In the fourth quarter of 2014, CPFL Energia’s results returned to the black. In the period, the company posted EBITDA of R$1.342 billion in accordance with IFRS accounting standards, a 47.2% improvement over the same period in 2013. Net income in accordance with IFRS increased by 45.5% in 4Q14, for a total of R$470 million. Net revenue came to R$4.934 billion in the last three-month period of 2014, for growth of 42.3%.

Performance was driven by the recognition of financial assets and liabilities (classified as “regulatory assets and liabilities” up to 2013) in the amount of R$831 million in the financial statements of energy distributors. This recognition was a long-standing demand of the energy sector and was permitted under an amendment to the concession agreement approved by Aneel, and the subsequent change in accounting standards approved by the Brazilian Securities and Exchange Commission (CVM).

Considering performance in the year, CPFL Energia saw net income (IFRS) of R$886 million, down 6.6% from 2013. EBITDA (IFRS) came to R$3.761 billion in 2014, up 6% on 2013, while net revenue increased by 20%, reaching a total of R$16.361 billion.

CPFL, much like other agents with distribution assets,

suffered the effects of a slowing economy, which mainly affected industrial consumption. Furthermore, the company also felt the effects of the third cycle of tariff adjustments, applied to CPFL Paulista and RGE in mid-2013. In the generation segment, increased spending with GSF was partially offset by growth in CPFL Renováveis and an adequate seasonality strategy in the conventional generation segment.

Finally, considering the adverse economic scenario, inability to forecast the hydrological situation and uncertainty regarding performance in the distribution market in 2015, the Company’s management proposed allocation of R$555 million to a statutory reserve. To strengthen its capital structure, the Company recommended that the Board of Directors propose capitalizing the balance of this reserve through a share bonus. The proposed bonus was 3.194510783%, to a ratio of 0.03194510783 new share of the same type for each new share. This proposal will be submitted to the Extraordinary Shareholders’ Meeting called for April 29, 2015. The company also paid R$422 million in interim dividends, equal to 44.5% of net income from the 2014 fiscal year.

INVESTOR RELATIONS | 54 | YEAR 10 | JANUARY-FEBRUARY 2014

CPFL InvestorCPFL posts 47.2% increase

in EBITDA in 4Q14

In this Edition

3CPFL Energia wraps up its R&D project with an international seminar

4CPFL Energia stands out for service quality

2CPFL plans investments of R$1.6 billion for 2015

CPFL Energia faced a challenging year in 2014. Hydroelectric reservoirs, affected by severe drought, reached their lowest levels during the year, while short-term energy prices (PLD) reached a record high of R$822.03 per MWh. Apart from the significant impact on corporate cash levels, this scenario affected energy demand, particularly in the industrial segment, which saw a 3.4% decrease in consumption during the year in CPFL Energia’s concession area. On the other hand, high temperatures increased residential and commercial consumption by 7% and 7.9% in the period respectively, leading to consolidated growth of energy sales of 2.6% in the year.

The year was also marked by important regulatory achievements, such as the proposal to reduce the PLD price ceiling to R$388.48 per MWh and the

approval of loans from the ACR account. The company also saw advances in discussions regarding the fourth cycle of tariff revisions for distributors, and the weighted average cost of capital for distributors (WACC), to be implemented for concessionaires with a revision by December 2017, was set at 8.09%.

In Distribution, by the end of 2014 CPFL Energia was capable of telemetering all industrial and commercial clients in Group A (high voltage), which will increase client data security, aid in identifying fraud and allow the company to better use its teams’ time.

In renewable generation, the company completed the acquisition of Rosa dos Ventos and saw the commercial startup of the Atlântica and Macacos I wind complexes, which added 198.2 MW to the company’s generation portfolio. CPFL

Renováveis closed 2014 with 1,773 MW in installed capacity.

The Commercialization segment also posted significant results thanks to its strategy of contracting more energy than required to cover delivery commitments and selling surplus amounts on the spot market.

The consistent operating, economic and financial results in 2014 reaffirmed our belief that our solid and cautious strategy, backed by well-defined strategic planning, extensive cost management abilities and solid financial administration will prepare CPFL Energia to face 2015, another difficult year given an outlook of slowing economic activity in Brazil, challenging hydrological conditions and structural issues that must still be resolved.

Wilson Ferreira Jr.CEO of the CPFL Energia

Message from the CEO

CPFL plans investments of R$1.6 billion for 2015

CPFL wins transmission auction for the Morro Agudo ProjectCPFL Geração participated in the 1st Transmission Auction of 2015, held on

January 9, 2015, and won lot I - Morro Agudo, offering a discount of 32.59%. The project involves the construction of a sub-station of 500/138 kV and a 500-meter long transmission line. Investments in the project should hover between R$90 and R$100 million. The project will provide a number of benefits, including strengthening the CPFL Paulista network and transmitting energy produced from biomass, in addition to improved management of construction completion deadlines.

During 2014, CPFL Energia invested approximately R$1.062 billion under IFRS consolidation criteria in the areas of generation, transmission and distribution of electricity. Of this total, R$308 million were allocated to initiatives for business maintenance and expansion in the fourth quarter of the year.

Of all investments in 2014, R$702 million were allocated to distribution, R$265 million to generation (R$251 million to CPFL Renováveis and R$14 million to conventional generation) and R$94

million to commercialization and services. The Group also invested R$57 million in 2014 in the construction of transmission lines by CPFL Transmissão, in addition to allocating funds in the amount of R$181 million in 2014 to Special Obligations.

For 2015, the Company is planning investments of R$1.557 billion, of which: R$592 million in generation, R$882 million in distribution and R$83 million in the commercialization and services segment.

Institution date Local

JP Morgan 2015 Latin America Utilities Conference

01/21/2015 New York, USA

JP Morgan NDRS * 01/22/2015 Boston, USA

Credit Suisse 2015 Latin America Investment Conference

01/ 27-29/2015 São Paulo, SP

Morgan Stanley: Brazil Utilities Corporate Access Day

02/06/2015 Rio de Janeiro, RJ

BTG Pactual XVI CEO Conference Brasil 2015 02/10-11//2015 São Paulo, SP

Bank of America Merrill Lynch 2015 Brazil Conference

03/ 03-04/2015 São Paulo, SP

Santander - VI Conferência Setor Elétrico Brasil

03/05/2015 São Paulo, SP

Merril Lynch - NDRS* 03/10/2015 New York, USA

Merril Lynch - NDRS* 03/11/2015 Boston, USA

Citi's 23rd Annual Citi LatAm Conference 03/12/2015 New York, USA

By the end of March 2015, CPFL stocks were covered by 12 financial institutions: 100% recommending Buy or Hold and 0% Sell.

Capital Markets – Performance in the stock Exchange

Source: Economática Variations adjusted by dividends

CPL DJBr20 DJIA

Share Performance NYSE – YTD 2014

-14.7%

12/30/14 13.89 20,280 17,98303/31/15 12.72 17,297 17,776Var -8.4% -14.7% -1.2%

-8.4% -1.2%

1.3% CPFE3 IEE IBOV

12/30/14 18.49 27,161 50,00703/31/15 20.46 27,504 51,150Var. 10.7% 1.3% 2.3%

10.7% 2.3%

Share Performance Bovespa – YTD 2014

EVENTS

Analysts and Consensus

*non deal roadshow

CCEE approves new financing for the ACR Account

2

CPFL Energia wraps up its R&D project with an international seminar

The year 2015 began with important achievements in the regulatory field for distributors. One of the main achievements was the definition, in February, of new values for dynamic pricing by the Brazilian Electricity Regulatory Agency (Aneel), strengthening companies’ cash and providing consumers with a better understanding of energy prices.

The Aneel measure increased the peak demand value from R$3 to R$5.50 per 100 kilowatt hours (kWh) consumed in the month, an 83% increase. The mid-range demand value increased from R$1.50 to R$2.50 per 100 kWh, an increase of approximately 66.6%.

Aneel also authorized an extraordinary

tariff adjustment (RTE) for all distributors, reducing the gap between real costs and tariff coverage. New tariffs, effective as of March 1, will allow the group’s concessionaires that received an average adjustment of 23.4% to cover increased expenses with the purchase of energy and sector charges.

The Electric Energy Trading Chamber (CCEE), at an Extraordinary Shareholders’ Meeting (AGE) on March 25, approved the contracting of financing to fund up to R$3.4 billion for the ACR Account. The Meeting also approved the renegotiation of the two credit operations for the account conducted in 2014.

The new funds will cover distribution concessionaire expenses incurred from deferred financial settlements in the spot market in November and December 2014. The funds will cover involuntary exposure of distributors in the spot market, in addition to costs incurred by distributors

with supply from thermoelectric plants tied to availability contracts in the regulated environment. The third operation will include eight financial institutions: Banco do Brasil, BANRISUL, BNDES, Bradesco, BTG Pactual, Caixa Econômica Federal, ltaú Unibanco and Santander.

This new financing will be amortized in 54 months at the CDI overnight rate + 3.15% p.a. The amortization period for the first two operations was renegotiated from 24 to 54 months, with fixed interest of CDI overnight rate + 2.525% p.a. and CDI overnight rate + 2.90 p.a., respectively.

On March 18, CPFL Energia held the International Seminar for the project “Energy in the City of the Future – 2030 Vision,” an event that brought Brazilian and international specialists, electrical sector authorities and companies to the city of São Paulo to debate technological, regulatory and commercial trends. The event was held at the WTC Sheraton Hotel in São Paulo, where CPFL exhibited its electrical vehicle for the electrical mobility program.

Organized in partnership with GESEL/UFRJ, Roland Berger and Aneel, the seminar included lectures by international visitors, such as Paul Whittaker (U.K. Director of Regulation at National Grid), James Wilde (Director of Innovation and Policies at the Carbon

Trust) and Steve Severance (the leader of Strategy and Innovation for Masdar City). The event marked the end of the “Energy in the City of the Future” Research and Development (R&D) project. CPFL Energia and the seminar’s co-organizers discussed strategic themes for the future of energy and cities over the course of two years, with a focus on sustainability, priority use of renewable energy sources, intelligent management of energy resources and rational consumption.

At the opening of the seminar, CEO of CPFL Energia, Wilson Ferreira Junior, called participants’ attention to the immense transformations in the electrical sector, with significant repercussions on consumers, regulators and companies.

2015 begins with progress in the regulatory field

4

CPFL INVESTOR is a publication of the Investor Relations Department of CPFL Energia, published by the Corporate Communication and Institutional Affairs Department, Rodovia Engenheiro Miguel Noel Nascentes Burnier, 1.755, Km 2,5 - Campinas/SP, Zipcode 13.088-900. Phone: (19) 3756-8197 Fax: (19) 3756-8040 – Chief Financial and Investor Relations Officer: Gustavo Estrella, IR Officer: Leandro Cappa, Content: Eugênio Melloni. Editing: Wellington Bahnemann. Design: Produção Coletiva - website: Investor Relations: www.cpfl.com.br/ir - e-mail: ri@cpfl.com.br. Phone: (+55 19) 3756-6083 / Fax: (+55 019) 3756-6089

CPFL Energia adopts the “Integrated Report” format

CPFL Energia receives awards and other distinctions

On March 30, CPFL Energia released its 2014 Annual Report, the first prepared in accordance with the “Integrated Report” structure developed by the International Integrated Reporting Council (IIRC). This format allows for a correlation between important company information and its corporate strategy, financial results and operating activities.

“The goal of the Integrated Report is to provide organizations with a process for systematic thinking in management,” said Rodolfo Sirol, CPFL Energia’s Sustainability Officer. This is the first use of integrated corporate thinking, which works to combine

social and economic aspects with economic and financial dimensions, providing greater ease in identifying business risks and opportunities and major corporate strategies. Another benefit that this format provides is improved understanding of value generation by the company in the short, medium and long term.

With the adoption of the “Integrated Report” structure, CPFL has consolidated the process for transformation of its culture and management. This initiative reiterates the Group’s focus on adopting the best corporate governance and corporate sustainability practices, according to Mr. Sirol.

CPFL Energia has gained recognition in several areas in which it operates through a series of awards and other distinctions. These include the Group’s inclusion, for the eleventh consecutive year, in the 2014 Exame Sustainability Guide, based on measurement of 140 questions organized between 4 dimensions: General, Social, Economic and Environmental.

CPFL Energia was also the only company in the energy distribution segment to receive the 2014

Procel – Excellence in Energy Efficiency Award. The Group was also recognized as the company that most promoted Energy Efficiency with equipment carrying the Procel seal in the country.

CPFL Energia was also included as a member of the 2015 Sustainability Yearbook, in the Energy sector, prepared by RobecoSAM’s, for the second consecutive year. Since 2004, the yearbook has listed the most sustainable companies in the world.

CPFL Energia stands out for service quality

CPFL Santa Cruz was elected as the best large energy distributor in Brazil by the Brazilian Electricity Regulatory Agency (Aneel). The concessionaire came in first in the Global Continuity Performance (DGC) ranking, calculated by comparing values for the duration (DEC) and frequency (FEC) of interruptions with limits set by Aneel. CPFL Paulista and CPFL Piratininga came in fifth and seventh in the ranking.

Additionally, the CPFL Energia Group distributors posted the best indexes for quality of power supply in 2014 among large concessionaires in Brazil. CPFL Santa Cruz achieved the best DEC in the country, at a total of 6.74 hours, improving over the figure of 6.96 hours in 2013. The second best DEC in 2014

was from CPFL Paulista, at 6.93 hours, an improvement over the 2013 total of 7.14 hours. CPFL Piratininga came in third, with a DEC of 6.98 hours, versus 7.44 hours in 2013. The duration of interruptions at the three concessionaires was far lower than last year’s national average of 17.61 hours.

The group’s three concessionaires also stood out in the FEC ranking. CPFL Piratininga posted the second best index in the country in its category, with an FEC of 4.19 times - versus an FEC of 4.58 times in 2013. CPFL Paulista came in fourth, with an FEC of 4.89 times. With an index of 5.29 times, CPFL Santa Cruz was sixth in the ranking.