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LIGHT S.A.

05/16/2011 Press Release 1Q10


Release Segmentation Light S.A. is a holding company that controls wholly owned subsidiaries pertaining to three business segments: electricity distribution (Light SESA), electricity generation (Light Energia) and electricity Commercialization /services (Light Esco and Lightcom).

Operating Performance
Distribution Total energy consumption in Light SESAs
Electric Energy Consumption (GWh)
Total Market (Captive + Free)

5,558 556

9.5%

6,087 657

concession area (captive customers + transport of free customers 1) was 6,087 GWh in 1Q10, a 9.5% year-on-year increase, driven by significant growth in both markets. According to data provided by the Energy Research Corporation (EPE), consumption in the Southeast region and throughout Brazil increased by 10.2% and 9.6%, respectively, from 1Q09.

18.1%

5,002 8.6%

5,430

1Q09 Captive Free

1Q10

The performance of the captive market was mainly influenced by growth in the residential and commercial segments, due to the higher average temperatures recorded in 1Q10, as well as increased earnings which impacted the quality of life and, consequently, the consumption of energy. When the consumption of the free clients CSN, Valesul and CSA is taken into account, total billed consumption in 1Q10 amounted to 6,508 GWh.

On order to preserve comparability with the market approved by Aneel in the tariff review process, the billed energy and demand of the free customers Valesul, CSN and CSA were excluded, in view of these customers planned migration to the core network. In 1Q10, energy consumption by these clients totaled 422 GWh and demand came to 2,260 GW. In 1Q09, consumption totaled 471 GWh and demand was 2,553 GW.

Captive Market Billed consumption in the


11.7% 2,416 3.8% 433 Residential

Electric Energy Consumption (GWh) 1st Quarter

8.6% 5,002 5,430

captive market grew by 8.6% from 1Q09 stemming of the from the solid performance of each consumption particularly the categories,

7.6% 1,582 1,702 823 4.7% 862

2,163

450 Commercial 1Q09 1Q10

Industrial

Others

Total

residential segment, which grew by a substantial 11.7%, and was primarily driven by the high temperatures registered in January and February of 1.4C and 1.0C, respectively, above the historical average and in the same two months in 2009. Another highlight was industrial consumption, which increased 3.8%, continuing the strong growth trend that began in 4Q09. Residential consumption accounted for 44.5% of the captive market in 1Q10. The number of residential clients grew by 2.1% to 3.7 million billed clients with average monthly consumption of 217.3 kWh in March 2010, compared to 198.4 kWh in the same period last year. The commercial segment, which consumed 1,702 GWh, represented 31.3% of captive market consumption in the quarter, 7.6% more than in 1Q09. In the first quarter six clients, representing a total consumption of 17 GWh in the period, migrated to the free market. Industrial clients, who made up 8.3% of the captive market, consumed 450 GWh, 3.8% up on 1Q09. The beverages, chemical and metal products industries posted the highest growth levels in the period, driving the continued recovery of the industrial segment. Two clients with total consumption of 14 GWh in the period migrated to the free market. The other categories, which accounted for 15.9% of the captive market, grew 4.7% above 1Q09. The rural, government and public service categories, which represented 0.2%, 7.2% and 5.1% of the captive market, respectively, all had a positive performance.

Network Usage

Electric Energy Transportation - GWh Free Customers + Concessionaires 25,3% 31,7% 18,1% 556 657 820 623 1.179 1.477

Billed energy transported to free customers 3 and concessionaires totaled 1,477 GWh in the quarter, 25.3% above 1Q09. The 18.1% increase in billed energy transported to free clients reflected the resumption of industrial activity. In addition to the free market, the flow of energy supplied to the concessionaires bordering Lights area grew by

Free

Utility 1Q09 1Q10

Total

31.7% between the period following the resolution of the National Electric System Operator (ONS).

Billed

demand

for

free consumers 3 and

concessionaires amounted to 6,388 GW in the quarter, 4.0% above 1Q09. Demand among free customers in the quarter grew by 9.4% over the same year-ago period, showing the resumption of consumption levels for these customers.

Billed Demand (GW) Free Costumers and Concessionaires 4,0% 6.143 6.388 0,9% 9,4% 2.254 2.465 3.890 3.923

Free

Utility
1Q09 1Q10

Total

To preserve comparability with the market approved by Aneel in the tariff review process, the billed energy and demand of free customers Valesul, CSN and CSA were excluded, in view of these customers planned migration to the core network. In 1Q10, energy consumption by these clients totaled 422 GWh and demand came to 2,260 GW. In 1Q09, consumption totaled 471 GWh and demand was 2,553 GW.

Energy Flow

DISTRIBUTION ENERGETIC BALANCE - GWh


Position: January - March 2010 PROINFA 113.2 CCEAR Light Energia 94.2 ITAIPU (CCEE) 1,366.7 AUCTIONS (CCEE) 3,957.2 NORTE FLU (CCEE) 1,566.7 OTHERS(*) (CCEE) 720.3
(*) Others = Purchase in Spot - Sale in Spot.

Residential 2,416.3 Billed Energy Balance (GWh) Energy = Grid Load Own load 5,429.9 - Energy transported to utilities Light 7,749.5 - Energy transported to free customers* Required E. Losses + = (CCEE) Load Own Non Billed - Captive market consumption 7,818.4 Energy 2,319.6 - Differences Industrial 1Q10 449.6

9,637 Commercial 820 1,701.7 1,068 7,750 Others 5,430 862.2 2,320

1Q09 8,819 623 1,049 7,147 5,002 2,145

Var.% 9.3% 31.7% 1.7% 8.4% 8.6% 8.1%

*Including CSN, ValesulBasic netw. and CSA


losses Adjustment

155.4 (86.6)

Energy Losses Light SESAs total energy losses came to 7,529 GWh, or 22.06% of the grid load, during the 12 months ended March 31, 2010, and were 0.24 p.p. above the ratio at the close of December 2009. Higher temperatures had a negative impact on energy losses during the period. As of November of 2009, non-technical compliance with the change mandated by ANEEL in its definitive tariff review approved last October. The change is in line with the concessionaires operations since it is precisely the low voltage market where non-technical losses are found. Following this methodology, non-technical
20.64% 14.68% 6,819 Light Losses Evolution 12 months 20.79% 14.60% 6,885 21.82% 15.40% 7,269 22.06% 15.40% 7,529 Mar-10
43.1% 5,358 Mar-10

Mar-08

Mar-09

Dec -09

GWh Losses % Losses / Grid Load (Own + Transport) Non-technical losses % Grid Load

losses began to be disclosed for billed energy in the low voltage market in
Non tecnical losses / Low voltage market 12 months

43.2% 4,847

41.8% 4,832

42.5% 5,149 Dec-09

Mar-08

Mar-09

"Non Tecnincal Losses (GW)" "Non tecnical Losses % Low Voltage Mkt"

losses, which in the 12 months ended March 31, 2010, totaled 5,358 GWh, representing 43.1% of the low voltage market, or 15.40% of the grid load. The period was characterized by high temperatures, especially during the months of January and February, when temperatures rose 1.4C and 1.0C, respectively, above the historical averages and in the same two months in 2009. These conditions generate a strong performance in the billed market, as was the case in this quarter. They also lead to an unavoidable increase in irregular connections and instances of fraudulent consumption. Conventional energy recovery processes, such as the
R eco vered En erg y GW
40.1 35.9

negotiation of amounts owed by customers where fraud has been detected, resulted in 35.9 GWh in energy recovered in 1Q10, 10.5% below the same period last year. Fraud
1Q09

-10.5%

regularization programs yielded a total of 18,715 normalized clients, and were 19.0% below 1Q09. Loss prevention efforts were affected during the quarter because of the outages affecting the distribution network. The reduction in loss prevention activities was a result of the reassignment of teams usually focused on anti-theft efforts to

1Q10

No rmalized Co st u mers
23,103

-19.0%
18,715

1Q09

1Q10

duties related to maintaining operational quality and restoring electricity to areas affected by outages. In relation to new technologies, 91 km of low-voltage protected network were added in 1Q10, compared to 33 km in the same period last year. The 2010 loss prevention plan is fully under way and we expect to achieve substantial results.

Collection The 1Q10 collection rate was 95.7%, 4.6 p.p. higher than 1Q09, as a result of the 2009 economic crisis.
Colletion rate R$ MM Billing Collection Collection Tax 1Q10 2,305 2,206 95.7% 1Q09 2,176 1,983 91.1%

The collection rate for the past 12 months was 98.5% of the billed total, increasing 1.2 p.p. and 1.9 p.p., respectively, from the levels
Collection rate 12 months moving average 98.5%

recorded in December and March 2009. The economic crisis affected collections in early 2009, worsening credit conditions for retail clients, who have a major impact on Lights overall collection rate. The improvement in retail collections is a clear sign of recovery from the effects of the crisis. The collection rate for the retail segment in the quarter was 93.0%, versus 87.0% recorded in the same quarter last year. The Provision for Past Due Accounts (PPD) was 63.5 million, or 2.9% of gross billed energy. The improvement in collection rates during 2009 resulted in a gradual decline in the percentage of year.
1Q09 2Q09 3Q09 4Q09 2.9%

97.3% 96.6%

Mar-09

Dec-09

Mar-10

PDD/Gross Revenue (Billed Sales) 3.5% 3.4%

3.1%

2.9%

R$

1Q10

PPD. As a result, the indicator returned to the same level recorded in the first quarter of last
R$ MM PDD 1Q10 63.5 1Q09 59.8 Variation 3.7

Operating Quality Ensuring high levels of quality in the supply of electricity is a fundamental part of establishing good relationships between the distribution company and its clients. The problems we faced last summer led us to further intensify our distribution improvement investment plan. In 1Q10, the Company invested R$ 24.1 million in efforts to improve the quality of its electricity supply business and to increase the capacity of its distribution network, 85.4% more than the R$ 13 million invested in the 1Q09. At the end of March, the equivalent length of interruption (DEC) indicator, expressed in hours, registered 11.13 hours for the last 12 months. The equivalent frequency of interruption (FEC) indicator, expressed in occurrences, totaled 6.18 times, lower than the marks recorded in the previous two years. The quarter was characterized by adverse weather conditions, including 720 mm of rainfall, 80% more than in the same period in 2009, and higher-than-normal temperatures, which resulted in a strong load growth. Most of the service interruptions in the quarter occurred in areas served by underground networks, which are more complex and therefore take longer to repair, thereby increasing the DEC.

ELC / EFC - 12 Months

ELC EFC Mar-10 Mar-09


6.96 6.22 6.18

10.94 9.71 11.13

Mar-08

ELC Equivalent Length of Interruption per Consumption Unit (hs) EFC Equivalent Frequency of Interruption per Consumption Unit (n.)
* Excludes the affects of the event on the National Interconnected System on 11/10/09

Generation Energy sold on the Regulated (ACR) and Free (ACL) markets in 1Q10 totaled 1,044.5 GWh and 85.5 GWh, respectively. The volume of energy sold on both markets was in line with the same period in 2009 due to the continuation of contracts in effect last year. The 242.0% increase in the volume of energy sold on the spot market in 1Q10 was primarily caused by the increase in hydroelectric generation within the National Interconnected System, which resulted from improved hydrological conditions.
LIGHT ENERGIA (GWh) Regulated Contracting Environment Sales Free Contracting Environment Sales Spot Sales (CCEE) Total Commercialization and Services 1Q10 1,044.5 85.5 468.9 1,598.9 1Q09 1,039.5 86.0 137.1 1,262.6 % 0.5% -0.6% 242.0% 26.6%

In 1Q10, Light Esco sold 206.7 GWh directly, 84.0% up year-on-year, due to the trading companys increased availability of energy for resale compared to the same period in 2009. The contract portfolio also grew as new clients were prospected. Trading activity involved a total of 57 clients, including Owens Illinois, BR Metals and MD Papis. In addition to direct sales, Light Esco also continued to provide consulting services and to represent free customers before the CCEE. These activities currently involve nine clients and operations totaling 715.9 GWh, including consulting services on behalf of plants with operational delays since January. In January, Aneel authorized Lightcom Comercializadora de Energia S.A., to operate as an energy trader with the Chamber of Electricity Commercialization. Lightcom is a Grupo Light company headquartered in So Paulo. Its purpose is to improve contract prospecting by building better relationships with customers and suppliers. Lightcom was also created in response to the decision by the So Paulo State Finance Secretariat (SEFAZ-SP) regarding the ICMS value-added tax on internal electricity operations. Currently, Light Esco has nine active service contracts in place, including the construction of the underground transmission lines needed to supply electricity to the Petrobras Research Center (CENPES) and the companys Integrated Data Processing Center (CIPD), the construction of a substation and upgrading of the Projac/Rede Globo water-cooling system, and the upgrading of the Iguatemi Macei

Malls water-cooling system. The Company also signed a new contract to upgrade the refrigeration system of a large commercial project in Rio de Janeiro. Another important project to highlight is the expansion of the refrigeration capacity of the Rio Office Park business center, located in the Barra da Tijuca region of Rio de Janeiro. In 2000, Light Esco implanted the first District Cooling project in Latin America as part of a 20-year contract. The project consists of supplying chilled water to cool the developments five buildings. Currently, Odebrecht is building the six-tower Dimension Office Park inside Rio Office Park. As a result, Light Esco will expand the developments cooling capacity to include the network buildings. The capacity expansion is initially estimated at 50%.
Volum e (GW h ) Trading Broker Total 1 Q1 0 206.7 715.9 92 2.5 1 Q0 9 112.3 243.7 35 6.0 Var.% 84.0% 193.7% 15 9.1 %

Financial Performance
STATEMENT OF CONSOLIDATED INCOME 1Q09 NET OPERATING REVENUE OPERATING EXPENSE Personnel Material Outsourced Services Purchased Energy Depreciation Provisions Others Construction Cost OPERATING RESULT() FINANCIAL RESULT Financial Income Financial Expenses Other Operating Incomes/Expenses RESULT BEFORE TAXES AND INTEREST SOCIAL CONTRIBUTIONS & INCOME TAX NET INCOME EBITDA 1,641,716 (1,333,002) (69,301) (4,473) (58,805) (912,971) (86,010) (65,552) (24,221) (111,669) 308,714 (28,254) 41,041 (69,295) 5,281 1Q10 1,708,854 (1,317,293) (53,410) (8,819) (83,902) (850,911) (85,647) (101,524) (21,830) (111,250) 391,561 (97,846) 44,430 (142,276) (244) % 4.1% -1.2% -22.9% 97.2% 42.7% -6.8% -0.4% 54.9% -9.9% -0.4% 26.8% 246.3% 8.3% 105.3%

Net

285,741

293,471

2.7%

(91,655) 194,086 394,724

(68,692) 224,779 477,208

-25.1% 15.8%

20.9%

Revenue Net revenue totaled R$ 1,708.9 million in 1Q10, 4.1% above 1Q09, mainly due to the positive performance of distribution, generation and commercialization segments, respectively. This increase resulted from: (i) the significant growth in energy consumption in the free and captive markets, which rose 18.1% and 8.6% respectively, in the distribution segment; (ii) the 26.6% increase in energy sales and adjustment of energy sales contracts in the generation segment; (iii) and sales volume increase in 84.0%, in the commercialization segment .

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Costs and Expenses In 1Q10, the costs and expenses declined by 1.2%,compared to 1Q09, driven mainly by decrease of personal costs and energy purchased, in 22.9% and 6.8%. EBITDA EBITDA totaled R$ 477.2 million in 1Q10, 20.9% above 1Q09. This result can be explained by increase of net revenue in 4.1% and decrease of costs and operating expenses in 1.2%. The EBITDA margin was 29.9% compare to 25.8% in 1Q09. Net Income Light posted a net income of R$ 224.8 million in 1Q10, 15.8% above 1Q09, due to the combination of 20.9% increase in EBITDA and the lower payment of IR / CSSL, despite of decrease in R$ 69.6 million in the financial result.

Capital Expenditures In 1Q10, the Company invested R$ 115.3 million, networks quality including (new R$ 48.8 million in
79.9 2.5 72.0 1.1 4.3

CAPEX (R$ MM)


44.3% 115.3 2.5 0.0 15.8

spending on the development of distribution connections, and capacity preventive increases and repairs), R$ 11.5 million on improvements maintenance efforts, and R$ 27.6 million in network protection, electronic meters and
Distribution

97.0

1Q09 Administration

1Q10 Generation Commerc ial.

fraud regularization. Generation investments totaled R$ 15.8 million, R$ 3.2 million of which went to maintenance of the existing generation complex. Generating Capacity Expansion Projects 1Q10 was marked by the following events related to projects for expanding Lights generating capacity: Construction of the Paracambi SHP, which began in November of 2009, is

well under way, with the signing of a BNDES financing contract expected early in the second half of the year; Construction of New Feeder 1, part of the Lajes SHP water channeling

system, is under way and scheduled for completion in August 2010; The Basic Engineering Project and Environmental Studies (EIA/RIMA) of the

Itaocara Hydroelectric Project were completed in February 2010, permitting their

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subsequent analysis and approval by ANEEL and the application for environmental licenses, conditions that must be met before construction can begin; The Company completed the acquisition of two wind energy plants with a

total installed capacity of 31 MW located in Aracati (CE). The engineering projects pertaining to these plants are currently in the development stage, the goal being to have them ready in time for participation in the 2010 Reserve Energy Auction, which should be held before the end of the first half. In addition to these projects, the Company is considering participating in other generation undertakings, which together will ensure the increase of installed generation capacity. Corporate Governance and the Capital Markets On March 31, 2010, the capital stock of Light S.A. comprised 203,934,060 common shares with no par value. The following chart represents Lights shareholding structure on the same date:
Controlling Shareholder 52.1%

CEMIG
25.53%

AGC
0.53%

LEPSA
13.03%

RME
13.03%

BNDESPAR
23.8%

Market
24.1%

LIGHT S.A.
100.0%

Light SESA *LightGer, Itaocara and Others.

Light Energia

Light ESCO S.A.

Others*

Lights Board of Directors Meeting on March 2, 2010, elected the Companys Statutory Executive Board. The Annual and Extraordinary Shareholders Meeting held on March 24, 2010 defined the names, duties and responsibilities of the Officers, as follows: (i) Mr. Jerson Kelman, as CEO; (ii) Mr. Joo Batista Zolini Carneiro, as Chief Financial and Investor Relations Officer; (iii) Mr. Paulo Carvalho Filho, as Business Management Officer; (iv) Mr. Evandro Leite Vasconcelos, as Generation Officer; and (v) Mr. Jos Humberto de Castro, as Distribution Officer. Ms. Ana Slvia Corso Matte and Mr. Paulo Roberto Ribeiro Pinto remained in their respective positions as Human Resources Officer and New Business and Institutional officer.

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The Annual Shareholders Meeting (AGM) of March 24, 2010, approved the composition of the Board of directors with 11 permanent members and 11 alternates, each with two-year terms that expire on the occasion of the AGM to approve the annual financial statements for the fiscal year ended December 31, 2011. On March 24, 2010, Companhia Energtica de Minas Gerais (CEMIG) and ENLIGHTED PARTNERS VENTURE CAPITAL LLC (ENLIGHTED), signed an option agreement for the sale of shares (Option), to CEMIG or to another party indicated thereby. The purpose of this operation was to grant an option to sell shares of LUCE INVESTMENT FUND (LUCE Fund), which holds 75% of the shares of LUCE BRASIL FUNDO DE INVESTIMENTO EM PARTICIPAES (FIP Luce), which in turn, through LUCE EMPREENDIMENTOS E PARTICIPAES S.A. (LEPSA) indirectly holds 26,576,149 common shares issued by the Company, approximately 13.05% of its total and voting capital. If the option were exercised, the sale price of the LUCE Fund shares would be US$ 340,455,675.00, equivalent to R$ 588,750,000.00 at the exchange rate on December 1, 2009. The option can be exercised at any time between October 1, 2010 and October 6, 2010. On March 25, 2010, CEMIG acquired the 25,494,500 common shares issued by the Company held by Andrade Gutierrez Concesses S.A. (AGC) as set forth in the share purchase agreement entered not between CEMIG and AGC on December 30, 2010. This acquisition represents 12.50% of the Companys total and voting capital. CEMIG paid a total of R$ 718,518,134.39, equivalent to R$ 28.18 per share. In addition to the shares already purchased, the contract calls for CEMIG to acquire, by September 21, 2010, an additional 1,081,649 common shares in Light held by AGC, equivalent to approximately 0.53% of the Companys total and voting capital and worthy R$ 31,949,492.20. The Company's shares have been listed on the Bovespa's Novo Mercado since July 2005, thereby adhering to the best corporate governance practices and the principles of transparency and equity, in addition to granting special rights to minority shareholders. Light S.A.s shares are listed on the Ibovespa, Itag, IGC, IEE, IBrX and ISE indexes.

At the end of the quarter, Lights stock had appreciated 0.5%, with an average daily traded volume of R$21.8 million. The IEE (Electric Power Index) declined

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0.4% in the same period. The graph below shows the performance of Lights stock since RME took control on August 10, 2006.

BOVESPA (spot market) - LIGT3 Daily Average Number of shares traded (Thousand) Number of Transactions Traded Volume (R$ Million) Quotation per lot of 1000 shares: (Closing)* Share Valuing (Quarter) IEE Valuing (Quarter) Ibovespa Valuing (Quarter) *Ajusted by earnings

1Q10 857.17 1,785 R$ 21.8 R$ 24.07 0.5% -0.4% 2.6%

4Q09 881.31 1,802 R$ 22.0 R$ 23.94 7.2% 8.9% 11.0%

1Q09 240.59 557 R$ 5.8 R$ 20.06 11.9% 9.4% 9.0%

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Disclaimer
The information on the Companys operations and its Managements expectations regarding its future performance has not been revised by independent auditors. Forward-looking statements are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our Management and on information currently available to the Company. Statements about future events include information about our intentions, beliefs or current expectations, as well as those of the Company's Board of Directors and Officers. Reservations related to statements and information about the future also include information about operating results, likely or presumed, as well as statements that are preceded by, followed by, or including words such as "believes," "might," "will," "continues," "expects," "estimates," "intends," "anticipates," or similar expressions. Statements and information about the future are not a guarantee of performance. They involve risks, uncertainties and assumptions because they refer to future events, thus depending on circumstances that may or may not occur. Future results and creation of value to shareholders might significantly differ from those expressed or suggested by forward-looking statements. Many of the factors that will determine these results and values are beyond LIGHT S.A.'s control or forecast capacity.

APPENDIX I

Light by the Numbers

OPERATING INDICATORS N of Consumers (thousand) N of Employees Average provision tariff - R$/MWh Average provision tariff - R$/MWh (w/out taxes) Average energy purchase cost - R$/MWh Installed generation capacity (MW) Assured Energy (MW) Net Generation (GWh) Load Factor Includes purchase on spot

1Q10 4,029 3,744 406.3 276.3 96.8 855 537 1,517 64.0%

1Q09 3,946 3,725 414.4 282.6 109.9 855 537 1,534 65.5%

Var. % 2.1% 0.5% -1.9% -2.2% -11.9% -1.1% -

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Review report on Quarterly Information


(A free translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange Commission (CVM), prepared in accordance with the accounting practices adopted in Brazil, rules of the CVM and the International Financial Reporting Standards - IFRS) To
The Board of Directors and Shareholders of Light S.A. Rio de Janeiro - RJ

1. We have reviewed the accounting information included in the individual Quarterly Information - ITR
of Light S.A. (The Company), comprising the balance sheet and statements of operations, of changes in shareholders equity and of cash flows and the consolidated Quarterly Information of this Company and its subsidiaries, comprising the consolidated balance sheet and the consolidated statements of operations, of changes in shareholders equity and of cash flows, both referring to the quarter ended March 31, 2010, which includes the explanatory notes and the performance report, which are the responsibility of its management.

2. Our review was performed in accordance with the review standards established by IBRACON - The
Brazilian Institute of Independent Auditors and the Federal Accounting Council - CFC, which comprised, mainly: (a) inquiry and discussion with the management responsible for the accounting, financial and operational areas of the Company and its subsidiaries, regarding the main criteria adopted in the preparation of the Quarterly Information; and (b) review of the information and subsequent events, which have, or may have, a material effect on the financial and operational position of the Company and its subsidiaries.

3. Based on our review, we are not aware of any material change that should be made to the accounting
information contained in the individual Quarterly Information of Light S.A. referred to above, for them to be in accordance with accounting rules adopted in Brazil, notably the technical pronouncement CPC 21 - Interim Financial Reporting and rules issued by the Brazilian Securities and Exchange Commission - CVM applicable to the preparation of the Quarterly Information.

4. Based on our review we are not aware of any material change that should be made to the accounting
information contained in the consolidated Quarterly Information of Light S.A. and its subsidiaries referred to above, for them to be in accordance with the International Financial Reporting Standards IFRS, notably the standard IAS 34 - Interim Financial Reporting, issued by International Accounting Standards Board (IASB), and rules issued by the Brazilian Securities and Exchange Commission CVM, applicable to the preparation of the Quarterly Information.

5. As mentioned in explanatory note 2, during the year 2009, CVM approved several Pronouncements,
Interpretations and Technical Orientations issued by the Accounting Pronouncements Committee CPC which are effective for 2010, and changed the accounting practices adopted in Brazil. These changes were adopted by the Company and its subsidiaries in the preparation of the individual Quarterly Information of the Company for the quarter ended March 31, 2010 and disclosed in explanatory note 2. The individual Quarterly Information are being restated and, therefore, are different from those originally stated by the Company, including our review report, dated May 6, 2010. The individual Quarterly Information related to the year and period of 2009, presented for comparison purposes, were adjusted to include the changes in accounting practices adopted in Brazil in force for 2010.

6. As mentioned in explanatory note 2, the Company and its subsidiaries started to present from 2010
on, consolidated Quarterly Information in accordance with International Financial Reporting Standards - IFRS, notably the standard IAS 34 - Interim Financial Reporting, issued by the IASB. The consolidated Quarterly Information of the Company and its subsidiaries related to the year and period ended 2009, prepared in accordance with the mentioned International Accounting Standards,

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are being presented for comparison purposes.

7. Our review was performed to issue a report on the review of the accounting information included in the individual Quarterly Information of this Company as mentioned in the first paragraph, taken as a whole. The individual and consolidated Statements of Value Added (DVA), required by Brazilian corporate law, are not required by the International Accounting Standards issued by the IASB and are being presented for purposes of additional analysis. This supplementary information has been submitted to the same review procedures applied to the accounting information included in the Quarterly Information of the Company, and based on our review, we are not aware of any material changes that should be made for it to be in accordance with the accounting information included in the Quarterly Information mentioned in the first paragraph, taken as a whole.
Rio de Janeiro, May 13, 2011

KPMG Auditores Independentes


CRC SP-014428/O-6 F-RJ Original in Portuguese signed by Vnia Andrade de Souza Accountant CRC RJ-057497/O-2

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LIGHT S.A.
BALANCE SHEETS (In thousands of reais)

Notes ASSETS Cash and cash equivalents Marketable Securities Consumers, concessionaires and permissionaires Taxes and contributions Inventories Receivables from swap transactions Dividends receivable Services Prepaid expenses Other receivables TOTAL CURRENT ASSETS Consumers, concessionaires and permissionaires Taxes and contributions Deferred taxes Concession financial assets Receivables from swap transactions Escrow deposits Prepaid expenses Other receivables Investments Property, plant and equipment Intangible assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS 6 7 8 9 31 4 5 6 7 31

Parent Company 3/31/2010 12/31/2009 434,435 851 119 1,558 436,963 180 3,474,281 669 3,475,130 3,912,093 14,584 774 155,701 175 20,212 191,446

3/31/2010

Consolidated 12/31/2009 760,313 68,059 1,355,854 442,668 14,369 4 46,015 2,381 97,250 2,786,913 297,798 40,767 1,115,546 354,784 200,520 1,658 8,725 20,388 1,600,568 3,422,980 7,063,734 9,850,647

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884,418 31,000 1,412,705 317,212 25,977 118 66,838 3,778 87,532 2,829,578 282,571 55,583 1,120,239 364,989 203,875 1,191 8,667 19,257 1,604,338 3,472,594 7,133,304 9,962,882

11 12 13 14

152 3,513,147 678 3,513,977 3,705,423

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LIGHT S.A.
BALANCE SHEETS (In thousands of reais)

Notes LIABILITIES Suppliers Taxes and contributions Loans, financing and financial charges Debentures and financial charges Dividends payable Estimated liabilities Sector charges - Consumer contributions Contingencies Post-employment benefits Other liabilities TOTAL CURRENT LIABILITIES Loans, financing and financial charges Debentures and financial charges Taxes and contributions Deferred taxes Contingencies Post-employment benefits Debts with related parties Other liabilities TOTAL NON-CURRENT LIABILITIES SHAREHOLDERS' EQUITY Capital stock Capital reserves Recognized granted options Treasury shares Profits Reserve Legal reserve Profit retention Proposed additional dividends Equity valuation adjustments Retained earnings/accumulated losses TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 24 16 17 7 20 21 22

Parent Company 3/31/2010 12/31/2009

Consolidated 3/31/2010 12/31/2009

15 7 16 17

18 20 21 22

248 130 432,340 343 1,561 434,622 -

6,348 53 143,647 223 1,524 151,795 -

549,879 147,533 209,857 94,327 432,340 56,677 123,781 94,588 251,754 1,960,736 985,684 1,149,358 301,199 325,198 687,759 871,410 204,067 4,524,675

564,181 285,180 197,150 96,412 143,647 52,374 110,791 95,044 236,028 1,780,807 1,006,204 1,165,759 303,585 301,230 669,353 861,386 208,695 4,516,212

2,225,822 133,999 514,990 512,636 90,024 3,477,471 3,912,093

2,225,822 34,406 (6,361) 133,999 499,188 288,693 518,761 (140,880) 3,553,628 3,705,423

2,225,822 133,999 514,990 512,636 90,024 3,477,471 9,962,882

2,225,822 34,406 (6,361) 133,999 499,188 288,693 518,761 (140,880) 3,553,628 9,850,647

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LIGHT S.A. INCOME STATEMENT FOR THE PERIODS ENDED MARCH 31

Parent Company Notes NET OPERATING REVENUE COST OF OPERATIONS GROSS PROFIT OPERATING EXPENSES Selling expenses General and administrative expenses Other revenues/expenses OPERATING INCOME FINANCIAL INCEME Revenues Expenses EQUITY IN THE EARNINGS OF SUBSIDIARIES INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION Current income and social contribution taxes Deferred income and social contribution taxes 8 8 30 28 26 28 1/1/2010 to 3/31/2010 (2,183) (2,183) (2,183) 189 187 2 226,773 1/1/2009 to 3/31/2009 (10,846) (10,846) (10,846) 812 835 (23) 204,120 1/1/2010 to 3/31/2010

Consolidated 1/1/2009 to 3/31/2009 1,641,716 (1,174,475) 467,241 (153,246) (77,433) (81,094) 5,281 313,995 (28,254) 41,041 (69,295) -

1,708,854 (1,121,471) 587,383 (196,066) (86,673) (109,149) (244) 391,317 (97,846) 44,430 (142,276) -

224,779 -

194,086 -

293,471 (49,416) (19,276)

285,741 (33,625) (58,030)

NET INCOME FOR THE PERIOD

224,779

194,086

224,779

194,086

LIGHT S.A. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY PERIOD ENDED MARCH 31 ( In thousands of reais)

PROFIT RESERVES PROPOSED ADDITIONAL ADIVIDENDS 288,693 (288,693) EQUITY VALUATION ADJUSTMENTS 518,761 (6,125) 512,636 RETAINED EARNINGS / (ACCUMULATED) LOSSES (140,880) 6,125 224,779 90,024

BALANCE ON 12/31/09 Realization of equity valuation adjustment Loss absorption adjustment to 1st time adoption of IFRS Recognized granted options Derecognition of treasury shares Transfer of unexercised options Treasury shares Dividends paid - profits reserve Payment of additional proposed dividends Net Income for the period Allocation of net income for the period: Legal reserve Proposed dividends Additional proposed dividends Profit retention reserve BALANCE ON 3/31/10

CAPITAL STOCK 2,225,822 2,225,822

CAPITAL RESERVES 34,406 (12,243) (6,361) (15,802) 0

TREASURY SHARES (6,361) 6,361 0

LEGAL RESERVE 133,999 133,999

RETAINED EARNINGS 499,188 15,802 514,990

TOTAL 3,553,628 (12,243) (288,693) 224,779 3,477,471

20

LIGHT S.A. CASH FLOW STATEMENTS FOR THE PERIODS ENDED MARCH 31 ( In thousands of reais )
Parent Company 1/1/2010 to 3/31/2010 1/1/2009 to 3/31/2009 Cash flow tax operaty activities Net income before income tax and social contribution Adjustments of expenses (revenues) not affecting cash Allowance for doubtful accounts Depreciation and amortization Amortization of intangible assets Loss (gain) from the sale of intangible assets / Residual value of derecognized property, plant and equipment Exchange losses (gains) from financial activities Restatement of contingencies Adjustment of receivables to present value Interest expenses on loans Charges and monetary variation on post-employment liabilities Provision for / (Reversal of ) liabilities - contingencies Options granted Equity income (Increase)/reduction in Assets Marketable Securities Consumers, concessionaires and permissionaires Dividends received Taxes and contributions Inventories Services Prepaid expenses Escrow deposits Other Increase/(reduction) in liabilities Suppliers Estimated liabilities Taxes and contributions Sector charges - Consumer Contributions Contingencies Post-employment benefits Other liabilities Interests paid Income and social contribution taxes paid Net cash from operating activities Cash flow from investment activities Share acquisition Receivables related to shares Receivables from the sale of property, plant and equipment Receivables from the sale of financial asset / investment Acquisition of property, plant and equipment Acquisition of intangible assets Consumer contributions Acquisition of financial assets (concession) Additions to/acquisition of investment Shareholding Net cash used in investment activities Cash flow from financing activities Dividends and interest on equity paid Loans and financing Amortization of loans and financing Net cash used in financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at close of fiscal period Changes in cash and cash equivalents 224,779 194,086 Consolidated 1/1/2010 to 3/31/2010 1/1/2009 to 3/31/2009 293,471 285,741

(226,773)

9,977 (204,120)

63,535 20,320 65,397 (224) (3,607) 2,880 (4,621) 67,192 32,296 (22,452) -

60,165 86,010 (5,162) (39,574) 21,925 (5,800) 83,011 9,192 (5,146) 9,977 -

432,340 (77) 56 (28) 18,654

(349) 44 (15)

37,059 (100,538) 119,320 (20,823) (11,608) (930) (3,355) 9,662

(28,126) (219,466) 150,102 (1,274) (3,430) (1,415) (2,387) 51,647

(6,100) (21) 77 1,187 444,094

(116) (8) (5) (35) (541)

(14,302) 1,084 (137,647) 12,990 37,978 (22,728) 14,446 (43,244) (60,473) 331,078

63,798 7,636 (97,302) (18,006) (5,008) (23,354) (45,884) (54,607) (53,735) 219,528

(45,358) 33,115 (12,000) (24,243)

(36,388) (36,388)

(45,358) 33,115 453 1,131 (24,319) (115,021) 1,282 (11,487) (160,204)

5,697 (7,649) (89,604) (12,019) (5,025) (108,600)

419,851 14,584 434,435 419,851

(36,929) 40,256 3,327 (36,929)

749,969 (796,738) (46,769) 124,105 760,313 884,418 124,105

22,674 (15,581) 7,093 118,021 548,983 667,004 118,021

21

TABLE OF CONTENTS 1. 2. 3. 4. OPERATIONS PRESENTATION OF THE QUARTERLY FINANCIAL INFORMATION INITIAL ADOPTION OF IFRS
SUMMARY OF ACCOUNTING PRACTICES

CASH AND CASH EQUIVALENTS MARKETABLE SECURITIES 5. CONSUMERS, CONCESSIONAIRES AND PERMISSIONAIRES (CLIENTS) 6. TAXES AND CONTRIBUTIONS 7. DEFERRED TAXES 8. CONCESSION FINANCIAL ASSETS 9. OTHER RECEIVABLES 10. INVESTMENTS 11. PROPERTY, PLANT AND EQUIPMENT 12. INTANGIBLE ASSETS 13. SUPPLIERS 14. LOANS, FINANCING AND FINANCIAL CHARGES 15. DEBENTURES AND FINANCIAL CHARGES 16. REGULATORY CHARGES 17. CONTINGENCIES 18. POST-EMPLOYMENT BENEFITS 19. OTHER PAYABLES 20. RELATED-PARTY TRANSACTIONS 21. SHAREHOLDERS EQUITY

22. DIVIDENDS PAYABLE


23. 24. 25. 26. 27. EARNINGS PER SHARE NET OPERATING REVENUE BREAKDOWN ELECTRIC POWER SUPPLY OPERATING COSTS AND EXPENSES ELECTRIC POWER PURCHASED FOR RESALE

FINANCIAL INCOME 28. FINANCIAL INSTRUMENTS 29. INSURANCE INFORMATION BY SEGMENT 30. LONG-TERM INCENTIVE PLAN 31. STATEMENT OF VALUE ADDED 32. SUBSEQUENT EVENTS

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OPERATIONS
Light S.A. is a publicly-held company, organized and domiciled in Rio de Janeiro, Brazil. Its headquarters are located at Avenida Marechal Floriano, Rio de Janeiro. The corporate purpose of Light S.A. (Company) and its subsidiaries (jointly referred to as "Group) is to hold equity interests in other companies, as partner or shareholder, and is involved in the direct or indirect exploitation, as applicable, of electric power services, including electric power generation, transmission, sale and distribution systems, as well as other related services. The Company is listed in the New Market (Novo Mercado) of the So Paulo Stock Exchange (BM&F Bovespa under LIGT3). Light S.A. is a parent company of the following companies: Light Servios de Eletricidade S.A. (Light SESA) - Publicly-held corporation engaged in the distribution of electric power; Light Energia S.A. - (Light Energia) Closely-held corporation whose main activity is to study, plan, construct, operate and exploit systems of electric power generation, transmission and sales, and related services; Light Esco Prestao de Servios S.A. - (Light Esco) Company whose main activity is to provide services related to co-generation, projects, management and solutions, such as improving efficiency and defining energy matrixes and sale of energy on the free market. Itaocara Energia Ltda. - (Itaocara Energia) Company in the pre-operating stage, primarily engaged in the exploitation and production of electric power; Light Solues em Eletricidade Ltda. former Lighthidro Ltda. (Light Hidro) now has the new corporate name in accordance with new articles of association dated January 27, 2011 and its main purpose to provide services to low voltage clients, including assembly, restoration and maintenance in general. Instituto Light para o Desenvolvimento Urbano e Social (Light Institute) It is engaged in participating in social and cultural projects, with interest in the cities economic and social development, affirming the Companys ability to be socially responsible. Lightcom Comercializadora de Energia S.A. (Lightcom) Company whose purpose is the purchase, sale, import and export of energy and advisory services in general in the energy free and regulated markets.

23

Light S.A. jointly-control the subsidiar Lightger S.A. (Light Ger) - Company in the pre-operating stage that participate in auctions for concession, authorization and permission for new plants. On December 24, 2008, Light Ger obtained the installation license that authorizes the start of implementation works of Paracambi small hydroelectric power plant (PCH). Grupo Lights concessions and authorizations:
Concessions / Authorizations Generation, transmission and distribution PCH Paracambi Itaocara Hydroelectric Power Plant Date of Concession / Authorization Jul/1996 Feb/2001 Mar/2001 Maturity Date Jun/2026 Feb/2031 Mar/2036

The company was originally listed at the So Paulo Stock Exchange. PRESENTATION OF THE QUARTERLY FINANCIAL INFORMATION Consolidated Quarterly Financial Information The consolidated financial quarterly information was prepared according to the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) and also according to accounting practices adopted in Brazil (BR GAAP). Individual Quarterly Financial Information The individual quarterly financial information is presented according to the accounting practices adopted in Brazil, in compliance with the provisions of the Corporation Law, and comprise the changes introduced by Laws no. 11,638/07 and 11,941/09, complemented by new pronouncements, interpretations and guidance from CPC, issued in 2009 and 2010, approved by CFC Resolutions, and in accordance with CVM rules. The Company did not calculate comprehensive income, which is the reason why it is not presenting the Comprehensive Income Statement.

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Quarterly Financial Information 2010 and Financial Statements 2009 Until December 31st, 2009, the Company presented its individual and consolidated financial statements according to the accounting standards adopted in Brazil, which comprised the changes introduced by the Laws no. 11,638/07 and 11,941/09 (Provisional Measure n 449/2008 - MP no. 449/2008), complemented by the pronouncements of the Accounting Pronouncements Committee CPC, approved by resolutions of the Federal Accounting Council CFC and rules of the Securities Commission CVM until December 31st, 2008. As established in the CVM Deliberation no. 609/2009 (CPC 37 Initial Adoption of International Accounting Standards), the international Standards were retroactively implemented at January 1st, 2009. Therefore, the financial statements and quarterly financial information originally disclosed were adjusted and are presented according to the international accounting Standards and practices adopted in Brazil. The authorization to conclude this quarterly financial information was given by the Companys Management at May 13, 2011. Basis of measurement The financial statements were prepared based at historical cost, except for the financial instruments measured by fair value through profit and loss; defined benefit actuarial asset, which is recognized as the net total of plan assets, adding the unrecognized past service cost and unrecognized actuarial losses, deducing the unrecognized actuarial gains and the present value of the defined benefit liability; and fixed assets of the generation plants, measured at fair value as deemed cost. Functional currency and presentation currency This individual and consolidated Quarterly Financial Information is stated in Brazilian Reais, which is the Companys functional currency. All financial information presented in Brazilian Reais was rounded to the nearest thousand, except when otherwise indicated. Use of estimates and judgment The preparation of the financial statements according to the IFRS and CPC standards demand the Management to make certain judgments, estimates and premises that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates. Estimates and premises are continuously reviewed. Reviews regarding accounting estimates are recognized in the period when the estimates are effectively reviewed and in any affected future periods. Information about premises and estimates that may result in adjustments within the next financial year are included in the following Notes:

25

Note 09 Deferred Taxes Note 19 Contingencies Note 20 Post Employment Benefits Note 26 Net operating revenue breakdown Consolidated Group The consolidated financial statements include those of Light S.A., its direct subsidiaries and entities under common control, listed as follows:
Interest %

Light Servios de Eletricidade S.A. Light Energia S.A Light Esco Prestao de Servios S.A. Lightcom Comercializadora de Energia S.A Light Solues em Eletricidade Ltda. Instituto Light para o Desenvolvimento Urbano e Social Itaocara Energia Ltda. Lightger S.A.

100 100 100 100 100 100 100 100

INITIAL ADOPTION OF IFRS The approval of the Laws no. 11,638/07 and 11,941/09 started for publicly-held companies the process of converging with international accounting standards, through issuance, by CPC, and approval by Brazilian accounting regulating bodies, of several accounting pronouncements, interpretations and guidelines, in two steps: the first step, developed and applied in 2008, with the adoption of the technical pronouncements CPC 00 to 14 (the latter revoked since 2010) and the second step, with issuance, in 2009, of the technical pronouncements CPC 15 to 43 (except for CPC 34), with mandatory adoption in 2010, with retroactive effects to 2009 for comparability purposes. The Company published on March 31, 2011, the individual and consolidated financial statements referring to December 31, 2010, which include a detailed description of exemptions adopted and exceptions used, the opening balance sheet on January 1, 2009, the closing balance sheet on December 31, 2009 and the income statement for the year ended December 31, 2009. Said individual financial statements also include effects on income and shareholders equity of the quarters ended on 3/31/2009, 6/30/2009, 9/30/2009, 3/31/2010, 6/30/2010 and 9/30/2010 resulting from full adoption of the rules of 2010. In compliance with CVM Deliberation no. 656, of January 25th, 2011, the Company presents below the effects in the income statement and in shareholders equity, in the quarters ended in 03/31/2009 and 03/31/2010, arising from full adoption of the 2010 standards.

26

Parent Company 3/31/2010 Shareholders Equity Balance before the adoption of the new practices Adjustments and reclassifications: Pre-operational expenses Investment Regulatory assets and liabilities Fair value as deemed cost Equity Method Deferred taxes Deferred income tax and social contribution Other adjustments 2,995,361 3/31/2009 Shareholders Equity 2,981,969 3/31/2010 Shareholders Equity 2,995,361

Consolidated 3/31/2009 Shareholders Equity 2,981,969

Net Income 120,550

Net Income 168,288

Net Income 120,550

Net Income 168,288

482,110 482,110

104,229 104,229 224,779

419,706 419,706 3,401,675

25,798 25,798 194,086

(8,519) (37,660) 776,720 (251,280) 2,850 482,111 3,477,472

(153) 167,435 (9,280) (53,773) -

(7,734) (354,477) 819,085 (157,967) 118,462 2,337 419,706 3,401,675

(234) 50,130 (10,688) (13,410) -

104,229 224,779

25,798 194,086

Balance after the adoption of the new practises

3,477,471

SUMMARY OF ACCOUNTING PRACTICES The accounting policies applied are in compliance with policies described in our financial statements in BR GAAP for the year ended December 31, 2010 and have been applied consistently to all periods presented in these financial statements. Several IFRS rules, amendments to rules and interpretations issued by IASB are not yet in force in the year ended in January 1st, 2010, such as: Improvements to IFRS 2010. IFRS 9 Financial Instruments. Prepayment of a minimum fund requirement (Amendment to IFRIC 14). Amendments to IAS 32 Classification of rights issues.

CPC did not issued yet pronouncements equivalent to the IFRSs mentioned above, but there are expectations that it does before the required date to become in force. Anticipated adoption of IFRSs pronouncements is conditioned to previous approval in normative act by CVM Brazilian Securities and Exchange Commission. Since it did not adopt these standards in anticipation, the Company has not yet appraised the potential effects of them in its financial statements.

27

CASH AND CASH EQUIVALENTS


Parent Company 31/3/2010 31/12/2009 Cash Financial investments of immediate liquidity Certificate of deposit (CDB) Total 432.385 2.050 434.435 2.557 12.027 14.584 Consolidated 31/3/2010 31/12/2009 443.420 440.998 884.418 27.139 733.174 760.313

Parent Company 31/3/2010 31/12/2009 Financial investment: CDB Total Rate CDI Maturity Daily

Consolidated 31/3/2010 31/12/2009

2.050 2.050

12.027 12.027

440.998 440.998

733.174 733.174

Financial investments are represented by transactions purchased from organizations trading in the domestic financial market, at arm-length's terms and rates. These investments are highly liquid, have a daily repurchase commitment by the counterparty financial institution (the repurchase rate is previously agreed upon by the parties), involve low credit exposures, and yield according to the variation of the interbank deposit rate (CDI), without any loss in the earnings if early redeemed. MARKETABLE SECURITIES These papers involve bank deposit certificates (CDB) in the amount of R$31,000 (R$68,059 on December 31, 2009) forming the underlying assets of certain surety bonds pledged in power auctions, and also other proceeds from the sale of assets that were held for re-investment in the electric grid system or have maturities of 3 months or longer.

CONSUMERS, CONCESSIONAIRES AND PERMISSIONAIRIES (CLIENTS)


Consolidated 3/31/2010 12/31/2009 CURRENT Billed sales Unbilled sales Debt payment by installments (a) 1,798,927 282,360 163,246 2,244,533 5,412 43,400 48,812 (880,640) 1,412,705 1,678,167 286,170 153,421 2,117,758 1,001 54,946 55,947 (817,851) 1,355,854

Sales within the scope of CCEE Supply and charges related to the use of electric network

(-) Allowance for doubtful accounts (b)

NON-CURRENT Debt payment by installments (a)

282,571 282,571

297,798 297,798

28

a) The balances of debt repayment facilities were adjusted to their present value, as applicable, pursuant to Law No. 11,638/07. The present value is determined for each relevant consumer debt renegotiation (debt repayment facilities) based on such interest rate as will reflect the term and risk associated with each individual transaction, on average 1% per month. Balance includes the installment agreements present value, including options of early payment of installments, which if they are exercised ensure payment discounts to clients. During 2010, total discounts that may be exercised is approximately R$36,501 and the discount, if this option is exercised shall be recorded in the income statement, under financial expenses. b) In the first quarter of 2010 bad debts of R$746 were written-off An allowance for doubtful accounts was set up based on certain premises and in an amount deemed sufficient to meet any asset realization losses, in accordance with the ANEEL guidelines summarized as follows: Customers with significant debts (large accounts): - Outstanding balances of customer accounts are reviewed on a case-by-case basis and per consumer class. In all other instances: - Residential consumers over 90 days past due. - Commercial consumers over 180 days past due. - Industrial, rural, government, public lighting, utility, and other accounts over 360 days past due. Overdue and falling due balances related to electric power billed sales and debt payment by installments are distributed as follows:
Billed sales and renegotiated debts Residential Industrial Commercial Rural Public sector Public lighting Public utility Total - current and non-current Maturing balance 223.303 23.954 141.676 521 39.193 11.938 261.692 702.277 Matured balances Overdue up to Overdue over 90 days 90 days 186.388 14.979 48.065 332 32.799 3.106 770 286.439 639.139 168.434 292.041 611 113.065 33.020 9.718 1.256.028 TOTAL 3/31/2010 1.048.830 207.367 481.782 1.465 185.057 48.063 272.180 2.244.744 12/31/2009 1.053.757 216.120 377.087 1.437 160.921 41.045 279.019 2.129.386 Allowance for bad debts (PCLD) 3/31/2010 (622.579) (38.446) (211.807) (477) (5.222) (1.572) (537) (880.640) 12/31/2009 (616.265) (28.986) (167.098) (388) (4.300) (808) (6) (817.851)

29

TAXES AND CONTRIBUTIONS


Parent Company Assets Liabilities 3/31/2010 12/31/2009 3/31/2010 12/31/2009 CURRENT Tax credits IRPJ and CSLL (a) Prepaid IRPJ/CSLL Other TOTAL 851 851 703 71 774 130 130 53 53

Consolidated Assets 3/31/2010 12/31/2009 CURRENT Tax credits IRPJ and CSLL (a) IRRF (Withholding Income Tax) recoverable IRRF (Withholding Income Tax) payable ICMS recoverable ICMS payable Installment Payments - Law 11,941/09 (b) PIS/COFINS recoverable (d) PIS/COFINS payable Prepaid IRPJ/CSLL Provision for IRPJ/CSLL Other TOTAL NON-CURRENT Installment Payment - Law 11,941/09 (b) ICMS recoverable (c) TOTAL 126.418 11.522 111.748 11.231 24.522 31.771 317.212 55.583 55.583 102.073 11.522 109.704 6.634 181.364 31.371 442.668 40.767 40.767 3/31/2010 Liabilities 12/31/2009 2 5.561 21.684 57.420 188.835 11.678 285.180 303.585 303.585

736 3.485 28.571 55.897 49.418 9.426 147.533 301.199 301.199

)a The balance refers to negative balance tax credits recoverable arising from withholdings of cash investments and government agencies in the amount of R$9,503 and prepaid Income Tax and Social Contribution credits for 2008 and 2009 amounting to R$116,915. The variation of the amounts for the quarter is obtained by the adjustment based on the Selic rate in the amount of R$ 1,758, including new credits in the amount of R$50,670, net of offsets in the year, amounting to R$28,083. )b New REFIS (Tax Recovery Program) - (Law 11,941/09) Light has been making monthly minimum payments of one hundred reais as provided for by laws, plus payment of installments deriving from migration of PAES (Special Installment Payment Program) - Social Security (REFIS II), in the consolidated amount of R$1,752, since it awaits to be summoned by Brazilian Federal Revenue Office for due consolidation. The variation of balance is justified by SELIC adjustment in the period, amounting to R$6,252, in addition to the amount paid to PAES Social Security previously mentioned.

30

Due to the adhesion to the New REFIS, the Company filed a petition to partially discontinue the writ of mandamus 2003.51.01.005514-8, specifically concerning the taxation thesis (Cash Basis x Accrual Basis) of the companies LIR and LOI, however, the Company will still discuss the equity pick-up taxation, under exact terms set forth in Article 13, paragraphs 4 and 5, combined with Article 2 of PGFN/RFB Joint Ordinance 13 of November 19, 2009. Nevertheless, the National Treasury did not accept Lights petition for partial discontinuance, under the allegation that two revenues would be inseparable. Currently, Light awaits the examination of new petition filed and does not expect any effect on the adhesion to REFIS deriving therefrom. )c The amount of the state VAT (ICMS) recovery on March 31, 2010 includes R$25,671 (R$34,675 on December 31, 2009) of credits deriving from the renegotiations of the CEDAE debt in July and December 2006. )d Recoverable PIS (Social Contribution Tax on Gross Revenue for Social Integration Program) and COFINS (Social Contribution Tax on Gross Revenue for Social Security Financing) balance refers to contributions retained by public authorities and services rendering. DEFERRED TAXES
Consolidated 3/31/2010 12/31/2009 Tax Base Deferred tax Tax Base Deferred tax

ASSETS Income Tax Tax Losses Temporary Differences Social Contribution Negative Base Temporary Differences Total

1.337.044 1.979.431

334.261 494.858

1.385.458 1.917.214

346.365 479.304

1.255.243 1.979.431

112.972 178.149 1.120.239

1.303.657 1.917.214

117.329 172.549 1.115.546

LIABILITIES Income Tax Temporary Differences Social Contribution Temporary Differences

Consolidated 3/31/2010 12/31/2009 Tax Base Deferred tax Tax Base Deferred tax

956.466

239.117

885.972

221.493

956.466

86.082

885.972

79.737

Total

325.198

301.230

31

The interim difference taxable basis breakdown is as follows:


Consolidated 3/31/2010 IR ASSETS Allowance for doubtful debtors Provision for profit sharing Provision for labor contingencies Provision for tax contingencies Provision for civil contingencies Impacts resulting from the adoption of the new CPCs Other provisions TOTAL - ASSETS LIABILITIES Deemed cost - Light Energia Other provisions 871.962 28.452 164.026 191.693 255.226 263.584 204.488 1.979.431 CSLL 871.962 28.452 164.026 191.693 255.226 263.584 204.488 1.979.431 IR 808.427 26.223 256.734 163.654 179.490 357.602 125.084 1.917.214 12/31/2009 CSLL 808.427 26.223 256.734 163.654 179.490 357.602 125.084 1.917.214

776.660 179.806 956.466

776.660 179.806 956.466

786.000 99.972 885.972

786.000 99.972 885.972

Reconciliation of effective and nominal rates of the provision for income and social contribution taxes:
Consolidated 3/31/2010 3/31/2009 293.471 285.741 34% 34% (99.780) (97.152) (63) (2.873) 31.931 11.764 (753) (3.412) (27) 18 (68.692) (91.655) (49.416) (19.276) (68.692) (33.625) (58.030) (91.655)

Earnings before Income and Social Contribution Taxes (LAIR) Combined income and social contribution tax rate Income and social contribution taxes at statutory rates Income and social contribution tax effect on permanent additions and exclusions Income and social contribution tax effect on equity in the earnings of subsidiaries Effect of offshore income and social contribution taxation Deferred tax credits not recognized CVM 371/02 - Light S.A. Tax incentives Others Income tax and social contribution on income Current income tax and social contribution on income Deferred income tax and social contribution on income

CONCESSION FINANCIAL ASSETS Owing to its utility nature, distribution of electric power is governed by certain Utility Concession Agreements and any subsequent amendments thereto, entered into by the Union (Granting Authority - Grantor) and the subsidiary Light Servios de Eletricidade S.A (Operator). These agreements generally contain provisions governing matters such as follows: Which services the Operator must provide and to whom (i.e. consumer classes) such services must be provided.

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These concession agreements contain a service level clause or provisions establishing performance standards applicable to utility services, usually addressing quality maintenance and improvement in connection with any services provided to the public. Additionally, the Operator is required, upon expiration of the concession, to return infrastructure assets in the same operating conditions as they were handed over when the agreement was executed. In order to satisfy and meet these obligations, investments are made on an ongoing basis over the term of the concession. Therefore, some assets associated with the concession contract may be replaced a number of times before the concession expires. Once the concession expires, infrastructure assets are "reverted" (i.e. returned) to the granting authority upon payment of a certain compensation. Concession prices are fixed through a rate methodology set forth in each concession agreement that is based on a parametric formula (Portions A and B), and includes a review mechanism to ensure that the restated/escalated rates will be sufficient to cover any costs, repay investments made and provide return on the capital invested. Based on the features of the electric power distribution agreement of the subsidiary, management is of the opinion that the requirements for application of Accounting Interpretation ICPC 01 - Concession Contracts, which interpretation provides guidelines addressing how to account for concession of utility services to private operators, have been successfully met in order to reflect the electric power distribution business, comprising: a) An estimated portion of any investments made and not repaid or amortized before the concession expires, net of special obligations classified as financial assets due to their nature as an unqualified right to receive cash or any other financial asset directly from the granting authority. b) A portion remaining after the financial asset was determined, net of any special obligations classified as intangible assets because recovery of the same is contingent upon the utility service being used. The infrastructure handed over or built in connection with the power distribution business, originally represented by power, plant and equipment and other intangible asset items of the subsidiary, is recovered through two distinct cash flows, as follows: a) a portion of the infrastructure is recovered through selling power distribution services to consumers (monthly billing of power consumed/sold) during the term of the concession; and

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b) another portion is recovered by way of the compensation payable for revertible assets upon expiration of the concession, which compensation will be paid directly by the Granting Authority or any of its agents. Management estimates that the compensation payable for the financial assets will be made based on the not yet amortized portions of investments in revertible concession infrastructure assets, determined at the cost of acquisition/construction, made for the purpose of ensuring stable, continuously improved provision of utility services, net of any special obligations. This compensation has been determined at transition date.
Below is a summary of transactions related to the balances of revertible assets (concession assets):

Balance as of December 31, 2009 Additions Balance as of March 31, 2010

354.784 10.205 364.989

OTHER RECEIVABLES
Parent Company 3/31/2010 12/31/2009 CURRENT Advances to suppliers and employees Property rental Public lighting fee Expenditures to refund Subsidy to low-income segment (a) Other amounts receivable - ILP Other Total NON-CURRENT Assets and rights for disposal Other Total 14 1.544 1.558 31 18.634 1.547 20.212 Consolidated 3/31/2010 12/31/2009 21.981 402 27.501 14.441 15.423 7.784 87.532 20.395 425 25.119 10.779 15.256 18.634 6.642 97.250

7.229 1.438 8.667

7.229 1.496 8.725

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INVESTMENTS
Parent Company 3/31/2010 12/31/2009 Accounted for under the equity method: Light SESA Light Energia S.A. Light Esco Prestao de Servios S.A. Lightger S.A. (a) LightCom Itaocara Energia (a) Light Solues em Eletricidade Ltda (a) Subtotal Other permanent investments SubTotal Total 2.634.502 761.451 29.526 36.767 779 11.037 50 3.474.112 169 169 3.474.281 2.699.254 747.962 27.825 25.772 11.115 50 3.511.978 1.169 1.169 3.513.147 17.586 17.586 17.586 20.388 20.388 20.388 Consolidated 3/31/2010 12/31/2009

(a) Pre-operational Company INFORMATION ON SUBSIDIARIES


3/31/2010 Light SESA Light Energia Light Esco LightCom Light Solues em Eletricidade Instituto Light Itaocara Energia Light Ger
Ownership interest (%) $ $ $ $ $ $ $ 100 100 100 100 100 100 100

Ownership interest (%) $ $ $ $ $ $ $ $


Paid-up capital 2.082.365 77.422 7.584 50 300 17.294 23.791

Paid-up capital 2.082.365 77.422 7.584 1.000 50 300 17.294 34.791


Shareholders' equity 2.699.254 747.962 27.825 50 11.115 25.772 Dividends receivable (125.510) (26.833) (3.358) -

Shareholders' equity 2.634.502 761.451 29.526 779 50 11.037 36.767


Dividends received (481.564) (18.074) -

Income / loss for the period 211.887 13.489 1.701 (221) (78) (5)
Additional Dividends Paid (169.729) Income for the year 541.589 84.763 14.141 (617) 4.406

Total Assets 8.183.481 1.538.389 60.173 12.828 69 2 137.519 41.102


Total Assets 8.419.932 1.616.010 58.753 69 2 129.530 32.905

100 100 100 100 100 100 100 100

12/31/2009 Light SESA Light Energia Light Esco Light Solues em Eletricidade Instituto Light Itaocara Energia Light Ger

CHANGES IN INVESTMENTS IN SUBSIDIARIES


12/31/2009 Light SESA Light Energia Light Esco LightCom Light Ger Light Solues em Eletricidade Itaocara Energia 2.699.254 747.962 27.825 25.772 50 11.115 Capital increase 1.000 11.000 Dividends received (276.639) Equity method 211.887 13.489 1.701 (221) (5) (78) 3/31/2010 2.634.502 761.451 29.526 779 36.767 50 11.037

Light Energia is developing new electricity generation projects from renewable sources, aiming at increasing its production capacity and consolidating the image of a clean energy generation company. Within this objective, on March 22, 2010, two wind projects were acquired whose energy will be traded by means of Reserve Energy Auctions promoted by the government or on the free market. Central Elica So Judas Tadeu was acquired for R$990, including a goodwill in the acquisition of R$988, with nominal power of 18 MW. Central Elica Fontainha was acquired for R$864, including a goodwill of R$863, with nominal power of 16 MW.

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The projects are located in the state of Cear and the time necessary for its construction is approximately 15 months, with a 20-year expected useful life. PROPERTY, PLANT AND EQUIPMENT
Consolidated 3/31/2010 Accumulated depreciation Net value (1.392.926) (41.002) (33.721) (163.310) (7.237) (1.638.196) (1.638.196) 1.266.426 16.599 14.034 87.563 2.700 1.387.322 128.679 88.337 217.016 1.604.338 12/31/2009 Net value 1.281.715 16.770 15.336 91.141 2.305 1.407.267 112.751 80.550 193.301 1.600.568

Historical cost Generation Transmission Distribution Administration Sales In service Generation Administration In progress Total 2.659.352 57.601 47.755 250.873 9.937 3.025.518 128.679 88.337 217.016 3.242.534

The statement below summarizes the changes in property, plant and equipment:
Consolidated Balance as of 12/31/2009 PROPERTY, PLANT AND EQUIPMENT IN SERVICE Cost Land Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Total Property, Plant and Equipment in Service - Cost (-) Depreciation Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Total Property, Plant and Equipment in Service - Depreciation PROPERTY, PLANT AND EQUIPMENT IN PROGRESS Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Studies and frojects Total Property, Plant and Equipment in Progress TOTAL PROPERTY, PLANT AND EQUIPMENT 43.416 29.866 81.300 7.497 14.530 16.692 193.301 1.600.568 9.912 6.513 3.408 621 54 3.360 23.868 3.923 (153) (153) (153) 53.328 36.379 84.708 8.118 14.584 19.899 217.016 1.604.338 105.803 1.247.913 271.021 1.240.560 32.497 127.130 3.024.924 18 576 594 105.803 1.247.913 271.021 1.240.578 32.497 127.706 3.025.518 Additions Write offs Balance as of 3/31/2010

(734.988) (147.937) (616.922) (24.857) (92.953) (1.617.657)

(5.759) (1.959) (9.454) (861) (2.506) (20.539)

(740.747) (149.896) (626.376) (25.718) (95.459) (1.638.196)

(i) Subsidiary Light SESA does not hold any Union-owned resources and rights in its assets.

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INTANGIBLE ASSETS
Consolidated 3/31/2010 Accumulated amortization Net Value (3.079.659) (344.264) (3.423.923) (3.423.923) 2.655.641 70.851 2.726.492 672.443 73.659 746.102 3.472.594 12/31/2009 Net Value 2.667.560 77.070 2.744.630 489.639 188.711 678.350 3.422.980

Historic cost Intangible Concession right of use Other In Use Concession right of use Other In progress TOTAL INTANGIBLE (1) 5.735.300 415.115 6.150.415 672.443 73.659 746.102 6.896.517

(1) Net of special obligations comprising (i) contributions made by the Union, states, municipalities and consumers, (ii) any unqualified donations (i.e. not subject to any consideration in benefit of the donor), and allowances intended as investments to be made toward concession of the electric power distribution utility. A total amount of R$4,674 (R$41,295 in 2009) was carried over to intangible assets in the first quarter of 2010 by way of interest capitalization and as a contra-entry to the financial income. The infrastructure used by subsidiary Light SESA is associated with the distribution service, and therefore cannot be removed, disposed of, assigned, conveyed, or encumbered as mortgage collateral without the prior written authorization of the Granting Authority, which authorization, if given, is regulated by Resolution ANEEL No. 20/99. It is the responsibility of ANEEL in its capacity as regulatory agency to determine the estimated economic useful lives of each piece of distribution infrastructure assets for pricing purposes, as well as for the purpose of calculating the amount of the relevant compensation payable upon expiration of the concession term. This estimate is revised from time to time, represents the best estimate concerning the assets' useful lives, and is accepted in the market as appropriate for accounting and regulatory purposes.

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The management of Light SESA is of the opinion that amortization of intangible assets must be consistent with the return expected on each infrastructure asset, via the applicable rates. Thus, intangible assets are amortized over the expected length of such return, limited to the term of the concession. As a result of this amortization method, the total amount of intangible assets will be amortized at all times in a non-linear fashion. Below is a summary of changes in the intangible assets:
Consolidated Balances on 12/31/2009 In Service Concession right of use Other Total Intangible in Service (-) Depreciation Concession right of use Other Total Intangible in Service - Depreciation In Progress Concession right of use Other Total Intangible in Progress TOTAL INTANGIBLE ASSETS (I) 5.691.229 413.090 6.104.319 Additions 55.587 2.025 57.612 Write offs (1.311) (1.311) Inter-account transfers (10.205) (10.205) Balances on 3/31/2010 5.735.300 415.115 6.150.415

(3.023.643) (336.184) (3.359.827)

(57.317) (8.080) (65.397)

1.301 1.301

(3.079.659) (344.264) (3.423.923)

605.289 73.199 678.488 3.422.980

117.384 3.092 120.476 112.691

(10)

(50.230) (2.632) (52.862) (63.067)

672.443 73.659 746.102 3.472.594

SUPPLIERS
Parent Company 3/31/2010 12/31/2009 CURRENT Sales within the scope of CCEE Electric network usage charges System service charges Free energy refund to generation companies (a) Electric power auctions Itaipu binational UTE Norte Fluminense Supplies and services Total 248 248 6.348 6.348 3/31/2010 26.632 48.645 2.551 54.185 145.369 89.556 67.387 434.325 115.554 549.879 Consolidated 12/31/2009 21.813 49.024 7.284 54.185 127.704 90.837 67.688 418.535 145.646 564.181

a) Free Energy Reimbursement to Generation Companies At a meeting held December 15, 2009, the executive board of ANEEL approved the methodology and procedures applicable to determining the balances of Free Energy and Revenue Losses incurred by generation and distribution utility companies following expiration of the Extraordinary Rate Review (RTE) applicable to power supply rates. However, Resolution No. 387 as of December 15, 2009, published January 12, 2010, concluded the process of computing the Revenue Loss and Free Energy closing balances, and also determined the amounts of any reimbursement operators should pay each other, as applicable.

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Energy supply, grid charge, materials and service balances have an average settlement period of up to 90 days.
LOANS, FINANCING AND FINANCIAL CHARGES
Principal Current Non-current 69.316 (35.892) 48.366 (25.243) 5.892 20.622 6.599 9.899 214 536 114 1.473 14.292 87.604 996 82.616 80.000 350 163.962 178.254 2.455 450.000 289.155 59.344 59.344 35.029 1.368 896.695 984.299 Consolidated Charges Current Non-current 1.970 488 997 170 2 4 3.631 1 18.635 1.624 1.034 1.150 325 720 6 246 271 24.012 3.960 31.603 1.385 1.385 Total 3/31/2010 12/31/2009 71.286 68.641 (35.892) (35.060) 48.854 47.443 (25.243) (24.597) 27.511 26.364 16.668 16.185 752 852 114 446 1.477 1.439 105.527 101.713 3.452 468.635 373.395 60.378 60.494 35.354 80.720 1.724 246 271 1.084.669 5.345 1.195.541 3.809 458.381 394.139 59.806 59.811 35.284 82.601 1.812 246 194 1.096.083 5.558 1.203.354

Financing Entity TN - Par Bond TN - Collateral - Par Bond TN - Discount Bond TN - Collateral - Discount Bond TN - C. Bond TN - Debit. Conv. TN - Bib BNDES - Import KFW III , IV, and V - Tranche A/B/C TOTAL FOREIGN CURRENCY Eletrobrs CCB Bradesco BNDES - FINEM BNDES - FINEM direct BNDES - FINEM + 1 BNDES - FINEM direct PSI Working capital- Santander BNDES - PROESCO 1 RGR Sundry banking warranties TOTAL DOMESTIC CURRENCY SWAP OVERALL TOTAL

The statement below summarizes the contractual terms and conditions applicable to our Loans as of December 31, 2010:
Principal Amortization Financing Entity TN - Par Bond TN - Collateral - Par Bond TN - Discount Bond TN - Collateral - Discount Bond TN - C. Bond TN - Debit. Conv. TN - Bib BNDES - Import KFW III , IV, and V - Tranche A/B/C Date of signature 4/29/1996 4/29/1996 4/29/1996 4/29/1996 4/29/1996 4/29/1996 4/29/1996 27/3/1998 3/11/2000 Currency US$ US$ US$ US$ US$ US$ US$ UMBNDES US$ UFIR CDI TJLP TJLP TJLP CDI TJLP Interest Rate p.a. 6% U$ Treasury Libor + 13/16 U$ Treasury 8% Libor + 7/8 6% BNDES basket + 4% Libor + 0.65% Beginning $ $ $ $ $ $ $ $ $ 2.024 2.024 2.024 2.024 2.004 2.004 1.999 2.000 2.003 Payment Lump sum Lump sum Lump sum Lump sum Half-yearly Half-yearly Half-yearly Mensal Half-yearly Monthly and quarterly $ $ $ $ $ $ $ 2.012 2.009 2.011 2.011 2.011 2.009 2.009 Yearly Monthly Monthly Monthly Monthly Yearly Monthly Remaining Installments $ 1 $ 1 $ 1 $ 1 $ 9 $ 5 $ 8 $ 1 $ 2 between 2 and 120 $ 6 $ 54 $ 72 $ 72 $ 101 $ 1 $ 61 End 2.024 2.024 2.024 2.024 2.014 2.012 2.013 2.010 2.010

$ $ $ $ $ $ $ $ $

Eletrobrs CCB Bradesco BNDES - FINEM BNDES - FINEM direct BNDES - FINEM + 1 BNDES - FINEM direct PSI Working capital - ABN Amro BNDES - PROESCO

Sundry 18/10/2007 05/11/2007 30/11/2009 30/11/2009 30/11/2009 27/8/2008 12/12/2008

5% CDI + 0.85% TJLP + 4.3% TJLP + 2.58% TJLP + 1% + 2.58% 4,5% CDI + 0.95% TJLP + 2.5%

2013 to 2017 $ 2.017 $ 2.014 $ 2.017 $ 2.017 $ 2.019 $ 2.010 $ 2.014

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In addition to the collaterals indicated above, loans are guaranteed by receivables in the approximate amount of R$45,662. The principal of long-term loans and financing matures as follows (excluding financial charges), as of March 31, 2010:
Consolidated 3/31/2010 Foreign Currency 12.598 9.406 6.106 2.946 56.548 87.604

Local Currency 2011 2012 2013 2014 2015 2016 after 2016 TOTAL 78.565 182.496 182.483 161.592 99.252 99.174 93.133 896.695

Total 91.163 191.902 188.589 164.538 99.252 99.174 149.681 984.299

In percentage terms, the variation of major foreign currencies and economic ratios in the period, which are used to adjust loans, financing and debentures, was as follows in the periods:
3/31/2010 USD EUR UMBNDES IGP-M CDI SELIC 2,29 (3,98) 3,09 2,78 2,02 2,03 3/31/2009 (0,93) (4,94) (0,79) (0,92) 2,89 2,90

Covenants The funding of CCB Bradesco, the loans with ABN Amro and with BNDES FINEM, classified as current and non-current, requires that the Company maintain certain debt ratios and interest coverage. In the period ended March 31, 2010, the Company and its subsidiaries are in compliance with all required debt covenants.

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DEBENTURES AND FINANCIAL CHARGES


Consolidated Charges Current 16.664 9.423 26.087

Financing Entity Debentures 1st Issue Debentures 4th Issue Debentures 5th Issue Debntures 6th Issue LOCAL CURRENCY - TOTAL

Principal Current Non Current 19 68.221 68.240 81 852.591 296.686 1.149.358

3/31/2010 100 937.476 306.109 1.243.685

Total 12/31/2009 8.057 107 955.598 298.409 1.262.171

Contractual conditions of debentures on March 31, 2010 are as follows:


Date of Signature 30/06/2005 22/01/2007 01/06/2009 Interest Rate p.a. TJLP + 4% CDI + 1.50% 115% of CDI Principal Amortization Remaining Installments Payment Monthly Quarterly Lump Sum $ $ $ 63 16 1 $ $ $

Financing Entity Debentures 4th Issue Debentures 5th Issue Debentures 6th Issue

Currency TJLP CDI CDI

Beginning $ $ $ 2.009 2.008 2.011

End 2.015 2.014 2.011

Total principal amount is represented net of debentures issue costs, as provided for in CVM Resolution 556/08. These costs are detailed in the table below.
Incurred value 7.445 5.760 1.977 15.182 3/31/2010 Value to be recognized 23 6.688 3.314 10.025 Total Cost 7.468 12.448 5.291 25.207 12/31/2009 Total Cost 1.070 7.468 12.448 5.291 26.277

Issue Debentures 1st Issue Debentures 4th Issue Debentures 5th Issue Debentures 6th Issue TOTAL

The portions related to the principal of long-term debentures have the following maturities (excluding financial charges) on March 31, 2010: Local Currency 347.866 198.241 268.241 335.002 8 1.149.358

2011 2012 2013 2014 2015 TOTAL

Covenants Classified in the current and non-current, the 5th and 6th Issue of Debentures require the maintenance of indebtedness indexes and coverage of interest rates. In the period ended March 31, 2010, the Company and its subsidiaries complied with all the covenants required.

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REGULATORY CHARGES
Consolidated 3/31/2010 12/31/2009 CURRENT Fuel usage account quota CCC Energy development account quota CDE Reversal global reserve quota RGR Incentive Program to Electric Power Alternative Sources PROINFA Charges for capacity and emergency acquisition 19.323 17.182 5.182 8.926 73.168 123.781 4.298 17.173 5.359 10.792 73.169 110.791

CONTINGENCIES Light S.A. and its subsidiaries are party in tax, labor and civil lawsuits and regulatory proceedings in several courts. Management periodically assesses the risks of contingencies related to these proceedings, and based on the legal counsels opinion it records a provision when unfavorable decisions are probable and whose amounts are quantifiable. In addition, the Company does not record assets related to lawsuits with a less-than-probable chance of success, as they are considered uncertain. Provisions for contingencies are as follows:
Consolidated Balance as of December 31, 2009 Additions Restatements Write-offs / payments Write-offs / reversals Balance as of March 31, 2010 Escrow deposits Balance as of March 31, 2010 Labor 163.655 1.562 (1.190) 164.027 Civil 252.149 11.023 4.666 (17.187) 250.651 Tax 166.426 11.025 177.451 Other 87.123 25.393 1.389 (18.275) 95.630 Total 669.353 37.978 17.080 (36.652) 687.759

7.438

24.658

36.513

1.655

70.264

19.1 Labor Contingencies There are approximately 3,642 labor-related legal proceedings in progress (3,680 on December 31, 2009) in which the Company and subsidiaries are the defendants. These labor proceedings mainly involve the following matters: overtime; hazardous work wage premium; equal pay; pain and suffering; subsidiary/joint liability of employees from outsourced companies; difference of 40% fine of FGTS (Government Severance Indemnity Fund for Employees) derived from the adjustment due to understated inflation and overtime.

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In December 2007, we point out that the subsidiary Light SESA was notified that they must reply to the public civil action filed by the Public Prosecution Office of Labor (MPT) of the 1st Region, contesting on court the fact that the Company engages other companies to provide services related to its main and ancillary activities. Said lawsuit was granted relief on April 4, 2008. The suspensive effect was granted to the Ordinary Appeal lodged by Light SESA. Light SESAs legal counsels believe in a favorable decision in these actions. On March 25, 2009, Lights Ordinary Appeal was heard and granted by unanimous vote of the 8th Chamber of the Regional Labor Court. Light filed a review appeal restricted to standing to sue. The MPT filed a motion for clarification of judgment in the appellate court, which was not accepted. Then, the MPT lodged an review appeal. On December 11, 2009, Lights and MPTs review appeals were rejected. MTP and Light lodged interlocutory appeal under review appeal, which has not been analyzed yet. Light SESAs legal counsels believe a favorable decision in these actions is possible. 19.2 Civil Contingencies The Company and its subsidiaries are defendants in approximately 39,799 civil legal proceedings (39,506 on December 31, 2009), of which 15,600 are in the state and federal courts referring to Civil Proceedings (14,947 on December 31, 2009), among which those claims that can be accurately assessed amounting to R$730,758 (R$747,873 on December 31, 2009) and 24,199 are in Special Civil Courts (24,559 on December 31, 2009), with total claims amounting to R$349,956 (R$377,124 on December 31, 2009).
Civil Contingencies Accrued Value (probable loss) 3/31/2010 a) Civil proceedings b) Special civil court c) "Cruzado" Plan Total 123.377 27.261 100.013 250.651 12/31/2009 124.576 29.555 98.018 252.149

a) The Provision for civil proceedings comprises lawsuits in which Light SESA is the defendant and it is probable the claim will result in a loss in the opinion of the respective attorneys. The claims mainly involve alleged moral and property damage as well as consumers challenging the amounts paid. The Company is also party to civil proceedings that Management believes that risk of loss are less than probable, based on the opinion of its legal counsels. Therefore, no provision was established. The amount, currently assessed, represented by these claims is R$458,457 (R$480,060 on December 31, 2009).

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b) Lawsuits in the Special Civil Court are mostly related to matters regarding consumer relations, such as improper collection, undue power cut, power cut due to delinquency, network problems, various irregularities, bill complaints, meter complaints and problems with ownership transfer. There is a limit of 40 minimum monthly wages for claims under procedural progress at the Special Civil Court. Accruals are based on the moving average of the last 12 months of condemnation amount. c) There are civil actions in which some industrial consumers have challenged, in court, the increases in electric power tariff rates approved in 1986 by the National Department of Water and Electric Power (Cruzado Plan). The provision includes a civil action in the public interest, under phase of calculation of the award. 19.3 Tax Contingencies The provisions established for tax contingencies are as follows:
Tax Contingencies Accrued Value (probable loss) 3/31/2010 PIS/COFINS RGR and CCC INSS tax deficiency notice INSS quarterly ICMS CIDE Other Total 8.561 39.672 21.736 98.367 4.834 4.281 177.451 12/31/2009 8.561 39.291 21.504 88.039 4.792 4.239 166.426

After the enactment of Law 11,941/2009, which enabled the payment of federal tax debts by installments, Light SESA decided to include the debts of some legal and administrative proceedings in the abovementioned installment program totaling R$713,000. It is worth mentioning that the adhesion to said installment payment was already granted by the Brazilian Federal Revenue Office, according to the terms of the e-mail sent to Light SESA on December 12, 2009. Currently, the consolidation of these debts is awaited. The Company and its subsidiaries are also parties to tax, regulatory and legal proceedings in which Management, based on the opinion of its legal counsels, believes the risks of loss are less than probable, and for which no provision was recorded. Currently, the quantifiable amount of these proceedings is R$1,229,600 (R$1,156,600 on December 31, 2009).

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The tax proceeding, deemed as possible loss, had effects in the quarter: (i) ICMS (Aluvale). These are tax foreclosures related to the ICMS deferral in the supply of electric power for the consumer ALUVALE, an electro-intensive industrial consumer. A motion to stay was filed. Motions to stay were deemed groundless in three tax foreclosures and Light brought the corresponding appeals. The amount of these tax foreclosures on March 31, 2010 is R$235,000 (R$168,800 on December 31, 2009), according to the statement made available by SEFAZ-RJ. The total amount of this debt is secured by a letter of guarantee tendered by Vale, as actual taxpayer of this ICMS. 19.4 Other Contingencies a) Administrative Regulatory Contingencies The Company has regulatory contingencies of its subsidiary Light SESA in 1Q10, derived from administrative challenges against ANEEL: a.1) Tax Deficiency Notice 095/2009-SFE The notice was drawn up on November 30, 2009, under the allegation that Light SESA has infringed DEC (Equivalent Duration of Interruption per Client) and FEC (Equivalent Frequency of Interruption per Client) continuity indexes of 15 groups in 2008, and fine in the amount of R$3,982, to which a provision was recorded. On March 26, 2010, Light SESA paid a fine amounting to R$4,075, adjusted by Selic rate. a.2) Tax Deficiency Notice ANEEL 007/2010-SFE The notice was drawn up on February 17, 2010, including a fine of R$9,544 as a result of the inspection conducted by the Agency in December 2009 in order to identify and assess the causes of interruptions in the Concessionaires underground distribution system. Light SESA filed its defense on March 5, 2010 requesting the cancelation of non-conformities, and subsidiarily a reduction of fines. Alternatively to the imposition of fines, Light SESA pleaded to convert the fine into the Conduct Adjustment Agreement (TAC). Currently, we await ANEELs final decision on the appeal lodged and the pleading for TAC. The Company set up a provision for the total fine amount. a.3) Tax Deficiency Notice ANEEL 071/2010-SFF The notice was drawn up on March 17, 2010, including a fine in the amount of R$448 under the allegation that nonconformities were verified in the economic, financial and accounting inspection conducted in the Concessionaire. Light SESA lodged an appeal on April 1, 2010, requesting to convert fines into warning and currently awaits ANEELs decision thereon. The Company set up a provision for the total fine amount.

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b) Environmental Contingencies In February 2010, a settlement between subsidiary Light Energia and the municipality of Barra do Pira and the Public Prosecutor Office was ratified at court, resulting from the public civil action, in which the plaintiff requested the remediation and recovery of several environmental damages caused by the construction of the Santa Ceclia and Santana plants, as an integral part of the transposition system of waters from the Rio Paraba do Sul basin to the Rio Guand basin, feeding the Fontes, Nilo Peanha and Pereira Passos plants. The settlement amount was R$14,200 (to be paid by installments until June 2010), considering that Light Energia had a provision of R$6,000, the difference was accrued in 1Q10. After the compliance with liabilities assumed by the Company (payment of R$14,200) and by municipality (dredging in Pira river), both lawsuits will be shelved. POST-EMPLOYEMENT BENEFITS Light Groups companies sponsor Fundao de Seguridade Social BRASLIGHT, a nonprofit closed pension entity, whose purpose is to provide retirement benefits to the Companys employees and pension benefits to their dependents. BRASLIGHT was incorporated in April 1974 and has four plans - A, B, C and D established in 1975, 1984, 1998 and 2010, respectively, with about 96% of the active participants of the other plans having migrated to plans A and B. Current plans in effect include defined-benefit- (Plans A and B), mixed-benefit(Plan C), and defined-contribution plans (Plan D). BRASLIGHT and Light groups companies created a new Social Security Benefit Plan called Plan D, which became effective on March 22, 2010, approved by the National Superintendence of Supplementary Private Pension (PREVIC). This plan adopts the defined contribution model and aims at reducing, on a medium and long-term basis, the exposure to actuarial and economic-financial risks of benefit plan, improving the risk benefits (retirement due to disability and pension due to active participants decease) of Plan C and enable the appointment, as beneficiary, of any person defined by alive participant, among other benefits. The adhesion to the new plan may occur until July 20, 2010 for current participants of other plans and within 120 days for new employees.

46

a) Below is a summary of the Company's liabilities involving pension plan benefits as stated on its balance sheet:
Current Contractual debt with pension fund Other Total 94,450 138 94,588 3/31/2010 Non Current 871,410 871,410 Total 965,860 138 965,998 Current 95,044 95,044 12/31/2009 Non Current 861,386 861,386 Total 956,430 956,430

The statement below summarizes the changes in agreement liabilities in quarters ended March 31, 2010 and 2009:
Total Consolidated Contractual liabilities on 12/31/2009 Amortization in the period Restatements in the period Transfer to current Contractual liabilities on 3/31/2010 956.430 (22.869) 32.299 965.860 Current 95.044 (22.869) 12.779 9.496 94.450 Non-current 861.386 19.520 (9.496) 871.410

b) Plan description Plan A/B - Benefits in these plans are 'defined benefits' and correspond to the difference between application of certain percentage, between 80% and 100%, of the average of the last 12 and the last 36 salaries, escalated as of the date the benefit began to be paid out, and the amount of the benefit paid by the INSS, whichever is the highest. Plan C - During the capitalization phase, elective benefits are 'defined-contribution' benefits not linked to INSS benefits, and contingent benefits (i.e. sickness allowance, permanent disability pension, pensions payable upon death of active, disabled, or sick participants), as well as continued income, once granted, are 'defined' benefits. The assets of the two portions are determined in shares. For a participant migrating from Plan A/B to Plan C, a settled lifetime income benefit was granted, revertible into a pension benefit, proportionate to the amount of contributions made to Braslight at migration time, as of the participant's latest enrollment in the Fundao, which is deferred until the participant has satisfied a number of qualification requirements. This portion is called the Plan C Settled Defined Benefit Subplan. Plan D - This plan was approved by the Ministry of Social Security's National Bureau of Supplementary Pension (PREVIC/MPS) on March 22, 2010 and up to March 31, 2010, there were no contributions. In this plan, benefits are 'defined contribution' benefits before and after the relevant grant

47

21.

OTHER DEBTS
Parent Company 3/31/2010 12/31/2009 Consolidated 3/31/2010 12/31/2009 21.118 4.649 1.094 2.189 77.266 46.205 53.998 45.235 251.754 8.691 4.293 1.038 2.173 76.012 49.090 51.402 11.622 31.707 236.028

CURRENT Advances from clients Compensation for use of water resources Energy Research Company EPE National Scientific and Technological Development Fund FNDCT Energy Efficiency Program PEE Research and Development Program P&D Public lighting fee Other debits - reimbusements to consumers Other Total NONCURRENT Provision for success fees Reversal reserve Use of Public Asset - UBP (a) Other Total

1.561 1.561

1.524 1.524

13.275 69.933 118.860 1.999 204.067

13.275 69.933 115.651 9.836 208.695

a) In accordance with Concession Agreement No. 12/2001 dated March 15, 2001, which governs the development of the hydroelectric potential of the Paraba do Sul river in the municipalities of Itaocara and Aperib, subsidiary Itaocara Energia Ltda. shall pay to the Unio, by way of a fee owing to use of a public asset, as of the start-up date (scheduled for 2013) and until the concession expires or while the hydroelectric potential is being exploited, monthly installments equal to 1/12 (one twelfth) of the proposed annual payment of R$2,017, duly escalated against the variation of the IGP-M, or any other index as shall replace the former. The contra-entry to liability escalation is being recognized as an intangible asset during the construction phase, without any impact on the income. Following start-up, the escalation will be recognized directly in the income for the year (see note 13). 22. RELATED-PARTY TRANSACTIONS

Light S.A. has as controlling group the Companhia Energtica de Minas Gerais CEMIG, Andrade Gutierrez Concesses, Luce Empreendimentos e Participaes S.A. and Rio Minas Energia Participaes S.A (RME) company controlled by Equatorial Energia (see Note 23). Interest in operating subsidiaries are outlined in the Note 1.

48

Below, a summary of related-party transactions occurred in the quarters ended March 31 2009 and 2010:
Relationship with Light S.A. Item 1 Contracts with the same group (Agreement objectives and characteristics) Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Sale agreement of electric power between Light Energia and CEMIG Strategic agreement Collection of distribution system usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light Energia and CEMIG Strategic agreement 7 Sale committment of electric power between Light Energia and CEMAR* Loans FINEM Loans 9 Credit Facility Loans 10 BNDES Debentures 1st issue - Non-convertible Loans BNDES Pr Esco and Energy Efficiency Projecy Loans BNDES Debentures 4th issue - Convertible Loans Credit facility - Direct Loans 14 Credit facility - Direct + 1% Loans 15 Credit facility - Direct PSI Pension Plan 16 Fundao de Seguridade Social (Social Security Foundation) - BRASLIGHT BNDES BNDES BNDES BNDES CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) Equatorial (party of the controlling group) Assets 3/31/2010 12/31/2009 3/31/2010 Consolidated Liabilities 12/31/2009 Revenue 3/31/2010 3/31/2009 3/31/2010 Expenses 3/31/2009

2.326 190 13 952 -

2.528 180 13 1.106 -

8.597 164 2.208 373.395 114 1.724 100 60.378 60.494 35.354 965.998

8.492 2.248 394.139 446 8.057 1.812 107 59.806 59.811 35.284 956.430

5.028 572 30 2.144 -

5.266 512 29 2.134 -

21.297 362 4.975 9.112 21 36 20 1.239 1.378 390 32.296

25.177 3.441 11.045 26 403 15 13 9.192

BNDES

11

12

13

BRASLIGHT (party of the controlling group)

* Equatorial Energia S.A.s subsidiary.

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Below, a summary of agreements executed with related parties:


Item Contracts with the same group Relationship with Light S.A. Original amount Maturity date or term Conditions for termination or end Remaining balance 3/31/2010 (Agreement objectives and characteristics) Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Sale agreement of electric power between Light Energia and CEMIG Strategic agreement Collection of distribution system usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light Energia and CEMIG Strategic agreement Sale committment of electric power between Light Energia and CEMAR* Loans FINEM Loans 9 Credit Facility Loans 10 BNDES Debentures 1st issue - Non-convertible Loans BNDES Pr Esco and Energy Efficiency Projecy Loans BNDES 12 Debentures 4th issue - Convertible Loans 13 Credit facility - Direct Loans 14 Credit facility - Direct + 1% Loans 15 Credit facility - Direct PSI Pension Plan 16 Fundao de Seguridade Social (Social Security Foundation) BRASLIGHT BRASLIGHT (party of the controlling group) BNDES BNDES BNDES BNDES CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) Equatorial (party of the controlling group) Date Jan/2006 Dec/2038 30% of remaining balance 30% of remaining balance N/A Price established in the regulated market Price established in the regulated market Price established in the regulated market Price established in the regulated market Price established in the regulated market Price established in the regulated market Price established in the regulated market Agreement Conditions

614.049 37.600 156.239 61.214

502.927 37.238 72.237 190 2.326 13 28.639

Jan/2010

Dec/2039

Jan/2005

Dec/2013

Nov/2003

Undetermined

N/A

Dec/2002

Undetermined

N/A

Dec/2002

Undetermined

N/A

Jan/2005

Dec/2013

N/A

BNDES

Nov/2007

Sep/2014

N/A

TJLP + 4.3% p.a.

549.331 14.147 105.000 596 767.252 57.630 57.630 30.640 535.052


Mar/1999 Apr/2010 N/A

373.395 114 1.724 100 60.378 60.494 35.354 965.998


BNDES basket + 4% p.a.

Jan/1998

Jan/2010

N/A

TJLP + 4% p.a.

11

Dec/2008

Oct/2014

N/A

TJLP + 2.5% p.a.

Jun/2005

Jun/2015

N/A

TJLP + 4% p.a.

Dec/2009

Apr/2017

N/A

TJLP + 2.58% p.a.

Dec/2009

Apr/2017

N/A

TJLP + 1% + 2.58% p.a.

Dec/2009

Sep/2019

N/A

4.5% p.a.

Jun/2001

Jun/2026

N/A

IPCA+ 6% p.a

* Equatorial Energia S.A.s subsidiary.

Related-party transactions have been executed under usual market conditions. MANAGEMENT COMPENSATION The shareholders convened at annual general meeting on March 22, 2010, approved the global compensation payable to the members of the Company's Board of Directors and Executive Board, in the amounts of R$14,506, R$2,060, and R$97, for Light Energia, Light S.A. and Light Energia, respectively. Policy regarding compensation of the Board of Directors, Executive Board, Supervisory Board and board committees.

50

i)

Pro-rata share of each component to the aggregate compensation for 2010. Board of Directors Fixed Remuneration: Variable Remuneration: Board of Executive Officers Fixed Remuneration: Variable Remuneration: Outros Fiscal Committee Fixed Remuneration: Variable Remuneration:

100% 100% 100% -

Compensation paid by the Company to the Board of Directors, Executive Board, and Fiscal Council in the first quarter of 2010:
Consolidated Board of Directors 22 290 290 290 Board of Executive Offcers 7 92 92 92 973 900 73 973

2011 Number of members Annual fixed compensation Salary or pro-labore Direct and indirect benefits Compensation for participation in Committee Other Variable compensation Bonus Profit sharing Compensation for attending meetings Commissions Other (ILP) Post-employment benefits Benefits from the assignment of office Share-based compensation Total compensation per body

Fiscal Council 5

Total 34 1,356 1,283 73 1,356

Average annual compensation due to the Board of Directors, Executive Board, and Fiscal Council in first quarter of 2010:
Parent Company Board of Executive Fiscal Council Offcers 22 24 12 18 $ 5 18 18 18 $ 7 144 126 129 $

2011 Number of members Highest individual compensation Lowest individual compensation Average individual compensation $

Board of Directors

Total 34 186 156 165

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23.

SHAREHOLDERS EQUITY

Capital Stock There are 203,934,060 non-par and book-entry common shares of Light S.A. (203,934,060 on December 31, 2009) as of March 31, 2010 recorded as Capital Stock in the total amount of R$2,225,822 (R$2,225,822 on December 31, 2009), as follows:
SHAREHOLDERS Controlling Group RME Rio Minas Energia Participaes S.A. Andrade Gutierrez Concesses S.A. Companhia Energtica de Minas Gerais S.A. Luce Empreendimentos e Participaes S.A. Other BNDES Participaes S.A. - BNDESPAR Public Treasury shares Overall Total 3/31/2010 Number of Shares 106,304,597 26,576,150 1,081,649 52,070,649 26,576,149 97,629,463 48,494,482 49,134,981 203,934,060 % Interest 52.12 13.03 0.53 25.53 13.03 47.88 23.78 24.10 100 12/31/2009 Number of Shares 106,304,597 26,576,150 26,576,149 26,576,149 26,576,149 97,629,463 49,776,782 47,593,781 258,900 203,934,060 % Interest 52.12 13.03 13.03 13.03 13.03 47.88 24.41 23.34 0.13 100

Light S.A. is authorized to increase its capital up to the limit of R$203,965,072 through resolution of the Board of Directors, regardless of amendments to the bylaws. However, this increase is to occur exclusively upon the exercise of the warrants issued, strictly pursuant to the conditions of the warrants (Bylaws, Article 5, paragraph 2). On March 25, 2010, Light S.A. disclosed a material fact on CEMIGs acquisition of twenty-five million, four hundred, ninety-four thousand and five hundred (25,494,500) common shares issued by the Company held by AGC, accounting for 12.50% of the Companys total voting capital. This transaction was foreseen in the share purchase agreement executed on December 30, 2009, between CEMIG and AGC, according to the material facts disclosed by Light, CEMIG and AGC on that date. Capital Reserves In view of the early exercise of Stock Options granted to few executives of the Company, part of the amount existing in the capital reserve on December 31, 2009 was written off and the remaining balance referring to the options which were not exercised was transferred to the profit reserve, as outlined in Note 31. Treasury Shares The Company announced in its material fact published on February 1, 2010, the conclusion of the plan for the acquisition of its shares. As of December 31, 2009, the amount of treasury shares was 258,900, or R$6,361. In January 2010 all treasury shares were delivered to executives entitled to stock options, and therefore there is no remaining balance as of March 31, 2010.

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24. DIVIDENDS PAYABLE

At the Annual General Meeting held on March 24, 2010, the shareholders approved the payment of dividends, until now recorded in a specific item within shareholders equity, based on the net income on December 31, 2009, in the amount of R$432,340, and payment was made on April 1, 2010. 25. EARNINGS PER SHARE

Pursuant to the requirements of CPC 41 and the IAS 33 (Earnings per Share), the statement below reconciles the year's earnings per share with the amounts used to determine the basic and diluted earnings per share.
3/31/2010 NUMERATOR Net income for the period (R$) DENOMINATOR Weighted average number of common shares BASIC AND DILUTED EARNINGS PER COMMON SHARE Consolidated 12/31/2009 588.804 203.933.966 2,887

224.779 203.934.060 1,102

There were no significant differences between the basic and diluted earnings per share as of March 31, 2010 and December 31, 2009. 26. NET OPERATING REVENUE BREAKDOWN
Consolidated 3/31/2010 3/31/2009 Supply to consumers/distributors (note 29) Leases, rentals and other Revenue from network usage Revenue from consrtruction Revenue from services rendered Taxed service fee GROSS REVENUE Billed supply -ICMS PIS / COFINS Other REVENUE TAXES 2,294,989 10,772 172,824 111,250 12,571 466 2,602,872 (611,046) (142,541) (1,475) (755,062) 2,185,541 9,634 145,657 111,669 8,885 659 2,462,045 (567,548) (128,376) (1,264) (697,188)

Fuel Consumption Account - CCC Energy Development Account - CDE Global Reveral Reserve - RGR Energy Research Company - EPE National Technological Development Fund - FNDCT Energy Efficiency Program - PEE Research and Development -R&D CONSUMER CHARGES TOTAL DEDUCTIONS NET REVENUE

(53,774) (51,546) (17,945) (1,645) (3,286) (7,474) (3,286) (138,956) (894,018) 1,708,854

(37,206) (51,519) (20,099) (1,503) (3,007) (6,800) (3,007) (123,141) (820,329) 1,641,716

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27.

ELECTRIC POWER SUPPLY


Consolidated Number of billed sales (1) (2) 3/31/2010 3/31/2009 GWh (1) 3/31/2010 2.416 450 1.702 13 391 167 274 17 5.430 5.430 1.130 468 1.598 7.028 3/31/2009 2.164 433 1.582 13 360 168 265 17 5.002 5.002 1.125 129 1.254 6.256 3/31/2010 802.693 90.341 502.957 2.530 116.532 25.257 54.523 1.594.833 607.279 (3.810) 2.198.302 89.765 6.922 96.687 2.294.989 R$ 3/31/2009 718.537 102.304 495.025 2.545 111.833 25.409 52.836 1.508.489 563.965 28.936 2.101.390 78.364 5.787 84.151 2.185.541

Residential Industrial Commerce, services and other Rural Public sector Public lighting Public utility Own consumption Billed sales ICMS (State VAT) Unbilled sales TOTAL SUPPLY (3) Electric power auction Short-term energy TOTAL SUPPLY OVERALL TOTAL

3.719.861 11.700 273.347 11.116 10.216 703 1.313 288 4.028.544 4.028.544 4.028.544

3.641.624 12.083 269.191 10.940 10.064 430 1.290 332 3.945.954 3.945.954 3.945.954

(1) Not revised by the independent auditors (2) Number of billed sales in December 2010, with and without consumption (3) Light SESA

28.
1.01 to 3.31

OPERATING COSTS AND EXPENSES


Cost of Service Electric Power Operation (34.569) (7.229) (36.539) (76.712) (111.250) (4.261) (270.560) Selling (3.384) (576) (18.685) (252) (63.535) (241) (86.673) Consolidated Operating Expenses General and Adm (15.457) (1.014) (28.678) (8.683) (37.989) (17.328) (109.149) Other Operating Revenues (Expenses) (244) (244) 2010 2009

Nature of the expense Personnel and management Material Outsourced services Electricity purchased for resale (Note 26) Depreciation and amortization Allowance for doubtful accounts Provision for contingencies Cost of Construction Other Total

(850.911) (850.911)

(53.410) (8.819) (83.902) (850.911) (85.647) (63.535) (37.989) (111.250) (22.074) (1.317.537)

(69.301) (4.473) (58.805) (912.971) (86.010) (60.165) (5.387) (111.669) (18.940) (1.327.721)

29.

ELECTRIC POWER PURCHASED FOR RESALE


Consolidated

1.01 to 3.31 Connection charges Spot market energy Network usage charges ESS Itaipu UTE Norte Fluminense Other contracts and electric power auctions O.N.S. PROINFA TOTAL

GWh(1) 3/31/2010 827 1.334 1.567 4.164 7.892 3/31/2009 574 1.387 1.567 3.689 7.217 3/31/2010 (4.649) (11.798) (105.211) (25.172) (140.696) (196.305) (328.543) (4.699) (33.838) (850.911)

R$ 3/31/2009 (4.752) (66.350) (99.292) (236.797) (182.340) (2.818) (29.167) (291.455) (912.971)

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30.

FINANCIAL INCOME
Parent Company 2010 2009 15 168 4 187 2 2 189 827 8 835 (23) (23) 812 Consolidated 2010 19.889 2.792 16.411 55 5.283 44.430 4.621 (6.388) (25) (17.080) (14.779) (12.450) (32.296) (2.280) (42.108) (2.395) (659) (2.743) (6.498) (2) (2.181) 270 (5.283) (142.276) (97.846) 2009 16.909 6.641 17.408 (1.090) 1.173 41.041 5.800 (8.277) (21.468) (51) (9.192) (4.435) (47.192) (5.090) (1) 20.913 (302) (69.295) (28.254)

1.01 to 3.31 REVENUES Interest and variation on debts paid by installments Restatement of tax credits Income from temporary cash investments Swap operations Other EXPENSES Adjustment at present value of receivables Surplus adjustment - Braslight Restatement of tax liabilities Restatement of provision for contingencies Banking expenses Charges and monetary variations with BNDES financing Charges and monetary variations on actuarial liability of Brasilight Interest and charges on loans and financing foreign currency Interest and charges on loans and financing domestic currency Charges on free energy transactions Interest and fines on taxes Regulatory fines Installment payment - Reduction in fines and interest rates - Law 11,941 / 09 (REFIS) Monetary variation local currency Exchange variation foreign currency Swap operations Other

NET FINANCIAL RESULT

31.

FINANCIAL INSTRUMENTS

Below, we compared book and fair values of financial instruments assets and liabilities:
Parent Company 3/31/2010 12/31/2009 Book value Fair Value Book value Fair Value ASSETS Cash and cash equivalents (note 5 ) Other credits (note 11) 434.435 1.558 435.993 434.435 1.558 435.993 14.584 20.212 34.796 14.584 20.212 34.796

LIABILITIES Suppliers (Note 15)

248 248

248 248

6.348 6.348

6.348 6.348

55

Consolidated 3/31/2010 12/31/2009 Book value Fair Value Book value Fair Value ASSETS Cash and cash equivalents (note 5 ) Marketable Securities (note 6) Concessionaires and permissionaires (note 7) Swaps Concession financial assets (note 10) Other credits (note 11) 884.418 31.000 1.695.276 118 364.989 96.199 3.072.000 884.418 31.000 1.695.276 118 364.989 96.199 3.072.000 760.313 68.059 1.653.652 4 354.784 105.975 2.942.787 760.313 68.059 1.653.652 4 354.784 105.975 2.942.787

LIABILITIES Suppliers (Note 15) Loans and financing (Note 16) Debentures (Note 17) Swaps (Note 16)

549.879 1.162.553 1.217.598 5.345 2.935.375

549.879 1.169.467 1.217.598 5.345 2.942.289

564.181 1.183.003 1.241.675 5.558 2.994.417

564.181 1.195.561 1.241.675 5.558 3.006.975

In compliance with CVM Statement No. 475/2008 and CVM Resolution No. 604/2009, which superseded Resolution No. 566/2008, the description of accounting balances and fair value of financial instruments stated in the balance sheet as of March 31, 2010 and December 31, 2009 are identified as follows:

Financial investments
Financial investments in bank deposit certificates are measures at their acquisition cost duly escalated at the balance sheet date, which value is proximate to their Fair value, as determined by the management.

Marketable Securities
Financial investments in bank deposit certificates are measures at their acquisition cost duly escalated at the balance sheet date, which value corresponds to their Fair value.

Consumers, utility operators and permit holders (customers)


These are classified as loans and receivables, being recorded at their original values and subject to a provision for losses and adjustments to their present values, where applicable.

Financial concession assets


These are classified as loans and receivables, being recorded at their original values and subject to a provision for losses and adjustments to their present values, where applicable.

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Suppliers
Accounts payable to suppliers of materials and services required in the operations of the Company and its subsidiaries, the amounts of which are known or easily determinable, added, where applicable, of relevant charges, escalation and/or exchange costs incurred as of the balance sheet date. These balances are classified as financial liability not measured at fair value and were recognized at their amortized cost, which is not significantly different from their Fair value.

Loans, financing and debentures


Loans and financing are measured by the restated amortized cost method. Fair value was calculated at interest rates applicable to instruments with similar nature, maturities and risks, or based on market quotations of these securities. Fair value for BNDES financing are identical to accounting balances, since there are no similar instruments, with comparable maturities and interest rates. In case of debentures, book and fair value are identical, as there is no liquid trading market for these debentures as an accurate benchmark in the market calculation. These financial instruments are classified as financial liabilities not measured at the fair value

Swaps
Swap operations are measured by the fair value. A the determination of fair value used available information in the market and usual pricing methodology: the face value (notional) evaluation for long position (in U.S. dollars) until maturity date and discounted at present value of clean coupon rates, published in bulletins of Securities, Commodities and Futures Exchange BM&F Bovespa. It is worth mentioning that estimated fair value of financial assets and liabilities were determined by means of information available on the market and appropriate valuation methodologies. Nevertheless, meaningful judgment was required when interpreting market data to produce the most appropriate fair value estimate. As a result, estimates used and presented below do not necessarily indicate the amounts that may be realized in current exchange market.

57

a) Financial Instruments by category:


Parent Company 03/31/2010 Fair value though profit and loss 2.050 2.050 Fair value though profit and loss Consolidated 03/31/2010 Fair value though profit and loss 440.998 31.000 118 472.116 Fair value though profit and loss 5.345 5.345

Loans and receivables ASSETS Cash and cash equivalents (note 5 ) Marketable Securities (note 6) Concessionaires and permissionaires (note 7) Swaps Concession financial assets (note 10) Other receivable (note 11) 432.385 1.558 433.943

Total 434.435 1.558 435.993

Loans and receivables 443.420 1.695.276 364.989 96.199 2.599.884

Total 884.418 31.000 1.695.276 118 364.989 96.199 3.072.000

Amortized Cost LIABILITIES Suppliers (Note 15) Loans and financing (Note 16) Debentures (Note 17) Swaps (Note 16) 248 248

Total 248 248

Amortized Cost 549.879 1.162.553 1.217.598 2.930.030

Total 549.879 1.162.553 1.217.598 5.345 2.935.375

b) Policy for utilization of derivatives The Company has a policy for utilization of derivative instruments approved by the Board of Directors determining the debt service protection (principal plus interest and commissions) denominated in foreign currency to mature within 24 months, forbidding any utilization for speculative purposes, whether in derivatives or any other risk assets. In line with provisions of this policy, the Company and its subsidiaries do not have futures contracts, options, swaptions, swaps with regret option, flexible options, derivatives embedded in other products, structure operations with derivatives and exotic derivatives. In addition, it is evidenced through the chart above that the single derivative instrument used by the Company and its subsidiaries is the non-cash currency swap (US$ versus CDI), whose Contractual Notional Value corresponds to the amount of foreign currency-denominated debt service to expire within 24 months. c) Risk management and objectives achieved The management of derivative instruments is conducted by means of operating strategies, aiming liquidity, profitability and safety. The control policy consists of permanently inspecting the policy compliance in the utilization of derivatives, as well as to monitor the rates contracted against those used in the market. d) Risk Factors During the normal course of its businesses, the Company and its subsidiaries are exposed to the market risks related to currency variations and interest rates, as evidenced in the chart below:

58

Debt breakdown (excluding financial charges):


Consolidated 3/31/2010 USD Currency Basket (BNDES) Foreign currency (current and non-current) CDI TJLP Other Local currency (current and non-current) Overall total (current and non-current) R$ 101.782 114 101.896 1.747.498 492.277 38.480 2.278.255 2.380.151 % 4,3 4,3 73,4 20,7 1,6 95,7 100 12/31/2009 R$ 99.721 444 100.165 1.763.892 521.542 39.079 2.324.513 2.424.678 % 4,1 4,1 72,7 21,5 1,7 95,9 100

On March 31, 2010, according to the chart above, the foreign currency-denominated debt is R$101,896, or 4.28% of total debt. Financial derivative instruments were contracted for the amount of foreign currencydenominated debt service to expire within 24 months, in the swap modality, whose notional value on March 31, 2010 stood at US$23,215, according to the policy for utilization of derivative instruments approved by the Board of Directors. Thus, if we deduct this amount from total foreign currency-denominated debt, the foreign exchange exposure represents 2.63% of total debt. Below we provide a few considerations and analyses on risk factors impacting on business of Grupo Light companies: Currency risk Considering that a portion of Light SESAs loans and financing is denominated in foreign currency, the company uses derivative financial instruments (swap operations) to hedge service associated with these debts (principal plus interest and commissions) to expire within 24 months. Derivative operations resulted in a R$315 gain in 1Q10 (a loss of R$1,091 in 1Q09). The net amount of swap operations as of March 31, 2010, considering the fair amount, is a negative R$5,227 (positive by R$10,491 on March 31, 2009), as shown below:
Institution Unibanco Unibanco Unibanco Citibank Citibank Citibank Ita Citibank Ita Ita Citibank Light's Receivable US$+4,53% US$+4,32% US$+4,45% US$+2,80% US$+2,80% US$+2,80% US$+2,20% US$+2,33% US$+2,30% US$+2,79% US$+3,20% Light's Payable 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI Starting Date 25/08/08 25/08/08 25/08/08 10/02/09 10/02/09 10/02/09 18/06/09 18/06/09 10/09/09 09/10/09 10/03/10 Maturity Date 12/04/10 15/04/10 15/06/10 10/09/10 11/10/10 27/12/10 10/03/11 12/04/11 12/09/11 11/10/11 12/03/12 Total Notional Value Contracted (US$ thousand) 5.887 31 426 74 5.512 376 69 5.436 67 5.273 64 23.215 Fair Value Mar/10 (R$) Assets 60 8 50 118 Fair Value Fair Value Mar/10 (R$) Dec/10 (R$) Liabilities Balance 60 8 (48) (48) (3.569) (3.569) (242) (242) (19) (19) (1.460) (1.460) (7) (7) 50 (5.345) (5.227)

59

The amount recorded was already measured by its fair value on March 31, 2010. All operations with derivative financial instruments are registered in clearing houses for the custody and financial settlement of securities and there is no margin deposited in guarantee. Operations have no initial cost.

Below, the sensitivity analysis for foreign exchange and interest rates fluctuations, showing eventual impacts on financial result of the Company and its subsidiaries. The methodology used in the Probable Scenario was to consider that both foreign exchange and interest rates will maintain the same level verified on March 31, 2010 until the end of 2010, maintaining steady liabilities, derivatives and temporary cash investments verified on March 31, 2010. It is worth highlighting that, as this refers to a sensitivity analysis of the impact on the 2010 financial result, the realized amounts of financial expense and/or revenue until 1Q10 were considered, and charges projection for the next nine months over debt balance on March 31, 2010. It is worth mentioning that the behavior of debt and derivatives balances will observe their respective contracts, and the balance of temporary cash investments will fluctuate according to the need or available funds of the Company and its subsidiaries. Risk of Exchange Rate Depreciation:
R$ Scenario (II) (140.870) (47.976) (31.787) (36.100) (21.617) (1.117) (373) (1.900)

Operation FINANCIAL LIABILITIES


Par Bond Discount Bond C. Bond Debit. Conv. Bib Bndes - Import Financ. KfW DERIVATIVES Swaps Reference for financial assets and liabilities Financial R$/US$ exchange rate (end of the period)

Risk

Scenario (I): Probable (114.518) (39.187) (25.827) (29.250) (17.430) (925) (370) (1.529)

Scenario (III) (167.222) (56.765) (37.748) (42.949) (25.803) (1.309) (377) (2.271)

USD USD USD USD USD Cesta USD USD

(2.798)

7.909 +25%

18.615 +50% 3

1,7810

2,2263 $

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Risk of Exchange Rate Appreciation:


R$ Scenario (IV) (88.166) (30.397) (19.866) (22.402) (13.244) (732) (367) (1.158)

Operation FINANCIAL LIABILITIES


Par Bond Discount Bond C. Bond Debit. Conv. Bib Bndes - Import Financ. KfW DERIVATIVES Swaps

Risk

Scenario (I): Probable (114.518) (39.187) (25.827) (29.250) (17.430) (925) (370) (1.529)

Scenario(V) (61.814) (21.608) (13.906) (15.552) (9.057) (540) (364) (787)

USD USD USD USD USD Basket USD USD

(2.798)

(13.504) -25%

(24.210) -50% 0,8905

Reference for financial assets and liabilities Financial R$/US$ exchange rate (end of the period)

1,7810

1,3358

With the chart above, it is possible to identify that despite partial hedge against foreign currency-denominated debt (only limited to debt service to expire within 24 months), as R$/US$ quote increases, liabilities financial expense also increases but financial revenues of derivatives also partially offset this negative impact and vice-versa. Thus, cash is hedged thanks to the derivatives policy of the Company and its subsidiaries.

Interest rate risk This risk derives from impact of interest rates fluctuation not only over financial expense associated with loans and financing of subsidiaries, but also over financial revenues deriving from temporary cash investments. The policy for utilization of derivatives approved by the Board of Directors does not comprise the contracting of instruments against such risk. Nevertheless, the Company and its subsidiaries continuously monitor interest rates so that to evaluate eventual need of contracting derivatives to hedge against interest rates volatility risk. See below the sensitivity analysis of interest rate risk, evidencing the effects on scenarios variation results:

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Risk of Interest Rate Increase:


Operation Risk Scenario (I): Probable 46.402 R$ Scenario (II) Scenario (III)

FINANCIAL ASSETS Temporary cash investments FINANCIAL LIABILITIES Debentures 5th issue CCB Bradesco CCB Bco ABN Amro Banking S/A Debentures 4th issue FINEM BNDES 2006-2008 FINEM BNDES 2009-2010 FINEM BNDES 2009-2010 TJLP+1 PROESCO Debentures 6th issue DERIVATIVES Swaps Reference for FINANCIAL ASSETS CDI (% YTD) Reference for FINANCIAL LIABILITIES CDI (% YTD) TJLP (% YTD)

CDI

51.992

57.535

CDI CDI CDI TJLP TJLP TJLP TJLP TJLP CDI

(218.153) (90.016) (41.480) (4.851) (13) (40.851) (5.644) (5.726) (141) (29.431) (2.798)

(253.776) (105.712) (49.069) (5.568) (14) (45.200) (6.343) (6.425) (161) (35.284) (3.568)

(289.941) (121.652) (56.777) (6.291) (15) (49.597) (7.050) (7.132) (181) (41.243) (4.334)

CDI +25% 10,18% +25% 10,18% 7,23% +50% 11,78% +50% 11,78% 8,37%

8,56%

8,56% 6,09%

Risk of Interest Rate Decrease:


R$ Scenario (IV)

Operation

Risk

Scenario (I): Probable 46.402

Scenario (V)

FINANCIAL ASSETS Temporary cash investments FINANCIAL LIABILITIES Debentures 5th issue CCB Bradesco CCB Bco ABN Amro Banking S/A Debentures 4th issue FINEM BNDES 2006-2008 FINEM BNDES 2009-2010 FINEM BNDES 2009-2010 TJLP+1 PROESCO Debentures 6th issue DERIVATIVES Swaps Reference for FINANCIAL ASSETS CDI (% YTD) Reference for FINANCIAL LIABILITIES CDI (% YTD) TJLP (% YTD)

CDI

40.764

35.077

CDI CDI CDI TJLP TJLP TJLP TJLP TJLP CDI CDI

(218.153) (90.016) (41.480) (4.851) (13) (40.851) (5.644) (5.726) (141) (29.431) (2.798)

(183.062) (74.563) (34.008) (4.140) (11) (36.550) (4.953) (5.035) (121) (23.681) (2.024)

(148.497) (59.350) (26.652) (3.434) (10) (32.296) (4.269) (4.351) (101) (18.034) (1.246)

8,56%

-25% 6,94% -25% 6,94% 4,94%

-50% 5,31% -50% 5,31% 3,78%

8,56% 6,09%

Credit risk It refers to the Company eventually suffering losses deriving from default of counterparties or financial institutions depositary of funds or temporary cash investments. To mitigate these risks, the Company uses all collection tools allowed by the regulatory body, such as disconnection for delinquency, debit losses and permanent monitoring and negotiation of outstanding positions. Concerning financial institutions, the Company only carries out operations with low-risk financial institutions classified by rating agencies.

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Liquidity risk Liquidity risk relates to the Company's ability to settle its liabilities. In order to determine the Company's ability to satisfactorily meet its financial liabilities, the streams of maturities for funds raised and other liabilities are reported with the Company's statements. Further information on the Company's loans can be found in detail in Note 16. The Company has raised funds through its operations, from financial market transactions and from affiliate companies. These funds are allocated primarily to support its investment plan and in managing its cash for working capital and liability management purposes. Management of financial investments focuses on short-term instruments in an attempt to achieve maximum liquidity and satisfy our expenditure requirements. The Company's cash-generation ability and low volatility concerning receivables and accounts payable over the year provide cash flow stability and thus reduce its liquidity exposure. The realization flow concerning future liabilities as per the relevant terms and conditions is summarized in the statement below:
1 to 3 months 86.924 3 months to 1 year 771.959 Consolidated 1 to 5 years 2.084.371 More than 5 years 208.024 Total

Interest rate instruments Fixed rate Loans, financings and debentures Interest rate instruments Fixed rate Loans, financings and debentures

3.151.278

11.344

29.026

102.220

170.187

312.777

e) Capital Management The Company manages its capital with the purpose of safeguarding its capacity to continuously offer return to shareholders and benefits to other stakeholders, in addition to maintaining the ideal capital structure to reduce costs. In order to maintain or adjust its capital structure, the Company either reviews the dividend payment policy, returns capital to shareholders or issues new shares and sells assets to reduce the indebtedness level, for instance.

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f) Hierarchical Fair Value There are three types of classification levels for the fair value of financial instruments. This hierarchy prioritizes unadjusted prices quoted in an active market for financial assets or liabilities. The classification of hierarchical levels can be presented as follows: Level 1 - Data originating from an active market (unadjusted quoted price) that can be accessed on a daily basis, including at the date of fair value measurement. Level 2 - Different data originating from the active market (unadjusted quoted price) included in Level 1, extracted from a pricing model based on data observable in the market. Level 3 - Data extracted from a pricing model based on data that are not observable in the market.
Consolidated Measurement of Fair Value Identical Similar markets markets Level 1 Level 2 440.998 31.000 118 472.116

3/31/2010 ASSETS Cash and cash equivalent (note 5 ) Marketable Securities (note 6) Swaps 440.998 31.000 118 472.116

Without active market Level 3 -

LIABILITIES Swaps (note 16)

5.345 5.345

5.345 5.345

No financial instrument classified as Level 1 or 3 was observed in the analysis period, and there was no transfer from one level to another in the same period

32.

INSURANCE

On March 31, 2010, Light Group had insurance covering its main assets, among which we can point out the following: Operational Risk Insurance - it covers material damages caused to buildings, machinery, equipment, furniture and fixtures as a result of fires, explosions, dumping, floods, earthquakes, machinery breakdown and electrical damage.

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All assets of Grupo Light are insured under the Operational Risks modality, with an All Risks coverage, except for transmission and distribution lines. Directors and Officers Liability Insurance (D&O) - It has the purpose of protecting Executives from losses and damages resulting from their activities as Directors, Officers and Managers of the Company. General and Civil Liability Insurance - focuses on the payment of indemnity if the Company is deemed civilly liable by a final and unappealable sentence or deal authorized by the insurance company, in relation to remedies for collateral damage, physical damage to people and/or material damage caused to third parties and related to pollution, contamination and sudden leakage. International Transport Insurance cargo/equipment shipping, Financial Guarantee Insurance Energy Trading (8 policies) and Fire Insurance Leased Properties. The assumptions of risks adopted, given their nature, are not included in the scope of a special review, accordingly, they were not audited by independent auditors. Insurance coverage as of March 31, 2010 is considered sufficient by Management, as summarized below:
RISKS Directors & Officers (D&O) Civil and general liabilities Operating risks* Effective Term From To 8/10/2009 9/25/2009 10/31/2009 8/10/2010 9/25/2010 10/31/2010 Amount Insured US$20.000 R$20.000 $3.572.187 Premium US$ 81 R$452 R$1.632

*The Maximum Limit of Indemnification (MLI) stood at R$300,000.

33.

SEGMENT REPORTING

Segment reporting was prepared according to CPC 22 (Segment Information), equivalent to IFRS 8, and is reported in relation to the business of the Company and its subsidiaries, identified based on their management structure and internal management information. The Company's Management considers the following segments: power distribution, power generation, power trading and others (including the holding). The Company is segmented according to its operation, which has different risks and compensation.

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Segment information for the quarters ended March 31, 2010 and 2009 are presented below:
Distribution Generation Trading Other Eliminations Consolidated 3/31/2010

Current assets Non-current assets Investments Property, plant and equipment Intangible assets Current liabilities Non-current liabilities Shareholders' equity

2.352.934 2.279.613 16.449 182.076 3.352.409 1.445.682 4.103.297 2.634.502

65.211 1.136 150 1.417.291 120.185 130.071 664.648 809.254

55.002 841 2.619 4.248 31.037 1.368 30.305

436.980 180 3.096.462 723 434.664 19 3.099.662

(80.549) (244.655) (3.096.423) (80.718) (244.657) (3.096.252)

2.829.578 2.037.115 19.257 1.604.338 3.472.594 1.960.736 4.524.675 3.477.471 Consolidated 12/31/2009

Distribution

Generation

Trading

Other

Eliminations

Current assets Non-current assets Investments Property, plant and equipment Intangible assets Current liabilities Non-current liabilities Shareholders' equity

2.592.400 2.324.417 16.448 180.658 3.306.009 1.632.313 4.088.365 2.699.254

241.920 668 150 1.414.844 116.971 256.089 733.617 784.847

49.947 1.889 2.581 4.336 29.473 1.455 27.825

191.464 68 3.514.356 730 151.750 19 3.553.680

(288.818) (307.244) (3.513.147)

(288.818) (307.244) (3.511.978)

2.786.913 2.019.798 20.388 1.600.568 3.422.980 1.780.807 4.516.212 3.553.628

Segment reporting:
Distribution OPERATIONAL REVENUE Billed supplies Unbilled supplies Supply - Electric Power Construction revenue Other DEDUCTIONS TO REVENUE Billed sales - ICMS (State VAT) Consumer charges PIS (Tax on Revenues) COFINS (Tax on Revenues) Other NET OPERATIONAL REVENUE OPERATING EXPENSES AND COSTS Personnel Material Outsourced services Energy purchased Depreciation Provisions Construction cost Other Equity in the earnings of subsidiaries FINANCIAL INCOME Financial revenue Financial expenses INCOME BEFORE TAXES Social Contribution Income tax NET INCOME 2.497.566 2.202.112 (3.810) 111.250 188.014 (876.978) (607.279) (134.808) (24.884) (108.950) (1.057) 1.620.588 (1.260.177) (46.644) (4.999) (72.701) (846.989) (70.229) (93.323) (111.250) (14.042) (87.760) 52.987 (140.747) 272.651 (16.086) (44.678) 211.887 Generation 86.013 84.545 1.468 (11.442) (4.149) (1.301) (5.989) (3) 74.571 (43.386) (4.830) (128) (3.636) (3.459) (15.265) (8.201) (7.867) (10.723) 2.516 (13.239) 20.462 (1.851) (5.145) 13.466 Trading 38.425 27.021 11.404 (5.598) (3.767) (253) (1.163) (415) 32.827 (30.923) (688) (3.655) (6.783) (19.505) (153) (139) 448 463 (15) 2.352 (217) (653) 1.482 Other (2.183) (1.248) (37) (782) (116) 226.835 189 187 2 224.841 224.841 Eliminations (19.132) (14.879) (4.253) (19.132) 19.132 19.042 90 (226.835) (11.723) 11.723 (226.835) Consolidated 3/31/2010 2.602.872 2.202.112 (3.810) 96.687 111.250 196.633 (894.018) (611.046) (138.957) (26.438) (116.102) (1.475) 1.708.854 (1.317.537) (53.410) (8.819) (83.902) (850.911) (85.647) (101.524) (111.250) (22.074) (97.846) 44.430 (142.276) 293.471 (18.154) (50.476) 224.841 Consolidated 3/31/2009 Restated 2.462.045 2.072.454 28.936 84.151 111.669 164.835 (820.329) (567.548) (123.141) (23.687) (104.689) (1.264) 1.641.716 (1.327.721) (69.301) (4.473) (58.805) (912.971) (86.010) (65.552) (111.669) (18.940) (28.254) 41.041 (69.295) 285.741 (33.625) (58.030) 194.086

(226.835)

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34.

LONG-TERM INCENTIVE PLAN

a) Stock Options On March 31, 2010, all the options to which the executives eligible by the plan were entitled have already been exercised. Nevertheless, since the Stock Option Plan agreement was terminated before the date previously agreed upon, R$15,802 referring to the options not exercised remained. Therefore, this amount was transferred from capital reserve to the profit reserve. b) Phantom Options Incentive Plan A material fact published on March 2, 2010, announced the election of the Companys new officers appointed pursuant to its Bylaws. Therefore, in March, the options to which the officers withdrawn on that date were eligible were exercised. After the exercise of these options, 787,612 options referring to the 2008 program remained. On March 31,2010 the subsidiary Light SESA set up a provision of R$866 referring to the vesting period incurred until the first quarter of 2010 against personnel expenses and reversed the amount previously set up. On December 4, 2009, a new phantom option plan was approved (2009 Program), with the same basic characteristics of the 2008 Program and number of options granted of 265,214. On March 31, 2010, the subsidiary Light SESA set up a provision of R$193 referring to the vesting period incurred up to date, against personnel expenses.

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35.

STATEMENT OF VALUE ADDED


Parent Company 1/1/2010 to 3/31/2010 1/1/2009 to 3/31/2009 (452) (452) (452) (452) 204.955 204.120 835 204.503 204.503 10.386 10.360 24 2 8 8 23 23 194.086 194.086 1/1/2010 to 3/31/2010 2.539.337 2.602.872 (63.535) (1.093.749) (850.911) (242.838) 1.445.588 (85.647) (85.647) 1.359.941 44.430 44.430 1.404.371 1.404.371 44.855 32.597 8.164 3.854 240 991.845 377.193 611.583 3.069 142.892 127.497 9.125 6.270 224.779 224.779 Consolidated

1/1/2009 to 3/31/2009 2.401.880 2.462.045 (60.165) (1.096.180) (912.971) (183.209) 1.305.700 (86.010) (86.010) 1.219.690 41.041 41.041 1.260.731 1.260.731 59.159 45.493 8.650 4.794 222 927.179 356.740 568.103 2.336 80.307 69.244 5.177 5.886 194.086 194.086

Revenues Sales of goods, products and services Other revenues Allowance/reversal of allowance for doubtful accounts Input acquired from third parties Costs of products, goods and services sold Material energy outsourced services other Gross value added Retentions Depreciation, amortization and depletion Net added value produced Added value received in transfers Equity income Financial income Total added value to distribute Distribution of added value Personnel Direct compensation Benefits Government Severance Fund for Employees (FGTS) Other Taxes, fees and contributions Federal State Municipal Third party capital remuneration Interest Rental Other Remuneration of own capital Retained earnings / accumulated losses for the period

(935) (935) (935) (935) 226.960 226.773 187 226.025 226.025 1.196 1.098 67 31 52 52 (2) (2) 224.779 224.779

36.

SUBSEQUENT EVENTS Sale of property in Triagem

On April 20, 2010 a Letter of Intent was signed between the municipality of Rio de Janeiro and Light, to sell the property with an approximate area of 123 thousand m, located in Triagem, Rio de Janeiro, destined to the home building for the population that needs to be removed from risky areas. The parties undertake to endeavor their efforts in order to release the property as soon as possible. Tariff adjustment On November 3, 2010, ANEEL approved the definite amount for the Tariff Adjustment of Light SESA. The result ratified by ANEEL considers a Tariff Adjustment of 6.99%, which comprises two components: structural, corresponding to 8.31%; and financial, which will be valid up to October 2011, corresponding to 1,33% negative. Considering the removal of the financial component from Lights current tariffs, corresponding to 4,77%, this proposal represents an average tariff increase to final consumers of 2.20%.

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Option Exercise On October 7, 2010, Enlighted Partness Venture Capital LLC (ENLIGHTED) exercised the put option of its quotas in Luce Investiment Fund (Luce Fund), to the Companhia Energtica de Minas Gerais CEMIG or to third party appointed by it, object of the Option Agreement for the Sale of Shares and other Covenants (Option) entered into on March 24, 2010 between CEMIG and ENLIGHTED. Luce Fund holds 75% of quotas in Luce Brasil Fundo de Investimento em Participaes which in turn holds, through Luce Empreendimentos e Participaes S.A. (LEPSA), 26,576,149 common shares issued by Light S.A., representing 13.03% of its voting capital. The exercise of the Option does not alter the validity of the shareholders agreement in force, entered into on December 30, 2009 and available on the website of the Brazilian Securities and Exchange Commission (CVM). Dividends paid At the Extraordinary General Meeting held on April 28, 2011, the payment of dividends was approved based on income determined on December 31, 2010, in the amount of R$350,979, and payment scheduled to May 18, 2011. Debentures issue In May 2011, Light SESA completed its 7th issue of simple, non-convertible into shares, unsecured debentures, totaling R$650,000, through public offering with restricted placement efforts, under the terms of CVM Rule 476, under a firm commitment basis. Debentures were issued on May 2, 2011, and funds were included in the cash on May 5, 2011. The remuneration was fixed at 100% of CDI rate + 1.35% annual spread, defined in a bookbuilding process, and interest will be paid in half-yearly installments and final maturity scheduled for May 2, 2016. In May 2011, Light Energia concluded its 1st issue of simple, non-convertible into shares, unsecured debentures, totaling R$170,000, through public offering with restricted placement efforts, under the terms of CVM Rule 476, under a firm commitment basis. Debentures were issued on April 10, 2011, and funds were included in the cash on May 12, 2011. The remuneration was fixed at 100% of CDI rate + 1.45% annual spread, and interest will be paid in half-yearly installments and final maturity scheduled to April 10, 2016.

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Redentor Operation At the Extraordinary General Meeting held on April 28, 2011, the overall amount of annual compensation of the Companys Board of Directors and Board of the Executive Officers was approved to R$14,915 to be paid in 2011. Redentor Operation The Company announced through a Material Fact published on May 13, 2011 that Parati S.A Participaes em Ativos de Energia Eltrica (Parati), a closely-held company, acquired 58,671,565 common shares, representing 54.08% of the total capital stock of Redentor Energia S.A. (Redentor), an indirect shareholder of the Company. Said shares were held by Fundo de Investimento em Participaes PCP (FIP PCP).

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BOARD OF DIRECTORS MEMBERS Aldo Floris Ana Marta Horta Veloso Djalma Bastos de Morais Raul Belens Jungmann Pinto Firmino Ferreira Sampaio Neto Luiz Carlos Costeira Urquiza Carlos Roberto Teixeira Junger Srgio Alair Barroso Maria Silvia Bastos Marques Carlos Alberto da Cruz Elvio Lima Gaspar FISCAL COUNCIL ALTERNATES Lauro Alberto de Luca Csar Vaz de Melo Fernandes Wilson Borrajo Cid Fernando Henrique Schuffner Neto Carlos Augusto Leone Piani Paulo Roberto Reckziegel Guedes Ricardo Simonsen Luiz Fernando Rolla Almir Jos dos Santos Carmen Lcia Claussen Kanter Joaquim Dias de Castro

MEMBERS Eduardo Grande Bittencourt (Chairman) Isabel da Silva Ramos Kemmelmeier (Member) Marcelo Lignani Siqueira (Member) Victor Adler (Member) Aristteles Luiz Menezes Vasconcellos Drummond (Member)

ALTERNATES Ricardo Genton Peixoto Ronald Gasto Andrade Reis Eduardo Gomes Santos Gabriel Agostini Ari Barcelos da Silva

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BOARD OF EXECUTIVE OFFICERS Jerson Kelman Chief Executive Officer Joo Batista Zolini Carneiro Chief Financial and Investor Relations Officer Evandro Leite Vasconcelos Energy Officer Paulo Carvalho Filho Corporate Management Officer Ana Silvia Corso Matte Personnel and Legal Officer Jos Humberto Castro Distribution Officer Paulo Roberto Ribeiro Pinto New Business and Institutional Officer

CONTROLLERSHIP AND PLANNING SUPERINTENDENCE Luciana Maximino Maia Controllership and Planning Superintendent CPF 144.021.098-50 CRC-RJ 091476/O-0 Suzanne Lloyd Gasparini Accountant Accounting Manager CPF 081.425.517-56 CRC-RJ 107359-0

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