1. 1Q10 ResultsMay, 2010

2. 1Q10 main highlights Operational Captive and total market consumption 5.2% and 6.7% higher than 1Q09 respectively Losses: commercial losses 30 b.p. lower than 1Q09 Collection rates of 102.5% x 99.8% on 1Q09 Ebitda totalized R$370 millions, 3.9% higher than 1Q09 Cash generation of R$ 572 millions, 113% higher than 1Q09 Financial Net income of R$157 millions on 1Q10, 6.8% higher than 1Q09 Eletropaulo's ratings raised to AA + and BB +, national and international scalesrespectively, by Standard & Poor's Regulatory On February, 2010, Aneel approved a proposal for the amendment of Concessionaire Distribution Contract, aiming the neutrality of Parcel A sector charges with financial effect of R$ 1.9 million 2 3. Consumption Market growth due to 153 thousand new clients in residential sector, considerable new commercial ventures and the positive effects of economic recovery on industrial and commercial market consumption Consumption Evolution - (GWh)11Q091Q10 +4.4 %+9.2 % +5.5 %+0.7 % +5.2%+14.4% +6.7% 9,691 10,344 8,118 8,544 3,4943,646 2,657 2,804 1,573 1,801 1,327 1,449 641 645Residential Industrial CommercialPublic Captive Market Free Clients Total Market Sector and Others1 Own consumption not considered 3 4. Operational indicators Collection rate and losses reflect the continuous improvement on regularization of fraud, illegal connections and bad debtorsCollection rate % over gross revenue Losses % last 12 months102.5 101.199.899.511.6 11.811.8 98.5 11.5 11.5 5.05.15.3 5,35.3 5.06.56.56.56,566.56,5 6.5 2007 20081200911Q09 1Q10 2007 2008 2009 1Q09 1Q10Commercial LossesTechnical Losses24 1 Collection rate following the new methodology of calculation 2 - Current Technical Losses used retroactively as reference 5. Operational Indicators SAIDI and SAIFI affected by rainfall volume 42% higher than 1st quarter 2009 SAIDI1 SAIFI28.49 11.348.4110.92 10.09 7.87 8.90 9.2011.86 10.2013.505.64 5.20 6.17 5.46 6.7420072008 2009 1Q091Q102007 20082009 1T091Q10 3o 5o1o1o SAIDI (hours) SAIDI Aneel TargetSAIFI (times)SAIFI Aneel Target 2010 SAIDI ANEEL Target: 9.32 horas2010 SAIFI ANEEL Target: 7.39 times ABRADEE ranking position among the 28 utilities with more than 500 thousand customers 5 1 System Average interruption Duration Index 2 System Average Interruption Frequency Index Source: ANEEL, AES Eletropaulo and ABRADEE 6. Investments Investment of R$ 46 million in customer service and system expansion, highlighting the 45.6 thousand new customers added in the quarterCAPEX R$ million Investments 1Q10 Paid by customers 2% 2%10% Capex 691 54 15%47%51637 45724% 433 47 69 101 98478 9 637 10 Customer service /Maintenance 410 364 System expansion92 88Losses recovery ITPaid by the clients Other20072008 2009 2010(e)1Q09 1Q10 6 7. Gross revenue and operating expenses Higher captive consumption (+ 5.2%) and Tariff Readjustment (+14.88%) contributed to gross revenue growth Gross Revenue - R$ million Operating Costs and Expenses1 - R$ million +12.9 %+17.7 % 3,2741,747 2,9001,485 1,143341 1,050288+15.2 %+17.5 % 2,1311,4061,197 1,8501Q091Q10 1Q091Q10Net Revenue Deductions to Gross revenue Energy Supply and Transmission ChargesPMS and Other Expenses 1 - Depreciation not included 2 - Personnel, Material and Services 7 8. Operating expenses evolution Higher contingency volume and negative effect on ADA and write-offs due to unusuallevel registered on 1Q09 Operating Expenses R$ million17(4) 10 9 22 341 341288 1Q09 Provisions and ADA1 and FCesp Personnel Materials, 1Q10Contingencieswrite-offsservicesand other 1 - Allowance for doubtful accounts 8 9. Variation of Ebitda Ebitda affected by higher captive consumption (+ 5.2%) and lower FCESP expenses Ebitda R$ milllion281 (209) 4(22) (17) (10) (14)370 356 1Q09Net Energy Provisions FCesp ADA and PersonnelOthers1 1Q10 revenue Supply andand write-offs and taxesTransm.ContingCharges 1 - Materials, Services and outros 9 10. Financial result and net income Net Income positively impacted by Tariff Readjustment and captive market growth of 5.2% Financial Result - R$ millionNet Income - R$ million6.2% 1Q09 1Q10157147 (34) (38)-9.6 % 1Q091Q10 10 11. Cash flow generation Operating cash flow generation 113.4% higher as a consequence of market growth and tariff readjustmentManagerial Cash Flow R$ million 1Q092Q093Q094Q091Q10 Inicial Cash 1,536 1,2589891,143 1,249 Operating Cash Flow 268 426 779 765 572 Investiments (104) (113) (116) (148) (135) Net Financial Expenses(80) (23)(79)(16)(81) Net Amortizations(184) (54)(35)(47)(14) CESP Foundation(58)(56)(53)(57)(48) Income Tax (119) (83)(45)(61)(73) Free Cash Flow (278) (97) 452 436 221 Dividends- (366) (297) (330) - Final Cash 1,258 989 1,143 1,249 1,47011 12. Debentures Issuance R$ 800 million debentures issued to meet bond amortization and part of 2010 investments - 12th Issuance: R$ 400 million; 4 years; CDI + 1.25% pa; non convertible; CVM 400 - 13th Issuance: R$ 400 million; 10 years; CDI + 1.5% pa; non convertible; CVM 476Amortization Schedule Principal1 R$ million 1,9191,365580 60256 316 341368 74 417 313 70302 66 65 8489 554524 79 250 276298 528224 223 3332010 201120122013 2014 201520162017 2018-2028 Local Currency (ex FCesp) FCESP2 1 Including 12th and 13th debentures issuance and bond payment of R$ 474 millions in 2010 2 - FCesp = Pension Fund 12 13. Debt profile Debenture issuance positively contributed to the company average cost and average term Net DebtAverage Cost and Average Term (Principal) 1.8x 1.8x1.7x 7.4 1.5x1.6x 7.17.0 7.16.96.83.2123.9% 121.8% 120.5% 3.02.92.7110.5%108.7% 2.5 87.1% Post200720082009 1Q091Q102007 20082009IQ09 1Q10 DebenturesNet Debt (R$ billion) Net Debt / EBITDA Adjusted1 with FCesp CDI2 Average Term - Years Effective Rate13 1 Last 12 months of EBITDA Adjusted 2 - Brazils Interbank Interest Rate 14. Capital Market AES Eletropaulo1 X Ibovespa X IEEAverage Daily Volume3 - R$ thousand Last 12 months26,066 18072.0%25,67724,538 16021,960 44.7% 140 1209.7% 1008060 Mar-09 Jun-09 Sep-09Dec-09 Mar-10 2007 2008 2009 1Q101201Q10 1109.2%ELPL62.6% 100 -0.4%IEE IBOV90 Dec-09Jan-10Feb-10 Mar-1014 1 Index: 03/31/09 = 100 2 index: 12/30/09 = 100 3 Preferred shares class B 15. 1Q10 results The statements contained in this document with regard to the business prospects, projected operating and financial results, and growth potential are merely forecasts based on the expectations of the Companys Management in relation to its future performance. Such estimates are highly dependent on market behavior and on the conditions affecting Brazils macroeconomic performance as well as the electric sector and international market, and they are therefore subject to changes. .