in the amount of
R$64,000 were released on May 29, 2009. Interest is levied on the amount of principal at the rate of 1.9% per annum
plus variation of TJLP, enforceable monthly, as from March 15, 2010, together with the installments of the principal with
final maturity on February 15, 2024. The negotiated guarantee establishes the lien on shares of the beneficiary at 100%
in favor of the Financial Agent. This operation establishes a covenant of the Debt Service Coverage Index (ICSD) of at
least 1.2 times, complied with thus far.
20.10 – Additional information on debt service of subsidiary under joint ownership Porto do Pecém
Working Capital - Bridge loan agreement for the Pecém project, executed on January 31, 2008 with a bank syndicate
the coordinator of which is Banco Citibank in national currency, in the amount of R$192,000, maturing on April 30, 2009,
with incidence of CDI interest plus 0.75% per annum capitalized daily and paid monthly, principal with settlement in a
single installment on April 30, 2009. The sums of R$24,000 and R$168,000, respectively, were drawn on January 31,
2008 and April 8, 2008. Guarantee survey of the shareholders, each one accountable for 50% of the total amount. On
April 30 this operation, through a rider to the contract, had its settlement period extended until July 29, 2009, and its
remuneration altered to CDI rate plus 3.00% per annum, keeping all the other clauses and conditions of the original
contract ratified. On September 30, 2009 there was a new addendum to the contract, extending the maturity date of the
operation to November 30, 2009 and keeping the rates of remuneration and other provisions of the contract unaltered.
Operation settled on October 20, 2009.
Working Capital - Bridge loan agreement for the Pecém project executed on February 26, 2008 with a bank syndicate
the coordinator bank of which is Banco Citibank in foreign currency, in the amount of US$158 million maturing on April
30, 2009, with incidence of MONTHLY LIBOR interest plus 0.75% per annum and paid monthly, principal with settlement
in a single installment on April 30, 2009. The amounts of R$219,682 and R$31,838, respectively, were drawn on March
4, 2008 and April 8, 2008. Guarantee survey of the shareholders, each one accountable for 50% of the total amount. On
April 30, 2009 this operation, through a rider to the contract, had its settlement period extended until July 29, 2009, and
its remuneration altered to MONTHLY LIBOR plus 3.00% per annum, keeping all the other clauses and conditions of the
original contract ratified. On September 30, 2009 there was a new addendum to the contract, extending the maturity date
78

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
of the operation to November 30, 2009 and keeping the rates of remuneration and other provisions of the contract
unaltered. Operation settled on October 30, 2009.
BNDES - Contract signed in May 2009 and 1st release occurring on October 14, 2009 in the amount of R$700 million of
the long-term financing. The sum released made it possible to settle the bridge loans in reais and will also cover the
disbursements foreseen in the deployment of the venture. The financing agreement with BNDES establishes a loan in
the amount of R$1.4 billion (in nominal R$, excluding interest during construction), with a total period of 17 years,
consisting of 14 years of amortization and grace period for payment of interest and principal up to July 2012. The
contracted cost is of TJLP plus 2.77% per annum. The interest will be capitalized during the construction phase.
IDB - Contract signed in March 2009 and 1st release occurring on October 30, 2009 in the amount of US$ 260 million of
the long-term financing. The total sum disbursed consists of US$117 million of the direct loan ("A Loan") and US$143
million of the indirect loan ("B Loan"). The financing agreement with IDB establishes an A Loan in the total amount of
US$ 147 million, and B Loan in the total amount of US$ 180 million, with total term of 17 years in the A Loan and 13
years in the B Loan, with a grace period for payment of interest and principal up to July 2012. The initial rates of the A
Loan and B Loan are Libor + 350 bps and Libor + 300 bps, respectively, with step ups throughout the period. Said longterm
loan in US$, in turn, has already been subject to the contracting both of exchange hedge and of an interest rate
swap (from Libor to fixed rate). The consortium of B-lenders is comprised of the banks Millenium BCP, Caixa Geral de
Depósitos and Calyon.
Result of the swaps
Hedge operation with Banco Citibank of NDFs (Non Deliverable Forwards), executed on October 17, 2007, in the total
amount of US$ 406,736,000, with maturities between January 2009 and October 2012, with the contracted initial parity of
R$/US$ 1.8138.
Hedge operation with Banco Citibank and BTG Pactual of NDFs (Non Deliverable Forwards), executed on
June 30, 2009, in the total amount of EUR 26,059,929.27, with maturities between June 2009 and January 2012, with the
contracted initial parity of EUR/US$ 1.4040.
Hedge operation with Banco HSBC and BTG Pactual of NDFs (Non Deliverable Forwards), executed on June 01, 2009,
in the total amount of EUR 10,134,416.94, with maturities between June 2009 and January 2012, with the contracted
initial parity of EUR/US$ 2.7300.
Hedge operation with Banco Citibank and BTG Pactual of NDFs (Non Deliverable Forwards), executed on June 30,
2009, in the total amount of US$ 106,592,330.70, with maturities between June 2009 and January 2012, with the
contracted initial parity of US$/R$ 1.9678.
Swap operation at Banco Citibank, contracted on October 16, 2007, in the amount of US$ 140,521,000, starting on April
2, 2012 with final maturity on October 1, 2024, where the Company pays variation of the US$ plus 5.82% per annum in
the short position and the Bank in the long position pays 100% of LIBOR.
Swap operation at Banco Citibank, contracted on October 16, 2007, in the amount of US$ 186,479,000, starting on April
2, 2012 with final maturity on October 1, 2021, where the Company pays variation of the US$ plus 5.79% per annum in
the short position and the Bank in the long position pays 100% of LIBOR.
Swap Operation with Banco Citibank, for the coverage of the interest capitalized during the construction of the Pecém
plant related to the financing with IDB, contracted on July 2, 2009, in the amount of US$ 280,815,287, effective as of
November 16, 2009 and final maturity on November 16, 2011, where the Company pays variation of the dollar plus
2.085% per annum at the passive index edge and the Bank pays 100% of LIBOR at the active index edge.
20.11 – Maturity of Current and Non-current installments (principal and charges):
Consolidated
Maturity
Current
Local
Currency
Foreign Total
2010 550,094
22,568 572,662
Noncurrent
550,094
22,568 572,662
2011 275,549
20,096 295,645
2012 316,949
10,185 327,134
2013 252,198
12,262 264,460
2014 219,145
13,350 232,495
2015 193,458
14,555 208,013
2016 82,421
15,642
98,063
2017 51,836
16,964
68,800
2018 37,957
18,478
56,435
After 2018 237,314 116,046 353,360
1,666,827 237,578 1,904,405
Total 2,216,921 260,146 2,477,067
79

21 – Post-employment benefits
Bandeirante
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
BSPS - Reserves to amortize 14,121
Assistance Programs
Escelsa
6,890
Pursuant to CVM Resolution 371 of December 13, 2000, as from January 1st, 2002, publicly held companies are
required to account for post employment benefit liabilities based on rules contained in IBRACON’s NPC Pronouncement
26.
To meet this requirement, the subsidiaries that grant post employment benefits - Bandeirante, Escelsa, and Energest,
hired independent actuaries to conduct an actuarial appraisal of these benefits according to the Projected Unit Credit
Method.
The main assumptions utilized in the actuarial appraisals of the benefits were as follows:
21.1 – Bandeirante
12/31/2009 12/31/2008 12/31/2009 12/31/2008
The company is one of the sponsor of FUNDACÃO CESP, a non profit, multi-sponsored, closed private pension plan
entity responsible for managing a group of pension plans on behalf of the subsidiary Bandeirante’s employees and exemployees
through the Complementary Benefits Plan – BSPS and the Mixed Benefits Plan with the following
characteristics:
80
21,003
6,033
67,366
Retirement Incentive Aid - AIA 3,373
Health Care and Life Insurance 6,170
3,835
33,278
27,181
Consolidated
Current Noncurrent
30,871
104,017
Economics 2009 2008
63,678
3,899
40,525
108,102
Discount rate betw een 11.20% and 11,25% p.a. 10.75% p.a.
Expected return rate on assets betw een 10.45% and 11.49% p.a. betw een 11% and 12.45% p.a.
Future compensation grow th 5.55% p.a. 5.55% p.a.
Future grow th in
Social Security
4.5% p.a. 4.5%p.a.
Medical trend rate 10% p.a. in 2008, decrease to 10% p.a. in 2006, decrease to
5.5% p.a. until 2018
5.5% p.a. until 2015
Inflation 4.5% p.a. 4.5%p.a.
Capacity factor - w ages and benefits 100% 100%
Demographics
Mortality table RP 2000 Generational RP 2000 Generational
Disabled mortality table RP 2000 Disabled RP 2000 Disabled
Disability table Wyatt 85 Class 1 TASA 27
Null from the 3rd year of benefit
(1)
Turnover table
plan filiation
(1) T-1 Service Table, except for: a) Enersul - null; and b) Bandeirante - null from the 3rd year of benefit plan filiation

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
(i) Settled Complementary Proportional Benefit Plan - BSPS – This corresponds to the employees’ proportional benefits
calculated on the basis of time of service up to March 1998. The amount of R$81,487, as at December 31, 2009
pursuant to CVM Resolution 371 of December 13, 2000, corresponds to the portion of benefits exceeding the plan’s
assets. The unfunded pension plan liability is being settled in 240 months as from September 1997, based on a
percentage of the payroll, subject to revision semiannually to ensure settlement of the balance in the above period.
This plan was effective until March 31, 1998 and is a defined benefit type which grants Settled Complementary
Proportional Benefits (BSPS) in the form of lifetime income convertible into a pension to plan members registered as
at March 31, 1998 in a defined amount proportional to accumulated years of service up to the said date conditional
upon compliance with the regulations. The subsidiary Bandeirante bears total responsibility for covering actuarial
shortfalls .
(ii) Mixed Benefits Plan – BD and CD
• BD Plan – Effective after March 31, 1998 – Defined Benefit Plan that grants a lifetime income convertible into a
pension proportional to time of service accumulated to March 31, 1998 based on 70% of the monthly average wage
over the past 36 months in active employment. In the event of death while the employee is on active service, or
disability, the benefits comprise all the years of past service (including the accumulated period to March 31, 1998) and
therefore does not include the accumulated period of service after March 31, 1998 alone. The subsidiary Bandeirante
and plan members bear equal responsibility for covering the actuarial shortfalls.
• CD Plan – Implemented in conjunction with the BD Plan, effective after March 31, 1998. It is a pension plan that until
the time of granting the lifetime income, convertible (or not) into a pension, is a defined contribution plan, not
generating any actuarial responsibility on the part of the subsidiary Bandeirante. Only after the act of granting of the
lifetime income, convertible (or not) into a pension, does the pension plan become a defined benefit one, subjecting
the subsidiary Bandeirante to actuarial responsibility.
The actuarial appraisal shows as at December 31, 2009 that in the case of the defined benefits plan the present value of
the actuarial liabilities net of the fair value of the assets and of unrecognized actuarial losses, shows a deficit as indicated
below:
12/31/2009 12/31/2008
Present value of defined benefit
obligation (430,120) (422,199)
Assets at fair value 354,080
312,153
(76,040) (110,046)
Unrecognized actuarial loss (5,447)
25,365
Defined benefit liability (81,487) (84,681)
We present below the demonstration of the number of Plan participants:
2009 2008
Active participants
Assisted Participants
893
948
Deferred pensions 131
149
Retired members 531
487
662
636
Total 1,555 1,584
81

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
As sponsor, Bandeirante contributed R$19,350 (R$16,648 in 2008) in the fiscal year to settle installments of the adjusted
reserves agreement related to the Settled Complementary Proportional Benefits Plan (BSPS) as well as the monthly
funding of current plans.
The net expense with the Supplementary Retirement and Pension Plans of Bandeirante - PSAP/Bandeirante, to be
recognized in the income of 2010, will have the following breakdown:
Cost of current service 1,064
Interest cost 47,185
Expected earnings from assets (40,638)
Employee contributions actually paid (2,728)
Total 4,883
21.2 – Escelsa
The subsidiary Escelsa has the following liabilities with post-employment benefits:
(i) Sponsorship of the complementary retirement and pension plans;
(ii) Other post employment benefits made up of healthcare plan, life insurance and Retirement Incentive Aid – AIA.
21.2.1 – Retirement plans
The subsidiary Escelsa is the sponsor of EnerPrev since September 19, 2008, current managing entity of pension plans
so far managed by Fundação Escelsa de Seguridade Social – (“ESCELSOS”), a closed, not for profit private pension
plan entity responsible for managing a group of pension plans on behalf of the employees and former employees of
subsidiary Escelsa, through two benefit plans: Benefit Plan I of the defined benefit type and Benefit Plan II of the defined
contribution type, convertible into the defined benefit type on conversion to lifetime income.
The actuarial appraisal realized as at December 31, 2009 showed that for these pension plans, the fair value of the
assets exceeded the present value of the actuarial liabilities as indicated below:
12/31/2009 12/31/2008
Present value of defined benefit
obligation (132,625)
(120,453)
Assets at fair value 200,084 187,553
67,459
67,100
Unrecognized actuarial loss 22,124
16,109
Defined benefit assets 89,583
83,209
The surplus in the defined benefit pension plans reduces the risk of an eventual actuarial liability for the subsidiary
Escelsa. The subsidiary Escelsa’s management has not recorded this asset due to the uncertainty of an effective
reduction in the Sponsor’s contributions or of future reimbursement.
In its function as sponsor, Escelsa makes a monthly payment proportional to EnerPrev members’ contributions as
established in each benefits plan. During the fiscal year, Escelsa contributed R$3,030 (R$2,966 in 2008).
82

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
We present below the demonstration of the number of Plan participants:
Plan I Plan II 12/31/2009 12/31/2008
Active participants
Assisted Participants
3
879
882 1,076
Deferred pensions 10
10
Retired members 730
204
934
907
730
214
944
907
Total 733 1,093 1,826 1,983
21.2.2 – Other post employment benefits
According to the same actuarial appraisal mentioned in Note 21.2.1, the following obligations with other post-employment
benefits were assessed:
• Medical Healthcare and Life Insurance – Coverage for medical and dental care, medications, life insurance, and in
proven cases, existence of dependents with special needs, corresponding to 50% of the subsidiary Escelsa’s
minimum salary; Retirement Incentive Aid - AIA – Benefit to employees hired up to December 31, 1981, payable on
termination of the labor contract, irrespective of the reasons for such severance. The AIA guarantees payment of a
benefit, the amount of which was calculated considering for each employee, the proportionality of the period of
contribution to the INSS (Brazilian Social Security Service) up to October 31, 1996, the employee’s salary and the
INSS benefit as at October 31, 1996.
The actuarial appraisal of December 31, 2009, showed that in the healthcare, life insurance and retirement incentive aid
(AIA) plans, the present value of the actuarial liabilities, net of unrecognized loss, amounts to R$42,821, recorded in
Current and Noncurrent Liabilities with the following breakdown:
Present value of defined benefit
obligation (75,040)
Unrecognized actuarial loss 32,219
Total (42,821)
Current 6,170
Noncurrent 36,651
21.3 – Energest
12/31/2009 12/31/2008
The subsidiary Energest is the sponsor of the complementary retirement and pension plans, managed by EnerPrev since
September 19, 2008, current managing entity of pension plans so far managed by Fundação Escelsa de Seguridade
Social – (“ESCELSOS”), a closed, non profit private pension plan entity responsible for managing a group of pension
plans on behalf of the subsidiary Energest's employees and former employees, through two benefit plans: Benefit Plan I
of the defined benefit type and Benefit Plan II of the defined contribution type, convertible into the defined benefit type on
conversion to lifetime income.
The actuarial appraisal realized as at December 31, 2009 showed that ithe fair value of the assets exceeded the present
value of the actuarial liabilities as indicated below:
83
(57,410)
9,151
(48,259)
3,835
44,424

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
12/31/2009 12/31/2008
Present value of defined benefit
obligation (622)
(241)
Assets at fair value 1,120
369
498
128
Unrecognized actuarial loss 103
99
Defined benefit assets 601
227
The surplus in the defined benefit pension plans reduces the risk of an eventual actuarial liability for the Company. The
subsidiary Energest’s management has not recorded this asset due to the uncertainty of an effective reduction in the
Sponsor’s contributions or of future reimbursement.
In its function as sponsor, Energest makes a monthly payment proportional to EnerPrev members’ contributions as
established in each benefits plan. During the fiscal year, Energest contributed R$264 (R$231 in 2008).
21.4 - EnerPrev - Pension plans of the defined contribution type
EnerPrev is a closed, not for profit private pension plan entities and was created in the end of 2006 in order to centrally
manage the pension plans of companies within the Group Energias do Brasil. EnerPrev manages its own plan and a
private plan through Bradesco Vida e Previdência S.A. consisting of benefits of the Defined Contribution type, with 171
participants, not generating any actuarial responsibility on the part of the Sponsors.
In the capacity of sponsors of this type of plan, the Companies from Grupo Energias do Brasil contributed the sum of
R$775 in the year (R$302 in 2008).
22 – Estimated personnel liabilities
Parent Company
Consolidated
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Payroll 3,942
3,902
44,990
41,546
"INSS" and "FGTS" 302
316
6,221
6,016
Total 4,244
4,218
51,211
47,562
The Payroll account basically includes accrued vacation pay and respective social charges and provision for profit
sharing of the year 2009.
23 – Regulatory and sector charges
Accounts payable related to charges established in the electricity sector legislation are as follow:
Current Noncurrent
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Global reversal reserve quota - RGR 2,929 2,717
Fuel consumption account - CCC 4,114 20,891
Energy development account - CDE 16,443 13,989
Financial compensation for the use of w ater resources 5,820 5,111
Tariff charges (ECE/ EAEEE) 31,952 33,226
Research and Development 40,488 44,547 11,511 2,847
Energy efficiency program - PEE 52,879 34,891 3,428
Use of public asset - UBP - Granting rights 1,456 1,437
Inspection fee - ANEEL 801
863
Total 156,882 157,672 14,939 2,847
23.1 - Research and Development – R&D and Energy Efficiency Program - PEE
Expenditures with R&D and PEE made by the subsidiaries are calculated under the terms of the sector legislation, of the
electric energy concession contracts and are regulated by Normative Resolutions ANEEL nºs 300 and 316 of February
12, 2008 and May 13, 2008 respectively. The subsidiaries are obligated to invest 1% of the Net operating revenue
adjusted in conformity with the criteria defined by ANEEL, recording the value of liability monthly by competent period.
84

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The liability is restated monthly by the variation of the SELIC rate up to the conclusion of the R&D and PEE projects,
when its write-off occurs.
The subsidiaries recorded the sum of R$44,423 in 2009 (R$44,305 in 2008), with R$39,455 as principal in 2009
(R$37,637 in 2008), recorded in the Group of Deductions from Revenue and R$4,968 (R$6,668 in 2008) of price-level
restatement, recorded in Financial Result.
23.2 - Use of Public Property - UBP - Grant Rights
The subsidiaries Enerpeixe and Investco, as retribution for the grant conceded thereto for exploration of the hydroelectric
potentials of the Peixe Angical and Lajeado plants, respectively, will generate for the Federal Government over the
lifetime of the concession contracts and while they are exploring them, monthly installments equivalent to one twelfth
(1/12) of the annual sum defined in the concession contracts, restated annually with a basis on the annual variation of
IGP-M calculated by “Fundação Getúlio Vargas” (or another index that takes its place) in the months of October for
Enerpeixe and December for Investco.
The obligation is recognized monthly, having Other operating expenses and Financial expenses as contra entries.
The contractual commitments are as follows:
Consolidated
Nominal value current until Present value
12/31/2009 12/31/2008 12/31/2009 12/31/2008
UHE Lajeado 69,434
UHE Peixe Angical 365,411
434,845
65,504
384,056
449,560
The calculation of the present value was performed considering the discount rate of 10% per annum, compatible with the
estimated long-term rate, not being related to the expectation of return of the project and projection of IGP-M.
These commitments restated up to December 31, 2009, are distributed as follows:
2010 19,171
2011 16,525
2012 16,525
2013 16,525
after 2013 366,099
434,845
Consolidated
Nominal value Present value
16,640
13,419
14,067
13,304
164,637
222,067
Investco and Enerpeixe paid the Granting Power the sums of R$3,854 and R$13,782, respectively, in the year, with
R$8,151 of principal and R$9,485 of restatement, recorded in net income for the year.
24 – Provisions for contingencies and restricted deposits – current and non-current
The Company and its subsidiaries are parties to legal actions and administrative proceedings in several courts and with
government bodies arising from the normal course of operations, involving tax, labor, civil and other issues.
Based on information from its legal advisors and the analysis of pending lawsuits, managements of the Company and its
subsidiaries have constituted provisions considered sufficient to cover losses estimated as probable for ongoing legal
actions as follows:
85
38,080
183,987
222,067
35,120
189,226
224,346

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
(*) Installment payment of taxes - Law nº 11,941/09 and Provisional Measure 470/09
The Company and its subsidiaries Bandeirante, Escelsa, Energest and Enertrade opted for adhesion to the Tax
installment payment program created by Law nº 11,941/09, an event that brought about the reduction of contingent
liabilities of a tax-related nature (Note 9.4).
24.1 - Labor
24.1.1 - Bandeirante
Law suits filed corresponding to the periods after January 1st, 1998 as per the agreement for the partial spin-off of
Eletropaulo - Eletricidade de São Paulo S.A. Subsequently, pursuant to the Partial Spin-off Agreement of Bandeirante on
October 1st, 2001, each concessionaire (Bandeirante and Piratininga) is responsible for the liabilities corresponding to
the employees allocated to the respective regions taken over by each Company. Responsibility for corporate suits will be
taken on according to the percentage proportion of the controllers (Bandeirante and Piratininga) as determined in the
respective spin-off agreement.
Several suits question among other matters, overtime payments, hazardous work claims and reinstatement premiums.
The balance provided for as at December 31, 2009 is R$18,718 (R$13,393 in 2008).
24.1.2 – Escelsa, Energest, CESA, Investco, and Escelsapar
Several lawsuits questioning, among other issues, overtime payments, hazardous work and reinstatement premiums.
The balance provided for as at December 31, 2009 is R$27,788 (R$29,589 in 2008).
24.2 – Civil
24.2.1 - Bandeirante
Refer mainly to claims for reimbursement of amounts paid in the form of tariff increases by industrial consumers due to
the application of DNAEE Ordinances 38 of February 27, 1986 and 45 of March 4, 1986 - the Cruzado Plan, in force from
March to November of that year. Original values are restated based on the system practiced by the Judiciary. The
balance on December 31, 2009 is R$52,531 (R$41,450 in 2008).
Also include claims for moral and material damages.
24.2.2 – Enertrade
Parent Company
Liabilities Assets
Balance on Reclassification Balance on Judicial deposit (Note 12)
Instances 12/31/2008 Additions REFIS (*) 12/31/2009 12/31/2009 12/31/2008
Labor 1st, 2nd and 3rd 486
Tax 1st, 2nd, 3rd and Adm 64,396
4,141
(66,288)
2,249
4,724
2,944
Others 22,220
22,220
2,080
2,080
Total 64,396
26,361
(66,288)
24,469
7,290
5,024
Current 2,168
Noncurrent 64,396
24,469
5,122
Total 64,396
24,469
7,290
Balance on Write-offs Reclassification Balance on Judicial deposit (note 12)
Instances 12/31/2008 Additions Payments Reversal REFIS (*) 12/31/2009 12/31/2009 12/31/2008
Labor 1st, 2nd and 3rd 42,982
24,090
(13,691)
(6,875)
46,506
7,688
13,386
Civil 1st, 2nd, 3rd and Adm 61,052
13,195
(2,470)
(6,870)
64,907
10,441
7,699
Tax 1st, 2nd, 3rd and Adm 164,516
55,313
(38,394)
(170,542) 10,893
5,227
38,695
Others 22,220
22,220
8,836
8,095
Total 268,550 114,818
(16,161) (52,139)
(170,542) 144,526
32,192
67,875
Current 5,255
Noncurrent 263,295
Total 268,550
Consolidated
Liabilities Assets
Lawsuit filed by Enertrade, questioning the constitutionality of payments relating to the Energy Development Account –
CDE.
86
7,627
136,899
144,526
2,080
2,944
5,024

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The balance provided for as at December 31, 2009 is R$3,589 (R$3,589 in 2008).
24.3 – Others
Refers mainly to the commitments covenanted in the exchange process of the control shares of Enersul with the control
shares of Investco formerly belonging to Grupo Rede Energia S.A., relative to the lawsuits of various types filed against
Enersul the generating events of which originated in periods when the control of Enersul was exercised by the Company.
24.4 - Risk of possible loss
There are ongoing labor, civil and tax proceedings, the loss of which has been deemed as possible. These items are
periodically reassessed, not requiring constitution of provisions in the financial statements and are as follow:
Among the main claims where losses are deemed as possible, the highlights are as follow:
24.4.1 – Bandeirante
Consolidated
Assets
Judicial deposit (note 12)
Instances 12/31/2009 12/31/2008 12/31/2009 12/31/2008
Labor 1st, 2nd and 3rd 47,698
Civil 1st, 2nd, 3rd and Adm 104,631
Tax 1st, 2nd, 3rd and Adm 100,127
Total 252,456
Among the main claims where losses are deemed as possible, the highlight is the discussion in the administrative sphere
regarding ICMS credits utilized by the company in the period from July 2003 to December 2003, referring to amounts of
"Annulment/Return of Sale of Electric Energy" in the amount of R$58,170 and a fine on incorrect bookkeeping of fuel
purchase invoices in the sum of R$198. The subsidiary Bandeirante has presented defense and is awaiting judgment.
24.4.2 – Escelsa
• INSS – Following an INSS inspection, notices were issued for collecting social security tax with respect to the
exclusion self-employed and or other corporate entities, under discussion in the administrative sphere, with the
argument that there exists an employment relationship between service providers and Escelsa. These notices total
R$7,748 (R$13,289 in 2008).
• PIS/COFINS (taxes on revenue) - Refers to a tax collection proceeding for the collection of PIS (February 2002 to July
2002) and COFINS (March 2004 to November 2005), under administrative discussion, resulting from voluntary
reporting in regard to inconsistencies in the Amendment to the Federal Revenue Collection and Tax Offset Document
(DCOMP). The Company has a letter of guarantee in the entire amount of the tax collection proceeding. This
proceeding amounts to R$17,009.
• Municipal taxes – various municipalities – Law suit claiming ISSQN for the period from January 1991 to August 1995,
under discussion in the administrative sphere, allegedly on services involving the issue of a second counterpart of
billings, warning notices, among others. Also includes payment demand on land occupied by posts for the electricity
network and public lighting. These proceedings amount to R$8,050 (R$6,942 in 2008).
• Civil - Tariff raise - Ordinary lawsuit proceeding nº 97.0005229-0, relating to the escalation of electricity tariff,
authorized by DNAEE Rulings nºs 38 and 45 of February 27 and March 4, 1996. This proceeding amounts to R$
11,597.
87
46,320
101,731
107,230
255,281
5,008
136
17,645
22,789
8,880
58
39,777
48,715

24.4.3 – Investco
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The lawsuits of a civil nature refer largely to the compensation claimed by parties that consider themselves affected by
the filling of the plant reservoir or that intend to increase compensation received on account of the aforesaid filling, in the
amount of R$62,213 (R$66,904 in 2008, in the proportionate interest of 23.06%).
Due to their significant number, it is not possible to identify the current level of each one.
24.4.4 EDP – Energias do Brasil
Enersul – refers to the contingency described in note 24.3.
25 – Shareholders’ equity
25.1 - Capital stock
The Company's equity capital is of R$ 3,182,716, represented by 158,805,204 (one hundred and fifty-eight million, eight
hundred and five thousand, two hundred and four) shares, all of which common registered shares with no par value, with
the following main characteristics:
• Capital stock is exclusively represented by common shares. Each common share will grant the holder the right to one
vote in the resolutions of the Company's General Meetings.
• The shares are indivisible in relation to the Company. When the share belongs to more than one person, the rights
vested thereupon will be exercised by the joint ownership representative.
• The issuance of beneficiary parts by the Company is hereby prohibited.
• The Company is authorized to increase the capital up to the limit of two hundred million (200,000,000) common
shares regardless of statutory reform, by decision of the Board of Directors, which will also be responsible for
establishing the terms of the issue, including price, term and form of its payment.
• The Company may issue shares, debentures convertible into common shares and subscription bonuses within the
limit of the authorized capital. and
• At the sole discretion of the Board of Directors, it is possible to exclude or reduce the right of preference in the issues
of shares, debentures convertible into shares and subscription bonuses, whose placement is performed through sale
at a stock exchange or public subscription, under legal terms, and within the limit of the authorized capital.
The composition of the capital stock on December 31, 2009 and December 31, 2008 is shown as follows:
(1) Shareholder with more than 5% of the voting shares.
12/31/2009 12/31/2008
Amount % Amount % Controlling
Shareholders
Energias de Portugal Investments and
of shares interest of shares interest Shareholder
Services, Sociedad Limitada (1) (2)
Balw erk - Consult. Econômica e
38,234,188
24.08 38,234,188
24.08 yes
Particip., Soc.Unipessoal Ltda. (1) (2) 24,928,914
15.70 24,928,914
15.70 yes
EDP - Energias de Portugal, S.A. (1) (2) 39,739,013
25.02 39,739,013
25.02 yes
Treasury shares (3) (4) (5) 280,225
Others (6) 55,622,864
Total 158,805,204
88
0.18 15,780,225
35.02 40,122,864
100
158,805,204
9.94
25.26
100

(2) Foreign-owned company.
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
(3) On December 18, 2007 the Board of Directors approved, for a period of 365 days, the purchase of 6,211,426 shares
of the Company to be held in treasury with subsequent sale and/or cancellation without reduction of the capital stock.
In a meeting held on April 15, 2008, the Board of Directors approved the finalization of the program for acquisition of
shares issued by the actual Company on this date, which resulted in the repurchase of the total 6,211,378 common
shares, equivalent to 99.99% of the ceiling permitted for aforesaid acquisition, at the cost of R$156,244, which remained
in treasury up to their cancellation, together with the 22 common shares in treasury prior to the start of aforesaid
program, decided on at a Meeting of the Board of Directors held on October 3, 2008.
According to CVM Instruction nº 10/80, altered by CVM Instruction CVM nº 268/97, the free float on April 15, 2008,
closing date of the Program, was 62,114,489 common shares, i.e., only shares held by the controlling shareholder were
deducted from the total amount of shares issued by the Company.
In line with the concept of Outstanding Shares defined by the Listing Regulation of the New Market of Bovespa, it was
informed that the quantity of outstanding shares on April 15, 2008, under this concept, was 55,903,053 common shares,
with the deduction from the total quantity of shares issued by the Company of those held by the controlling shareholder,
managers and those held in treasury.
(4) On October 3, 2008 the Board of Directors approved, for a period of 365 days, the purchase of 5,590,306 shares of
the Company to be held in treasury with subsequent sale and/or cancellation without reduction of the capital stock,
having acquired up to March 31, 2009, a total of 2,670,000 shares, at a total cost of R$60,164.
(5) The term for exercising the right to withdrawal of shareholders of the Company, ended on October 13, 2008, with the
exercise of the respective right, the Company acquired 13,110,225 shares, corresponding to the sum of R$312,286, the
financial settlement of which occurred on October 27, 2008,, held in treasury up to this date. On October 16, 2009, the
Company submitted to the National Association of Investment Banks ("ANBID"), request for previous analysis of registry
of the secondary public distribution of common shares issued by the Company and held in treasury ("Offering"). This
request was made based on the simplified procedure provided for in CVM Instruction 471, of August 8, 2008, and in the
Regulation and Best Practices Code of ANBID.
The Offering carried out on the non-organized over-the-counter market in Brazil, subject to approval by CVM, pursuant to
CVM Instruction 400, of December 29, 2003, including sales efforts in the United States of America exclusively to
qualified institutional investors as defined in Rule 144A of the U.S. Securities Act as amended ("Securities Act"), and to
investors resident in countries other than the United States of America and Brazil, under Regulation S of the Securities
Act, investing in Brazil pursuant to the investment mechanisms provided for in Law No. 4,131, of September 3, 1962, of
the National Monetary Council Resolution No. 2,689, of January 26, 2000, and CVM Instruction 325, of January 27,
2000, as amended, pursuant to the legislation applicable in the country of each foreign investor.
The acquisition price of the Shares was established after the conclusion of the bookbuilding procedure, in accordance
with articles 23, paragraph 1, and 44 of CVM Instruction 400, considering the following parameters: (i) the price of the
Shares on the BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros; and (ii) collection of intentions, in view
of the quality of the demand (by volume and price), collected during the bookbuilding procedure. The actual value of the
Offering was established pursuant to the market conditions at the time of the pricing.
The Offering was carried out on the Brazilian and foreign capital markets. The announcement to the market was
published as provided for in article 53 of CVM Instruction 400, with the following information: (i) the other characteristics
of the Offering; (ii) the places where the offering memorandum can be obtained; (iii) the estimated dates and places of
disclosure of the Offering; and (iv) the conditions, the procedure, the reserve period and the period for collection of
intentions of investment.
The Offering began after authorization of the registry granted by CVM on November 3, 2009.
89

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
On December 2, 2009, the Company communicated to the market the end of the process of secondary public distribution
of registered, book-entry common shares without par value, free and clear from any encumbrances or liens, issued by
the Company and held in treasury ("Shares"), which were disposed of through the offer of 15,500,000 (fifteen million five
hundred thousand) at the price of R$28.50 (twenty-eight reais and fifty cents) per Share, totaling a gross amount of
R$441,750. The disposal generated a goodwill of R$ 75,914, deducted from R$14,606 related to operating costs.
Due to their significant number, it is not possible to identify the current level of each one.
Description
Treasury share
acquired
(per unit)
2nd program 2,670,000
Right to withdrawal 13,110,225
Shares sale (15,500,000)
280,225
Treasury stock does not have equity rights.
(6) There are 55,622,864 outstanding shares out of the total 158,805,204, that is, around 35.02% of the total quantity of
shares.
There are 17 shares in the possession of the Board of Directors.
The Fiscal Council has not been formed since the Initial Public Offer of July 13, 2005.
Calculation of free float:
25.2 - Allocation of net income
Net value paid for
shares
60,164
312,286
(365,836)
6,614
(*) Unit price R$33.55 per share, by closing price on December 31st, 2009.
Unit cost per share (in Reais)
Minimum Maximum Average
21.16
23.82
The Company's dividend policy, pursuant to the 120th meeting of the Board of Directors held on March 5, 2008,
establishes the payment of a minimum amount equivalent to fifty percent (50%) of the adjusted net income, calculated in
conformity with articles 189 and following articles of Corporation Law, which can be reduced when thus required by a
legal or regulatory provision or, when recommendable in view of the financial situation and/or future prospects of the
Company.
The amount of interest on shareholders’ equity paid or credited, individually to the shareholders as remuneration on
capital may be imputed as part of the total dividend payments for the year for all legal purposes and pursuant to the
terms of Law 9,249 of December 26, 1995 and subsequent regulations.
90
22.95
23.82
22.53
23.82
23.60
Market value as of
12/31/2009 (*)
89,579
439,848
(520,025)
9,402
12/31/2009 12/31/2008
Amount % Amount %
of shares interest of shares interest
Amount of shares - controlling shareholders 102,902,115
64.80 102,902,115
64.80
Amount of shares - treasury shares 280,225
0.18 15,780,225
9.94
Amount of shares - board members and officers 17
0.00
27
0.00
Total non-outstanding shares 103,182,357
118,682,367
Total shares 158,805,204
158,805,204
Total outstanding shares 55,622,847
35.02 40,122,837
25.26

25.3 – Reserves
25.3.1 – Reserve for profit retention
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
12/31/2009 12/31/2008
Net income for the year 623,827 388,329
Prior year adjustments - Law nº 11.638/07 -
(18,066)
Net income adjusted 623,827 370,263
Legal reserve - 5% (31,192) (18,513)
Profit allocation:
592,635 351,750
Dividends 296,317 237,271
Interim dividends - JCP -
103,061
Proposed dividends 296,317 134,210
Profit retention reserve 296,318 114,479
Shares amount 158,524,979
Dividends per share - JCP - R$ -
Dividends per share - interim - R$ 1.869219
Capital reserve
Reserve for profit retention has been constituted pursuant to Article 196 of Law 6,404/76 in support of the Company’s
Capital Expenditures’ Program as set forth in the capital budgets submitted to the Ordinary General Shareholders’
Meetings.
26 – Dividends – assets and liabilities
91
143,024,979
0.720580
0.938365
Goodw ill on merger - parent company 96,656
Total 96,656
Profits reserve
Legal 111,951
Profit retention 908,858
Total 1,020,809
12/31/2009 12/31/2008
35,348
35,348
80,759
612,540
693,299
Parent Company
Consolidated
Assets Liabilities Liabilities
12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2009 12/31/2008
Bandeirante 223,797 184,255
Escelsa 111,796 106,644
Energest 39,814
92,748
Enertrade 24,751
35,514
EDP Lajeado 12,402
Enerpeixe 12,012
13,175
Investco 1,958
4,317
13,649
26,876
Lajeado 45,189
27,498
Shareholder's - EDP Energias do Brasil 297,629 223,451 297,629 223,451
Eletrobrás 71,036
53,518
Silea Participações Ltda. 490
Government of Tocantins 1,566
Furnas Centrais Elétricas S.A. 8,008
8,783
Total 459,317 476,553 297,629 223,451 391,888 313,118

27 - Net operating revenue
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Numbers of consumers (*) MWh (*) R$
12/31/2009 12/31/2008 12/31/2009 12/31/2008 12/31/2009 12/31/2008
Electricity supply Reclassified
Residential 2,282,266 2,209,541 4,704,227 4,402,484 1,906,291 1,940,235
Industrial 20,876
20,098 3,906,217 4,156,413 1,226,847 1,319,111
Commerce, services and other activities 191,440 186,957 2,781,321 2,642,237 1,049,630 1,132,559
Rural 150,226 145,677
609,038
625,410 126,068 175,985
Public 18,461
16,508
499,958
471,473 186,798 218,489
Public lighting 2,145
1,780
513,244
521,436 110,640 131,348
Public service 2,197
2,011
412,245
406,119 111,607 120,880
Ow n consumption 253
222
13,695
12,765
Total billed supply
(-) Extraordinary tariff adjustment (net of ICMS)
2,667,864 2,582,794 13,439,945 13,238,337 4,717,881 5,038,607
Residential 129
Industrial 369
Commerce, services and other activities 214
Rural 18
Public pow er 4
Public lighting 6
Public service 30
Ow n consumption
(-) ICMS
1,160
1,930
Residential (430,096) (416,914)
Industrial (241,566) (260,814)
Commerce, services and other activities (218,438) (229,433)
Rural (8,582) (14,280)
Public pow er (27,298) (32,960)
Public lighting (23,091) (26,200)
Public service (24,006) (25,110)
(973,077) (1,005,711)
Total billed supply net of RTE and ICMS 3,744,804 4,034,826
Unbilled supply 56,252
20,204
Energy supply to free clients 417,581 448,357
(-) ICMS regarding energy supply to free clients (57,831) (88,949)
Tariff return (37,186) (40,053)
PIS and COFINS from generators 7,569
Other regulatory revenues (39,253) (20,403)
Loss (gain) of revenue - low income 20,137
51,154
Electricity supply 3
1 8,226,811 6,751,771 561,476 286,478
Trading supply 364,504 275,954
ECE and EAEEE (14)
(40)
(-) ICMS on ECE and EAEEE (5)
Transfer to use tariff of distribution and transmission
5,030,470 4,975,092
system - captive costumers
(-) ICMS on transfer to use tariff of distribution and
(2,580,193) (2,890,930)
transmission system - captive costumers 536,545 558,200
Total billed energy supply 2,986,822 2,642,362
Distribution and transmission system availability
Use tariff of distribution and transmission
(-) ICMS on use tariff of distribution and transmission
107
105 7,423,297 8,563,206 750,847 661,506
system - others (191,478) (134,946)
Use tariff of distribution and transmission 2,580,193 2,890,930
(-) ICMS on use tariff of distribution and transmission (536,545) (558,200)
Connection charge 1,054
Other operating revenues
2,603,017 2,860,344
Short-term energy 37,841 120,289
Charged services and other 145,567 100,408
Total Other operating revenues 183,408 220,697
(-) Deduction from revenue
Efficiency energy and Research and development
5,773,247 5,723,403
programs (42,653) (47,107)
CCC quota (184,712) (163,848)
CDE quota (178,802) (196,213)
RGR (42,186) (40,082)
PIS/COFINS (673,702) (664,676)
ICMS (2,332)
ECE and EAEEE - transfer to CBEE 4
ISS (512)
(989)
(1,124,899) (1,112,911)
Total
* Not review ed by independent auditors
2,667,974 2,582,900 29,090,053 28,553,314 4,648,348 4,610,492
92
Consolidated

28 - Operating expenses
Manageable
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
93
G&A Other
Personnel, Management and Private pension entities 21,283
Material 617
Third-party services 28,667
Depreciation and amortization 21,770
Provision for contingencies 22,220
Rent and leasing 2,779
Other 12,026
Total 87,142
22,220
Service Cost
Parent Company
12/31/2009 12/31/2008
Operanting Expenses
Consolidated
12/31/2009
Operanting Expenses
Total Total
21,283
617
28,667
21,770
22,220
2,779
12,026
109,362
16,160
483
29,333
148,449
-
2,434
7,344
204,203
With
Rendered
Electricity Operating to 3rd-party Selling
G&A Others
Total Total
Non manageable
Electricity purchased for resale
Reclassified
Itaipu 454,213
454,213 437,128
Auction 711,812
711,812 663,629
PROINFA 94,913
94,913 55,629
Bilateral contracts 5,360
5,360
9,072
Short-term energy - CCEE 58,783
58,783 156,719
Other suppliers 823,410
823,410 653,422
Net effect of CVA 21,417
21,417 175,171
Use and connection charge 499,246
499,246 484,822
System service charge 20,756
20,756 94,537
Net effect of CVA 43,446
43,446 (66,557)
Energy efficiency program 272
272
349
PIS/Cofins (297,602)
(297,602) (287,056)
Inspection fee 11,943 11,943 13,620
Granting rights 8,151
8,151
8,152
Financial compensations 27,567 27,567 21,222
2,435,754
-
-
-
- 47,933 2,483,687 2,419,859
Manageable
Personnel, Management and Private pension entities 146,210
118,782
Material 20,057
4,179
Third-party services 146,551
2,918
147 134,911
Depreciation and amortization 251,507
52,453
Provision for doubtful accounts/net losses 36,682
Provision for contingencies 34,858
Rent and leasing 835
9
7,989
Other 27,277
5,148 56,167
3,023
- 592,437
2,918 41,986 374,481 37,881
Total 2,435,754 592,437
2,918 41,986 374,481 85,814
264,992
24,236
284,527
303,960
36,682
34,858
8,833
91,615
1,049,703
3,533,390
12/31/2008
279,004
46,922
326,646
446,646
76,968
20,329
10,240
67,100
1,273,855
3,693,714

29 – Financial result
30 - Income and social contribution taxes
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Parent Company
Consolidated
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Financial income
Revenue from financial investments 3,731
5,569 29,091 65,202
PIS and COFINS on financial revenues (27) (1,101)
Monetary variation and moratory addition from sold energy 78,995 101,961
Monetary restatements from regulatory assets 13,195 20,529
Monetary variations - domestic currency (3,774) 1,469
Monetary variations - foreign currency 4
1 62,764
300
SELIC on taxes and social contributions to offset 5,385
4,918 10,080 15,100
SELIC on COFINS (base broadening) 2,549
Obtained discounts 12
1,631
Present value adjustment (1,119) (3,641)
Other financial revenues 86,436 16,575 86,291 19,943
Interest on equity 148,909 147,804
Gain on sale of exchange securities 3,767
Financial expense
244,465 174,867 279,275 223,942
Monetary variation and moratory addition from purchased energy (63)
Interest expense on debt (29,858) (16,060) (267,735) (321,588)
Monetary variations - domestic currency (20,992) (2,705)
Monetary variations - foreign currency (2)
(3) 13,083 (27,181)
Interest expense on tax contingence provision (13,774) (13,673) (33,941) (21,883)
Swap and hedge operations (16,629) 15,302
Monetary restatements of regulatory liabilities (32,441) 5,784
CPMF (82)
(1,017)
Mark to market (9,511) (3,564)
Interest on equity (103,061) (50,816) (133,497)
Other financial expenses (4,414) (8,686) (26,029) (54,406)
(48,048) (141,565) (445,011) (544,818)
Total 196,417 33,302 (165,736) (320,876)
94
Income tax
Parent Company
Social contribution
2009 2008 2009 2008
Income before income tax and social contribution 775,617 433,152 775,617 433,152
Rate 25% 25% 9% 9%
Income tax and social contribution (193,904) (108,288) (69,806) (38,984)
Adjustments according effective rate
Permanent addition and exclusion in income tax and social contribution
Donation (89)
(45)
Undeductible fines (1)
Undeductible expenses 547
(60)
Bonus to management (604)
112
Equity accounting 159,577 151,562
REFIS Program 3,130
Others
Others
1
Unrecognized income tax and social contribution deferred 29,207 (43,279)
Prior social year adjustment - Income tax and social contribution
Tax incentive
(7)
Additional Income tax 24
Income tax and social contribution expenses (2,112)
(5)
(32)
197
(217)
57,448
1,127
10,513
(770)
(16)
(22)
40
54,562
(15,581)
(74)
Effective rate 0.27% 0.00% 0.10% 0.02%
(75)

31 - Insurance coverage
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The Company and its subsidiaries hold insurance contracts with coverage determined by specialist guidance, bearing in
mind the nature and level of risk, for amounts deemed sufficient to cover eventual significant losses on their assets and
liabilities. Given the nature of the risk assumptions, these are not part of the scope of an audit of financial statements,
and consequently, were not examined by our independent auditors. The higher amounts at risk with insurance coverage
are:
32 - Financial instruments
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Income before income tax and social contribution 974,802 591,727 974,802 591,727
Rate 25% 25% 9% 9%
Income tax and social contribution (243,701) (147,932) (87,732) (53,255)
Adjustments according effective rate
Permanent addition and exclusion in income tax and social contribution
Donation (1,485) (2,431)
Depreciation 724
(84)
Undeductible losses (387) (1,027)
Undeductible fines (23)
(36)
Undeductible expenses 165
(409)
Bonus to management (642)
(413)
Overage of contribution - private security (54)
Research and development 574
Bad debt provision (1,370)
Founder shares (2,829)
REFIS program 16,790
Others
Others
14,455 (1,042)
Unrecognized income tax and social contribution deferred 22,864 (45,120)
Prior social year adjustment - Income tax and social contribution (1,617) (2,199)
Presumed taxable income adjustment
Tax incentive
8,937 13,760
Additional Income Tax 322
297
PAT 314
585
Rouanet Law 2,002
3,447
Sports 442
663
FIA 190
R&D 1,705
SUDENE 21,833 23,055
Income tax and social contribution expenses (161,072)
In compliance with Directive Release CVM/SNC/SEP nº 3/2009, of November 19, 2009, and CVM Instruction nº 475, of
December 17, 2008, the Company and its subsidiaries performed a valuation of their financial instruments, including the
derivatives.
95
Consolidated
Income tax Social contribution
(158,605)
(536)
260
(139)
(8)
60
(230)
207
293
6,044
5,203
8,719
1,170
3,319
(63,370)
(884)
(30)
(370)
(12)
(148)
(150)
(20)
(493)
84
(16,244)
(2,001)
4,538
615
(68,370)
Effective rate 16.52% 26.80% 6.50% 11.55%
Consolidated
12/31/2009
Substations 951,929
Pow er Plants 611,153
Stockrooms 32,029
Buildings and contents (ow n) 25,556
Buildings and contents (third party) 42,304
Civil liability 49,247
Transports (materials) 52,500
Transportation (vehicles) 10,500
Personal accident insurance 181,661

32.1 – General considerations
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The Company and its subsidiaries maintain operations with financial instruments. The administration of these
instruments is executed by means of operating strategies and internal controls aiming to ensure liquidity, safety and
profitability. The contracting of financial instruments with hedge objectives is performed by means of a periodic analysis
of the exposure to the financial risks (foreign exchange, interest rate etc.), which is reported regularly through risk reports
made available to Management. In compliance with the Financial Risk Management Policy of Grupo Energias do Brasil,
and with a basis on periodic analyses consubstantiated by the risk reports, specific strategies are defined for the
mitigation of financial risks, which are approved by the corporate bodies of the company, for approval and effective
operation of aforesaid strategy. The control policy consists of permanent monitoring of the conditions contracted versus
conditions in force in the market through operating systems integrated to the SAP platform. The Company and its
subsidiaries do not perform investments in derivatives or any other risk assets on a speculative basis. The results
obtained with these operations are in line with the policies and strategies defined by Company Management.
The administration of the risks associated with these operations is performed through the application of policies and
strategies defined by Management and include the monitoring of levels of exposure of each market risk, forecast of
future cash flows and establishment of limits of exposure. This policy also determines that the updating of information in
operating systems, as well as the confirmation and effective operation of transactions with the counterparts, shall be
performed with the appropriate segregation of duties.
Management believes that with a basis on statistical risk analysis tools and on the characteristics of mapped exposures
and of the instruments contracted for mitigation of risks, on December 31, 2009, the results of derivative operations will
be substantially offset by corresponding variations in the hedged items. In this manner, Management understands that
the contracted derivative instrument operations do not expose the Company and its subsidiaries to significant risks that
might generate material losses originating from exchange variance, interest or any other forms of variation.
32.2 – Operating risks
32.2.1 - Credit risk
The financial instrument capable of exposing mainly the subsidiaries Bandeirante and Escelsa to the credit risk, is
represented by accounts receivable from consumers that, however, is attenuated by the sale to a spread out customer
base and by the possibility of a cut in the supply of electricity of the consumers at default. Additionally, the actions
promoted by some companies in the sector with respect to the interpretation of the market rules prevailing from June
2001 to February 2002 during the period the electricity rationing program with respect to the receivables generated from
the sale, purchase of energy and system service charges executed through the Electric Energy Trading Chamber
(CCEE) are still sub judice and therefore subject to change.
32.2.2 – Risk of accelerated maturity
Certain subsidiaries have, as described in notes 19 and 20, debentures and agreements of loan and financing with
restrictive clauses that in general requires the maintenance of economic/financial indexes at certain levels (financial
covenants) and other conditions. Non-compliance with these restrictions may imply accelerated maturity of the debts.
32.2.3 – Risk of electric power shortage
The Brazilian energy matrix is predominantly hydric and a prolonged drought would reduce the volume of water in the
reservoirs of the hydroelectric plants, which could cause reduction of revenues due to unavailability of electric energy, an
increase in the purchase cost of energy in the short term market and the increase of System Charges as a result of the
dispatch of the thermoelectric plants. In an extreme situation, like the one that occurred in Brazil in the year 2001, a
rationing program could be adopted that would imply reduction of income.
32.3 – Market value of the financial instruments
The main financial instruments are described below:
Funds available, financial investments, accounts receivable, accounts payable and pledges and restricted deposits -
these are presented at their book value that is equivalent to their market value.
Regulatory assets and liabilities - these are presented at their amortizable cost that is equivalent to their recoverable
value.
Loans and financing in national currency with BNDES and ELETROBRAS - these are classified as financial liabilities not
measured at market value, are recorded at the amortized cost, and correspond to loans with specific purposes for
96

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
financing of investments in electric energy distribution and generation, indexed at TJLP - Long-term Interest Rate and
prefixed rates.
Loans and financing in national currency at Banco do Brasil, Santander, Banco da Amazônia and Bradesco - these are
classified as financial liabilities and are recorded at amortized cost. The market value is determined calculating the future
flows of the operation based on the pre-fixed rate of the agreement and bringing these flows to present value, using the
future DI rate of BM&F as well
Loans and financing in foreign currency with IDB - these are classified as financial liabilities and are initially measured,
on the transaction date, by the exchange rate of the functional currency and translated at closing rate in the balance
sheet, and the exchange impacts are recorded in financial income and expenses.
Debentures in national currency - these are recorded at the amortized cost and are classified as financial liabilities not
measured at market value, as they are debt issues in the capital market with definition in the debenture deed in a specific
clause of Accelerated Maturity which if the event occurs, will be performed at their unamortized unit par value, plus
remuneration due up to the date of the effective payment calculated pro rata.
Derivative financial instruments - these are operations aimed to provide protection against exchange variations in
borrowings performed in foreign currency on a non-speculative basis and recorded at market value (fair value hedge).
The market value is determined calculating the future flows (assets and liabilities) of the operation through the currency
curves of BM&F and contractual rates, and bringing these flows to present value, using the future DI rate of BM&F.
Cash e cash equivalents 233,440
Loans, financing in local currency - Bradesco -
32.4 – Sensitivity analyses
Parent company
Fair value Accounting value
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Scenarios of rates and foreign currencies were considered in the tables below, with the respective impacts on the results
of the Company and its subsidiaries, with the applicable exposures of oscillations in the exchange rate of foreign
currencies, of interest rates and other indexes, up to the due dates of these transactions. The probable scenario was
determined based on the business plan of the Company and its subsidiaries approved by Management, in which the
adopted assumptions took into consideration the macroeconomic assumptions obtained from the Focus report of the
Central Bank, and also consider the outstanding balances on December 31, 2009. Scenarios II and III represent 25%
and 50% of deterioration, respectively, and scenarios IV and V with 25% and 50% of appreciation, respectively.
Sensitivity analyses presented below refers to the balances of operations with financial instruments at the balance sheet
date.
97
79,443 233,440
247,543 -
79,443
257,700
Consolidated
Fair value Accounting value
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Loans, financing in local currency - BNDES e ELETROBRÁS 591,435 1,049,410 591,367 1,405,821
Loans, financing in local currency - Banco do Brasil, Santader,
Bradesco, Citibank, Banco da Amazônia e Safra
218,237
Debentures in local currency 685,235
Commercial paper in local currency 244,453
852,691
-
661,260
243,178
872,684
Loans, financing in foreign currency 26,854 267,858 22,445 285,977
Financial instruments derivatives
- Assets in US$ 26,400
- Assets in EUR -
- Liability in US$ 48,004
- Liability in EUR -
386,388 215,997
430,049
430,049
430,049
430,049
26,881
-
48,485
-
453,666
-
430,049
430,049
430,049
430,049

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Parent company
31/12/2009
Financial instruments Risk Probable Scenario II Scenario III
Financial assets
Financial investments CDI 21,835
98
27,294
32,753
Reference for financial assets Increase tax 25% 50%
CDI % 9.80% 12.25% 14.70%
Parent company
31/12/2009
Financial instruments Risk Probable Scenario IV Scenario V
Financial assets
Financial investments CDI 21,835
16,376
10,918
Reference for financial assets Decrease tax
25% 50%
CDI % 9.80% 7.35% 4.90%

Financial assets
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Consolidated
12/31/2009
Financial instruments Risk Probable Scenario II Scenario III
Financial investments CDI 82,233
Related Securities CDI 8,187
Financial liability
Bank credit paper CDI 46,137
Debentures CDI 122,876
Debentures IGP-M 2,743
Promissory Notes in Local Currency CDI 10,630
BNDES TJLP 234,611
BID USD 1,753
Derivatives
Swap - Liability Leg - BID CDI 5,250
Swap - Liability Leg - NDF USD (33,284)
Swap - Liability Leg - NDF EUR (1,652)
Swap - Liability Leg Libor (7,734)
Swap - Liability Leg Libor (8,768)
Reference for financial liability rate incresed by 25% 50%
CDI % 9.80% 7.35% 4.90%
TJLP% 6.00% 4.50% 3.00%
IGP-M 3.20% 2.40% 1.60%
US$/R$ 2.000 1.500 1.000
LIBOR 0.29000% 0.21750% 0.14500%
These sensitivity analyses were prepared in accordance with CVM Instruction nº 475/2008, and are intended to measure
the impact of changes in the market variables on each financial instrument of the company and its subsidiaries.
99
102,791
10,234
57,671
153,595
3,429
13,288
293,264
2,191
6,563
(41,605)
(2,065)
(9,668)
(10,960)
123,350
12,281
69,206
184,314
4,115
15,945
351,917
2,630
7,875
(49,926)
(2,478)
(11,601)
(13,152)
Reference for financial assets rate incresed by 25% 50%
CDI % 9.80% 12.25% 14.70%
Reference for financial liability rate incresed by 25% 50%
CDI % 9.80% 12.25% 14.70%
TJLP% 6.00% 7.50% 9.00%
IGP-M 3.20% 4.00% 4.80%
US$/R$ 2.000 2.500 3.000
LIBOR 0.29000% 0.36250% 0.43500%
Financial assets
Consolidated
12/31/2009
Financial instruments Risk Probable Scenario IV Scenario V
Financial investments CDI 82,233
Related Securities CDI 8,187
Financial liability
Bank credit paper CDI 46,137
Debentures CDI 122,876
Debentures IGP-M 2,743
Promissory Notes in Local Currency CDI 10,630
BNDES TJLP 234,611
BID USD 1,753
Derivatives
Swap - Liability Leg - BID CDI 5,250
Swap - Liability Leg - NDF USD (33,284)
Swap - Liability Leg - NDF EUR (1,652)
Swap - Liability Leg Libor (7,734)
Swap - Liability Leg Libor (8,768)
61,675
6,140
34,603
92,157
2,057
7,973
175,958
1,315
3,938
(24,963)
(1,239)
(5,801)
(6,576)
41,117
4,094
23,069
61,438
1,372
5,315
117,306
877
2,625
(16,642)
(826)
(3,867)
(4,384)
Reference for financial assets rate incresed by 25% 50%
CDI % 9.80% 7.35% 4.90%

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Nevertheless, the settlement of transactions involving these estimates can result in amounts different from those
estimated due to the subjectivity that is contained in the process used in the preparation of these analyses.
32.5 - Operations with derivative financial instruments
With the intention of mitigating the exposure of all its debts in foreign currency to the oscillations of the exchange rate
and interest rates, some companies from the group have hedge operations on December 31, 2009 that are presented in
note 20. The book value corresponds to the market value of these operations, which on December 31, 2009, is R$76,342
(R$79,329 -2008), whose effects of gain or loss in net income for the year are presented in the table from note 29, under
the title of swap and hedge operations.
The table below presents all the derivative financial instrument operations contracted with financial institutions (note 20),
as well as the respective fair values calculated by the Management of the Company and its subsidiaries:
Consolidated
Nocional USD/EUR Nocional R$/USD Fair value
Impacts in Income
Description Subsidiary Bank Initial Maturity Position 12/31/09 12/31/08 12/31/09 12/31/08 12/31/09 12/31/08 12/31/09 12/31/08
Sw ap
Asset
Liabity
Energest S/A Bank Santander S/A March 14, 2008 February 12, 2009
USD + 4.81% p.a.
111.90% of CDI
10,606 25,754
-
-
-
Asset
Liabity
Castelo Energética S/A Bank Santander S/A March 14, 2008 February 12, 2009
USD + 4.81% p.a.
111.90% of CDI
5,892
14,308
-
-
-
Asset
Liabity
Bandeirante Energia S/A Bank Citibank
March 19, 2004 February 13, 2009
Libor + 4.00 % p.a.
97.94% of CDI
2,038
7,221
-
-
-
Asset
Liabity
Bandeirante Energia S/A Bank Citibank
March 19, 2004 February 14, 2012
Libor + 4.375 % p.a.
104.69% of CDI
5,837 8,429 10,163 30,052
10,529
21,151
(10,622)
Asset
Liabity
Bandeirante Energia S/A Bank Citibank
December 14, 2004 February 13, 2009
Libor + 4.00 % p.a.
118.94% of CDI
764
2,466
-
-
-
Asset
Liabity
Bandeirante Energia S/A Bank Citibank
December 14, 2004 February 14, 2012
Libor + 4.375 % p.a.
118.94% of CDI
2,189 3,161 3,811 10,148
3,950
7,200
(3,250)
Asset
Liabity
Bandeirante Energia S/A Bank JP Morgan
April 5, 2006 February 13, 2009
Libor + 4.00 % p.a.
106.30% of CDI
1,273 4,251
-
-
-
Asset
Liabity
Bandeirante Energia S/A Bank JP Morgan
April 5, 2006 February 14, 2012
Libor + 4.375 % p.a.
109.70% of CDI
3,648 5,268 6,352 16,124
6,621
11,483
(4,862)
Asset
Liabity
Bandeirante Energia S/A Bank JP Morgan
April 5, 2006 February 14, 2012
Libor + 4.375 % p.a.
109.50% of CDI
2,918 4,125 5,081 11,528
5,297
8,169
(2,872)
Asset
Liabity
Bandeirante Energia S/A Bank JP Morgan
April 5, 2006 February 13, 2009
Libor + 4.00 % p.a.
98.00% of CDI
1,019
3,057
-
-
-
Asset
Liabity
Bandeirante Energia S/A Bank JP Morgan
July 28, 2004 January 2, 2009
USD
71.60% of CDI
293 1,386
-
-
-
Asset
Liabity
Bandeirante Energia S/A Bank JP Morgan
July 11, 2005 January 2, 2009
EURO
59.80% of CDI
212
945
-
-
-
Asset
Liabity
Bandeirante Energia S/A Bank Citibank February 11, 2005 January 28, 2009
USD
79.94% of CDI
245
971
-
-
-
Asset
Liabity
Porto do Pecém Bank Citibank April 2, 2012 October 1, 2024
Var. USD + Libor
Var. USD + 5.79% p.a.
93,240 93,240 162,349 (430,740)
157,482
165,934
(8,452)
Asset
Liabity
Porto do Pecém Bank Citibank April 2, 2012 October 1, 2021
Var. USD + Libor
Var. USD + 5.82% p.a.
70,261 73,851 122,338 367,684
118,806
125,944
(7,138)
Asset
Liabity
Porto do Pecém Bank Citibank
November 16, 2009 November 16, 2011
100% Libor
100% USD + 2.0895% p.a.
140,408
244,478
7,692
11,404
(3,712)
NDF
Purchased
Sold
Porto do Pecém (i) Bank Citibank
October 17, 2007 November 16, 2011
USD
R$
195,505 68,179 340,413 68,179
305,062
338,345
(33,283)
Purchased
Sold
Porto do Pecém Bank Citibank
June 30, 2009 January 16, 2012
EUR
R$
10,959
27,478
24,576
11,973
-
- 12,603
Purchased
Sold
Porto do Pecém BTG Pactual
June 30, 2009
January 16, 2012
EUR
R$
17,726 44,445
39,752
19,367
-
- 20,385
Purchased
Sold
Porto do Pecém BTG Pactual
June 30, 2009 January 16, 2012
EUR
R$
13,164
33,006
29,521
14,383
-
- 15,138
The estimate of the fair value of the derivative financial instruments was prepared with a basis on models of future flows
discounted at present value, comparison with similar transactions contracted on dates near to the closing of the periods,
and comparisons with average market parameters of the operations through the interest curves of BM&F Bovespa, using
the future DI rate of BM&F Bovespa.
100
25,825
20,062
5,763
14,348
11,146
3,202
4,829
7,219
(2,390)
19,756
30,245
(10,489)
1,811
2,473
(662)
7,433
10,426
(2,993)
3,012
4,256
(1,244)
12,581
16,393
(3,812)
10,065
11,715
(1,650)
2,411
3,056
(645)
684
1,386
(702)
691
945
(254)
571
969
(398)
236,868
205,174
31,694
193,873
162,510
31,363
-
394,496
326,317
68,179
(411)
368
(779)
(249)
184
(433)
(60)
139
(199)
(3,594)
1,973
(5,567)
(22)
49
(71)
(1,347)
993
(2,340)
(37)
77
(114)
(2,246)
1,160
(3,406)
(1,797)
765
(2,562)
(30)
58
(88)
-
1
(1)
-
4
(4)
(6)
8
(14)
-
22,523
(22,523)
-
19,021
(19,021)
-
9,892
(9,892)
4,104
11,356
(7,252)
7,825
2,062
5,763
4,348
1,146
3,202
2,061
2,393
(332)
4,768
4,085
683
(163)
(448)
285
2,755
2,645
110
1,339
1,395
(56)
3,192
2,122
1,070
2,554
1,522
1,032
1,072
1,009
63
190
18
172
341
644
(303)
157
108
49
-
-
-
-
-
-
-

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Statement of the maturities of the derivative financial instruments:
Swap
Maturity Net
2011 (36,994)
2012 (21,604)
after 2012 (15,592)
Receivable / (payable) (74,190)
On December 31, 2009, certain financial instruments of the subsidiary under joint ownership Porto do Pecém were
qualified for cash flow hedge accounting, due to the effectiveness of the hedge. The amounts presented express the
proportional amounts at 50% which corresponds to the share used in the proportional consolidation of the investment.
The hedge transaction qualified for accounting of coverage is composed of the purchase of a NDF in the amount of US$
327,000,000 falling due on October 1, 2012, in order to cover the payment of dollar-denominated debt not yet disbursed
by IDB.
The alterations in the fair value of the derivative hedge instrument designated as cash flow hedge are recognized directly
in shareholders' equity in the asset reserve, as the hedge is considered effective, the corresponding asset or liability has
not yet been contracted, and the hedge operations that do not fulfill the previous conditions are recognized in the income
statement at fair value.
Statement of the classification of derivative financial instruments, designated for hedge accounting:
Assets
Consolidated
Cash Flow Hedge
Cash Flow
hedge
USD 147,400
Liabilities
12/31/2009
R$ 163,482
Total (16,082)
Impacts of the gains and losses of hedge accounting in the year:
32.6 - Exchange rate and interest rate risks
Result Equity Result Equity
Derivatives with respect to protection 295,008 283,101 32,942 98,293
Total 295,008
A portion of the loans in national currency contracted by Group companies, presented in Note 20, is jointly financed with
Eletrobrás and BNDES national agencies.
Considering that the market rate (or opportunity cost of capital) is defined by these Agents, taking into account the risk
premium compatible with activities in the sector, and lacking other alternatives or different market hypotheses and/or
estimate methodologies with respect to group company business and special features of the sector, the market value of
this internal loan package comes close to its book value, as do the remaining assets and liabilities evaluated.
For financial transactions in foreign currency, the risk derives from the possibility of incurring losses and cash restrictions
on account of fluctuations in the exchange rates, increasing the balances of liabilities denominated in foreign currency.
The exposure relating to borrowings in foreign currency by some subsidiaries is covered by financial hedge operations,
101
Consolidated
12/31/2009 12/31/2008
283,101
32,942
98,293

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
which made it possible to exchange the original risks of the transaction for the cost relating to the variation of the CDI. In
addition, the distributor subsidiaries are exposed, in their operating activities, to exchange variance in the purchase of
electric energy from Itaipu. The compensation mechanism - CVA protects the distributor subsidiaries against potential
losses. The abovementioned operations are recorded on the accrual basis and in conformity with the conditions of the
contracted instrument.
33 - Government subsidies and assistance
On December 20, 2006, the subsidiary Enerpeixe obtained from Agência de Desenvolvimento da Amazônia - ADA, the
right to the reduction of 75% of the rate of Tax on Income and non-reimbursable Surcharges, calculated with a basis on
income from the exploration, for a period of 10 years as of the fiscal year 2007.
This fiscal incentive is recognized directly in the statement of income for the year, and the amount of income tax is
presented in net form, that is, the total amount minus the incentive earned, in the amount of R$21,995 in 2009 (R$23,055
in 2008).
The subsidiary Enerpeixe fulfills all the requirements for the obtainment of this type of incentive.
The noncompliance with this condition results in the loss of reduction and in the mandatory collection, in regard to the
amount distributed, of the tax that the Company failed to collect, without prejudice to the levy of tax on the profit
distributed as beneficiary's income and applicable penalties.
34 - Commitments
The Board of Directors' Meeting nº 142, of October 28, 2009, decided and approved the granting of guarantee by the
Company in the total amount of R$115 million, whose beneficiaries are Rede Energia S.A. and Rede Power do Brasil
S.A. (both pertaining to Rede Group), as collateral for the obligations supported up to that time by Rede Group resulting
from the exchange of assets between the Company and Rede Group, in effect up to (i) the full replacement of the
guarantees granted by Rede Group, or (ii) the issuance of a bank letter of guarantee in favor of Rede Group, whatever
occurs first.
35 - Subsequent event
The Board of Directors' Meeting nº 145, of January 26, 2010, decided and approved the execution by the Company, as
guarantor and principal payer, of a Bridge Loan Agreement between Elebrás Projetos Ltda. and Banco do Brasil S.A. for
the Tramandaí Wind Project, in the amount of R$200,000, for a period of 360 (three-hundred and sixty) days from the
signing of the agreement for the contracted credit.
According to Significant Event Notice disclosed on February 22, 2010, the managements of the subsidiaries Bandeirante
and Escelsa will sign the Fourth Amendment to the Concession Agreement for Distribution of Electric Energy nº
202/1998 and the Third Amendment to the Concession Agreement for Distribution of Electric Energy nº 001/1995,
respectively, as proposed by ANEEL (National Electric Energy Agency) in order to improve the methodology of
calculation of the Installment A variation, so as to introduce the neutrality of the sector charges after the annual tariff
adjustments of 2010.
36 - Summary of the differences between Brazilian GAAP and IFRS
The consolidated financial statements have been prepared in accordance with the Brazilian generally accepted
accounting practices (“Brazilian GAAP”), which differ in certain significant aspects from the International Financial
Reporting Standards (“IFRS”).
EDP Energias do Brasil S.A. is a subsidiary of EDP Energias de Portugal S.A. whose financial statements are prepared
in accordance with IFRS, as endorsed by the European Union (“EU”). IFRS comprise accounting standards issued by the
International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Reporting
Interpretations Committee (“IFRIC”) and their predecessor bodies. The IFRS as endorsed by the EU and applied by the
Parent Company differ from IFRS as issued by IASB mainly due to the implementation of IFRIC 12 – Service Concession
Arrangement (which was endorsed to be applied in fiscal year 2010) and the Fair Value Option as foreseen in IAS 39
Financial Instruments: Recognition and Measurement. The Company in order to apply IFRS on a consistent manner in
relation to its Parent Company adopted the IFRS as endorsed by the EU.
102

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
The accounts Acquisition of Lajeado Energia, Investco and Tocantins - Tangible Assets, Goodwill Lajeado Energia and
Investco and Net effect of deferred taxes on GAAP differences as of December 31,2008 are being reclassified for
purposes of better comparability with balances as of December 31, 2009.
The reconciliation of the equity and the effect on the profit for the year ended December 31, 2009 and 2008 are
presented below:
In accordance with Brazilian GAAP
IFRS Adjustments
36.1 - Intangible assets
Under Brazilian GAAP, some start-up costs, research and development expenses and other deferred costs of intangible
assets are capitalized and amortized over their useful lives.
Under IFRS, in accordance with the criteria established in IAS 38 Intangible Assets, such costs are expensed in the
period they are incurred, except if it is probable that the expected future economic benefits will flow to the Companies
and if those benefits can be reliably measured.
36.2 - Pension and other retirement benefits
Some EDP Brazil Group companies attribute post-retirement plans to their employees under defined benefit plans and
defined contribution plans. In some cases EDP companies also provide medical care during the period of retirement and
of early retirement, through supplementary benefits to those provided by the National Institute of Social Security.
Measurement and recognition of the liability with healthcare benefits are similar to the measurement and recognition of
the pension liability for the defined benefit plans.
The difference between Brazilian GAAP and IFRS regarding post-retirement benefits measurement and recognition is
explained below and refers to a different methodology in recording unrecognized actuarial gains and losses and limits of
the assets ceiling.
Under Brazilian GAAP, unrecognized actuarial gains and losses are recorded / amortized under the corridor method. The
corridor method determines that the net cumulative actuarial gains and losses at the end of the previous reporting period
that amount to up to 10 percent of the greater of the projected benefit obligation and the value of plan assets are not
recognized or amortized as part of the net pension cost for the year. The amount of the unrecognized actuarial net gains
or losses that exceeds the referred 10 percent is amortized over the average remaining service period of the employees.
Under IFRS, the unrecognized actuarial gains and losses are recorded in full in equity as permitted by IAS 19 Employee
Benefits and limits of the assets ceiling in accordance with item 58.
36.3 - Regulatory assets and liabilities
Under Brazilian GAAP, when the regulator establishes a criteria of allocating income or expense to future years, a
regulatory asset or liability is booked in the financial statements, which otherwise would be recognized as profit or loss
for the year.
In accordance with IFRS, regulatory assets and liabilities, which do not meet the criteria established in the conceptual
framework, are not recognized.
103
0
0
Reclassified
12/31/2009
12/31/2008
Note Equity Net profit Equity Net profit
4,268,704
Intangible assets 36.1 (21,144)
Pension and other retirement benefits 36.2 (21,455)
Regulatory assets 36.3 (315,100)
Regulatory liabilities 36.3 239,211
Special obligations 36.4 145,650
Concession right - UBP 36.5 (73,067)
Start-up costs and exchange rate differences 36.6 (66,716)
Administration and other general overhead costs 36.7 (23,318)
Adjustments to present value 36.8 -
Reversal of negative goodwill - Escelsa 36.9 2,388
Purchase of minority interests on corporate reorganization 36.10 (63,507)
Fair Value of preferred shares to liabilities - Investco 36.11 (72,269)
Acquisition of Lajeado Energia, Investco and Tocantins 36.12 (30,334)
Acquisition of Lajeado Energia, Investco and Tocantins - related-costs 36.12 6,547
Acquisition of Lajeado Energia, Investco and Tocantins - amortization concession right 36.12 (19,896)
Acquisition of Lajeado Energia, Investco and Tocantins - Tangible Assets 36.12 538,248
Acquisition of Lajeado Energia, Investco and Tocantins - Depreciation on tanglible assets 36.12 (19,918)
Goodwill on Lajeado Energia and Investco - PPA 36.12 (42,293)
Reversal Tax benefit on Merger among Lajeado Energia, EDP Lajeado and Tocantins 36.13 (125,067)
Minority interests 36.14 153,541
Net effect of deferred taxes on GAAP differences 36.15 (87,431)
Other adjustments (20,782)
83,289
In accordance with IFRS 4,351,992
625,137
10,765
16,425
29,747
91,665
(2,346)
(3,352)
(67,436)
(18,951)
-
-
(6,656)
(19,896)
(15,986)
29,078
(23,836)
25,753
44,974
670,111
3,542,918
(31,909)
(30,961)
(344,846)
147,546
147,996
(69,716)
720
(4,367)
-
2,388
(63,507)
(65,612)
(30,334)
6,547
(11,775)
437,730
(3,932)
(44,531)
-
124,464
(63,596)
(87,661)
14,644
3,557,562
388,779
(18,358)
12,754
97,985
(32,360)
3,191
(26,280)
13,537
(5,880)
(11,123)
1,824
6,547
(11,775)
(3,932)
12,140
(19,866)
(11,303)
7,101
395,880

36.4 - Special obligations
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Under Brazilian GAAP, the Company presents special obligations, representing consumers’ contributions to the cost of
expanding power electric supply systems, as a reduction to property, plant and equipment. These obligations were not
subject to amortization over the applicable useful lives of the underlying assets. The special obligations are now subject
to amortization after the second periodic tariff reset of the distributor subsidiaries.
Under IFRS, contributions received from consumers are considered reimbursement of construction costs and are
credited against the cost of the related fixed assets. For IFRS reconciliation purposes, the depreciation is adjusted for the
effects of the amortization of special obligations using the same depreciation rates applicable to the corresponding class
of property, plant and equipment acquired with such consumers’ contributions against income.
Therefore, there will be a difference in the period of the special obligations’ amortization between Brazilian GAAP and
IFRS, considering that, for IFRS purposes, the special obligation started being amortized since the concession creation,
and for Brazilian GAAP purposes, the special obligation has been amortized as from the second periodic tariff reset
(since August and October 2007 for Escelsa and Bandeirante, respectively). For asset contributions received after the
second periodic tariff reset there will be no difference between Brazilian GAAP and IFRS and for assets contributed until
that date there will be no residual cost value and unamortized balance of the special obligation at the end of the
concession.
Before the determination that special obligations should be amortized for Brazilian GAAP purposes, this reconciled item
was considered a permanent difference, and therefore there was no deferred tax impact. Since the determination that
special obligations’ amortization would be amortized for Brazilian GAAP purposes, this reconciled item became a
temporary difference and, therefore, subjected to deferred taxes calculation. The ANEEL Regulatory Resolution, which
established the amortization of special obligations, confirmed the tax impacts related to the amortization of special
obligations.
36.5 - Concession right - UBP
The subsidiaries Enerpeixe and Investco, in return for the grant conceded for the exploitation of the Peixe Angical and
Lajeado hydroelectric power plants, respectively, have been paying for the Federal Government over the term of the
contracts and while they are exploiting them, monthly installments equivalent to one twelfth (1/12) of the annual amount
defined in the contracts, corrected annually with a basis on the annual variation of IGP-M calculated by Getúlio Vargas
Foundation – FGV (or another index that takes its place) in the months of October for Enerpeixe and December for
Investco.
Under Brazilian GAAP, these contributions are recognized and expensed monthly as incurred in accordance with the
terms of the contratcts.
Under IFRS, according to IAS 37 Provisions, Contingent Liabilities and Contingent Assets the total fair value of the
obligation up to the end of the concession agreements were accrued and capitalized under IAS 38 Intangible Assets.
This intangible asset has been amortized over the term of the contracts and the liability has been amortized in proportion
to the performance of the payments.
The Intangible asset, net of amortization was increased by R$ 149,000 and current and noncurrent liabilities were
increased by R$ 222,067 as of December 31 st , 2009. Therefore, the net adjustment was equivalent to R$ 73,067 as of
December 31 st , 2009.
36.6 - Start-up costs and exchange rate differences
Under Brazilian GAAP, the Group capitalized start-up costs and gains and losses related to net foreign exchange
differences resulting from loans contracted to fund capital expenditures related to the construction of Enerpeixe and
Pecém, denominated in foreign currencies.
However, under IFRS, in accordance IAS 16 Property, Plant and Equipment definitions, start-up costs are expensed in
the period they are incurred, except if it is probable that the expected future economic benefits will flow to the Companies
and if those benefits can be reliably measured. In accordance with IAS 23 Borrowing costs definitions, foreign exchange
differences are considered as income or expense in the period they are incurred. Therefore, both start-up costs and
exchange rate differences were reversed for IFRS purposes.
36.7 - Administration and other general overhead costs
Under Brazilian GAAP, the Group capitalizes 10 (ten) percent of the expenditures with central administration, with a
basis on the direct costs of personnel and outsourced services allocated to capital working in progress.
104

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
However, under IFRS, in accordance with IAS 16 Property, Plant and Equipment, administration and other general
overhead costs are expensed as incurred.
36.8 - Adjustments to present value
Under Brazilian GAAP, in accordance with CPC 12 – Adjustments to present value and CPC 13 - Initial adoption of Law
nº 11,638/07 and of Provisional Measure nº 449/08 (converted in Law 11,941/09), subsidiaries recognized adjustments
to present value of some accounting receivables in Shareholders’ equity as prior year adjustments of Law nº11,638/07.
However, under IFRS, according to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, this
adjustment was recognized in profit and loss in the year of adoption of this accounting criteria. In subsequent periods
there will not be accounting practice difference.
36.9 - Reversal of negative goodwill – Escelsa
In accordance with IFRS 3 Business Combinations, negative goodwill is recognized directly in the Income statement in
the period in which the business combination occurs.
36.10 - Purchase of minority interests on corporate reorganization
In 2005, Energias do Brasil implemented a corporate reorganization in order to comply with the New Electricity Law,
which required the restructuring of operations. Under the New Electricity Law, companies and concessionaires that
distribute electricity through the interconnected system are restricted from performing various activities, including
engaging in generation activities, transmission activities and the sale of electricity to free consumers. Similarly,
concessionaires and companies authorized to perform generation or transmission operating in the interconnected system
is prohibited to associate with or become the related parties of companies that distribute electricity in the interconnected
system. Companies and concessionaires engaged in these restricted activities must have restructured their activities and
be in compliance as from September 2005.
This corporate reorganization included the following transactions, among others:
• merging IVEN into Energias do Brasil; and
• making Escelsa and Bandeirante wholly-owned subsidiaries of Energias do Brasil by transferring the shares issued
by such companies to Energias do Brasil.
As a result of this corporate reorganization, minority shareholders of Bandeirante, Escelsa and IVEN, that did not
exercise their withdrawal rights, received shares of Energias do Brasil in exchange for their shares in these companies.
Under Brazilian GAAP, such minority interests acquired were recorded at book value and did not generate goodwill.
Under IFRS, the Company applied the purchase accounting method in accordance with IFRS 3 Business Combinations.
IFRS 3 requires the tangible and intangible assets acquired and liabilities assumed in a business combination to be
recorded at fair value on the acquisition date. The excess of the purchase price over the fair value of the net identifiable
assets acquired, if any, is recorded as goodwill. This includes allocation of fair value for minority interest against equity.
The purchase price allocation in accordance with IFRS 3 determined in 2005 year is as follows:
105

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
36.11 – Fair value of preferred shares – Investco
Based on the By-Laws of Investco, preferred shares classes “A”, “B” and “C” at fair value of R$72,269 earn a cumulative
fixed annual dividend equivalent to 3% of their amount subscribed as capital and are classified within equity under
Brazilian GAAP. The fair value measurement considered the estimate of future cash flows at present value of the
remuneration of the instrument described above.
In accordance with IAS 32 Financial Instruments: Presentation and Disclosure, such shares are considered a financial
liability and, consequently, reclassified from equity to liabilities at fair value.
36.12 – Acquisition of Lajeado Energia and Investco
Bandeirante Escelsa Total
Current assets 702,702 482,001
Noncurrent assets 476,988 227,233
Property, plant and equipment 1,801,597 1,626,254
Investments 673 578,117
Total assets acquired 2,981,960 2,913,605
Current liabilities 794,123 564,130
Long term liabilities 939,371 1,753,986
Liabilities assumed 1,733,494 2,318,116
Net assets (liabilities) acquired (assumed) 1,248,466 595,489
Interest acquired 3.50% 87.47%
Net assets acquired 43,696 520,874
Total cost of acquisition 43,696 520,874
Goodwill recorded under IFRS - -
Fair value of net assets 43,696 520,874
Book value under Brazilian GAAP 24,477 603,600
Adjustment to IFRS 19,219 (82,726) (63,507)
In September 2008, Energias do Brasil exchanged the total equity interest held in the company Enersul for equity
interests held by Rede Energia S.A. in the companies Lajeado Energia S.A. (“Lajeado Energia”) and Investco S.A.
(“Investco”), as well as by equity interests held by Rede Power do Brasil S.A. in the companies Lajeado Energia and
Tocantins Energia S.A. (“Tocantins”).
Under IFRS 3 Business Combinations this transaction was recognized through the purchase method of accounting. The
cost of an acquired entity is allocated to net assets acquired, including identifiable intangible assets, liabilities and
contingents liabilities assumed based on their estimated fair values as at the acquisition date.
106

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Investco
Lajeado
Energia Tocantins Total
Current assets 73,651 86,173 27,451
Noncurrent assets 17,603 48,216 20,243
Property, plant and equipment 1,920,993 - -
Intangible assets 26,994 987,588 -
Investments - 554,810 131,388
Total assets acquired 2,039,242 1,676,786 179,083
Current liabilities 172,305 106,762 6,429
Long term liabilities 643,656 52,060 -
Liabilities assumed 815,961 158,822 6,429
Net assets (liabilities) acquired (assumed)
Exclusions:
1,223,281 1,517,965 172,653 2,913,899
Founder's shares - (266,798)
Elimination of investments - (554,758) (131,388)
Total exclusions - (821,556) (131,388)
Net assets 1,223,281 696,409 41,266 1,960,955
Interest acquired 24.35% 53.69% 50.88%
Net assets acquired 297,859 373,914 20,996 692,769
Acquisition cost under Brazilian GAAP 767,549
IFRS adjustments (30,334)
Acquisition related-costs 6,547
Price of preferred shares of Invevstco (financial Instrument) acquired (8,700)
Total cost of acquisition under IFRS 735,062
Goodwill recorded under IFRS (42,293)
36.13 Reversal tax benefit on merger among Lajeado Energia, EDP Lajeado and Tocantins
For IFRS purpose the tax benefit generated, by the organizational restructuring (Note 1.6), recorded in accordance with
Brazilian accounting practices, was reversed because IFRS do not permit th amortization of goodwill.
36.14 - Minority interests
This reconciled item refers to the minority interest portion on the adjustments included in the equity and Income
statement reconciliation for certain subsidiaries.
36.15 - Net effect of deferred taxes on GAAP differences
In accordance with the accounting policy of Energias do Brasil, the income tax charge is determined considering the
taxable income in accordance with the applicable legal framework and the tax rate approved or substantially approved in
Brazil. Deferred taxes are determined in accordance with liability method based on the balance sheet, considering
temporary differences between the accounting and tax amounts of assets and liabilities, by the use of the tax rate
approved or substantially approved as at the balance sheet date in Brazil, and that are expected to be applicable when
the above aforementioned differences are reversed.
Therefore, the deferred tax adjustments performed under IFRS are related to the impact of the adjustments
aforementioned above, whenever in accordance with IAS 12 Income Taxes, there are temporary differences between
accounting practices and tax regulations that result in deferred taxes asset or liability.
107

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
36.16 - Statement of changes in shareholder’s equity under IFRS
Opening balance on January 1st, 2008 3,849,687
Net profit 395,880
Dividends proposed of prior year (103,606)
Pension benefit adjustments (73,331)
Deferred tax on pension benefit adjustments 24,933
Reclassification of preferred shares to liabilities - Investco 56,340
Treasury shares (504,404)
Legal dividends - 25% of net profit (87,937)
Balance on December 31st, 2008 as reclassified 3,557,562
Net profit 670,111
Dividends proposed of prior year (297,492)
Treasury shares (net of follow-on expenses) 427,141
Pension benefit adjustments (6,919)
Deferred tax on pension benefit adjustments 2,352
MTM Denerge's shares 1,585
Others (2,349)
Balance on December 31st, 2009 4,351,992
37 - Additional disclosures required by IFRS
37.1 - Segment reporting
A business segment is a distinguishable component of the Group that is engaged in providing products or services or a
group of related products or services that is subject to risks and returns that are different from those of other business
segments.
108

Net revenues 1,136,436
Electricity costs (117,781)
Other operating costs (292,997)
Services rendered to third parties -
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Generatio n D istributio n T rading Others
(410,778)
Gross margin 725,658
Operating expenses
Selling expenses (2,096)
General and administrative expenses (49,708)
Depreciation and amortization expenses (23,016)
Other expenses (34,968)
(109,788)
Gross operating results 615,870
Equity method 119,946
Financial results (281,974)
Operating results 453,841
Non-operating results (251,720)
Profit before tax 202,121
Income tax expense (95,628)
Deferred taxes 30,173
(65,454)
Profit before interest on own capital and minority interests 136,667
-
Reversal of interest on own capital 116,935
M inority interests -
Founders share (15,772)
3,482,513
(2,071,940)
(447,844)
(2,918)
(2,522,702)
959,811
(75,944)
(191,025)
(14,584)
(28,493)
(310,046)
649,765
-
(112,914)
536,851
(9,870)
526,981
(64,526)
(97,795)
(162,321)
364,660
-
109
804,671
(750,540)
(5,996)
-
(756,536)
48,135
36,054
(48,729)
(200)
-
(12,875)
35,260
-
52
35,312
12
35,324
(212)
(12,019)
(12,231)
23,093
-
-
-
-
-
-
(4)
(4)
(65,653)
(21,796)
(22,422)
(109,871)
(109,875)
647,527
200,896
738,548
55,341
793,889
(10,557)
5,869
(4,688)
789,201
-
C o nso lidatio n
adjustm ents T o tal activ ities
(723,779)
569,371
154,408
-
723,779
-
-
-
(17,260)
-
(17,260)
(17,260)
(769,215)
(2,540)
(789,015)
249,445
(539,570)
-
6,113
6,113
(533,457)
-
4,699,837
(2,370,890)
(592,429)
(2,918)
(2,966,237)
P ro f it f o r t he perio d (IF R S ) 237,830 445,500 25,043 640,292 (678 ,553) 6 70,111
Other information:
Current assets 676,492
Noncurrent assets 271,271
Investments 1,155,096
Property, plant and equipment 4,751,111
Intangible assets 908,320
Current liabilities 1,191,370
Noncurrent liabilities 1,901,734
Shareho lders’ equit y and m ino rit y int erest ( IF R S ) 4,669,186
80,840
-
-
1,717,812
578,418
4,654
2,034,777
164,917
1,675,024
1,170,675
1,6 54,879
1,950
-
-
163,724
4,210
-
760
1,009
94,001
25,004
50,698
12/ 31/ 2009
(148,909)
-
-
566,878
324,607
3,834,149
4,722
261,395
231,555
88,489
4,671,707
-
(145,096)
-
(254,740)
(360,071)
(4,968,445)
84,583
(29,679)
(242,538)
(370,227)
(4,915,587)
1,733,600
(41,986)
(355,115)
(76,856)
(85,883)
(559,840)
1,173,760
(1,742)
(196,481)
975,537
43,208
1,018,745
(170,923)
(67,659)
(238,581)
780,163
50,816
(145,096)
(15,772)
2,870,166
818,435
25,454
6,875,953
1,305,962
2,949,412
2,815,675
6,130 ,883

Net revenues 881,541
Electricity costs (100,968)
Other operating costs (215,619)
Services rendered to third parties (5,833)
37.2 - Earnings per share
EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
Generat io n D ist ributio n T rading Others
(322,420)
Gross margin 559,121
Operating expenses
Selling expenses (4,275)
General and administrative expenses (44,298)
Depreciation and amortization expenses (12,094)
Other expenses (22,959)
(83,626)
Gross operating results 475,495
Equity method 86,395
Financial results (221,708)
Operating results 340,182
Non-operating results (13,520)
Profit before tax 326,662
Income tax expense (60,329)
Deferred taxes 9,367
(50,962)
Profit before interest on own capital and minority
interests 275,700
Reversal of interest on own capital 88,035
M inority interests -
Founders share -
3,372,898
(2,112,429)
(414,209)
(18,231)
(2,544,869)
828,029
(55,327)
(168,390)
772,452
(694,655)
Under Brazilian GAAP, net income per share is calculated on the number of shares outstanding at the balance sheet
date. In these consolidated financial statements, information is disclosed per lot of one thousand shares.
Under IFRS, the Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic and
diluted EPS are calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the
weighted average number of ordinary shares outstanding during the period.
37.3 - New standards and interpretations not yet adopted
(6,434)
(16,187)
(246,338)
581,691
-
(190,807)
390,884
(5,820)
385,064
(43,588)
(92,786)
(136,374)
248,690
93,290
-
-
(3,720)
-
(698,375)
74,077
(14,745)
(8,504)
(272)
-
(23,521)
50,556
-
707
51,263
-
51,263
(22,275)
4,830
(17,445)
33,818
1,995
-
-
IFRIC 12 Service Concession Arrangements, issued on November 2006, from the International Financial Reporting
Committee (IFRIC), applicable for accounting periods beginning after March, 2009 and the EU endorsed this
interpretation on March 2009, for periods beginning on or after June 1st, 2009. In accordance with IFRIC 12,
infrastructure within the scope of this Interpretation shall not be recognized as property, plant and equipment of the
operator because the contractual service arrangement does not convey the right to control the use of the public service
infrastructure to the operator. The operator has access to operate the infrastructure to provide the public service on
behalf of the grantor in accordance with the terms specified in the contract. IFRIC 12 sets out general principles on
recognizing and measuring the obligations and related rights in service concession arrangements. The requirements per
IFRIC12 apply to the distribution activities of the Company, primarily on the subsidiaries Bandeirante and Escelsa, The
Company is evaluating these general principles to be adopted for the year beginning on January 1, 2010.
Besides the IFRIC 12, the following International Accounting Standards and Interpretations recently issued should be
adopted by the Company and its subsidiaries from January 1, 2010, are:
-
-
-
-
(18)
(18)
(1,864)
(51,907)
(148,452)
(3,555)
(205,778)
(205,796)
623,338
37,915
455,457
110
C o nso lidatio n
adjustments
(720,180)
613,073
111,427
-
724,500
4,320
-
2,228
(9,474)
-
(7,246)
(2,926)
(709,822)
-
(712,748)
T o tal co ntinuing
activit ies
4,306,693
(2,294,979)
(522,121)
(24,064)
(2,841,164)
1,465,529
(76,211)
(270,871)
(176,726)
(42,701)
(566,509)
899,020
(89)
(373,893)
525,038
D isco ntinued
activities T o t al activit ies
P ro fit fo r the perio d ( IF R S ) 363,735 341,980 35,813 393,133 ( 802,457) 332,204 63,676 395,880
Other information:
Current assets 471,826
Noncurrent assets 347,471
Investments 1,468,767
Property, plant and equipment 4,035,016
Intangible assets 178,209
Current liabilities 1,055,097
Noncurrent liabilities 1,807,822
Shareho lders’ equity and m ino rity int erest
(IF R S) 3,638,370
1,098,565
886,789
5,663
2,088,669
156,783
1,281,907
1,416,102
1,538,460
140,348
26,434
-
415
964
105,544
3,841
58,776
14,300
469,757
(1,683)
(25,118)
(26,801)
442,956
(49,823)
-
-
402,186
224,062
3,806,791
4,375
490
370,856
130,351
3,936,697
12/ 31/ 2008
2,161
(710,587)
-
1
1
(710,586)
-
(91,871)
-
(282,403)
(288,584)
(4,246,225)
433,586
143
(280,753)
(214,517)
(3,888,213)
12/31/2009
Restated
12/31/2008
Basic and diluted earnings per thousand of shares (IFRS) – R$ 4,608.44 2,538.23
Earnings per thousand of shares under Brazilian GAAP – R$ 3,935.20
2,715.11
(2,879)
522,159
(127,875)
(103,706)
(231,581)
290,578
133,497
(91,871)
-
1,830,522
1,196,172
1,034,996
6,562,061
336,589
2,532,651
3,143,599
5,284,090
593,129
(282,216)
(126,975)
(572)
(409,763)
183,366
(16,113)
(36,123)
(6,895)
(12,587)
(71,718)
111,648
-
(13,762)
97,886
(1,298)
96,588
(24,196)
(8,716)
(32,912)
63,676
-
-
-
-
-
-
-
-
-
-
-
4,899,822
(2,577,195)
(649,096)
(24,636)
(3,250,927)
1,648,895
(92,324)
(306,994)
(183,621)
(55,288)
(638,227)
1,010,668
(89)
(387,655)
622,924
(4,177)
618,747
(152,071)
(112,422)
(264,493)
354,254
133,497
(91,871)
-
1,830,522
1,196,172
1,034,996
6,562,061
336,589
2,532,651
3,143,599
5,284,090

EDP – ENERGIAS DO BRASIL S.A.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Amounts expressed in thousands of Reais, unless otherwise indicated)
• IAS 39 Financial Instruments: Recognition and Measurement, as revised for International Accounting
Standards Board (IASB) , about the assets and liabilities eligible as hedge, with mandatory application
from July 1, 2009. This review determines the risks or what the cash flows are eligible to an operation
of hedge. The Company is evaluating the impacts of this rule on financial statements.
• IFRS 9 Financial Instruments: the International Accounting Standards Board (IASB), issued on
November, 2009 the “Part I” of this rule about Classification and Measurement, with mandatory date of
application from January 1, 2013, this rule has not been adopted at Union Europe and is part of the
replacement of IAS 39. The mains changes are, financial assets must be recognized in 2 categories,
amortized cost or fair value, financial instruments only can be recognized as amortized cost if they will
have basic feature of debt and for which the business model of company will have to present of these
financials flows. The Company is evaluating the impacts of this rule on financial statements.
• IFRIC 18 Transfers of Assets Customers: the International Accounting Standards Board (IASB), issued
on November, 2008, with mandatory date of application from July 1, 2009, and application to the
Company from January 1, 2010. This interpretation clarifies the accounting treatment of the
agreements under which the Company receives from the customers assets for their own use.
111

Independent auditors’ report
To
The Shareholders’ and Board of Directors
EDP - Energias do Brasil S.A.
São Paulo - SP
1. We have examined the accompanying balance sheet of EDP – Energias do Brasil S.A. (the
Company) and the consolidated balance sheet of the Company and its subsidiaries as of
December 31, 2009 and 2008, and the related statements of income, changes in
shareholders’ equity, cash flows and added values for the years then ended, which are the
responsibility of its management. Our responsibility is to express an opinion on these
financial statements.
2. Our examinations were conducted in accordance with auditing standards generally
accepted in Brazil and included: (a) planning of the audit work, considering the materiality
of the balances, the volume of transactions and the accounting systems and internal
accounting controls of the Company and its subsidiaries; (b) verification, on a test basis, of
the evidence and records which support the amounts and accounting information disclosed;
and (c) evaluation of the most significant accounting policies and estimates adopted by
management of the Company and its subsidiaries, as well as the presentation of the
financial statements taken as a whole.
3. In our opinion, the aforementioned financial statements present fairly, in all material
respects, the financial position of EDP - Energias do Brasil S.A. and the consolidated
financial position of the Company and its subsidiaries as of December 31, 2009 and 2008,
the results of its operations, changes in its shareholders’ equity, cash flows and added
values for the years then ended, in conformity with accounting practices adopted in Brazil.
4. Accounting practices adopted in Brazil vary in certain significant respects from International
Financial Reporting Standards (IFRS) as issued by IASB. The information relating to the
nature and effect of such differences are presented in Notes 36 and 37 to the consolidated
financial statements except for the non-adoption of IFRIC 12 (Service Concession
Arrangements) considering the exemption provided by BM&F BOVESPA for whose effects
were not determined by the Company’s management, however, the non-adoption of IFRIC
12 is consistent with IFRS as adopted by the European Commission which was the basis
for the preparation of such notes.
February 23, 2010
KPMG Auditores Independentes
CRC 2SP014428/O-6
José Luiz Ribeiro de Carvalho
Accountant CRC 1SP141128/O-2
112