Rio PCH I

A SPE Rio PCH I is controlled by Neoenergia, with 75% participation. The remaining. 25% belong to Performance Centrais Hidrelétricas LTDA. SPE is implementing Pequenas Centrais Elétricas de of Pirapetinga, of 20 MW, and Pedra do Garrafão, of 19 MW, in Rio Itabapoana, border of the states of Rio de Janeiro and Espírito Santo. When these powerplants start operation, they will commercialize their energy with the pool of 64 Brazilian Distributors by means of the Commercialization Contracts celebrated in the Regulated Contracting Environment.

After obtaining the Installation Environmental License in October of 2007, the construction works of the two PCH's were immediately started, estimated to be completed in 2009. Total investment for the performance of these projects of be in the order of R$ 170.0 million, being R$ 85.0 million for Pirapetinga and R$ 85.0 million for Pedra do Garrafão, financed at a proportion of 70.0% in third parties' funds and 30.0% in its own funds.

The entry of Neoenergia in this project happened on June 28, 2006, with the signature of the term of commitment between Neoenergia and Performance, and was fundamental for the feasibility of the undertaking.