Glossary

Glossary

Glossary

10-year Energy Plan

The 10-year Energy Expansion Plan – PDE, prepared annually by the Energy Research Company – EPE, provides indications to guide decisions and actions designed to ensure a balance between the country’s projected economic growth, its consequent energy requirements and the necessary expansion of supply, on a technical, economic and environmentally sustainable basis.

ABRATE

Brazilian Association of Large Electricity Transmission Companies.

ADA

Amazon Development Agency.

ADENE

Northeast Development Agency.

Adjusted EBITDA

Net income (loss) plus corporate tax incentives less income and social contribution taxes, net financial result, depreciation and amortization, and minority interest.

ANEEL

Brazilian Electricity Regulatory Agency.

BACEN

Central Bank of Brazil.

Basic Network

Set of transmission lines and associated buses, transformers and equipment with voltage equal to or higher than 230 kV, or lower-voltage installations defined by ANEEL.

Bovespa

São Paulo Stock Exchange.

CCC

Fuel Consumption Account.

CCEAR or CCEARs

Energy Purchase Contract(s) in the Regulated Market.

CCEE

Electricity Commercialization Chamber.

CCG or CCGs

Constitution of Guarantee Contract(s).

CCI or CCIs

Installation Sharing Contract(s).

CCT or CCTs

Transmission System Connection Contract(s).

CUST or CUSTs

Transmission System Usage Contract(s)

DEFAP

Department of Forests and Protected Areas.

DITs

Other Transmission Installations, i.e. installations whose voltage is lower than 230 kV, for distribution concessionaires or major consumers.

Free consumers

Consumers served by suppliers who are not necessarily connected to the local distributor, through bilateral contracts entered into with independent energy producers in the interconnected system.

GCE

Electricity Crisis Management Chamber.

Gigawatt or GW

Unit equivalent to one billion Watts.

Gigawatt-hour or GWh

Unit equivalent to one gigawatt provided or requested for one hour, or one billion Watt-hours.

Granting Authority

The federal government acting through the MME.

IBAMA

Brazilian Institute of the Environment and Renewable Natural Resources, the country’s primary environmental agency.

IBGC

Brazilian Institute of Corporate Governance.

IBGE

Brazilian Institute of Geography and Statistics.

IBRACON

Brazilian Institute of Independent Auditors.

ICMS

State value added tax.

IFRS

International Financial Reporting Standards.

IGP-M

General Market Price Index, published by the FGV.

IPCA

Extended Consumer Price Index, published by the IBGE.

IPHAN

National Institute of Historic and Artistic Heritage.

Independent Energy Producer

A company that, through a concession, permit, or authorization, can generate and sell, at its own risk, all or part of the energy it generates to free consumers, distribution concessionaires, commercialization agents and others.

Kilovolt or kV

Unit equivalent to one thousand Volts.

Kilowatt or kW

Unit equivalent to one thousand Watts.

Kilowatt-hour or kWh

Unit equivalent to one kilowatt of electricity provided or requested for one hour, or one thousand Watt-hours.

MAE

Wholesale Electricity Market.

Megawatt or MW

Unit equivalent to one million Watts.

Megawatt-hour or MWh

Unit equivalent to one megawatt of electricity provided or requested for one hour, or one million Watt-hours.

MME

Ministry of Mines and Energy.

ONS

National System Operator, a private non-profit entity responsible for managing generation and transmission within the SIN (see below).

PPA

Energy Purchase and Sale Agreement.

RAP

Annual Permitted Revenue, the remuneration of electricity transmission concessionaires.

RAP-RBF

Annual Permitted Revenue – Basic Frontier Revenue.

RGR

Global Reversion Reserve.

Selling Agents

Electricity generators and importers that sell energy in the regulated market.

SIN

National Interconnected System.

Small Hydro Power Plants, PCH or PCHs

Hydro power plants with an installed capacity of between 1MW and 30MW that comply with the requirements established by ANEEL Resolution 652, of December 9, 2003, and subsequent amendments thereto.

SPE

Special Purpose Company.

SUDAM

Amazon Development Board.

TCU

Federal Accounting Court.

TUSD

Tariff for the Use of Electricity Distribution Systems.

TUST

Tariff for the Use of Electricity Transmission Systems.

UHE or UHEs

Hydropower plant(s), unit(s) that transform the potential energy of reservoir-stored water into electricity.

Units

The Company’s share deposit certificates, each of which represents one (1) common share and two (2) preferred shares issued by the Company, all of which are book-entry, registered shares and with no par value, free from any liens or encumbrances.

US GAAP

Generally accepted accounting practices in the United States.

UTE or UTEs

Thermal power plant(s).