Light

Investor Relations

Glossary

A

ABRADEE
Brazilian Association of Electric Power Distributing Companies.

ACL
Free Contracting Environment. Segment of the market comprising the purchase of electric power by deregulated agents (such as Free Consumers and electric power traders).

ANA
National Agency of Water.

ANEEL
Brazilian Electricity Regulatory Agency.

APA
Environmental Protection Area.

B

Basic Network
Set of transmission lines, buses, power transformers and equipment with voltage equal or higher than 230 kV, or facilities with lower voltage defined by ANEEL.

Bovespa
São Paulo Stock Exchange.

C

CAGR
Compound annual growth rate.

Company or Light
It refers to Light S.A.

CVM
Brazilian Securities and Exchange Commission.

CCEAR
Energy Commercialization Agreement in Regulated Environment.

CCEE
Electric Power Commercialization Chamber.

CNPE
National Council of Energy Policy.

Concessions Law
Law 8,987, as of February 13, 1995 and further amendments.

D

DEC
Equivalent Duration of Interruption per Customer.

E

EBITDA
EBITDA means for any period, the Net Income of Light S.A. and its subsidiaries, calculated on a consolidated basis for this period, accrued of, provided that deducted in the calculation of Net Income, without duplicity, the sum of (a) expenses related to taxes over Net Income, (b) Adjusted and Consolidated Expense of Gross Interest, (c) amortization and depreciation expense, (d) extraordinary and non-recurring losses and (e) other operational items which do not typify cash outflow and reduce the Net Income, less, provided that included in the calculation of this Net Income, without duplicity, (i) financial income, (ii) any extraordinary and non-recurring gains, and (iii) other operating revenues increasing the Net Income and not typifying cash inflow.

Electricity Sector Law
Law 9,648 as of May 27,1998 and further amendments.

F

Free Consumers
Pursuant to prevailing laws, Free Consumers (a) are those in whose consuming unit the minimum contracted demand is 3 MW, served with voltage equal or higher than 69 kV; (b) those with a minimum contracted demand of 3 MW in any segment named as “horosazonal” (consumption tariff based on hours and seasonality), served in any voltage, but, connected after July 8,1995.

G

GCE
Chamber of Electric Power Crisis Management, established by means of Provisional Measure 2,198-5/2001.

General Agreement of the Electric Sector
CAgreement established in view of the electric power rationing enacted by Provisional Measure 14, converted in Law 10,438, as of April 26, 2002.

Granting Power
Federal government.

H

I

IASC
ANEEL Consumer Satisfaction Index.

IFRS
International Financial Reporting Standards.

J

K

L

Law of New Model of Electricity Sector
Law 10,848, as of March 15, 2004, regulated by Decrees 5,163, dated July 30, 2004, 5,175, dated August 9,2004, and 5,184, dated August 16, 2004.

M

N

O

ONS
Electric System National Operator.

P

Preliminary Agreements
Electric power supply agreements with prices and quantities approved by ANEEL, entered into between generation and distributing companies pursuant to Electricity Sector laws.

PCH
Small Hydroelectric Power Plant.

Q

R

RGR
Reversal Global Reserve.

RME
Rio Minas Energia Participações S.A., company controlled by CEMIG, AG Concessões, Luce Brasil FIP and Pactual Energia, all of them with equal interest.

RTE
Extraordinary Tariff Adjustment.

Regulation S
Regulation S of Securities Act..

Rule 144A
Rule 144A do Securities Act.

S

SDT
Securities Distribution System administered by ANDIMA (National Association of Open Market Institutions) and operated by CETIP (Clearing House for the Custody and Settlement of Securities).

SIN
National Interconnected System.

SEC
Securities and Exchange Commission of the United States.

Securities Act
Securities Act of 1933 of the United States, as amended.

T

U

US GAAP
Accounting practices generally accepted in the United States.

V

W

X

Y

Z

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