UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

For the month of November, 2014

Commission File Number 32297

CPFL Energy Incorporated

(Translation of Registrant's name into English)

Rua Gomes de Carvalho, 1510, 14º andar, cj 1402
CEP 04547-005 - Vila Olímpia, São Paulo – SP
Federative Republic of Brazil

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ___X___ Form 40-F _______

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No ___X____

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_________________

.

Registration Form – 2014 – CPFL ENERGIA S.A. Version: 3


Summary

Registration data
General information	02
Address	04
Marketable securities	05
Auditor information	06
Share register	07
Investor Relations Officer	08
Shareholders’ Department	09

Registration Form – 2014 – CPFL ENERGIA S.A. Version: 3


1 - General information
Company Name:	CPFL ENERGIA S.A.
Initial Company name:	08/06/2002
Type of participant:	Publicly quoted corporation
Previous company name:	Draft II Participações S.A
Date of Incorporation:	03/20/1998
CNPJ (Federal Tax ID):	02.429.144/0001-93
CVM CODE:	1866-0
Registration Date CVM:	05/18/2000
State of CVM Registration:	Active
Starting date of situation:	05/18/2000
Country:	Brazil
Country in which the
marketable securities
are held in custody:	Brazil
Foreign countries in
which the marketable
securities are accepted
for trading
	Country	Date of admission
	United States	09/29/2004
Sector of activity:	Holding (Electric Energy)
Description of activity:	Holdings
Issuer’s Category:	Category A
Registration Date
on actual category:	01/01/2010
Issuer’s Situation:	Operational
Starting date
of situation:	05/18/2000
Type of share control:	Private Holding
Date of last change of
share control:	11/30/2009

2

Registration Form – 2014 – CPFL ENERGIA S.A. Version: 3


Date of last change of company year:
Day/Month of
year end:	12/31
Web address:	www.cpfl.com.br
Newspapers in which
issuer discloses its information:	Name of paper in which issuer discloses its information FU
Diario Oficial do Estado de São Paulo	SP
Valor Econômico	SP

3

Registration Form – 2014 – CPFL ENERGIA S.A. Version: 3

2 - ADDRESS

Company Address: Rua Gomes de Carvalho, 1510, 14º– Cj 2 Vila Olímpia, São Paulo, SP, Brazil, ZIP CODE: 04547-005, TELEPHONE: (019) 3756-6083, FAX: (019) 3756-6089, E-MAIL: [email protected]

Company Mailing Address: Rodovia Engenheiro Miguel Noel Nascentes Burnier, 1755, Km 2,5, Parque São Quirino, Campinas, SP, Brasil, CEP 13088-140, Telephone (019) 3756-6083, Fax (019) 3756-6089, E-MAIL: [email protected]

4

Registration Form – 2014 – CPFL ENERGIA S.A. Version: 3


3 - MARKETABLE SECURITIES
Shares		Trading			Listing
Trading mkt	Managing body	Start date	End	Segment	Start date	End
Bolsa	BM&FBOVESPA	09/29/2004		Novo Mercado 9/29/2004

Debentures		Trading			Listing
Trading mkt	Managing body	Start date	End	Segment	Start date	End
Organized
Market	CETIP	05/18/2000		Traditional	05/19/2000

5

Registration Form – 2014 – CPFL ENERGIA S.A. Version: 3


4 - AUDITOR INFORMATION
Is there an auditor?	Yes

CVM CODE:	385-9
Type of Auditor:	Brazilian
INDEPENDENT ACCOUNTANT:	Deloitte Touche Tomatsu Auditores Independentes
CNPJ:	49.928.567/0001-11
Service Provision Period:	03/12/2012
PARTNER IN CHARGE	Service Provision Period	CPF (INDIVIDUAL TAX ID)
Marcelo Magalhães Fernandes	03/12/2012	110.931.498-17

6

Registration Form – 2014 – CPFL ENERGIA S.A. Version: 3


5 – SHARE REGISTRER
Do you have service provider:	Yes

Corporate Name:	Banco do Brasil

CNPJ:	00.000.000/0001-91
Service Provision Period:	01/01/2011
Address: Rua Lélio Gama, 105 – 38º floor, Gecin, Centro, Rio de Janeiro, RJ, Brasil, ZIP CODE: 20031-080, Telephone (021) 38083551, FAX: (021) 38086088, e-mail: [email protected]

7

Registration Form – 2014 – CPFL ENERGIA S.A. Version: 3


6 – INVESTOR RELATIONS OFFICER
NAME:	Gustavo Estrella
	Director of Investor Relations
CPF/CNPJ:	037.234.097-09
Address: Rodovia Engenheiro Miguel Noel Nascentes Burnier, 1755, Km 2,5, Parque São Quirino, Campinas, SP, Brasil, CEP 13088-140, Telephone (019) 3756-6083, Fax (019) 3756-6089, e-mail: [email protected].



Start date of activity:	02/27/2013
End date of activity:

8

Registration Form – 2014 – CPFL ENERGIA S.A. Version: 3


7 – SHAREHOLDERS’ DEPARTMENT
Contact	Eduardo Atsushi Takeiti
Start date of activity:	12/13/2011
End date of activity:	10/05/2014

Contact	Leandro José Cappa de Oliveira
Start date of activity:	10/06/2014
End date of activity:

Address: Rodovia Engenheiro Miguel Noel Nascentes Burnier, 1755, Km 2,5, Parque São Quirino, Campinas, SP, Brasil, CEP 13088-140, Telephone (019) 3756-6083, Fax (019) 3756-6089, e-mail: [email protected]

9

(Free Translation of the original in Portuguese)

QUARTERLY INFORMATION – ITR – Date: June 30, 2014 - CPFL Energia S. A


Table of Contents

Identification of Company
Capital Stock	11
Cash dividend	11
Parent Company Interim Financial Statements
Balance Sheet Assets	12
Balance Sheet Liabilities	13
Income Statement	14
Statement of Comprehensive Income	15
Cash Flow Statements	16
Statement of Changes in Shareholders´ Equity
01/01/2014 to 09/30/2014	17
01/01/2013 to 09/30/2013	18
Statements of Added Value	19
Consolidated Interim Financial Statements
Balance Sheet Assets	20
Balance Sheet Liabilities	21
Income Statement	22
Statement of Comprehensive Income	23
Cash Flow Statements	24
Statement of Changes in Shareholders’ Equity
01/01/2014 to 09/30/2014	25
01/01/2013 to 09/30/2013	26
Statements of Added Value	27
Comments on Performance	28
Notes to the Interim Financial Statements	37
Other relevant information	109
Reports
Report on review of Interim Financial Information	114

Identification of Company / Capital Stock

Number of Shares (in units)	Closing date 06/30/2014
Paid in Capital
Common	962,274,260
Preferred	0
Total	962,274,260
Treasury Stock
Common	0
Preferred	0
Total	0

Identification of Company/ Cash dividend

Event

Approval

Type

Beginning of Payment

Type of Share

Class of share

Amount per Share
(Reais/share)

AGM

08/27/2014

Dividend

10/01/2014

ON

(Common shares)

0.43875

11

PARENT COMPANY INTERIM FINANCIAL STATEMENTS - BALANCE SHEET - ASSETS
(in thousands of Brazilian reais – R$)

Code	Description	Current Quarter 09/30/2014	Previous Year 12/31/2013
1	Total assets	8,297,703	8,389,811
1.01	Current assets	2,634,995	1,720,232
1.01.01	Cash and cash equivalents	1,267,593	990,672
1.01.06	Recoverable taxes	41,294	29,874
1.01.06.01	Current recoverable taxes	41,294	29,874
1.01.08	Other current assets	1,326,108	699,686
1.01.08.03	Others	1,326,108	699,686
1.01.08.03.01	Other credits	2,878	1,984
1.01.08.03.02	Dividends and interest on shareholders’ equity	1,323,230	697,702
1.02	Noncurrent assets	5,662,708	6,669,579
1.02.01	Noncurrent assets	216,305	248,623
1.02.01.06	Deferred taxes	173,845	165,798
1.02.01.06.02	Deferred taxes credits	173,845	165,798
1.02.01.08	Related parties credits	3,931	8,948
1.02.01.08.02	Subsidiaries credits	3,931	8,948
1.02.01.09	Other noncurrent assets	38,529	73,877
1.02.01.09.03	Escrow deposits	664	91
1.02.01.09.05	Other credits	10,787	14,389
1.02.01.09.07	Advance for future capital increase	27,078	59,397
1.02.02	Investments	5,445,493	6,419,924
1.02.02.01	Permanent equity interests	5,445,493	6,419,924
1.02.02.01.02	Investments in subsidiares	5,445,493	6,419,924
1.02.03	Property, plant and equipment	889	1,000
1.02.04	Intangible assets	21	32
1.02.04.01	Intangible assets	21	32
1.02.04.01.01	Intangible assets	21	32

12

PARENT COMPANY INTERIM FINANCIAL STATEMENTS - BALANCE SHEET - LIABILITIES

(in thousands of Brazilian reais – R$)

Code

Description

Current Quarter 09/30/2014

Previous Year 12/31/2013

2

Total liabilities

8,297,703

8,389,811

2.01

Current liabilities

1,795,632

46,245

2.01.01

Social and Labor Obligations

-

10

2.01.01.02

Labor Obligations

-

10

2.01.01.02.01

Estimated Labor Obligation

-

10

2.01.02

Suppliers

606

1,127

2.01.02.01

National Suppliers

606

1,127

2.01.03

Tax Obligations

245

359

2.01.03.01

Federal Tax Obligations

245

359

2.01.03.01.01

Income tax and Social Contribution

-

12

2.01.03.01.03

COFINS (Tax on Revenue)

47

47

2.01.03.01.04

Others Federal

198

300

2.01.04

Loans and financing

1,339,652

12,438

2.01.04.02

Debentures

1,339,652

12,438

2.01.04.02.01

Interest on debentures

50,635

12,438

2.01.04.02.02

Debentures

1,289,017

-

2.01.05

Other Current liabilities

455,129

32,311

2.01.05.02

Others

455,129

32,311

2.01.05.02.01

Dividends and interest on shareholders´ equity

438,056

15,407

2.01.05.02.05

Other payable

17,073

16,904

2.02

Noncurrent liabilities

30,127

1,319,667

2.02.01

Loans and financing

-

1,287,912

2.02.01.02

Debentures

-

1,287,912

2.02.02

Other liabilities

29,573

31,495

2.02.02.02

Others

29,573

31,495

2.02.02.02.04

Other payable

29,573

31,495

2.02.04

Provisons

554

260

2.02.04.01

Reserve for tax, civil and labor risks

554

260

2.02.04.01.02

Reserve for labor risks

328

97

2.02.04.01.04

Reserve for civil risks

226

163

2.03

Shareholders’ equity

6,471,944

7,023,899

2.03.01

Capital

4,793,424

4,793,424

2.03.02

Capital reserves

287,673

287,630

2.03.04

Profit reserves

897,419

1,545,178

2.03.04.01

Legal reserves

603,352

603,352

2.03.04.02

Statutory reserves

294,067

265,037

2.03.04.08

Additional Proposed dividend

-

567,802

2.03.04.10

Reserve of retained earnings for investment

-

108,987

2.03.05

Retained earnings / (loss)

116,646

-

2.03.08

Other Comprehensive Income

376,782

397,667

2.03.08.01

Accumulated Comprehensive Income

376,782

397,667

13

PARENT COMPANY FINANCIAL STATEMENTS - INCOME STATEMENT
(in thousands of Brazilian reais – R$)

Code	Description	Current Year - Third Quarter	YTD Current Year	Previous Year - Third Quarter	YTD Previous Year
Code	Description	04/01/2014 to 09/30/2014	01/01/2014 to 09/30/2014	04/01/2013 to 09/30/2013	01/01/2013 to 09/30/2013
3.01	Net Operating revenues	-	33	31	81
3.03	Gross Operating income	-	33	31	81
3.04	Gross Operating income (expense)	97,717	443,807	350,122	662,345
3.04.02	General and administrative	(5,806)	(17,123)	(5,915)	(16,775)
3.04.06	Equity income	103,523	460,930	356,037	679,120
3.05	Income before financial income and taxes	97,717	443,840	350,153	662,426
3.06	Financial income / expense	(1,929)	(14,400)	(444)	(11,026)
3.06.01	Financial income	35,474	90,887	34,906	37,729
3.06.02	Financial expense	(37,403)	(105,287)	(35,350)	(48,755)
3.07	Income before taxes	95,788	429,440	349,709	651,400
3.08	Income tax and social contribution	253	7,731	2,104	(14,911)
3.08.01	Current	-	(318)	3,524	(8,691)
3.08.02	Deferred	253	8,049	(1,420)	(6,220)
3.09	Net income/(loss) from continuing operations	96,041	437,171	351,813	636,489
3.11	Net income/(loss)	96,041	437,171	351,813	636,489
3.99.01.01	ON	0.10	0.45	0.37	0.66
3.99.02.01	ON	0.09	0.44	0.36	0.65

14

PARENT COMPANY FINANCIAL STATEMENTS - STATEMENT OF COMPREHENSIVE INCOME
(in thousands of Brazilian reais – R$)


Code	Description	Current Year - Third Quarter	YTD Current Year	Previous Year - Third Quarter	YTD Previous Year
Code	Description	04/01/2014 to 09/30/2014	01/01/2014 to 09/30/2014	07/01/2013 to 09/30/2013	01/01/2013 to 09/30/2013
4.01	Net income/(loss)	96,041	437,171	351,813	636,489
4.02	Other comprehensive income	(1,535)	(1,535)	-	502,927
4.02.02	Equity on comprehensive income of subsidiaries	(1,535)	(1,535)	-	502,927
4.03	Comprehensive income	94,506	435,636	351,813	1,139,416

15

PARENT COMPANY FINANCIAL STATEMENTS - STATEMENTS OF CASH FLOW – INDIRECT METHOD
(in thousands of Brazilian reais – R$)

Code	Description	YTD Current year 01/01/2014 to 09/30/2014	YTD Previous year 01/01/2013 to 09/30/2013
6.01	Net cash from operating activities	864,464	800,437
6.01.01	Cash generated (used) from operations	73,636	31,280
6.01.01.01	Net income, including income tax and social contribution	429,441	651,400
6.01.01.02	Depreciation and amortization	130	53
6.01.01.03	Reserve for tax, civil, labor	460	208
6.01.01.04	Equity in subsidiaries	(460,930)	(679,120)
6.01.01.05	Interest and monetary and exchange restatement	104,535	58,739
6.01.02	Variation on assets and liabilities	790,828	769,157
6.01.02.01	Dividend and interest on equity received	867,738	792,146
6.01.02.02	Recoverable taxes	(11,391)	16,263
6.01.02.03	Escrow deposits	(568)	(26)
6.01.02.04	Other operating assets	2,707	(1,866)
6.01.02.05	Suppliers	(521)	(736)
6.01.02.06	Other taxes and social contributions	(420)	(245)
6.01.02.07	Interest on debts (paid)	(65,405)	(14,502)
6.01.02.08	Taxes and social contributions paid	-	(12,174)
6.01.02.09	Other operating liabilities	(1,118)	2,814
6.01.02.10	Tax, civil and labor risks paid	(194)	(12,517)
6.02	Net cash in investing activities	(21,912)	(8,011)
6.02.01	Increase in property, plant and equipment	-	(8,011)
6.02.02	Financial investments	-	(337)
6.02.04	Intercompany loans with subsidiaries and associated companies	5,175	4,710
6.02.05	Capital increase in investments	-	(1,489)
6.02.06	Additions to intangible assets	(9)	-
6.02.07	Advance for future capital increase	(27,078)	(9,342)
6.03	Net cash in financing activities	(565,631)	683,497
6.03.01	Payments of Loans, financing and debentures , net of derivatives	-	(149,575)
6.03.02	Payments of dividend and interest on shareholders’ equity	(565,631)	(454,108)
6.03.03	Loans, financing and debentures obtained	-	1,287,180
6.05	Increase (decrease) in cash and cash equivalents	276,921	1,475,923
6.05.01	Cash and cash equivalents at beginning of period	990,672	141,835
6.05.02	Cash and cash equivalents at end of period	1,267,593	1,617,758

16

PARENT COMPANY FINANCIAL STATEMENTS - STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2014 TO SEPTEMBER 30, 2014 (in thousands of Brazilian reais – R$)


Code	Description	Capital	Capital Reserves, options and treasury shares	Profit Reserves	Retained earnings	Other comprehensive income	Shareholders’ Equity Total
5.01	Opening balance	4,793,424	287,630	1,545,177	-	397,667	7,023,898
5.03	Adjusted balance	4,793,424	287,630	1,545,177	-	397,667	7,023,898
5.04	Capital transactions within shareholders	-	44	(567,802)	(419,833)	-	(987,591)
5.04.06	Dividends	-	-	-	-	-	-
5.04.09	Approval of the proposed dividend	-	-	(567,802)	-	-	(567,802)
5.04.10	Capital increase in subsidiaries without change in control	-	251	-	-	-	251
5.04.11	Gain (loss) in participation without change in control	-	(207)	-	-	-	(207)
5.04.12	Prescribed dividend	-	-	-	2,362	-	2,362
5.04.13	Interim dividend	-	-	-	(422,195)	-	(422,195)
5.05	Total Comprehensive Income	-	-	-	437,171	(1,535)	435,636
5.05.01	Net Income	-	-	-	437,171	-	437,171
5.05.02	Other Comprehensive Income	-	-	-	-	(1,535)	(1,535)
5.05.02.06	Equity on comprehensive income of subsidiaries	-	-	-	-	(1,535)	(1,535)
5.06	Internal Changes in Equity	-	-	(79,957)	99,307	(19,350)	-
5.06.05	Equity on comprehensive income of subsidiaries	-	-	29,030	(9,680)	(19,350)	-
5.06.08	Realization / reversal of retained earnings	-	-	(108,987)	108,987	-	-
5.07	Final balances	4,793,424	287,674	897,418	116,645	376,782	6,471,943

17

PARENT COMPANY FINANCIAL STATEMENTS - STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2013 TO SEPTEMBER 30, 2013 (in thousands of Brazilian reais – R$)


Code	Description	Capital	Capital Reserves, options and treasury shares	Profit Reserves	Retained earnings	Other comprehensive income	Shareholders’ Equity Total
5.01	Opening balance	4,793,424	228,322	1,339,287	56,293	(36,598)	6,380,728
5.03	Adjusted balance	4,793,424	228,322	1,339,287	56,293	(36,598)	6,380,728
5.04	Capital transactions with the shareholders	-	60,090	(455,906)	(360,856)	-	(756,672)
5.06	Dividends	-	-	-	(360,856)	-	(360,856)
5.04.08	IPO CPFL Renováveis	-	60,090	-	-	-	60,090
5.04.09	Additional dividend aproved	-	-	(455,906)	-	-	(455,906)
5.05	Total comprehensive income	-	-	-	636,489	502,928	1,139,417
5.05.01	Net income for the period	-	-	-	636,489	-	636,489
5.05.02	Other comprehensive income	-	-	-	-	502,928	502,928
5.05.02.03	Equity on comprehensive income of subsidiaries	-	-	-	-	502,928	502,928
5.06	Internal changes of shareholders' equity	-	-	(78,460)	96,816	(18,356)	-
5.06.05	Equity on comprehensive income of subsidiaries	-	-	(78,460)	96,816	(18,356)	-
5.07	Final balance	4,793,424	288,412	804,921	428,742	447,974	6,763,473

18

PARENT COMPANY FINANCIAL STATEMENTS - STATEMENTS OF ADDED VALUE

(in thousands of Brazilian reais – R$)

Code	Description	YTD Current year 01/01/2014 to 09/30/2014	YTD Previous year 01/01/2013 to 09/30/2013
7.01	Revenues	46	90
7.01.01	Sales of goods, products and services	37	90
7.01.02	Other revenue	9	-
7.02	Inputs	(4,534)	(5,673)
7.02.02	Material-Energy-Outsourced services-Other	(3,044)	(3,405)
7.02.04	Other	(1,490)	(2,268)
7.03	Gross added value	(4,488)	(5,583)
7.04	Retentions	(130)	(54)
7.04.01	Depreciation and amortization	(130)	(54)
7.05	Net added value generated	(4,618)	(5,637)
7.06	Added value received in transfer	551,816	723,561
7.06.01	Equity in subsidiaries	460,930	679,120
7.06.02	Financial income	90,886	44,441
7.07	Added Value to be Distributed	547,198	717,924
7.08	Distribution of Added Value	547,198	717,924
7.08.01	Personnel	10,483	8,803
7.08.01.01	Direct Remuneration	6,266	5,983
7.08.01.02	Benefits	3,606	2,021
7.08.01.03	Government severance indemnity fund for employees-F.G.T.S.	611	799
7.08.02	Taxes, Fees and Contributions	(5,846)	23,804
7.08.02.01	Federal	(5,870)	23,784
7.08.02.02	State	24	20
7.08.03	Remuneration on third parties’ capital	105,390	48,828
7.08.03.01	Interest	105,285	48,733
7.08.03.02	Rental	105	95
7.08.04	Remuneration on own capital	437,171	636,489
7.08.04.02	Dividends	-	363,049
7.08.04.03	Retained profit / loss for the period	437,171	273,440

19

CONSOLIDATED INTERIM FINANCIAL STATEMENTS - BALANCE SHEET - ASSETS
(in thousands of Brazilian reais – R$)

Code	Description	Current Quarter 09/30/2014	Previous Year 12/31/2013
1	Total assets	31,901,202	31,042,796
1.01	Current assets	8,306,084	7,264,323
1.01.01	Cash and cash equivalents	4,000,285	4,206,422
1.01.02	Financial Investments	5,627	24,806
1.01.02.02	Financial Investments at amortized cost	5,627	24,806
1.01.02.02.01	Held to maturity	5,627	24,806
1.01.03	Accounts receivable	2,420,487	2,007,789
1.01.03.01	Consumers	2,420,487	2,007,789
1.01.04	Materials and suppliers	23,292	21,625
1.01.06	Recoverable taxes	240,021	262,433
1.01.06.01	Current Recoverable taxes	240,021	262,433
1.01.08	Other current assets	1,616,372	741,248
1.01.08.03	Other	1,616,372	741,248
1.01.08.03.01	Other credits	1,101,276	673,383
1.01.08.03.02	Derivatives	17,269	1,842
1.01.08.03.03	Leases	12,365	10,758
1.01.08.03.04	Dividends and interest on shareholders’ equity	28,315	55,265
1.01.08.03.05	Financial asset of concession	457,147	-
1.02	Noncurrent assets	23,595,118	23,778,473
1.02.01	Noncurrent assets	6,242,147	6,280,045
1.02.01.03	Accounts receivable	122,404	153,854
1.02.01.03.01	Consumers	122,404	153,854
1.02.01.06	Deferred taxes	1,224,714	1,168,706
1.02.01.06.02	Deferred taxes credits	1,224,714	1,168,706
1.02.01.09	Other noncurrent assets	4,895,029	4,957,485
1.02.01.09.03	Derivatives	382,855	316,648
1.02.01.09.04	Escrow deposits	1,156,776	1,143,179
1.02.01.09.05	Recoverable taxes	156,890	173,362
1.02.01.09.06	Leases	36,354	37,817
1.02.01.09.07	Financial asset of concession	2,663,725	2,787,073
1.02.01.09.09	Investments at cost	116,654	116,654
1.02.01.09.10	Other credits	282,871	296,097
1.02.01.09.11	Due from related parties	98,904	86,655
1.02.02	Investments	1,160,714	1,032,681
1.02.02.01	Permanent equity interests	1,160,714	1,032,681
1.02.02.01.04	Other permanent equity interests	1,160,714	1,032,681
1.02.03	Property, plant and equipment	7,707,297	7,717,419
1.02.03.01	Fixed assets - in service	7,373,728	6,748,593
1.02.03.03	Fixed assets - in progress	333,569	968,826
1.02.04	Intangible assets	8,484,960	8,748,328
1.02.04.01	Intangible assets	8,484,960	8,748,328

20

CONSOLIDATED INTERIM FINANCIAL STATEMENTS - BALANCE SHEET - LIABILITIES
(in thousands of Brazilian reais – R$)

Code	Description	Current Quarter 09/30/2014	Previous Year 12/31/2013
2	Total liabilities	31,901,202	31,042,796
2.01	Current liabilities	7,016,565	4,905,531
2.01.01	Social and Labor Obligations	106,710	67,633
2.01.01.02	Labor Obligations	106,710	67,633
2.01.01.02.01	Estimated Labor Obligation	106,710	67,633
2.01.02	Suppliers	1,945,959	1,884,693
2.01.02.01	National Suppliers	1,945,959	1,884,693
2.01.03	Tax Obligations	432,988	318,063
2.01.03.01	Federal Tax Obligations	185,370	196,884
2.01.03.01.01	Income tax and Social Contribution	64,223	92,431
2.01.03.01.02	PIS (Tax on Revenue)	18,215	14,256
2.01.03.01.03	COFINS (Tax on Revenue)	84,141	64,778
2.01.03.01.04	Others Federal	18,791	25,419
2.01.03.02	State Tax Obligations	244,860	117,905
2.01.03.02.01	ICMS (Tax on Revenue)	244,843	117,895
2.01.03.02.02	Others State	17	10
2.01.03.03	Municipal Tax Obligations	2,758	3,274
2.01.03.03.01	Others Municipal	2,758	3,274
2.01.04	Loans and financing	3,245,298	1,837,462
2.01.04.01	Loans and financing	1,066,239	1,640,456
2.01.04.01.01	Brazilian currency	947,758	1,582,742
2.01.04.01.02	Foreign Currency	118,481	57,714
2.01.04.02	Debentures	2,179,059	197,006
2.01.04.02.01	Debentures	1,879,120	34,872
2.01.04.02.02	Interest on debentures	299,939	162,134
2.01.05	Other liabilities	1,285,610	797,680
2.01.05.02	Others	1,285,610	797,680
2.01.05.02.01	Dividends and interest on shareholders´ equity	440,465	21,224
2.01.05.02.05	Post-employment benefit obligation	81,493	76,810
2.01.05.02.06	Regulatory charges	44,083	32,379
2.01.05.02.07	Public utility	3,911	3,738
2.01.05.02.08	Other payable	715,658	663,529
2.02	Noncurrent liabilities	16,677,707	17,338,547
2.02.01	Loans and financing	14,590,870	15,183,936
2.02.01.01	Loans and financing	8,543,751	7,589,540
2.02.01.01.01	Brazilian currency	5,532,428	5,638,800
2.02.01.01.02	Foreign Currency	3,011,323	1,950,740
2.02.01.02	Debentures	6,047,119	7,594,396
2.02.01.02.01	Debentures	6,047,119	7,562,219
2.02.01.02.02	Interest on debentures	-	32,177
2.02.02	Other payable	545,194	569,469
2.02.02.02	Other	545,194	569,469
2.02.02.02.03	Derivatives	8,641	2,950
2.02.02.02.04	Post-employment benefit obligation	295,642	350,640
2.02.02.02.05	Taxes and Contributions	15,315	32,555
2.02.02.02.06	Public utility	80,166	79,438
2.02.02.02.07	Other payable	144,797	103,886
2.02.02.02.08	Suppliers	633
2.02.03	Deferred taxes	1,101,162	1,117,146
2.02.03.01	Deferred Income tax and Social Contribution	1,101,162	1,117,146
2.02.04	Provisions	440,481	467,996
2.02.04.01	Reserve for tax, civil and labor risks	440,481	467,996
2.02.04.01.01	Reserve for tax risks	159,401	174,568
2.02.04.01.02	Reserve for labor risks	123,476	119,707
2.02.04.01.04	Reserve for civil risks	143,620	149,735
2.02.04.01.05	Reserve for other risks	13,984	23,986
2.03	Shareholders´ equity - consolidated	8,206,930	8,798,718
2.03.01	Capital	4,793,424	4,793,424
2.03.02	Capital reserves	287,673	287,630
2.03.04	Profit reserves	897,419	1,545,177
2.03.04.01	Legal reserves	603,352	603,352
2.03.04.02	Statutory reserve - financial asset of concession	294,067	265,037
2.03.04.08	Additional Proposed dividend	-	567,801
2.03.04.10	Reserve of retained earnings for investment	-	108,987
2.03.05	Retained earnings	116,646	-
2.03.08	Other comprehensive income	376,783	397,668
2.03.09	Noncontrolling interest	1,734,985	1,774,819

21

CONSOLIDATED FINANCIAL STATEMENTS - INCOME STATEMENT
(in thousands of Brazilian reais – R$)

Code	Description	Current Year - Third Quarter	YTD Current Year	Previous Year - Third Quarter	YTD Previous Year
Code	Description	07/01/2014 to 09/30/2014	01/01/2014 to 09/30/2014	07/01/2013 to 09/30/2013	01/01/2013 to 09/30/2013
3.01	Net operating revenues	4,241,976	12,062,968	3,602,115	10,915,884
3.02	Cost of electric energy services	(3,305,009)	(9,508,276)	(2,549,443)	(7,861,072)
3.02.01	Cost of electric energy	(2,660,857)	(7,653,506)	(1,948,600)	(6,002,363)
3.02.02	Operating cost	(413,163)	(1,216,460)	(364,785)	(1,103,040)
3.02.03	Services rendered to third parties	(230,989)	(638,310)	(236,058)	(755,669)
3.03	Gross Operating income	936,967	2,554,692	1,052,672	3,054,812
3.04	Gross Operating income (expense)	(364,642)	(987,803)	(252,218)	(1,209,608)
3.04.01	Sales expenses	(93,640)	(297,874)	(91,304)	(299,034)
3.04.02	General and administrative	(172,027)	(520,905)	(151,680)	(753,189)
3.04.05	Others	(85,984)	(267,037)	(50,317)	(232,121)
3.04.06	Equity income	(12,991)	98,013	41,083	74,736
3.05	Income before financial income and taxes	572,325	1,566,889	800,454	1,845,204
3.06	Financial income / expense	(374,980)	(821,929)	(241,661)	(800,346)
3.06.01	Financial income	170,686	648,172	182,558	428,682
3.06.02	Financial expense	(545,666)	(1,470,101)	(424,219)	(1,229,028)
3.07	Income before taxes	197,345	744,960	558,793	1,044,858
3.08	Income tax and social contribution	(100,214)	(328,133)	(203,848)	(418,679)
3.08.01	Current	(106,333)	(398,056)	(136,708)	(388,071)
3.08.02	Deferred	6,119	69,923	(67,140)	(30,608)
3.09	Net income from continuing operations	97,131	416,827	354,945	626,179
3.11	Net income	97,131	416,827	354,945	626,179
3.11.01	Net income attributable to controlling shareholders	96,041	437,171	351,813	636,489
3.11.02	Net income attributable to noncontrolling shareholders	1,090	(20,344)	3,132	(10,310)

22

CONSOLIDATED FINANCIAL STATEMENTS - STATEMENT OF COMPREHENSIVE INCOME
(in thousands of Brazilian reais – R$)

Code	Description	Current Year - Third Quarter	YTD Current Year	Previous Year - Third Quarter	YTD Previous Year
Code	Description	07/01/2014 to 09/30/2014	01/01/2014 to 09/30/2014	07/01/2013 to 03/30/2013	01/01/2013 to 09/30/2013
4.01	Net income	97,131	416,827	354,945	626,180
4.02	Other comprehensive income	(1,535)	(1,535)	-	502,927
4.02.01	Actuarial gain	(1,535)	(1,535)	-	502,927
4.03	Comprehensive income	95,596	415,292	354,945	1,129,107
4.03.01	Comprehensive income attributtable to controlling shareholders	94,506	435,636	351,813	1,139,416
4.03.02	Comprehensive income attributable to non controlling shareholders	1,090	(20,344)	3,132	(10,309)

23

CONSOLIDATED FINANCIAL STATEMENTS - STATEMENTS OF CASH FLOW – INDIRECT METHOD
(in thousands of Brazilian reais – R$)

Code	Description	YTD Current year 01/01/2014 to 09/30/2014	YTD Previous year 01/01/2013 to 09/30/2013
6.01	Net cash from operating activities	826,814	1,797,389
6.01.01	Cash generated from operations	2,873,128	3,228,247
6.01.01.01	Net income, including income tax and social contribution	744,960	1,044,858
6.01.01.02	Depreciation and amortization	850,732	789,091
6.01.01.03	Reserve for tax, civil, labor and environmental risks	100,362	250,806
6.01.01.04	Interest and monetary and exchange restatement	1,171,230	1,031,255
6.01.01.05	Gain on pension plan	36,123	51,363
6.01.01.06	Losses on disposal of noncurrent assets	31,170	31,503
6.01.01.07	Deferred taxes - PIS and COFINS	(23,253)	33,463
6.01.01.08	Other	(1,188)	6,041
6.01.01.09	Provision for doubtful accounts	61,005	64,603
6.01.01.10	Equity income	(98,013)	(74,736)
6.01.02	Variation on assets and liabilities	(2,046,314)	(1,430,858)
6.01.02.01	Consumers, Concessionaires and Licensees	(436,314)	189,782
6.01.02.02	Recoverable Taxes	52,720	19,340
6.01.02.03	Leases	(144)	2,757
6.01.02.04	Escrow deposits	46,583	73,744
6.01.02.05	Other operating assets	(48,821)	(51,084)
6.01.02.06	Suppliers	61,894	(121,078)
6.01.02.07	Taxes and social contributions paid	(435,396)	(426,408)
6.01.02.08	Other taxes and social contributions	121,389	(92,852)
6.01.02.09	Employee Pension Plans	(86,439)	(62,717)
6.01.02.10	Interest paid on debt	(961,497)	(710,258)
6.01.02.11	Regulator charges	11,704	(77,446)
6.01.02.12	Tax, civil and labor risks paid	(127,037)	(105,393)
6.01.02.13	Other operating liabilities	87,159	13,676
6.01.02.14	Dividend and interest on equity received	40,374	66,940
6.01.02.15	Receivables - Resources provided by the Energy Development Account - CDE / CCEE	(390,858)	(247,951)
6.01.02.16	Payable - Resources provided by the CDE	18,369	98,090
6.02	Net cash in investing activities	(829,808)	(1,357,443)
6.02.01	Acquisition of property, plant and equipment	(245,099)	(728,402)
6.02.02	Marketable Securities, Deposits and Escrow Deposits	22,183	51,417
6.02.03	Other	-	(7,802)
6.02.04	Acquisition of intangible assets	(508,691)	(632,184)
6.02.05	Sale of noncurrent assets	14,758	43,511
6.02.08	Intercompany loans with subsidiaries and associated companies	950	(83,983)
6.02.09	Price paid in business combination net of cash acquired	(68,464)	-
6.02.10	Capital increase in investments	(45,445)	-
6.03	Net cash in financing activities	(203,143)	2,530,528
6.03.01	Loans, financing and debentures obtained	2,791,289	5,518,422
6.03.02	Payments of Loans, financing and debentures , net of derivatives	(2,407,300)	(2,842,441)
6.03.03	Dividend and interest on shareholders’ equity paid	(588,038)	(475,281)
6.03.04	Capital increase by noncontrolling shareholders	906	329,828
6.05	Increase (decrease) in cash and cash equivalents	(206,137)	2,970,474
6.05.01	Cash and cash equivalents at beginning of period	4,206,422	2,435,034
6.05.02	Cash and cash equivalents at end of period	4,000,285	5,405,508

24

CONSOLIDATED FINANCIAL STATEMENTS - STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 1, 2014 TO SEPTEMBER 30, 2014 (in thousands of Brazilian reais – R$)


Code	Description	Capital	Capital Reserves, options and treasury shares	Profit Reserves	Retained earnings	Other comprehensive income	Shareholders’ Equity Total	Noncontrolling Shareholders’ Equity	Consolidated Shareholders’ Equity
5.01	Opening balance	4,793,424	287,630	1,545,177	-	397,667	7,023,898	1,774,819	8,798,717
5.03	Adjusted opening balance	4,793,424	287,630	1,545,177	-	397,667	7,023,898	1,774,819	8,798,717
5.04	Capital transactions within shareholders	-	44	(567,802)	(419,833)	-	(987,591)	(19,452)	(1,007,043)
5.04.09	Additional dividend aproved	-	-	(567,802)	-	-	(567,802)	(16,617)	(584,419)
5.04.10	Capital increase in subsidiaries with no change in control	-	251	-	-	-	251	656	906
5.04.11	Gain (loss) in participation with, no change in control	-	(207)	-	-	-	(207)	207	-
5.04.12	Interim dividend	-	-	-	(422,195)	-	(422,195)	(2,382)	(424,576)
5.04.13	Prescribed dividend	-	-	-	2,362	-	2,362	-	2,362
5.04.14	Redemption of capital reserve of non-controlling shareholders	-	-	-	-	-	-	(1,316)	(1,316)
5.05	Total comprehensive income	-	-	-	437,171	(1,535)	435,636	(20,344)	415,292
5.05.01	Net income	-	-	-	437,171	-	437,171	(20,344)	416,827
5.05.02	Total comprehensive income	-	-	-	-	(1,535)	(1,535)	-	(1,535)
5.05.02.06	Comprehensive income - Actuarial loss	-	-	-	-	(1,535)	(1,535)	-	(1,535)
5.06	Internal changes of shareholders equity	-	-	(79,957)	99,307	(19,350)	-	(37)	(37)
5.06.07	Other changes in non-controlling shareholders	-	-	-	-	-	-	(37)	(37)
5.06.08	Statutory reserve for the period	-	-	29,030	(29,030)	-	-	-	-
5.06.09	Realization/reversal of earnings retained investment	-	-	(108,987)	108,987	-	-	-	-
5.06.10	Realization of deemed cost of fixed assets	-	-	-	29,318	(29,318)	-	-	-
5.06.11	Tax on deemed cost realization	-	-	-	(9,968)	9,968	-	-	-
5.07	Ending balance	4,793,424	287,674	897,418	116,645	376,782	6,471,943	1,734,986	8,206,929

25

CONSOLIDATED FINANCIAL STATEMENTS - STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 1, 2013 TO SEPTEMBER 30, 2013 (in thousands of Brazilian reais – R$)


Code	Description	Capital	Capital Reserves, options and treasury shares	Profit Reserves	Retained earnings	Other comprehensive income	Shareholders’ Equity Total	Noncontrolling Shareholders’ Equity	Consolidated Shareholders’ Equity
5.01	Opening balance	4,793,424	228,322	1,339,287	56,293	(36,598)	6,380,728	1,510,401	7,891,129
5.03	Adjusted opening balance	4,793,424	228,322	1,339,287	56,293	(36,598)	6,380,728	1,510,401	7,891,129
5.04	Capital transactions within shareholders	-	60,090	(455,906)	(360,857)	-	(756,673)	255,639	(501,034)
5.04.08	IPO CPFL Renováveis	-	60,090	-	-	-	60,090	269,739	329,829
5.04.09	Additional dividend aproved	-	-	(455,906)	-	-	(455,906)	(11,799)	(467,705)
5.04.10	Prescribed dividend	-	-	-	2,192	-	2,192	(2,301)	2,192
5.04.11	Interim dividend	-	-	-	(363,049)	-	(363,049)	-	(365,350)
5.05	Total comprehensive income	-	-	-	636,489	502,928	1,139,417	(10,309)	1,129,108
5.05.01	Net income	-	-	-	636,489	-	636,489	(10,309)	626,180
5.05.02	Other comprehensive income	-	-	-	-	502,928	502,928	-	502,928
5.05.02.06	Comprehensive income - Actuarial gain	-	-	-	-	502,928	502,928	-	502,928
5.06	Internal changes of shareholders equity	-	-	(78,460)	96,816	(18,356)	-	(36)	(36)
5.06.01	Statutory reserve for the period	-	-	(78,460)	78,460	-	-	-
5.06.04	Realization of deemed cost of fixed assets	-	-	-	27,813	(27,813)	-	-	-
5.06.05	Tax on deemed cost realization	-	-	-	(9,457)	9,457	-	-	-
5.06.07	Other transactions within noncontrolling shareholders	-	-	-	-	-	-	(36)	(36)
5.07	Ending balance	4,793,424	288,412	804,921	428,741	447,974	6,763,472	1,755,695	8,519,167

26

CONSOLIDATED FINANCIAL STATEMENTS - STATEMENTS OF ADDED VALUE
(in thousands of Brazilian reais – R$)

Code	Description	YTD Current Year 01/01/2014 to 09/30/2014	YTD Previous Year 01/01/2013 to 09/30/2013
7.01	Revenues	16,197,673	15,176,081
7.01.01	Sales of goods, products and services	15,361,154	13,707,890
7.01.02	Other revenue	636,053	753,092
7.01.02.01	Revenue from construction of infrastructure distribution	636,053	753,092
7.01.03	Revenues related to the construction of own assets	261,471	779,702
7.01.04	Allowance for doubtful accounts	(61,005)	(64,603)
7.02	Inputs	(10,099,613)	(9,068,356)
7.02.01	Cost of sales	(8,477,234)	(6,683,136)
7.02.02	Material-Energy-Outsourced services-Other	(1,315,212)	(1,853,011)
7.02.04	Other	(307,167)	(532,209)
7.03	Gross added value	6,098,060	6,107,725
7.04	Retentions	(851,184)	(790,471)
7.04.01	Depreciation and amortization	(632,159)	(567,526)
7.04.02	Other	(219,025)	(222,945)
7.04.02.01	Intangible concession asset - amortization	(219,025)	(222,945)
7.05	Net added value generated	5,246,876	5,317,254
7.06	Added value received in transfer	747,739	518,300
7.06.01	Equity result	98,013	74,736
7.06.02	Financial income	649,726	443,564
7.07	Added Value to be Distributed	5,994,615	5,835,554
7.08	Distribution of Added Value	5,994,615	5,835,554
7.08.01	Personnel	597,844	572,151
7.08.01.01	Direct Remuneration	371,083	345,473
7.08.01.02	Benefits	196,597	198,640
7.08.01.03	Government severance indemnity fund for employees- F.G.T.S.	30,164	28,038
7.08.02	Taxes, Fees and Contributions	3,481,883	3,335,052
7.08.02.01	Federal	1,212,504	1,223,440
7.08.02.02	State	2,256,319	2,102,419
7.08.02.03	Municipal	13,060	9,193
7.08.03	Remuneration on third parties’ capital	1,498,061	1,302,171
7.08.03.01	Interest	1,465,023	1,269,098
7.08.03.02	Rental	33,038	33,073
7.08.04	Remuneration on own capital	416,827	626,180
7.08.04.02	Dividends	313,208	363,049
7.08.04.03	Retained Earnings / Loss for the Period	103,619	263,131

27

COMMENTS ON PERFORMANCE

The comments on performance are expressed in thousands of Brazilian reais, unless otherwise indicated.

Analysis of Results

CPFL Energia (Parent Company)

The drop in net income in the quarter was R$ 255,772, compared with the same quarter of 2013 (profit of R$ 96,041 in 2014 and R$ 351,813 in 2013), primarily due to an decrease of R$ 252,514 in income from equity in subsidiaries.

28

COMMENTS ON CONSOLIDATED PERFORMANCE


	Consolidated
	3rd Quarter						Nine months
	2014		2013		%		2014		2013		%
Operating revenues	5,611,467		4,717,699		18.9%		15,997,208		14,460,982		10.6%
Electricity sales to final consumers (*)	3,941,503		3,411,350		15.5%		11,409,432		10,405,400		9.6%
Electricity sales to wholesaler´s	909,123		577,403		57.5%		2,270,563		1,870,595		21.4%
Revenue from construction of concession infrastructure	230,253		235,266		-2.1%		636,053		753,092		-15.5%
Other operating revenues (*)	530,588		493,680		7.5%		1,681,161		1,431,895		17.4%
Deductions from operating revenues	(1,369,492)		(1,115,584)		22.8%		(3,934,240)		(3,545,098)		11.0%
Net operating revenue	4,241,976		3,602,115		17.8%		12,062,968		10,915,884		10.5%
Cost of eletric energy	(2,660,856)		(1,948,600)		36.6%		(7,653,506)		(6,002,363)		27.5%
Electricity purchased for resale	(2,577,963)		(1,774,160)		45.3%		(7,239,007)		(5,508,908)		31.4%
Electricity network usage charges	(82,893)		(174,440)		-52.5%		(414,499)		(493,456)		-16.0%
Operating cost/expense	(995,803)		(894,142)		11.4%		(2,940,586)		(3,143,052)		-6.4%
Personnel	(213,360)		(185,638)		14.9%		(625,537)		(548,591)		14.0%
Employee pension plans	(12,045)		(10,302)		16.9%		(36,123)		(51,363)		-29.7%
Materials	(31,318)		(24,718)		26.7%		(88,122)		(79,278)		11.2%
Outside services	(127,021)		(113,840)		11.6%		(372,590)		(358,532)		3.9%
Depreciation and amortization	(213,407)		(189,727)		12.5%		(631,706)		(566,145)		11.6%
Intangible of concession amortization	(73,541)		(73,525)		0.0%		(219,025)		(222,946)		-1.8%
Costs related to infrastructure construction	(230,253)		(235,266)		-2.1%		(636,053)		(753,092)		-15.5%
Other	(94,858)		(61,125)		55.2%		(331,429)		(563,105)		-41.1%
Income from electric energy service	585,316		759,372		-22.9%		1,468,876		1,770,468		-17.0%
Financial income (expense)	(374,980)		(241,661)		55.2%		(821,929)		(800,345)		2.7%
Income	170,686		182,558		-6.5%		648,172		428,682		51.2%
Expense	(545,666)		(424,219)		28.6%		(1,470,101)		(1,229,028)		19.6%
Interest in subsidiaries, associates and joint ventures	(12,991)		41,083		-131.6%		98,013		74,736		31.1%
Income before taxes	197,345		558,793		-64.7%		744,960		1,044,859		-28.7%
Social Contribution	(29,428)		(55,656)		-47.1%		(91,283)		(113,079)		-19.3%
Income Tax	(70,786)		(148,192)		-52.2%		(236,849)		(305,600)		-22.5%
Net income	97,131		354,945		-72.6%		416,827		626,180		-33.4%

Net income attributable to the shareholders of the company	96,041		351,813		-72.7%		437,171		636,489		-31.3%
Net income/(loss) attributable to the non controlling interests	1,090		3,132		-65.2%		(20,344)		(10,309)		97.3%

EBITDA	859,568		1,064,636		-19.3%		2,418,507		2,635,224		-8.2%

(*) The reclassification of revenue from network usage charge - TUSD was not taken into acount in presentation of the comments on consolidated perfomance.

Net income for the period and EBITDA reconciliation
Net income	97,131		354,945				416,827		626,180
Depreciation and amortization	286,948		263,253				850,732		789,091
Amortization of value-added of assets	295		929				886		929
Financial income (expense)	374,980		241,661				821,929		800,345
Social contribution	29,428		55,656				91,283		113,079
Income tax	70,786		148,192				236,849		305,600
EBITDA	859,568		1,064,636				2,418,507		2,635,224

Gross Operating Revenue

The Gross Operating Revenue in the 3rd quarter of 2014 was R$ 5,611,467, up 18.9% (R$ 893,768) compared with the same quarter of the previous year.

The main factors in this change were:

· Increase of 15.5% (R$ 530,153) in the supply of electric energy, due to an increase of 17.9% in the average tariffs charged as a result of tariff adjustments, offset by the reduction of 2.0% in the volume of energy billed and not billed;

· Increase of 57.5% (R$ 331,720) in the energy supplied, caused mainly by:

o Increase of R$ 261,894 in sales of current electric energy in the Electric Energy Commercialization Chamber (“CCEE”) mainly as a result (i) of the increase in the average price (R$ 190,707) and of energy sold of 443 GWh (R$ 46,510), and (ii) additional revenue of R$ 24,677 in the 3rd quarter for the subsidiary CPFL Geração, due to the mitigation of the effects of the GSF;

29

o Increase of 8.1% (R$ 8,941) sold to Furnas due the increase of 8.1% in the tariff adjustment:

o Increase of 14.3% (R$ 60,885) in sales to Other concessionaires and licensees, mainly due to the increase in the sales revenue of CPFL Renováveis (biomass and wind power).

· Increase of 7.5% (R$ 36,908) in other operating revenues, due mainly (i) to accounting for the low income subsidy and discounts on tariffs reimbursed by funds from the CDE (R$ 20,801) and (ii) revenue resulting from the Tariff for the Use of the Distribution System – TUSD free consumers (R$ 19,141).

· Drop of 2.1% (R$ 5,012) in revenue from construction of the concession infrastructure due to the decline in investments in the quarter, with no impact on the net profit.

Ø Quantity of Energy Sold

The quantity of energy billed to final consumers in the 3rd quarter of 2014 increased by 3.1% in relation to the same period of the previous year. If the effect of migration of customers to the Free Market were to be excluded, the growth would be 3.7%.

The residential category, which accounts for 38.1% of the total captive market, recorded growth of 4.4%. If the effect of fewer days in the previous year were to be excluded, the growth would be 3.3%. Performance was boosted by the increase in new consumer units and the residential stocks of electrical appliances, due to the maintenance of high income levels and low unemployment.

The commercial category, which accounts for 20.3% of the total captive market, recorded an increase of 5.5%. If the effect of migration of customers to the Free Market and fewer days in the previous year were to be excluded, the growth would be 6.4%. We draw attention to the cumulative retail sales, which grew by 2.9% in the 12 months ended in August 2014.

The industrial category, which represents 21.0% of the total captive market, reported a drop of 2.3% If the effect of migration of customers to the Free Market and more days in the previously year were to be excluded, the drop would be 1.6%. This performance is a direct consequence of Brazilian industrial activity which, year-to-date (to August 2014) dropped by -3.1%, reinforcing the signs of deceleration of the economy. CPFL Brasil recorded a result of -10.1%, which is also a reflection of the Brazilian industrial scenario.

Energy sales by the commercialization and generation segment were down 2.3% on the same period of the previous year, mainly due to the decrease in sales under bilateral agreements and free clients in the commercialization segment. In spite of an increase in the client portfolio, there was no significant growth in consumption by these clients in view of the relative stagnation of the industrial segment and the difficulties caused by the adverse energy scenario. Similarly, uncertainties about the economic and energy scenarios inhibited trade in the commercialization segment, particularly in respect of short-term agreements, and reduced the amount traded in bilateral agreements; offset by increased sales by CPFL Renováveis, due to the start-up of the biomass plant Alvorada and of the Atlântica, Campo dos Ventos II and Macacos I complexes, besides the finalization of the acquisition of Rosa dos Ventos.

30

Ø Tariffs

In the 3rd quarter of 2014, the supply tariffs increased by an average of 17.9%. This was largely due to the net effect of the distributors' tariff increases, mainly:

· RGE: 22.77% from June 2014 (in 2013, a negative percentage of 10.64%);

· CPFL Piratininga: 6.91% from October 2013;

· CPFL Paulista: 17.23% from April 2014.

Deductions from Operating Revenue

Deductions from Operating Revenue in the 3rd quarter of 2014 amounted to R$ 1,369,492, up 22.8% (R$ 253,907) on the same quarter of 2013, largely due to:

· An increase of 20.1% (R$ 129,091) in ICMS, largely as a result of the up of 18.1% in the supply billed;

· Increase of 24.0% (R$ 90,278) in PIS and COFINS, largely as a result of the increase in the calculation base for these taxes.

· Increase of 36.1% (R$ 33,961) in sector charges, mainly caused by an increase of R$ 34,898 in the Energy Development Account due to ratification of the new quota for 2014.

Cost of Electric Energy

The cost of electric energy in the quarter totaled R$ 2,660,856, up 36.6% (R$ 712,256) on the same period of the previous year, mainly due to:

· An increase of 45.3% (R$ 803,803) in electric energy purchased for resale, due to:

o an increase of 33.0% (R$ 677,216) in the average price related to higher output by the thermoelectric plants: greater involuntary exposure, an increase in the settlement price “PLD” and increases in contract prices;

o A rise in energy cost due to the effects of Ceran's GSF (R$ 56,419);

o increase of 2.5% (R$ 49,805) in energy purchased, due to the rise in sales;

o decrease of 9.5% (R$ 20,363) due to lower reimbursement of costs by the CDE for hydrological risk and involuntary exposure for the distribution subsidiaries.

· Decrease of 52.5% (R$ 91,547) in transmission and distribution network usage charges, mainly due to: (i) drop of R$ 173,344 in System Service Charges due to recording of credit of (R$ 209,457) for the financial excess of the Energy Reserve Account ("CONER"), partially offset by (i) an increase of R$ 65,261 in basic network charges and (ii) up of R$ 2,597 in reserve energy charges.

A significant portion of these cost increases is not included in the distributors’ tariffs and will be passed on in the next tariff increase (see further comments about the impact of regulatory assets and liabilities at the end of the Comments on Performance).

Operating Costs and Expenses

Without taking into consideration the costs related to infrastructure construction, operating costs and expenses in the quarter amounted to R$ 765,550, up 16.2% (R$ 106,673) on the same period of the previous year. This was mainly due to:

· Personnel: an increase of 14.9% (R$ 27,721), mainly due to (i) effects of the collective agreement and increase in the workforce (R$ 17,037), and (ii) drop in capitalization of personnel costs in investment from January 2014, in accordance with ANEEL's new methodology (R$ 10,685);

31

· Material: an increase of 26.7% (R$ 6,600), largely due to (i) replacement of line and grid maintenance material (R$ 3,511), (ii) equipment and uniforms (R$ 1,253) and (iii) fleet maintenance material (R$ 828);

· Outsourced Services: an increase of 11.6% (R$ 13,181), mainly for (i) consultancy costs on the transaction between CPFL Renováveis and DESA (R$ 7,560), (ii) contract services
(R$ 2,209) and (iii) line and grid maintenance (R$ 1,660);

· Depreciation and Amortization: an increase of 12.5% (R$ 23,680), mainly due to (i) an increase of R$ 13,648 for the subsidiary CPFL Renováveis due to the companies that started operations; and (ii) an increase of R$ 10,129 in amortization of the intangible distribution infrastructure asset, mainly due to additions to the intangible assets base in the period;

· Other Expenses: increase of 55.2% (33,734), mainly due to the gain recorded in 2013 on disposal of properties and vehicles (R$ 37,896), offset by the reduction in legal and court expenses (R$ 6,068).

Financial Income (Expense)

The Net Financial Expense in the quarter was R$ 374,980, compared with R$ 241,661 in the same period of 2013, a drop of R$ 133,319 in net expense. This variation is mainly due to:

· A decrease of 6.5% (R$ 11,871) in financial income, mainly due to (i) reduction of adjustment in the estimated cash flow of the financial assets of concession (R$ 20,824) and (ii) reduction of monetary and exchange restatement (R$ 4,154), partially offset by the following increases (i) restatement of court deposits (R$ 7,169), (ii) restatement of tax credits (R$ 3,652) and (iii) income from short-term cash investments (R$ 2,340);

· Increase of 28.6% (R$ 121,447) in financial expense, mainly due to (i) an increase of R$ 93,446 in debt charges and monetary and exchange restatement as a result of the increased debt and rise in indicators, (ii) increase in R$ 16,437 in exchange variations for Itaipu, (iii) reduction of R$ 15,018 in the interest capitalized, (iv) premium of R$ 9,255 paid on early settlement of debentures, (v) discounts of R$ 4,510 on contractual agreements, (vi ) fines and penalties of R$ 6,533, partially offset by adjustment of R$ 16,544 in the estimated cash flow of the financial assets of concession.

Interest in subsidiaries, associates and joint ventures

Changes in equity income relate to income from equity in joint ventures, as shown below:

		3rd quarter 2014		3rd quarter 2013
Epasa		(3,452)		670
Baesa		4,876		1,957
Campos Novos		3,739		16,172
Chapecoense		(17,858)		23,213
Amortization of value-added of assets		(295)		(929)
Total		(12,991)		41,083

32

· Chapecoense: decrease of R$ 41,071, mainly as a result of the higher cost of energy purchased, due to seasonal effects (R$ 45.256).

· Campos Novos: decrease of R$ 12,433, mainly as a result of the higher cost of energy purchased, due to seasonal effects.

Social Contribution and Income Tax

Taxes on income in the 3rd quarter of 2014 were R$ 100,214, down by 50.8% (R$103,634) in relation to the expense and recorded in the same quarter of 2013, primarily due to the effects of changes in income before taxes.

Net Income and EBITDA

As a result of the above factors, net income for the quarter was R$ 97,131, 72.6% (R$ 257,814) less than for the same period of 2013 (profit of R$ 354,945).

EBITDA (net income excluding the effects of depreciation, amortization, financial income (expense), social contribution and income tax) for the 3rd quarter of 2014 was R$ 859,568, or 19.3% (R$ 205,067) lower than in the same quarter of 2013.

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities are not accounted for, in accordance with the pronouncements issued by the Accounting Pronouncements Committee (CPC) and International Financial Reporting Standards (IFRS). If they were recorded, there would be a positive impact on EBITDA of R$ 52 million (and a negative impact of R$ 135 million in the same quarter of 2013) and R$ 45 million on Net Income (and negative impact of R$ 83 million in the same quarter of 2013). The amounts relating to the deferral of regulatory assets and liabilities will be passed on to the tariffs in the next tariff readjustment, through the financial components. The amounts relating to amortization of these are reflected in the tariffs of each period.

33

COMMENTS ON THE PERFORMANCE OF SUBSIDIARIES/ASSOCIATES

Subsidiary/Associate: Companhia Paulista de Força e Luz - CPFL

The subsidiary Companhia Paulista de Força e Luz - CPFL is a publicly quoted corporation, and its individual comments on performance are provided in its Interim Financial Statements - ITR, at September 30, 2014, filed with the CVM – Comissão de Valores Mobiliários.

Subsidiary/Associate: CPFL Geração de Energia S.A.

The subsidiary CPFL Geração de Energia S/A is a publicly quoted corporation, and its individual and consolidated comments on performance are provided in its Interim Financial Statements - ITR, at September 30, 2014, filed with the CVM – Comissão de Valores Mobiliários.

Subsidiary/Associate: Companhia Piratininga de Força e Luz

The subsidiary Companhia Piratininga de Força e Luz is a publicly quoted corporation, and its comments on performance are provided in its Interim Financial Statements - ITR, at September 30, 2014, filed with the CVM – Comissão de Valores Mobiliários.

Subsidiary/Associate: Rio Grande Energia S.A.

The subsidiary Rio Grande Energia S/A is a publicly quoted corporation, and its individual and consolidated comments on performance are provided in its Interim Financial Statements - ITR, at September 30, filed with the CVM – Comissão de Valores Mobiliários.

34

Subsidiary/Associate: CPFL Commercialization Brasil S.A.

	Consolidated
	2nd Quarter						1st Semester
	2014		2013		%		2014		2013		%
Operating revenues	645,517		456,453		41.4%		1,730,966		1,618,610		6.9%
Electricity sales to final consumers	231,366		235,582		-1.8%		687,398		683,061		0.6%
Electricity sales to wholesaler´s	414,148		220,531		87.8%		1,036,485		934,212		10.9%
Other operating revenues	4		340		-98.9%		7,082		1,337		429.6%
Deductions from operating revenues	(72,054)		(55,455)		29.9%		(197,464)		(188,424)		4.8%
Net operating revenue	573,463		400,998		43.0%		1,533,501		1,430,186		7.2%
Cost of eletric energy	(505,867)		(380,476)		33.0%		(1,323,970)		(1,374,864)		-3.7%
Electricity purchased for resale	(505,867)		(377,876)		33.9%		(1,327,451)		(1,371,426)		-3.2%
Electricity network usage charges	-		(2,600)		-100.0%		3,480		(3,438)		-201.2%
Operating cost/expense	(10,114)		(9,812)		3.1%		(29,237)		(29,774)		-1.8%
Personnel	(5,533)		(5,709)		-3.1%		(16,654)		(16,234)		2.6%
Materials	(41)		(53)		-22.9%		(122)		(183)		-33.2%
Outside services	(1,727)		(1,887)		-8.5%		(5,073)		(6,160)		-17.6%
Depreciation and amortization	(1,118)		(896)		24.7%		(3,335)		(2,845)		17.2%
Other	(1,696)		(1,268)		33.8%		(4,053)		(4,353)		-6.9%
Income from electric energy service	57,483		10,710		436.7%		180,294		25,548		605.7%
Financial income (expense)	1,231		422		191.7%		4,283		5,347		-19.9%
Income	8,804		6,271		40.4%		25,633		21,265		20.5%
Expense	(7,573)		(5,849)		29.5%		(21,350)		(15,919)		34.1%
Income before taxes	58,714		11,131		427.5%		184,577		30,895		497.4%
Social contribution	(5,341)		(1,051)		408.4%		(16,752)		(2,899)		477.9%
Income tax	(14,842)		(2,928)		406.8%		(46,598)		(8,198)		468.4%
Net income	38,531		7,153		438.7%		121,227		19,798		512.3%

Net income attributable to the shareholders of the company	38,531		7,153		438.7%		121,227		19,798		512.3%

EBITDA	58,600		11,606		404.9%		183,629		28,393		546.7%


Net income for the period and EBITDA reconciliation
Net income	38,531		7,153				121,227		19,798
Depreciation and amortization	1,118		896				3,335		2,845
Financial income (expense)	(1,231)		(422)				(4,283)		(5,347)
Social contribution	5,341		1,051				16,752		2,899
Income tax	14,842		2,928				46,598		8,198
EBITDA	58,600		11,606				183,629		28,393

Gross Revenue

Gross Revenue for the 3rd quarter of was R$ 645,517, up R$ 189,064 (41.4%) in relation to the same quarter of 2013. The increase is mainly due to the parent company's energy supply transactions, which were up by R$ 193,617 as a result of:

· Bilateral Agreements: increase of R$ 33,143 due to the increase of 50% (R$ 95,596) in the average price, partially offset by the drop in sales of 342 GWh (R$ 62,453); and

· Sales in the CCEE: up R$ 160,474, explained by the increase of 127 GWh (R$ 81,852) in the volume sold and of 268% (R$ 78,622) in the average price.

Cost of Electric Energy

The cost of electric energy in the 3rd quarter of 2014 was R$ 505,867, up R$ 125,391 (33%) on the same quarter of 2013. The increase is mainly explained by the parent company's transactions in relation to bilateral agreements, which were up by R$ 127,336 on account of the increase of 48% (R$ 180,702) in the average price, partially offset by the reduction of 312 GWh (R$ 53,416) in the amount acquired.

35

Financial income (expense)

The financial income (expense) in the 3rd quarter of 2014 was net income of R$ 1,231, up R$ 809 (191.7%) on the same quarter of 2013. The positive result of the parent company's operations was due to: (i) an increase of R$ 3,001 in revenue from short-term cash investments; (ii) a drop of R$ 1,160 in revenue from restatement of the advance energy purchase agreement due to receipt of the energy contracted, and (iii) an increase of R$ 1,420 in debt charges/restatement of debenture debts, mainly due to the increase of 2.64% in the CDI in the 3rd quarter of 2014, as against 2.08% in 3Q13.

Net Income for the period and EBITDA

Net financial income in the 3rd quarter of 2014 was R$ 38,531, up R$ 31,378 on the same quarter of 2013.

EBITDA (net Income before financial income (expense), income tax and social contribution, depreciation and amortization) for the 3rd quarter of 2014 was R$ 58,600 up on the R$ 11,606 recorded in the same quarter of 2013 (unaudited).

36

NOTES TO THE INTERIM FINANCIAL STATEMENTS

CPFL ENERGIA S.A.

NOTES TO THE INTERIM FINANCIAL STATEMENTS

AT SEPTEMBER 30, 2014

(Amounts stated in thousands of Brazilian reais, except where otherwise indicated)

CPFL ENERGIA S.A.
Balance Sheets as of September 30, 2014 and December 31, 2013
(in thousands of Brazilian reais)
		Parent company				Consolidated
ASSETS	Note	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013

CURRENT ASSETS
Cash and cash equivalents	5	1,267,593		990,672		4,000,285		4,206,422
Consumers, concessionaires and licensees	6	-		-		2,420,487		2,007,789
Dividends and interest on shareholders´ equity receivable	11	1,323,230		697,702		28,315		55,265
Financial investments		-		-		5,627		24,806
Recoverable taxes	7	41,294		29,874		240,021		262,433
Derivatives	32	-		-		17,269		1,842
Materials and supplies		-		-		23,292		21,625
Leases		-		-		12,365		10,757
Financial asset of concession	9	-		-		457,147		-
Other credits	10	2,878		1,984		1,101,275		673,383
TOTAL CURRENT ASSETS		2,634,995		1,720,232		8,306,084		7,264,323

NONCURRENT ASSETS
Consumers, concessionaires and licensees	6	-		-		122,404		153,854
Loans to subsidiaries, associates and joint ventures	30	3,931		8,948		98,904		86,655
Escrow deposits	20	664		92		1,156,776		1,143,179
Recoverable taxes	7	-		-		156,890		173,362
Derivatives	32	-		-		382,855		316,648
Deferred taxes credits	8	173,845		165,798		1,224,714		1,168,706
Advances for future capital increase		27,078		59,397		-		-
Leases		-		-		36,354		37,817
Financial asset of concession	9	-		-		2,663,725		2,787,073
Investment at cost		-		-		116,654		116,654
Other credits	10	10,788		14,389		282,872		296,096
Investment	11	5,445,493		6,419,924		1,160,714		1,032,681
Property, plant and equipment	12	889		1,000		7,707,297		7,717,419
Intangible assets	13	21		32		8,484,962		8,748,328
TOTAL NONCURRENT ASSETS		5,662,708		6,669,579		23,595,118		23,778,473

TOTAL ASSETS		8,297,703		8,389,811		31,901,202		31,042,796

The accompanying notes are an integral part of these interim financial information.

37

CPFL ENERGIA S.A.
Balance Sheets as of September 30, 2014 and December 31, 2013
(in thousands of Brazilian reais)

			Parent company				Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY	Note		September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013

CURRENT LIABILITIES
Suppliers	14		606		1,127		1,945,959		1,884,693
Accrued interest on debts	15		-		-		79,094		125,829
Accrued interest on debentures	16		50,635		12,438		299,939		162,134
Loans and financing	15		-		-		987,145		1,514,626
Debentures	16		1,289,017		-		1,879,120		34,872
Post-employment benefit obligation	17		-		-		81,493		76,810
Regulatory charges	18		-		-		44,083		32,379
Taxes and social contributions payable	19		245		359		432,988		318,063
Dividends and Interest on Equity			438,056		15,407		440,465		21,224
Accrued liabilities			-		10		106,710		67,633
Public Utilities	21		-		-		3,911		3,738
Other accounts payable	22		17,072		16,904		715,659		663,529
TOTAL CURRENT LIABILITIES			1,795,631		46,246		7,016,566		4,905,531

NONCURRENT LIABILITIES
Suppliers	14		-		-		633		-
Accrued interest on debts	15		-		-		48,589		43,396
Accrued interest on debentures	16		-		-		-		32,177
Loans and financing	15		-		-		8,495,162		7,546,144
Debentures	16		-		1,287,912		6,047,119		7,562,219
Post-employment benefit obligation	17		-		-		295,642		350,640
Taxes and social contributions payable	19		-		-		15,315		32,555
Deferred taxes debits	8		-		-		1,101,162		1,117,146
Reserve for tax, civil and labor risks	20		554		260		440,481		467,996
Derivatives	32		-		-		8,641		2,950
Public utilities	21		-		-		80,166		79,438
Other accounts payable	22		29,573		31,495		144,796		103,886
TOTAL NONCURRENT LIABILITIES			30,127		1,319,667		16,677,707		17,338,547

SHAREHOLDERS' EQUITY	23
Capital			4,793,424		4,793,424		4,793,424		4,793,424
Capital reserves			287,673		287,630		287,673		287,630
Profit reserves			603,352		603,352		603,352		603,352
Reserve of retained earnings for investment			-		108,987		-		108,987
Statutory reserve - financial asset of concession			294,067		265,037		294,067		265,037
Dividend			-		567,802		-		567,802
Other comprehensive income			376,782		397,668		376,782		397,668
Retained earnings			116,646		-		116,646		-
			6,471,944		7,023,899		6,471,944		7,023,899
Net equity attributable to noncontrolling shareholders			-		-		1,734,985		1,774,819
TOTAL SHAREHOLDERS' EQUITY			6,471,944		7,023,899		8,206,930		8,798,718

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			8,297,703		8,389,811		31,901,202		31,042,796

The accompanying notes are an integral part of these interim financial information.

38

CPFL ENERGIA S.A.
Statement of income for the periods ended on September 30, 2014 and 2013
(in thousands of Brazilian reais, except for Earnings per share)

		Parent company								Consolidated
		2014				2013				2014				2013
STATEMENT OF INCOME	Note	3rd quarter		Nine months		3rd quarter		Nine months		3rd quarter		Nine months		3rd quarter		Nine months

NET OPERATING REVENUE	25	-		33		31		81		4,241,976		12,062,968		3,602,115		10,915,884
COST OF ELECTRIC ENERGY SERVICES
Cost of electric energy	26	-		-		-		-		(2,660,856)		(7,653,506)		(1,948,600)		(6,002,363)
Operating cost	27	-		-		-		-		(413,163)		(1,216,460)		(364,785)		(1,103,040)
Services rendered to third parties	27	-		-		-		-		(230,989)		(638,310)		(236,057)		(755,668)

GROSS OPERATING INCOME		-		33		31		81		936,967		2,554,692		1,052,672		3,054,812

Operating expenses	27
Sales expenses		-		-		-		-		(93,640)		(297,875)		(91,304)		(299,034)
General and administrative expenses		(5,806)		(17,123)		(5,915)		(16,775)		(172,027)		(520,905)		(151,680)		(753,189)
Other operating expense		-		-		-		-		(85,984)		(267,037)		(50,317)		(232,122)

INCOME FROM ELECTRIC ENERGY SERVICE		(5,806)		(17,090)		(5,884)		(16,694)		585,316		1,468,876		759,371		1,770,468

INTEREST IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES	11	103,523		460,930		356,037		679,120		(12,991)		98,013		41,083		74,736

FINANCIAL INCOME (EXPENSE)	28
Income		35,474		90,887		34,906		37,729		170,686		648,172		182,558		428,682
Expense		(37,403)		(105,286)		(35,350)		(48,755)		(545,666)		(1,470,101)		(424,219)		(1,229,028)
		(1,929)		(14,400)		(444)		(11,026)		(374,980)		(821,929)		(241,661)		(800,345)
INCOME BEFORE TAXES		95,788		429,441		349,709		651,400		197,345		744,960		558,793		1,044,858
Social contribution	8	67		2,741		1,048		(2,542)		(29,428)		(91,283)		(55,656)		(113,079)
Income tax	8	186		4,990		1,055		(12,370)		(70,786)		(236,849)		(148,192)		(305,600)
		253		7,731		2,104		(14,912)		(100,214)		(328,133)		(203,848)		(418,679)

NET INCOME		96,041		437,171		351,813		636,489		97,131		416,827		354,945		626,180

Net income attributable to controlling shareholders										96,041		437,171		351,813		636,489
Net income/(loss) attributable to noncontrolling shareholders										1,090		(20,344)		3,132		(10,309)
Earnings per share attributable to controlling shareholders - basic	24	0.10		0.45		0.37		0.66		0.10		0.45		0.37		0.66
Earnings per share attributable to controlling shareholders - diluted	24	0.09		0.44		0.36		0.65		0.09		0.44		0.36		0.65

The accompanying notes are an integral part of these interim financial information.

39

CPFL Energia S.A.
Statement of comprehensive income for the periods ended on September 30, 2104 and 2013
(In thousands of Brazilian reais – R$)
		Parent company
		2014				2013
		3rd quarter		Nine months		3rd quarter		Nine months

Net income		96,041		437,171		351,813		636,489

Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss:
Equity on comprehensive income of subsidiaries		(1,535)		(1,535)		-		502,927

Comprehensive income of the period - parent company		94,506		435,636		351,813		1,139,416

		Consolidated
		2014				2013
		3rd quarter		Nine months		3rd quarter		Nine months
Net income		97,131		416,827		354,945		626,180

Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss:
- Actuarial gain/(loss)		(1,535)		(1,535)		-		502,927

Comprehensive income of the period - consolidated		95,596		415,292		354,945		1,129,107
Comprehensive income attributable to controlling shareholders		94,506		435,636		351,813		1,139,416
Comprehensive income attributable to non controlling shareholders		1,090		(20,344)		3,132		(10,309)

The accompanying notes are an integral part of these interim financial information.

40

CPFL Energia S.A.
Statement of changes in shareholders' equity for the period ended on September 30, 2014
(in thousands of Brazilian Reais)

																						Net equity attributable to
						Profit reserves								Other comprehensive income								noncontrolling shareholders
		Capital		Capital reserves		Legal reserve		Earnings retained for investment		Statutory reserve financial asset of concession		Dividend		Deemed Cost		Post-employment benefit obligation		Retained earnings		Total		Other comprehensive income		Other equity		Total Shareholders' equity
Balance at December 31, 2013		4,793,424		287,630		603,352		108,987		265,036		567,802		509,665		(111,999)		-		7,023,899		18,490		1,756,328		8,798,718

Total comprehensive income
Net income for the period		-		-		-		-		-		-		-		-		437,171		437,171		-		(20,344)		416,827
Comprehensive income - Actuarial loss		-		-		-		-		-		-		-		(1,535)		-		(1,535)		-		-		(1,535)

Internal changes of shareholders'equity
- Realization of deemed cost of fixed assets		-		-		-		-		-		-		(29,318)		-		29,318		-		(1,690)		1,690		-
- Tax on deemed cost realization		-		-		-		-		-		-		9,968		-		(9,968)		-		575		(575)		-
- Realization/reversal of earnings retained investment		-		-		-		(108,987)		-		-		-		-		108,987		-		-		-		-
- Statutory reserve for the period		-		-		-		-		29,030		-		-		-		(29,030)		-		-		-		-
- Other changes in non-controlling shareholders		-		-		-		-		-		-		-		-		-		-		-		(37)		(37)

Capital transactions with the shareholders
- Prescribed dividend		-		-		-		-		-		-		-		-		2,362		2,362		-		-		2,362
- Interim dividend		-		-		-		-		-		-		-		-		(422,195)		(422,195)		-		(2,382)		(424,576)
- Additional dividend aproved		-		-		-		-		-		(567,802)		-		-		-		(567,802)		-		(16,617)		(584,419)
- Redemption of capital reserve of non-controlling shareholders		-		-		-		-		-		-		-		-		-		-		-		(1,316)		(1,316)
- Capital increase in subsidiaries with no change in control		-		251		-		-		-		-		-		-		-		251		-		656		906
- Gain (loss) in participation with no change in control		-		(207)		-		-		-		-		-		-		-		(207)		-		207		-

Balance at September 30, 2014		4,793,424		287,673		603,352		-		294,067		-		490,315		(113,534)		116,646		6,471,944		17,375		1,717,611		8,206,930

CPFL Energia S.A.
Statement of changes in shareholders' equity for the period ended on September 30, 2013
(in thousands of Brazilian Reais)

																						Net equity attributable to
						Profit reserves								Other comprehensive income								noncontrolling shareholders
		Capital		Capital reserves		Legal reserve		Earnings retained for investment		Statutory reserve - financial asset of concession		Dividend		Deemed Cost		Post-employment benefit obligation		Retained earnings		Total		Other comprehensive income		Other equity		Total Shareholders' equity
Balance at December 31, 2012		4,793,424		228,322		556,481		326,899		-		455,906		535,627		(572,225)		56,293		6,380,728		19,741		1,490,660		7,891,129

Total comprehensive income
Net income for the period		-		-		-		-		-		-		-		-		636,489		636,489		-		(10,309)		626,180
Comprehensive income - Actuarial gain		-		-		-		-		-		-		-		502,927		-		502,927		-		-		502,927

Internal changes of shareholders'equity
- Realization of deemed cost of fixed assets		-		-		-		-		-		-		(27,813)		-		27,813		-		(175)		175		-
- Tax on deemed cost realization		-		-		-		-		-		-		9,456		-		(9,456)		-		59		(59)		-
- Transfer to statutory reserve		-		-		-		(326,899)		326,899		-		-		-		-		-		-		-		-
- Statutory reserve in the period		-		-		-		-		(78,460)		-		-		-		78,460		-		-		-		-
- Other changes in non-controlling shareholders		-		-		-		-		-		-		-		-		-		-		-		(37)		(37)

Capital transactions with the shareholders
- Prescribed dividend		-		-		-		-		-		-		-		-		2,192		2,192		-		-		2,192
- Interim dividend		-		-		-		-		-		-		-		-		(363,049)		(363,049)		-		(2,301)		(365,350)
- Additional dividend aproved		-		-		-		-		-		(455,906)		-		-		-		(455,906)		-		(11,799)		(467,705)
- IPO CPFL Renováveis		-		60,089		-		-		-		-		-		-		-		60,089		-		269,739		329,829

Balance at September 30, 2013		4,793,424		288,411		556,481		-		248,438		-		517,270		(69,298)		428,742		6,763,470		19,626		1,736,069		8,519,165

The accompanying notes are an integral part of these interim financial information.

41

CPFL Energia S/A
Statement of cash flow for the periods ended on September 30, 2014 and 2013
(In thousands of Brazilian reais – R$)

	Parent company				Consolidated
	September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013

Income, before income tax and social contribution	429,441		651,400		744,960		1,044,858
Adjustment to reconcile Income to cash provided by operating activities
Depreciation and amortization	130		53		850,732		789,091
Reserve for tax, civil and labor risks	460		208		100,362		250,804
Allowance for doubtful accounts	-		-		61,005		64,603
Interest and monetary adjustment	104,535		58,739		1,171,230		1,031,257
Post-employment benefit loss	-		-		36,123		51,363
Interest in subsidiaries, associates and joint ventures	(460,930)		(679,120)		(98,013)		(74,736)
Losses on the write-off of noncurrent assets	-		-		31,170		31,503
Deferred taxes (PIS and COFINS)	-		-		(23,253)		33,463
Other	-		-		(1,188)		6,040
	73,636		31,280		2,873,128		3,228,246
Decrease (increase) In operating assets
Consumers, concessionaires and licensees	-		-		(436,314)		189,782
Dividend and interest on equity received	867,738		792,146		40,374		66,940
Recoverable taxes	(11,391)		16,263		52,720		19,340
Lease	-		-		(144)		2,757
Escrow deposits	(568)		(26)		46,583		73,744
Resources provided by the Energy Development Account - CDE / CCEE	-		-		(390,858)		(247,951)
Other operating assets	2,707		(1,866)		(48,821)		(51,084)

Increase (decrease) In operating liabilities
Suppliers	(521)		(736)		61,894		(121,078)
Other taxes and social contributions	(420)		(245)		121,389		(92,852)
Other liabilities with post-employment benefit obligation	-		-		(86,439)		(62,717)
Regulatory charges	-		-		11,704		(77,446)
Reserve for tax, civil and labor risks paid	(194)		(12,517)		(127,037)		(105,393)
Other liabilities - Resources provided by the CDE	-		-		18,369		98,090
Other operating liabilities	(1,118)		2,814		87,159		13,677
Cash flows provided by operations	929,869		827,113		2,223,707		2,934,055
Interests paid	(65,405)		(14,502)		(961,497)		(710,258)
Income tax and social contribution paid	-		(12,174)		(435,396)		(426,408)
Net cash from operating activities	864,464		800,437		826,814		1,797,389

Investing activities
Price paid in business combination net of cash acquired	-		-		(68,464)		-
Capital increase in investments	-		(1,553)		(45,445)		-
Additions to property, plant and equipment	-		(337)		(243,049)		(728,402)
Financial investments, pledges, funds and tied deposits	-		4,710		22,183		51,417
Additions to intangible assets	(9)		-		(510,741)		(632,184)
Sale of noncurrent assets	-		-		14,759		43,511
Advance for future capital increase	(27,078)		(9,342)		-		-
Loans to subsidiaries, associates and joint ventures	5,175		(1,489)		950		(83,983)
Other	-		-		-		(7,802)

Net cash flow from investing activities	(21,912)		(8,011)		(829,807)		(1,357,443)

Financing activities
Capital increase by noncontrolling shareholders	-		-		906		329,828
Loans, financing and debentures obtained	-		1,287,180		2,791,289		5,518,422
Loans, financing and debentures, net of derivatives paid	-		(149,575)		(2,407,300)		(2,842,441)
Dividend and interest on shareholders’ equity paid	(565,631)		(454,108)		(588,039)		(475,281)
Net cash flow provided by (used in) financing activities	(565,631)		683,497		(203,144)		2,530,528
Increase (decrease) in cash and cash equivalents	276,921		1,475,923		(206,137)		2,970,474
Opening balance of cash and cash equivalents	990,672		141,835		4,206,422		2,435,034
Closing balance of cash and cash equivalents	1,267,593		1,617,759		4,000,285		5,405,508

The accompanying notes are an integral part of these interim financial information.

42

CPFL Energia S.A.
Added value statements of income for the periods ended on September 30, 2014 and 2013
(in thousands of Brazilian Reais)

	Parent company				Consolidated
	Nine months 2014		Nine months 2013		Nine months 2014		Nine months 2013
1. Revenues	45		90		16,197,673		15,176,081
1.1 Operating revenues	37		90		15,361,154		13,707,890
1.2 Revenue related to the construction of own assets	9		-		261,471		779,702
1.3 Revenue from construction of concession infrastructure	-		-		636,053		753,092
1.4 Allowance of doubtful accounts	-		-		(61,005)		(64,603)

2. (-) Inputs	(4,534)		(5,673)		(10,099,613)		(9,068,356)
2.1 Electricity purchased for resale	-		-		(8,477,234)		(6,683,136)
2.2 Material	(10)		(318)		(625,240)		(1,023,436)
2.3 Outsourced services	(3,034)		(3,087)		(689,972)		(829,574)
2.4 Other	(1,490)		(2,268)		(307,166)		(532,210)

3. Gross added value (1 + 2)	(4,488)		(5,583)		6,098,060		6,107,725

4. Retentions	(130)		(53)		(851,185)		(790,471)
4.1 Depreciation and amortization	(130)		(53)		(632,159)		(567,526)
4.2 Amortization of intangible assets	-		-		(219,025)		(222,945)

5. Net added value generated (3 + 4)	(4,618)		(5,637)		5,246,876		5,317,254

6. Added value received in transfer	551,817		723,561		747,740		518,300
6.1 Financial Income	90,887		44,441		649,727		443,564
6.2 Interest in subsidiaries, associates and joint ventures	460,930		679,120		98,013		74,736

7. Added value to be distributed (5 + 6)	547,198		717,924		5,994,615		5,835,555

8. Distribution of added value
8.1 Personnel and charges	10,484		8,803		597,844		572,151
8.1.1 Direct remuneration	6,266		5,983		371,083		345,473
8.1.2 Benefits	3,606		2,021		196,597		198,640
8.1.3 Government severance indemnity fund for employees - F.G.T.S.	611		799		30,164		28,039
8.2 Taxes, fees and contributions	(5,846)		23,805		3,481,882		3,335,052
8.2.1 Federal	(5,870)		23,784		1,212,504		1,223,440
8.2.2 Estate	24		20		2,256,319		2,102,419
8.2.3 Municipal	-		-		13,060		9,193
8.3 Interest and rentals	105,389		48,828		1,498,062		1,302,172
8.3.1 Interest	105,285		48,733		1,465,023		1,269,098
8.3.2 Rental	104		95		33,038		33,073
8.4 Interest on capital	437,171		636,489		416,827		626,180
8.4.1 Dividend (included additional proposed)	313,208		363,049		313,208		363,049
8.4.2 Retained earnings	123,963		273,440		103,619		263,131
	547,198		717,924		5,994,615		5,835,555

The accompanying notes are an integral part of these interim financial information.

43

( 1 ) OPERATIONS

CPFL Energia S.A. (“CPFL Energia” or “Company”) is a publicly quoted corporation incorporated for the principal purpose of acting as a holding company, participating in the capital of other companies primarily dedicated to electric energy distribution, generation and sales activities in Brazil.

The Company’s headquarters are located at Rua Gomes de Carvalho, 1510 - 14º floor - Room 142 - Vila Olímpia - São Paulo - SP - Brasil.

The Company has direct and indirect interests in the following operational subsidiaries and joint ventures (information on the concession area, number of consumers, energy production capacity and associated data not reviewed by the independent auditors):

Energy distribution

Company Type

Equity Interest

Location (State)

Number of municipalities

Approximate number of consumers (in thousands)

Concession term

End of the concession

Companhia Paulista de Força e Luz ("CPFL Paulista")

Publicly-quoted corporation

Direct
100%

Interior of São Paulo

234

4,097

30 years

November 2027

Companhia Piratininga de Força e Luz ("CPFL Piratininga")

Publicly-quoted corporation

Direct
100%

Interior of São Paulo

27

1,608

30 years

October 2028

Rio Grande Energia S.A. ("RGE")

Publicly-quoted corporation

Direct
100%

Interior of Rio Grande do Sul

255

1,426

30 years

November 2027

Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz")

Private corporation

Direct
100%

Interior of São Paulo and Paraná

27

201

16 years

July 2015

Companhia Leste Paulista de Energia ("CPFL Leste Paulista")

Private corporation

Direct
100%

Interior of São Paulo

7

55

16 years

July 2015

Companhia Jaguari de Energia ("CPFL Jaguari")

Private corporation

Direct
100%

Interior of São Paulo

2

38

16 years

July 2015

Companhia Sul Paulista de Energia ("CPFL Sul Paulista")

Private corporation

Direct
100%

Interior of São Paulo

5

81

16 years

July 2015

Companhia Luz e Força de Mococa ("CPFL Mococa")

Private corporation

Direct
100%

Interior of São Paulo and Minas Gerais

4

44

16 years

July 2015

Installed power (MW)

Energy generation
(conventional and renewable sources)

Company Type

Equity Interest

Location (State)

Number of plants / type of energy

Total

CPFL participation

CPFL Geração de Energia S.A.
("CPFL Geração")

Publicly-quoted corporation

Direct
100%

São Paulo, Goiás and Minas Gerais

1 Hydroelectric, 2 SHPs (*) e 1 Thermal

694

694

CERAN - Companhia Energética Rio das Antas
("CERAN")

Private corporation

Indirect
65%

Rio Grande do Sul

3 Hydroelectric

360

234

Foz do Chapecó Energia S.A.
("Foz do Chapecó")

Private corporation

Indirect
51%

Santa Catarina and
Rio Grande do Sul

1 Hydroelectric

855

436

Campos Novos Energia S.A.
("ENERCAN")

Private corporation

Indirect
48,72%

Santa Catarina

1 Hydroelectric

880

429

BAESA - Energética Barra Grande S.A.
("BAESA")

Publicly-quoted corporation

Indirect
25,01%

Santa Catarina and
Rio Grande do Sul

1 Hydroelectric

690

173

Centrais Elétricas da Paraíba S.A.
("EPASA")

Private corporation

Indirect
57.13%

Paraíba

2 Thermals

342

195

Paulista Lajeado Energia S.A.
("Paulista Lajeado")

Private corporation

Indirect
59,93% (b)

Tocantins

1 Hydroelectric

903

63

CPFL Energias Renováveis S.A.
("CPFL Renováveis")

Publicly-quoted corporation

Indirect
58.84%

(c)

(c)

(c)

(c)

CPFL Centrais Geradoras Ltda ("CPFL Centrais Geradoras")

Limited company

Direct
100%

São Paulo

9 SHPs

24

24

44

Commercialization of energy		Company Type		Core activity		Equity Interest
CPFL Comercialização Brasil S.A. ("CPFL Brasil")		Private corporation		Energy commercialization		Direct 100%
Clion Assessoria e Comercialização de Energia Elétrica Ltda. ("CPFL Meridional")		Limited company		Commercialization and provision of energy services		Indirect 100%
CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul")		Private corporation		Energy commercialization		Indirect 100%
CPFL Planalto Ltda. ("CPFL Planalto")		Limited company		Energy commercialization		Direct 100%

Services		Company Type		Core activity		Equity Interest
CPFL Serviços, Equipamentos, Industria e Comércio S.A. ("CPFL Serviços")		Private corporation		Manufacturing, commercialization, rental and maintenance of electro-mechanical equipment and service provision		Direct 100%
NECT Serviços Administrativos Ltda ("Nect")		Limited company		Provision of administrative services		Direct 100%
CPFL Atende Centro de Contatos e Atendimento Ltda. ("CPFL Atende")		Limited company		Provision of telephone answering services		Direct 100%
CPFL Total Serviços Administrativos Ltda. ("CPFL Total")		Limited company		Billing and collection services		Direct 100%
CPFL Telecom S.A ("CPFL Telecom")		Private corporation		Telecommunication services		Direct 100%
CPFL Transmissão Piracicaba S.A ("CPFL Transmissão")		Private corporation		Energy transmission		Indirect 100%

Other		Company Type		Core activity		Equity Interest
CPFL Jaguariúna Participações Ltda ("CPFL Jaguariuna")		Limited company		Venture capital company		Direct 100%
CPFL Jaguari de Geração de Energia Ltda ("Jaguari Geração")		Limited company		Venture capital company		Direct 100%
Chapecoense Geração S.A. ("Chapecoense") (d)		Private corporation		Venture capital company		Indirect 51%
Sul Geradora Participações S.A. ("Sul Geradora")		Private corporation		Venture capital company		Indirect 99.95%
CPFL Participações S.A ("CPFL Participação")		Private corporation		Venture capital company		Direct 100%

(a) SHP – Small Hydropower Plant

(b) Paulista Lajeado has a 7% participation in the installed power of Investco S.A.(5.93% interest in its capital).

(c) CPFL Renováveis has operations in São Paulo, Minas Gerais, Mato Grosso, Santa Catarina, Ceará, Rio Grande do Norte, Paraná and Rio Grande do Sul states and its main activities are: (i) holding investments in renewable generation sources; (ii) identification, development, and exploration of generation potential sources; and (iii) commercialization of electric energy. At September 30, 2014, CPFL Renováveis had a portfolio of 103 projects, being 2,371 MW of installed capacity (1,492.6 MW operational), as follows:

· Hydropower generation: 40 SHP’s (420 MW) being 35 SHP’s operational (326.6 MW) and 5 SHP’s under preparation (93.4 MW);

· Wind power generation: 54 projects (1,579.9 MW) being 26 projects operational (794.9 MW) and 28 projects under construction/preparation (785 MW);

· Biomass power generation: 8 plants operations (370 MW);

· Solar energy generation: 1 solar plant operational (1,1 MW)

(d) The joint venture Chapecoense fully consolidates the financial statements of its direct subsidiary, Foz de Chapecó.

In relation to the concessions that close in 2015, on 26 June, 2012, the subsidiaries concerned requested extension of the concession contracts due to end in 2015, under the present conditions, reserving the right to review the request in the event of changes in the current contractual conditions. The subsidiaries confirmed the request for extension on October 10, 2012. To the date of approval of these interim financial statements, Management is not aware of the terms of the renewal. On January 17, 2014, in Official Circular 01/2014-DR/ANEEL, ANEEL advised the distributors that it is analyzing the applications for extension of the concessions. The Granting Power has the final decision on approval of these requests.

45

( 2 ) PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS

2.1 Basis of preparation

The individual (Parent Company) interim financial statements prepared in accordance with generally accepted accounting principles in Brazil, based on the guidelines provided by the Brazilian Committee on Accounting Pronouncements (Comitê de Pronunciamentos Contábeis - CPC) in particular, CPC 21(R1) – Interim Financial Statements and diverge from of the Separate Interim Financial Statements which, under International Financial Reporting Standards – IFRS, must account for investments in subsidiaries, associates, and joint ventures at cost or fair value.

The consolidated financial statements were prepared in accordance with the Accounting Policies Adopted in Brazil and with the IFRS, issued by the International Accounting Standard Board – IASB were prepared and are presented in accordance with CPC 21(R1) and IAS 34.

The Company also follows the guidelines of the Accounting Manual of the Brazilian Electricity Sector and the standards laid down by the National Electric Energy Agency (Agência Nacional de Energia Elétrica – ANEEL), when these are not in conflict with the accounting policies adopted in Brazil and/or IFRS.

The accounting policies adopted in preparing these Interim Financial Statements are consistent with those adopted in December 31, 2013, and should be read together with those statements.

The consolidated financial statements were authorized for issue by the Board of Directors on October 31, 2014.

2.2 Basis of measurement

The interim financial statements have been prepared on the historic cost basis except for the following material items recorded in the balance sheets: i) derivative financial instruments measured at fair value, ii) financial instruments measured at fair value through profit or loss, iii) available-for-sale financial assets measured at fair value.

2.3 Use of estimates and judgments

The preparation of the interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

By definition, the accounting estimates are rarely the same as the actual results. Accordingly, Company Management reviews the estimates and assumptions on an ongoing basis, based on previous experience and other relevant factors. Adjustments resulting from revisions to accounting estimates are recognized in the period in which the estimates are revised and applied prospectively.

Information about assumptions and estimate that are subject to a greater degree of uncertainty and involve the risk of resulting in a material adjustment if these assumptions and estimates suffer significant changes in subsequent periods is included in the following accounts:

· Note 6 – Consumers, concessionaire and licensees;

· Note 8 – Deferred tax credits and debits;

· Note 9 – Financial asset of concession;

46

· Note 10 – Other Credits (Allowance for doubtful accounts);

· Note 12 – Property, plant and equipment and recognition of impairment losses;

· Note 13 – Intangible assets and recognition of impairment losses;

· Note 17 – Post-employment Benefit Obligation;

· Note 20 – Reserve for tax, civil and labor risks and escrow deposits;

· Note 22 – Other accounts payable (Provision to environmental costs);

· Note 25 – Net operating revenues;

· Note 26 – Cost of electric energy;

· Note 32 – Financial instruments;

· Leasing.

2.4 Functional currency and presentation currency

The Company’s functional currency is the Brazilian Real, and the individual and consolidated financial statements are presented in thousands of reais. Figures are rounded only after addition of the amounts. Consequently, when added, the amounts shown in thousands of reais may not tally with the rounded totals.

2.5 Basis of consolidation:

(i) Business combinations

The Company measures goodwill as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the recognized amount of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date.

(ii) Subsidiaries

The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Associates and joint ventures are accounted for using the equity method of accounting from the moment significant influence or joint control, respectively, is established.

The accounting policies of subsidiaries, associates and joint ventures taken into consideration for consolidation and/or equity method of accounting, as applicable, are aligned with the Company's accounting policies.

Subsidiaries and joint ventures, as well associates, are accounted by equity method in the parent company interim financial statements. Joint ventures and associates are accounted by equity method in the consolidated financial statements.

The consolidated financial statements include the balances and transactions of the Company and its subsidiaries. The balances and transactions of assets, liabilities, income and expenses have been fully consolidated with the balances and transactions of assets, liabilities, income and expenses of owned subsidiaries. Prior to consolidation in the Company's financial statements, the financial statements of the subsidiaries CPFL Geração, CPFL Brasil, CPFL Jaguari Geração and CPFL Renováveis are fully consolidated with those of their subsidiaries.

Intra-group balances and transactions, and any income and expenses derived from these transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with investees are eliminated to the extent of the Company’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

47

In the case of subsidiaries, the portion relating to non-controlling shareholders is stated in equity and stated in profit or loss and comprehensive income in each period presented.

Balances of joint ventures, as well our interest in each of them are described in note 11.

(iii) Acquisition of non-controlling interest

Acquisition of non-controlling interest is accounted for as transaction between equity holders and therefore no gain or goodwill is recognized as a result of transaction.

2.6 Segment information

An operating segment is a component of the Company (i) that engages in operating activities from which it may earn revenues and incur expenses, (ii) whose operating results are regularly reviewed by Management to make decisions about resources to be allocated and assess the segment's performance, and (iii) for which discrete financial information is available.

Company Management bases strategic decisions on reports, segmenting the business: (i) electric energy distribution activities (“Distribution”); (ii) electric energy generation activities from conventional sources (“Generation”); (iii) electric energy generation activities from renewable sources; (iv) energy commercialization (Renewable”); (v) service activities (“Service”); and (vi) other activities not listed in the previous items.

Presentation of the operating segments includes items directly attributable to them, such as allocations required, including intangible assets.

2.7 Information on corporate interests

The interests directly or indirectly held by the Company in the subsidiaries and jointly-controlled entities are described in Note 1. Except for the (i) companies ENERCAN, BAESA, Chapecoense and EPASA which as from January 1, 2013 are accounted for using the equity method (note 3) of accounting and not consolidated proportionally and are accounted for using the equity method of accounting, and (ii) the investment in Investco S.A. recorded at cost by the subsidiary Paulista Lajeado, the other units are fully consolidated.

At September 30, 2014 and December 31, 2013, and for the quarters and nine months ended in September 30, 2013 and 2014, the non-controlling interests stated in the interim or annual consolidated statements refer to the third-party interests in the subsidiaries CERAN, Paulista Lajeado and CPFL Renováveis.

2.8 Value added statements

The Company prepared individual and consolidated value added statements (“DVA”) in conformity with technical pronouncement CPC 09 - Value Added Statement, and these are presented as an integral part of the financial statements in accordance with generally accepted accounting principles in Brazil and as complementary information to the financial statements in accordance with IFRS, as the statement is neither provided for nor mandatory in accordance with IFRS.

( 3 ) SUMMARY OF THE SIGNIFICANT ACCOUNTING POLICIES

The interim financial statements of the Company and its subsidiaries were prepared based on the same accounting policies as described in Notes 3.1 to 3.17, disclosed in the financial statements for the year ended December 31, 2013.

48

( 4 ) DETERMINATION OF FAIR VALUES

A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and / or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Accordingly, the Company measures fair value in accordance with IFRS 13/CPC 46, which define fair value as an estimate of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions.

- Property, plant and equipment and intangible assets

The fair value of property, plant and equipment and intangible assets recognized as a result of a business combination is based on market values. The fair value is the estimated amount for which a property could be exchanged on the date of valuation between knowledgeable and willing parties under normal market conditions. The fair value of items of property, plant and equipment is based on the market approach and cost approaches using quoted market prices for similar items when available and replacement cost when appropriate. The fair values of intangible assets are calculated using quoted prices in an active market. Where there is no active market, the fair value is what the Company would have paid for the intangible assets, on the acquisition date, in an arm’s length transaction between knowledgeable, willing parties based on the best information available.

- Financial instruments

Financial instruments measured at fair values were valued based on quoted prices in an active market, or, if such prices were not available, assessed using pricing models, applied individually for each transaction, taking into consideration the future payment flows, based on the conditions contracted, discounted to present value at market interest rate curves, based on information obtained from the site of “BM&FBovespa S.A” and “Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais – ANBIMA” (note 32).

Financial assets classified as available-for-sale refer to the right to compensation, to be paid by the Federal Government regarding the assets of the distribution concessionaires when the concession contract is over. The methodology adopted for marking these assets to market is based on the tariff review process for distributors. This review, conducted every four or five years according to each concessionaire, involves assessing the replacement price for the distribution infrastructure, in accordance with criteria established by the regulatory body (“ANEEL”).. This valuation basis is used for pricing the tariff, which is increased annually up to the next tariff review, based on the parameter of the main inflation indices.

Provisional Measure n. 579 of September 11, 2012, converted into Law 12783 of January 11, 2013, established that, for concession contracts that expire by 2017, calculation of the amount of compensation due on reversal of the assets will be based on the replacement value method, according to regulatory criteria to be established the granting authority. In the case of concessions terms that expire after 2017, Management believes that, as under Law 12783/2013, compensation will be based at least on valuation of the assets using the new replacement value model.

Accordingly, at the time of the tariff review, each concessionaire adjusts the position of the financial asset base for compensation at the amounts ratified by the regulatory authority and uses the General Market Price Index - IGP-M as best estimate for adjusting the original base to the fair value at subsequent dates, in conformity with the Tariff Review process.

49

( 5 ) CASH AND CASH EQUIVALENTS

	Parent company				Consolidated
	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
Bank balances	2,566		936		70,307		132,130
Short-term financial investments	1,265,027		989,737		3,929,978		4,074,292
Overnight investment (a)	-		-		8,491		46,809
Bank deposit certificates (b)	-		-		511,897		377,556
Repurchase agreements with debentures (b)	-		-		2,171		8,970
Investment funds (c)	1,265,027		989,737		3,407,421		3,640,957
Total	1,267,593		990,672		4,000,285		4,206,422

a) Current account balances, which earn daily interest by investment in repurchase agreements secured on debentures and interest of 20% of the variation in the Interbank Deposit Certificate - CDI.

b) Short-term investments in Bank Deposit Certificates - CDB and secured debentures conducted with major financial institutions that operate in the Brazilian financial market, with daily liquidity, low credit risk and interest equivalent, on average, to 101% of the CDI.

c) Amounts invested in Exclusive Funds, with daily liquidity and interest equivalent, on average, to 101% of the Interbank Deposit Certificate - CDI, in investments subject to floating rates tied to the CDI linked to federal government bonds, CDBs, financial bills and secured debentures of major financial institutions, with low credit risk.

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( 6 ) CONSUMERS, CONCESSIONAIRES AND LICENSEES

In the consolidated financial statements, the balance derives mainly from the supply of electric energy. The following table shows the breakdown at September 30, 2014 and December 31, 2013:

	Consolidated
			Past due				Total
	Amounts coming due		until 90 days		> 90 days		September 30, 2014		December 31, 2013
Current
Consumer classes
Residential	335,454		227,011		39,396		601,862		500,623
Industrial	134,721		45,502		30,116		210,338		179,953
Commercial	148,462		38,144		12,308		198,914		173,828
Rural	39,584		6,624		1,159		47,367		35,023
Public administration	37,350		5,785		311		43,446		33,906
Public lighting	30,229		3,805		9,561		43,595		38,134
Public utilities	45,488		6,897		980		53,365		41,182
Billed	771,289		333,767		93,832		1,198,888		1,002,649
Unbilled	689,152		-		-		689,152		627,852
Financing of consumers' debts	52,511		8,727		62,355		123,593		128,782
Free energy	4,413		-		-		4,413		4,161
CCEE transactions	244,301		-		-		244,301		21,313
Concessionaires and licensees	273,134		-		-		273,134		324,535
Other	18,479		-		-		18,479		24,254
Total	2,053,279		342,494		156,187		2,551,959		2,133,546
Allowance for doubtful accounts							(131,471)		(125,758)
Total							2,420,487		2,007,789

Non current
Financing of consumers' debts	99,110		-		-		99,110		120,042
CCEE transactions	41,301		-		-		41,301		41,301
Total	140,411		-		-		140,411		161,343
Allowance for doubtful accounts							(18,008)		(7,489)
Total							122,404		153,854

Allowance for doubtful accounts

Changes in the allowance for doubtful accounts are shown below:

	Consumers, concessionaires and licensees		Other Credits (note 10)		Total
At December 31, 2013	(133,247)		(13,152)		(146,398)

Allowance for doubtful accounts	(92,204)		(1,356)		(93,560)
Recovery of revenue	32,546		9		32,555
Write-off of accounts receivable and provisioned	43,425		1,013		44,439
At September 30, 2014	(149,479)		(13,486)		(162,964)

Current	(131,471)		(13,486)		(144,956)
Noncurrent	(18,008)		-		(18,008)

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( 7 ) RECOVERABLE TAXES

	Parent company				Consolidated
	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
Current
Prepayments of social contribution - CSLL	-		393		4,673		3,054
Prepayments of income tax - IRPJ	-		1,301		10,789		5,767
IRRF on interest on equity	423		14,091		423		14,537
Income tax and social contribution to be offset	30,834		807		44,986		14,731
Withholding tax - IRRF	9,974		13,218		68,889		106,627
ICMS to be offset	-		-		70,096		77,559
Social Integration Program - PIS	-		-		6,450		6,783
Contribution for Social Security financing- COFINS	42		42		29,778		30,123
National Social Security Institute - INSS	1		1		2,217		2,279
Other	20		20		1,720		972
Total	41,294		29,874		240,021		262,433

Noncurrent
Social contribution to be offset - CSLL	-		-		45,543		42,848
Income tax to be offset - IRPJ	-		-		9,108		11,851
ICMS to be offset	-		-		89,221		99,777
Social Integration Program - PIS	-		-		2,157		3,073
Contribution for Social Security financing- COFINS	-		-		9,483		14,116
Other	-		-		1,377		1,698
Total	-		-		156,890		173,362

( 8 ) DEFERRED TAXES

8.1- Breakdown of tax credits and debits:

	Parent company				Consolidated
	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
Social contribution credit/(debit)
Tax losses carryforwards	43,918		41,245		50,388		47,660
Tax benefit of merged goodwill	-		-		110,974		121,820
Deductible temporary differences	662		511		(162,816)		(185,861)
Subtotal	44,580		41,756		(1,453)		(16,381)

Income tax credit / (debit)
Tax losses carryforwards	128,232		123,429		146,101		141,113
Tax benefit of merged goodwill	-		-		380,060		416,418
Deductible temporary differences	1,034		612		(454,434)		(519,615)
Subtotal	129,265		124,042		71,727		37,917

PIS and COFINS credit/(debit)
Deductible temporary differences	-		-		53,278		30,025

Total	173,845		165,798		123,551		51,560

Total tax credit	173,845		165,798		1,224,714		1,168,706
Total tax debit	-		-		(1,101,162)		(1,117,146)

The estimate of recovery of the deferred tax credits recorded in noncurrent assets, derived from temporary non-deductible differences and tax benefit of the merged goodwill and tax loss carry forwards, is based on the projections of future profit or loss, approved by the Board of Directors and reviewed by the Audit Committee. A breakdown of which is provided in the financial statements of December 31, 2013. To reflect adequately the effective tax rate on net income, deferred tax credits on losses are registered monthly for the companies with positive projections, in accordance with the above-mentioned studies.

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8.2 - Tax benefit of merged goodwill:

Refers to the tax credit calculated on the goodwill derived from the acquisitions of subsidiaries, as shown in the following table, which has been merged and is recognized in accordance with CVM Instructions nº 319/99 and nº 349/01 and ICPC 09(R1) – Individual, Separate and Consolidated Financial Statements and Application of the Equity Method. The benefit is realized in proportion to amortization of the merged goodwill that gave rise to it, in accordance with the projected net income of the subsidiaries during the remaining term of the concession, as shown in Note 13.

	Consolidated
	September 30, 2014				December 31, 2013
	Social contribution		Income tax		Social contribution		Income tax
CPFL Paulista	63,599		176,663		68,938		191,495
CPFL Piratininga	15,055		51,667		16,148		55,414
RGE	29,208		120,621		31,342		129,436
CPFL Santa Cruz	1,091		3,431		1,757		5,525
CPFL Leste Paulista	525		1,604		939		2,863
CPFL Sul Paulista	799		2,502		1,386		4,332
CPFL Jaguari	440		1,350		824		2,516
CPFL Mococa	258		790		485		1,499
CPFL Geração	-		21,421		-		23,282
CPFL Serviços	-		12		-		57
Total	110,974		380,060		121,820		416,418

8.3 – Accumulated balances on deductible temporary differences:

	Consolidated
	September 30, 2014						December 31, 2013
	Social contribution		Income tax		PIS/COFINS		Social contribution		Income tax		PIS/COFINS
Deductible temporary differences
Reserve for tax, civil and labor	26,363		73,230		-		32,746		90,959		-
Private pension fund	1,925		5,348		-		2,004		5,566		-
Allowance for doubtful accounts	14,897		41,381		-		13,379		37,163		-
Free energy provision	5,995		16,654		-		5,429		15,081		-
Research and development and energy efficiency programs	12,727		35,354		-		11,471		31,864		-
Reserves related to personnel	1,711		4,754		-		3,522		9,785		-
Depreciation rate difference	7,160		19,889		-		7,212		20,033		-
Recognition of the concession - adjustment of intangible assets (IFRS / CPC)	(1,629)		(4,525)		-		(1,798)		(4,995)		-
Recognition of the concession - adjustment of financial asset (IFRS / CPC)	(40,155)		(111,541)		(132)		(36,093)		(100,258)		(22)
Reversal of regulatory assets and liabilities (IFRS / CPC)	51,043		141,787		53,410		27,218		75,605		30,046
Actuarial losses (IFRS / CPC)	33,603		93,341		-		33,178		92,464		-
Other adjustments (IFRS / CPC)	15,320		42,420		-		13,758		38,081		-
Accelerated depreciation	(16)		(45)		-		(9)		(26)		-
Other	7,639		19,183		-		4,719		9,606		-
Deductible temporary differences - comprehensive income:
Property, plant and equipment - deemed cost adjustments (IFRS/CPC)	(62,642)		(174,007)		-		(65,079)		(180,774)		-
Deductible temporary differences - Business combination - CPFL Renováveis					-
Deferred taxes - asset:
Fair value of property, plant and equipment (negative value added of assets)	25,948		72,077		-		27,050		75,138		-
Deferred taxes - liability:
Value added derived from determination of deemed cost	(6,600)		(18,334)		-		(6,970)		(19,360)		-
Value added of assets received from the former ERSA	(90,289)		(250,804)		-		(93,120)		(258,667)		-
Intangible asset - exploitation right/authorization in indirect subsidiaries acquired	(155,067)		(430,739)		-		(155,471)		(431,863)		-
Other temporary differences	(10,750)		(29,855)		-		(9,006)		(25,016)		-
Total	(162,816)		(454,434)		53,278		(185,861)		(519,615)		30,025

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8.4 - Reconciliation of the amounts of income tax and social contribution reported in the income statements for the quarters and nine months ended September 30, 2014 and 2013:

	Parent company								Consolidated
	Social contribution								Social contribution
	2014				2013				2014				2013
	3rd quarter		Nine months		3rd quarter		Nine months		3rd quarter		Nine months		3rd quarter		Nine months
Income/(loss) before taxes	95,788		429,441		349,709		651,400		197,345		744,960		558,793		1,044,858
Adjustments to reflect effective rate:
Equity in subsidiaries	(103,523)		(460,930)		(356,037)		(679,120)		12,991		(98,013)		(41,083)		(74,736)
Amortization of intangible asset acquired	(6,295)		(18,885)		(7,009)		(21,028)		23,275		69,841		25,781		77,343
Tax incentives - PIIT(*)	-		-		-		-		(2,418)		(6,635)		(2,226)		(5,997)
Effect of presumed profit system	-		-		-		-		(23,740)		(35,728)		(11,549)		(41,100)
Adjustment of escess and surplus revenue of reactive	-		-		-		-		23,273		74,066		21,600		50,934
Interest on shareholders’ equity	-		-		-		72,450		-		-		-		-
Other permanent additions, net	1,594		5,395		2,228		4,543		18,547		43,464		11,122		21,656
Calculation base	(12,436)		(44,979)		(11,109)		28,245		249,273		791,956		562,438		1,072,957
Statutory rate	9%		9%		9%		9%		9%		9%		9%		9%
Tax credit/(debit) result	1,119		4,048		1,000		(2,542)		(22,435)		(71,276)		(50,619)		(96,566)
Tax credit recorded/(not recorded)	(1,052)		(1,308)		48		-		(6,993)		(20,007)		(5,036)		(16,512)
Total	67		2,741		1,048		(2,542)		(29,428)		(91,283)		(55,656)		(113,079)

Current	-		(84)		666		(1,914)		(31,445)		(111,896)		(39,113)		(107,766)
Deferred	67		2,825		383		(628)		2,017		20,612		(16,543)		(5,313)

	Parent company								Consolidated
	Income tax								Income tax
	2014				2013				2014				2013
	3rd quarter		Nine months		3rd quarter		Nine months		3rd quarter		Nine months		3rd quarter		Nine months
Income/(loss) before taxes	95,788		429,441		349,709		651,400		197,345		744,960		558,793		1,044,858
Adjustments to reflect effective rate:
Equity in subsidiaries	(103,523)		(460,930)		(356,037)		(679,120)		12,991		(98,013)		(41,083)		(74,736)
Amortization of intangible asset acquired	-		-		-		-		29,866		89,612		32,171		98,371
Tax incentives - PIIT(*)	-		-		-		-		(2,418)		(6,635)		(2,226)		(5,997)
Effect of presumed profit system	-		-		-		-		(37,372)		(66,339)		(20,014)		(63,475)
Adjustment of escess and surplus revenue of reactive	-		-		-		-		23,273		74,066		21,600		50,934
Interest on shareholders’ equity	-		-		-		72,450		-		-		-		-
Tax incentive - Exploitation profit	-		-		-		-		(29,404)		(32,388)		(15,660)		(23,132)
Other permanent additions, net	1,594		5,395		2,152		4,748		17,467		28,222		7,767		12,253
Calculation base	(6,141)		(26,095)		(4,176)		49,478		211,747		733,486		541,348		1,039,075
Statutory rate	25%		25%		25%		25%		25%		25%		25%		25%
Tax credit/(debit) result	1,535		6,524		1,044		(12,370)		(52,937)		(183,372)		(135,337)		(259,770)
Tax credit recorded/(not recorded)	(1,349)		(1,534)		11		-		(17,851)		(53,477)		(12,857)		(45,830)
Total	186		4,990		1,055		(12,370)		(70,786)		(236,849)		(148,192)		(305,600)

Current	-		(234)		2,858		(6,777)		(74,888)		(286,161)		(97,595)		(280,306)
Deferred	186		5,223		(1,803)		(5,593)		4,102		49,311		(50,597)		(25,294)

(*)Technical Innovation Incentive Program

54

( 9 ) FINANCIAL ASSET OF CONCESSION

	Distribuition		Transmission		Consolidated
As of December 31, 2013 (noncurrent)	2,771,593		15,480		2,787,073

Additions	278,458		19,811		298,269
Spin-off generation activity on the distribuition	(5,542)		-		(5,542)
Change in the expectation of cash flow	48,777		-		48,777
Income from financial asset measured at amortized cost	-		1,194		1,194
Disposal	(8,898)		-		(8,898)

As of June 30, 2014 (noncurrent)	3,084,387		36,485		3,120,872
Current	457,147		-		457,147
Noncurrent	2,627,240		36,485		2,663,725

The amount refers to the financial asset corresponding to the right established in the concession contracts of the energy distributors (measured at fair value) and transmitters (measured at amortized cost) to receive payment (i) on reversal of the assets to the granting authority at the end of the concession, and (ii) the transmitter's right to receive cash throughout the concession through permitted annual income ("RAP").

For the energy distribution, in accordance with the current tariff model, remuneration for this asset is recognized in profit or loss on billing to the consumers and it is realized on receipt of the electric energy bills. Additionally, the difference to adjust the balance to its expected cash flows is recorded against the financial income/expense account in profit or loss for the period, (financial income of R$ 48,777 in the nine months of 2014 and a financial expense of R$ 113,115 in the nine months of 2013) in accordance with the new replacement amount (“VNR” methodology).

For the energy transmitter, remuneration for this asset is recognized in accordance with the internal rate of return, which takes into account the investment made and the allowed annual income (“RAP”)to be received during the remaining term of the concession. Financial income of R$ 1,194 in relation to the concession revenue, set against other operating income, since this is a component of the allowed annual income to make the network available to ONS (National System Operator).

The amount of R$ 5,542 refers to the spin-off of generation assets of the distributors CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa, as per the provisions of Decree 7805/12 and Law 12783/13. These assets were transferred to CPFL Centrais Geradoras, without effects on the consolidated financial statement.

55

( 10 ) OTHER CREDITS

			Consolidated
			Current											Noncurrent
			September 30, 2014								December 31, 2013			September 30, 2014				December 31, 2013

Advances - Fundação CESP			10,387								9,113			-				-
Advances to suppliers			31,955								17,159			-				-
Pledges, funds and tied deposits			6,372								7,695			178,620				174,538
Orders in progress			253,331								273,496			-				-
Outside services			9,167								6,929			-				-
Advance to energy purchase agreements			4,262								14,614			30,066				30,981
Collection agreements			76,660								61,771			-				-
Prepaid expenses			46,034								39,207			5,331				1,359
Receivables from resources provided by the energy development account - CDE			561,401								170,543			-				-
Receivables - business combination			-								-			13,950				13,950
Advances to employees			20,505								11,097			-				-
Allowance for doubtful accounts (Note 6)			(13,486)								(12,930)			-				(221)
Other			94,687								74,689			54,906				75,488
Total			1,101,275								673,383			282,872				296,096

Receivables from Resources provided by the Energy Development Account – CDE/CCEE – refer to: (i) low income subsidies totaling R$ 13,624 (R$ 11,808 in December 31, 2013); (ii) other tariff discounts granted to consumers amounting to R$ 374,224 (R$ 70,254 in December 31, 2013); and (iii) R$ 173,553 mainly related to involuntary exposure and CCEAR account - Electric Energy Sales in the Regulated Environment Agreement (R$ 88,481 in December 31, 2013).

( 11 ) INVESTMENTS

	Parent company							Consolidated
	September 30, 2014				December 31, 2013			September 30, 2014				December 31, 2013
Permanent equity interests - equity method
By equity method of the subsidiary	4,545,485				5,430,352			1,147,484				1,018,565
Value-added of assets, net	893,953				983,518			13,230				14,116
Goodwill	6,054				6,054			-				-
Total	5,445,493				6,419,924			1,160,714				1,032,681

56

11.1 - Permanent Equity Interests – equity method:

The main information on the investments in direct permanent equity interests is as follows:

				September 30, 2014							September 30, 2014		December 31, 2013		Nine months 2014		Nine months 2013
Investment		Number of shares (thousand)		Total assets		Capital	Shareholders' equity		Profit or loss for the period		Shareholders equity interest				Equity in subsidiaries
CPFL Paulista		241,264		7,457,231		241,264	601,485		181,567		601,485		1,186,113		181,567		468,681
CPFL Piratininga		53,081,259		2,705,110		156,610	325,255		8,256		325,255		384,609		8,256		43,186
CPFL Santa Cruz		371,772		389,146		67,580	107,209		23,166		107,209		100,369		23,166		(3,881)
CPFL Leste Paulista		892,772		183,549		25,392	40,292		9,027		40,292		60,578		9,027		533
CPFL Sul Paulista		454,958		194,794		22,751	44,393		11,018		44,393		51,432		11,018		3,101
CPFL Jaguari		209,294		161,258		17,292	24,614		872		24,614		23,261		872		913
CPFL Mococa		117,199		137,323		14,002	24,367		8,137		24,367		34,145		8,137		10,383
RGE		807,169		3,457,996		934,472	1,221,396		75,530		1,221,396		1,254,557		75,530		86,786
CPFL Geração		205,487,717		5,839,325		1,039,619	1,924,448		86,224		1,924,448		2,116,833		86,224		139,040
CPFL Jaguari Geração (*)		40,108		44,060		40,108	39,963		621		39,963		48,356		621		4,871
CPFL Brasil		2,999		649,183		2,999	50,009		121,227		50,009		35,246		121,227		19,798
CPFL Planalto (*)		630		1,784		630	1,136		1,741		1,136		(115)		1,741		(1,242)
CPFL Serviços		1,528,988		161,480		66,620	72,344		6,349		72,344		77,078		6,349		1,222
CPFL Atende (*)		13,991		25,899		13,991	15,284		4,532		15,284		13,746		4,532		43
Nect (*)		2,059		21,263		2,059	5,286		6,640		5,286		5,999		6,640		3,648
CPFL Total (*)		19,005		59,070		19,005	21,805		7,715		21,805		20,893		7,715		1,688
CPFL Jaguariuna (*)		189,660		2,692		2,966	2,586		34		2,586		2,512		34		(334)
CPFL Telecom		9,377		76,280		9,377	2,284		(5,763)		2,284		(1,311)		(5,763)		(1,184)
CPFL Centrais Geradoras		20,430		27,044		20,430	21,321		3,602		21,321		16,041		3,602		238
CPFL Participações		10		-		-	7		-		7		10		(3)		-
Subtotal - By shareholders' equity of the subsidiary											4,545,485		5,430,352		550,494		777,491
Amortization of added value on assets											-		-		(89,564)		(98,370)
Total											4,545,485		5,430,352		460,930		679,120
(*) numebr of quotas

Fair value adjustments (added value) of net assets acquired in business combinations are classified under Investments in the parent company’s balance sheet. Amortization of the fair value adjustments (added value) of net assets of R$ 89,564 (R$ 98,371 in the nine months of 2013) is classified in the parent company’s income statement under “income from equity in subsidiaries”, in accordance with ICPC 09.

The changes in investments in subsidiaries in the parent company in the period are shown below:

Investment		Investment as of December 31, 2013		Capital increase /payment of capital		Equity in subsidiary (profit or loss)		Equity in subsidiary (Other comprehensive income)		Movement of capital in subsidiaries without a change in control		Dividend and Interest on shareholders’ equity receivable		Corporate restructuring		Investment as of September 30, 2014
CPFL Paulista		1,186,113		-		181,567		-		-		(766,195)		-		601,485
CPFL Piratininga		384,609		50,000		8,256		-		-		(117,610)		-		325,255
CPFL Santa Cruz		100,369		-		23,166		-		-		(16,326)		-		107,209
CPFL Leste Paulista		60,578		-		9,027		-		-		(28,324)		(989)		40,292
CPFL Sul Paulista		51,432		-		11,018		-		-		(16,623)		(1,435)		44,393
CPFL Jaguari		23,261		-		872		-		-		1,393		(912)		24,614
CPFL Mococa		34,145		-		8,137		-		-		(15,796)		(2,119)		24,367
RGE		1,254,557		-		75,530		(1,535)		-		(107,156)		-		1,221,396
CPFL Geração		2,116,833		-		86,224		-		44		(278,653)		-		1,924,448
CPFL Jaguari Geração		48,356		-		621		-		-		(9,014)		-		39,963
CPFL Brasil		35,246		-		121,227		-		-		(106,464)		-		50,009
CPFL Planalto		(115)		-		1,741		-		-		(490)		-		1,136
CPFL Serviços		77,078		-		6,349		-		-		(11,084)		-		72,344
CPFL Atende		13,746		-		4,532		-		-		(2,993)		-		15,284
Nect		5,999		-		6,640		-		-		(7,353)		-		5,286
CPFL Total		20,893		-		7,715		-		-		(6,803)		-		21,805
CPFL Jaguariuna		2,512		40		34		-		-		-		-		2,586
CPFL Telecom		(1,311)		9,357		(5,763)		-		-		-		-		2,284
CPFL Centrais Geradoras		16,041		-		3,602		-		-		(3,776)		5,454		21,321
CPFL Participações		10		-		(3)		-		-		-		-		7
		5,430,352		59,397		550,494		(1,535)		44		(1,493,266)		-		4,545,485

57

In the financial statements, the investment balances correspond to the interest in the entities accounted for by the equity method:

Investment in joint ventures		September 30, 2014		December 31, 2013		Nine months 2014		Nine months 2013
Investment in joint ventures		Shareholders equity interest				Equity in subsidiaries

Baesa		165,739		153,175		12,563		3,142
Enercan		432,517		391,728		54,213		46,153
Chapecoense		441,308		390,822		50,486		39,699
EPASA		107,920		82,839		(18,364)		(13,329)
Net residual value of set up of assets		13,230		14,116		(886)		(929)
		1,160,714		1,032,681		98,013		74,736

11.2 – Value-added of assets (net) and goodwill

Net adjustment to fair value (added value) of assets refers mainly to the right to the concession, acquired through business combinations. The goodwill relates mainly to the acquisition of investments, based on projections of future income.

In the consolidated financial statements these amounts are classified under Intangible Assets (Note 13).

11.3 – Dividends and Interest on shareholders’ equity receivable

	Parent company
	Dividends				Interest on shareholders´ equity				Total
Investment	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
CPFL Paulista	755,625		389,872		10,570		34,879		766,195		424,752
CPFL Piratininga	26,874		117,816		-		11,267		26,874		129,083
CPFL Santa Cruz	27,388		19,764		1,873		3,916		29,261		23,681
CPFL Leste Paulista	37,178		10,323		2,409		940		39,587		11,263
CPFL Sul Paulista	36,099		21,095		3,784		2,165		39,883		23,260
CPFL Jaguari	10,029		11,422		723		723		10,752		12,145
CPFL Mococa	31,290		15,919		1,590		1,166		32,881		17,085
RGE	82,117		-		50,077		25,039		132,194		25,039
CPFL Geração	116,460		-		-		-		116,460		-
CPFL Centrais Geradoras	2,764		-		-		-		2,764		-
CPFL Jaguari Geração	4,039		4,709		-		-		4,039		4,709
CPFL Brasil	84,660		-		-		-		84,660		-
CPFL Planalto	490		5,101		-		-		490		5,101
CPFL Serviços	17,182		9,080		4,583		1,601		21,765		10,681
CPFL Atende	2,993		1,389		-		624		2,993		2,013
Nect	7,353		7,696		-		-		7,353		7,696
CPFL Total	5,077		792		-		404		5,077		1,196
	1,247,619		614,978		75,611		82,725		1,323,230		697,702

11.4 – Business combinations

Rosa dos Ventos Geração e Comercialização de Energia S.A. - RDV

On June 18, 2013, the subsidiary CPFL Renováveis signed a contract for acquisition of 100% of the assets of the Canoa Quebrada wind farms, with installed capacity of 10.5 MW, and
Lagoa do Mato, with installed capacity of 3.2 MW, located on the coast of the State of Ceará. Both are operating commercially, and there is a contract with Eletrobrás, through PROINFA (Incentive Program for Alternative Sources of Electric Energy) for all the energy generated by these farms (physical information and energetic capacity measures not reviewed by the independent auditors).

58

On February 27, 2014 was concluded the Rosa dos Ventos acquisition. The total purchase price is R$103,358, which includes: (i) the amount of R$ 70,296 paid to the seller; (ii) price adjustment of R$ 634 and (iii) assumption of Rosa dos Ventos’ net debt of R$32,428. The subsidiary CPFL Renováveis also added the amount of R$ 634, as an adjustment of the acquisition price.

11.4.1 Additional information about acquisition

a) Considerations

				Rosa dos Ventos
				February 28, 2014

Consideration transferred or to be transferred in cash and cash equivalents by the acquirer
Transferred or to be transferred cash directly to shareholders				70,296
Price adjustment paid to the sellers accordingly to contractual clause				634
Total consideration				70,930

b) Assets acquired and liabilities recognized on the acquisition date

In the acquisition of Rosa dos Ventos, the total amount of the considerations transferred (paid) was allocated at fair value to the assets acquired and liabilities assumed, including the intangible assets related to the right to operate the authorization, which will be amortized over the remaining period of the authorization tied to operation of the wind farms. The average term for Rosa dos Ventos is estimated at 18 years. Consequently, as the total amount paid was allocated to identified assets and liabilities, no residual amount was allocated to goodwill for this transaction.

The initial allocation of the amount paid is based on CPFL Renováveis Management estimates and it is still pending finalization of the economic/financial valuation report. The subsidiary's management expects the economic/financial valuation report will be concluded by de end of December 2014.

The subsidiary's management does not expect the amount allocated as the right to operate the acquisition to be tax-deductible and has therefore recorded deferred income tax and social contribution for the difference between the amount allocated to the assets and liabilities and their corresponding tax bases.

59

The initial accounting for the Rosa dos Ventos acquisition was made using 28 February 2014 as reference. Since the economic/financial valuation report has not been finalized, we show below the best estimate of the acquisition of Rosa do Ventos at fair value:

		Rosa dos
		Ventos
		February 28, 2014
Current assets
Cash and cash equivalents		2,466
Other current assets		6,601

Noncurrent assets
Fiduciary investments		4,253
Property, plant and equipment		51,735
Intangible		65,117

Current liabilities		3,033

Noncurrent liabilities
Loans, Financings and Debentures		32,934
Deferred taxes on exploitation rights		22,020
Allowance for demobilization		1,255
Net assets acquired		70,930
To be transferred		70,930

c) Outflow of net cash on acquisition of the subsidiary


		Rosa dos Ventos
		February 28, 2014
To be transferred in cash		70,930
Less: Balance of cash and cash equivalent acquired		(2,466)
Net cash		68,464

d) Financial information on the net operating revenue and net income of the subsidiary acquired included in the consolidated interim financial information the nine months of 2014:

		Net operating revenue		Net income
Rosa dos Ventos - from March 1, 2014 to September 30, 2014.		9,330		4,358
		9,330		4,358

60

e) Combined financial information on the net operating income and profit for the nine months of 2014 if the acquisition had occurred at the beginning on January 1, 2014.

		Net operating revenue			Net income
Consolidated CPFL Energia - historical		12,062,968			416,827
Pro forma adjustment (i)		2,929			706
Total		12,065,897			417,533

(i) The pro forma adjustments to the net operating income took into account the addition of the net operating income of the subsidiary Rosa dos Ventos for the period in which it was not controlled, consequently not consolidated by the Company (January 1 to February 28, 2014).

The pro forma adjustments of the net profit took into account: (i) addition of the profit or loss of the subsidiary Rosa dos Ventos for the period in which it was not consolidated by the Company; and (ii) inclusion of amortization of the right to operate, net of tax effects, as if Rosa dos Ventos had been acquired on January 1, 2014.

The Company's consolidated information for the nine-month period ended September 30, 2014 includes 7 (seven) months of operations of the subsidiary Rosa dos Ventos.

11.5 – Interest of non-controlling shareholders and joint ventures

Disclosure of interests in subsidiaries, as per IFRS 12 and CPC 45, is as follows:

11.5.1 – Changes in the interest on non-controlling shareholders

		CERAN		CPFL Renováveis		Paulista Lajeado		Total
At December 31, 2013		216,331		1,480,864		77,624		1,774,819
Equity interests and voting capital		35.00%		41.16%		40.07%

Net equity attributable to noncontrolling shareholders		21,029		(41,854)		481		(20,344)
Other movements		-		(485)		(6)		(491)
Dividends		(11,900)		-		(7,099)		(18,999)
At September 30, 2014		225,460		1,438,524		71,001		1,734,985
Equity interests and voting capital		35.00%		41.17%	(*)	40.07%

(*) Up to February 28, 2014, the participation of non-controlling shareholders was 41.16%.

61

11.5.2 – Summarized financial information for each of the Company's subsidiaries listing the interest of non-controlling shareholders

The summarized financial information at September 30, 2014 and December 31, 2013 and for the nine months ended at September 30, 2014 and 2013 of subsidiaries in which there are non-controlling interests are as follows:

		September 30, 2014						December 31, 2013
		CERAN		CPFL Renováveis		Paulista Lajeado		CERAN		CPFL Renováveis		Paulista Lajeado
Current assets		149,268		919,172		12,008		110,430		1,040,470		26,529
Cash and cash equivalents		107,985		641,601		1,993		73,686		731,055		14,657
Noncurrent assets		1,058,985		8,401,499		116,752		1,090,695		8,454,767		116,739

Current liabilities		117,181		657,985		24,758		96,831		1,082,806		24,241
Financial liabilities		105,551		522,498		8,031		64,921		986,721		1,577
Noncurrent liabilities		446,903		5,186,871		-		486,207		4,834,189		-
Financial liabilities		446,903		4,230,354		-		486,207		3,842,990		-
Shareholders' equity		644,170		3,475,815		104,002		618,087		3,578,242		119,027
Controlling shareholders´ interest		644,170		3,463,071		104,002		618,087		3,564,362		119,027
Non-controlling shareholders´ interest		-		12,744		-		-		13,880		-

		Nine months 2014						Nine months 2013
		CERAN		CPFL Renováveis		Paulista Lajeado		CERAN		CPFL Renováveis		Paulista Lajeado
Net operating revenue		256,942		878,265		34,447		200,751		684,494		49,752
Depreciation and amortization		(33,017)		(312,037)		(5)		(35,407)		(262,080)		(5)
Interest income		8,605		63,136		606		4,057		29,646		390
Interest expense		(30,622)		(298,711)		-		(34,028)		(218,824)		-
Social contribution and income tax		(30,267)		(15,263)		(1,325)		(24,290)		(10,320)		(5,032)
Net income		60,083		(102,118)		1,201		49,255		(82,804)		9,579
Net income attributable to controlling shareholders		60,083		(102,298)		1,201		49,255		(82,756)		9,579
Net income attributable to noncontrolling shareholders		-		180		-		-		(48)		-

62

11.5.3 – Joint venture

Summarized financial information of the joint venture at September 30, 2014 and December 31, 2013 and for the nine months ended at September 30, 2014 and 2013 are as follows:

		September 30, 2014								December 31, 2013
Joint venture		Enercan		Baesa		Chapecoense		Epasa		Enercan		Baesa		Chapecoense		Epasa
Current assets		147,330		87,145		209,369		325,933		97,961		58,980		144,018		171,387
Cash and cash equivalents		58,452		35,529		90,037		72,208		21,483		36,010		44,924		19,173
Noncurrent assets		1,259,796		1,223,418		3,264,004		643,255		1,296,035		1,267,818		3,200,402		644,508

Current liabilities		123,039		135,825		395,086		454,777		136,414		131,196		274,679		279,753
Financial liabilities		89,730		127,561		304,405		323,379		88,969		125,372		206,968		158,049
Noncurrent liabilities		396,381		511,939		2,212,976		325,510		453,592		583,045		2,303,424		374,763
Financial liabilities		356,738		500,638		2,212,335		324,366		416,513		573,781		2,295,940		374,696
Shareholders' equity		887,706		662,798		865,310		188,901		803,990		612,557		766,317		161,379

		Nine months 2014								Nine months 2013
Joint venture		Enercan		Baesa		Chapecoense		Epasa		Enercan		Baesa		Chapecoense		Epasa
Net operating revenue		375,117		274,614		639,705		868,151		346,665		213,461		490,488		385,108
Depreciation and amortization		(40,271)		(38,008)		(99,101)		(24,248)		(36,904)		(38,982)		(99,946)		(24,223)
Interest income		11,420		5,110		19,535		1,245		12,282		3,011		7,495		647
Interest expense		(30,879)		(25,304)		(102,702)		(26,457)		(34,405)		(30,317)		(105,421)		(28,284)
Social contribution and income tax		(56,934)		(25,673)		(51,091)		15,785		(48,581)		(6,123)		(39,920)		12,858
Net income		111,267		50,242		98,993		(31,335)		94,731		12,563		77,841		(25,269)
Equity Interests and voting capital		48.72%		25.01%		51.00%		*57.13% ()**		48.72%		25.01%		51.00%		52.75%

(*) Up to February 28, 2014, the interest of the direct subsidiary CPFL Geração was 52.75%.

Although it holds a share interest of more than 50% in the entities Epasa and Chapecoense, the subsidiary CPFL Geração controls these investments jointly with other shareholders. Analysis of the classification of the type of investment is based on the Shareholders' Agreement for each venture.

The loans obtained from the BNDES by the joint ventures ENERCAN, BAESA and Chapecoense establish restrictions on payment of dividends to the subsidiary CPFL Geração in excess of the mandatory minimum of 25% without the prior consent of the BNDES.

11.5.4 – Joint venture operations

Through its fully-owned subsidiary CPFL Geração, the Company holds part of the assets of the Serra da Mesa hydropower plant, located on the Tocantins River, in Goias State. The concession and operation of the hydropower plant belong to Furnas Centrais Elétricas S.A. In order to maintain these assets operating jointly with Furnas (joint-venture), CPFL Geração as assured of a 51.54% interest in the installed power of 1,275 MW (657 MW) and the guaranteed mean energy of 671 MW (mean 345.4 MW) until 2028 (physical information and energetic capacity measures not reviewed by the independent auditors).

11.6 – Capital increase in the joint venture Epasa

An Extraordinary General Meeting (EGM) held on January 31, 2014 by the jointly controlled subsidiary EPASA approved a capital increase of R$ 65,000. An amount of R$ 34,288 was subscribed and paid up by the subsidiary CPFL Geração in proportion to its interest in EPASA's capital.

The other shareholders were offered the option to exercise the preference to subscribe shares to be issued within 30 days of signing of the Notice to Shareholders, published on February 1, 2014. At the same EGM, the subsidiary CPFL Geração stated its interest in subscribing the remaining shares, should the other shareholders not exercise the right to preference within the stipulated period. After this period, the shareholders Eletricidade do Brasil S.A. and OZ&M Incorporação e Participação Ltda. partially exercised the share subscription rights granted to them, subscribing and paying up the amounts of R$ 14,000 and R$ 1,000, respectively.

63

In accordance with the Notice to Shareholders, Eletricidade do Brasil S.A. expressed its interest in subscribing the remaining shares, within the period stipulated in the Notice to Shareholders published on March 12, 2014. On March 21, 2014, Eletricidade do Brasil S.A and the subsidiary CPFL Geração, paid up the remaining shares, at R$ 4,556 and R$ 11,157, respectively. Through the subsidiary CPFL Geração, the Company now holds 57.13% of the capital of the jointly controlled subsidiary EPASA. The change of R$ 2,002 in corporate interest was registered in the investment and income of the subsidiary CPFL Geração, and consequently, also of the Company.

The other shareholders are assured by the Shareholders Agreement of the right to exercise the option to purchase any remaining shares within 12 months from the date on which the remaining shares are paid up, in order to recompose their diluted interest.

11.7 - Association between CPFL Renováveis and Dobrevê Energia S.A. - (“DESA”)

As disclosed in our Financial Statement of December 31, 2013, on February 17, 2014, the indirect subsidiary CPFL Renováveis and its parent company CPFL Geração signed an association agreement, whereby the terms and conditions have been established to the association between DESA and CPFL Renováveis. The association was authorized by ANEEL on April 24, 2014 and approved by the Administrative Council for Economic Defense - CADE on May 6, 2014.

The objective of the Association was to consolidate the experience of both groups in the renewable energy sector to achieve gains of scale and increase synergy by combining the operations, which are now structured more efficiently for businesses development.

The details of this operation are described on Note 35.4.

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( 12 ) PROPERTY, PLANT AND EQUIPMENT

	Consolidated
	Land		Reservoirs, dams and water mains		Buildings, construction and improvements		Machinery and equipment		Vehicles		Furniture and fittings		In progress		Total
As of December 31, 2013	115,946		986,527		1,318,394		4,291,334		22,661		13,731		968,826		7,717,419
Historic cost	126,820		1,375,993		1,718,629		5,671,053		29,928		24,277		968,826		9,915,527
Accumulated depreciation	(10,874)		(389,466)		(400,235)		(1,379,719)		(7,267)		(10,545)		-		(2,198,107)

Additions	16		19		466		2,155		-		1		251,061		253,718
Disposals	(1,772)		-		(12,718)		(14,347)		(472)		(571)		-		(29,881)
Provision to environmental costs	-		-		9,193		-		-		-		-		9,193
Transfers	750		809		185,534		685,655		13,536		62		(886,347)		-
Transfers to/from other assets - cost	(5)		163		(1,914)		(2,921)		-		(3,167)		(324)		(8,168)
Depreciation	(3,138)		(35,307)		(48,242)		(202,869)		(3,103)		(1,882)		-		(294,540)
Disposal of depreciation	-		-		-		272		243		471		-		986
Reclassification and transfers to/from other assets - depreciation	-		-		(20)		(547)		-		1,570		-		1,003
Business combination	-		-		7,818		43,510		-		58		349		51,735
Spin-off generation activity on the distribuition - cost	-		-		460		6,089		-		204		-		6,754
Spin-off generation activity on the distribuition - depreciation	-		-		(32)		(866)		-		(28)		-		(926)

As of September 30, 2014	111,797		952,211		1,458,940		4,807,465		32,866		10,449		333,569		7,707,297
Historic cost	125,810		1,376,983		1,907,469		6,391,196		42,993		20,864		333,569		10,198,883
Accumulated depreciation	(14,012)		(424,773)		(448,529)		(1,583,731)		(10,127)		(10,415)		-		(2,491,587)

Average depreciation rate	3.86%		3.40%		3.45%		4.62%		12.38%		11.10%

In accordance with CPC 20 (R1) and IAS 23, the interest on loans taken out by the subsidiaries is capitalized to the qualifying property, plant and equipment. In the consolidated statements R$ 10,668 was capitalized for the nine months of 2014 (R$ 39,105 in the nine months of 2013) at the rate of 8.45% p.a. (7.57% p.a. in 2013)

In the interim consolidated financial statement the depreciation amounts are recorded on income and loss at “Depreciation and amortization” (Note 27)

65

( 13 ) INTANGIBLE ASSETS

	Consolidated
	Goodwill		Concession right								Outros ativos intangíveis		Total
	Goodwill		Acquired in business combinations		Distribution infrastructure - operational		Distribution infrastructure - in progress		Public utilities		Outros ativos intangíveis		Total
As of December 31, 2013	6,115		4,312,381		3,763,197		574,131		31,582		60,922		8,748,328
Historical cost	6,152		6,811,237		9,310,710		574,131		35,840		156,023		16,894,093
Accumulated amortization	(37)		(2,498,856)		(5,547,513)		-		(4,258)		(95,100)		(8,145,764)

Additions	-		618		-		507,176		-		8,385		516,179
Amortization	-		(219,025)		(328,674)		-		(1,065)		(7,829)		(556,592)
Transfer - intangible assets	-		-		302,254		(302,254)		-		-		-
Transfer - financial asset	-		-		765		(279,223)		-		-		(278,458)
Disposal and transfer - other assets	-		-		(19,241)		2,770		-		7,144		(9,327)
Business combination	-		64,762		-		-		-		355		65,117
Spin-off generation activity on the distribuition	-		-		(299)		-		-		13		(286)


As of September 30, 2014	6,115		4,158,735		3,718,003		502,600		30,517		68,991		8,484,962
Historical cost	6,152		6,879,862		9,430,618		502,600		35,840		172,099		17,027,172
Accumulated amortization	(37)		(2,721,127)		(5,712,615)		-		(5,323)		(103,108)		(8,542,210)

In the consolidated statements, amortization is recorded in profit or loss, under the following headings: (i) “depreciation and amortization” for amortization of the intangible assets related to Distribution Infrastructure, Use of Public Utilities and Other Intangible Assets; and (ii) “amortization of intangible concession asset” for amortization of the intangible asset acquired through a business combination (Note 27).

In accordance with CPC 20 (R1) and IAS 23, the interest on loans taken out by the subsidiaries is capitalized to qualifying intangible assets. During the nine months of 2014, R$ 5,439 was capitalized in the interim consolidated financial statements (R$ 6,937 in the nine months of 2013) at a rate of 7.50% p.a. (8.79% p.a. in 2013).

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13.1 Intangible assets acquired in business combinations

The following table shows the breakdown of the intangible asset of exploitation rights of the concession acquired in business combinations:

	Consolidated
	September 30, 2014						December 31, 2013		Annual amortization rate
	Historic cost		Accumulated amortization		Net value		Net value		2014		2013
Intangible asset - acquired in business combinations
Intangible asset acquired, not merged
Parent company
CPFL Paulista	304,861		(168,581)		136,281		147,933		5.10%		6.03%
CPFL Piratininga	39,065		(20,238)		18,826		20,192		4.66%		4.85%
RGE	3,150		(1,341)		1,809		1,943		5.70%		5.86%
CPFL Geração	54,555		(28,381)		26,174		28,170		4.88%		4.83%
CPFL Santa Cruz	9		(7)		2		3		16.22%		16.40%
CPFL Leste Paulista	3,333		(2,676)		657		1,091		17.36%		17.45%
CPFL Sul Paulista	7,288		(5,813)		1,475		2,434		17.53%		16.94%
CPFL Jaguari	5,213		(4,251)		962		1,710		19.13%		16.49%
CPFL Mococa	9,110		(7,670)		1,440		2,638		17.53%		18.96%
CPFL Jaguari Geração	7,896		(2,677)		5,219		5,616		6.71%		7.07%
	434,480		(241,635)		192,845		211,730

Subsidiaries
CPFL Renováveis	3,202,770		(388,831)		2,813,939		2,850,857		4.07%		4.11%
Outros	15,096		(13,984)		1,112		1,083
	3,217,866		(402,815)		2,815,051		2,851,940

Subtotal	3,652,346		(644,450)		3,007,896		3,063,670

Intangible asset acquired and merged – Deductible
Subsidiaries
RGE	1,120,266		(813,787)		306,480		321,225		1.75%		1.89%
CPFL Geração	426,450		(283,199)		143,251		155,698		3.89%		3.66%
Subtotal	1,546,716		(1,096,985)		449,731		476,923

Intangible asset acquired and merged – Reassessed
Parent company
CPFL Paulista	1,074,026		(631,249)		442,778		479,952		4.61%		5.39%
CPFL Piratininga	115,762		(59,973)		55,788		59,836		4.66%		4.85%
RGE	310,128		(138,223)		171,905		184,700		5.50%		5.65%
CPFL Santa Cruz	61,685		(54,084)		7,601		12,241		10.03%		10.14%
CPFL Leste Paulista	27,034		(23,348)		3,685		6,615		14.45%		14.47%
CPFL Sul Paulista	38,168		(32,614)		5,554		9,662		14.35%		14.02%
CPFL Mococa	15,124		(13,327)		1,797		3,390		14.05%		14.85%
CPFL Jaguari	23,600		(20,500)		3,100		5,813		15.33%		14.28%
CPFL Jaguari Geração	15,275		(6,374)		8,901		9,578		5.91%		6.23%
Subtotal	1,680,801		(979,693)		701,108		771,788

Total	6,879,862		(2,721,127)		4,158,735		4,312,381

For the balances relating to the subsidiary CPFL Renováveis, amortization is recorded for the remaining terms of the respective exploration authorizations, using the straight line method. For the other balances, the amortization rates for intangible assets acquired through business combinations are based on the projected income curves of the concessionaires for the remainder of the concession term, and these projections are reviewed annually.

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( 14 ) SUPPLIERS

	Consolidated
	September 30, 2014		December 31, 2013
Current
System service charges	1,819		61,880
Energy purchased	1,545,908		1,300,598
Electricity network usage charges	124,697		91,603
Materials and services	174,167		338,524
Free energy	99,368		92,088
Total	1,945,959		1,884,693

Noncurrent
Materials and services	633		-

( 15 ) ACCRUED INTEREST ON LOANS AND FINANCING AND LOANS AND FINANCING

		Consolidated
		September 30, 2014								December 31, 2013
		Interest - Current and Noncurrent		Principal				Total		Interest - Current and Noncurrent		Principal				Total
		Interest - Current and Noncurrent		Current		Noncurrent		Total		Interest - Current and Noncurrent		Current		Noncurrent		Total
Measured at cost
Brazilian currency
Power increases		-		-		-		-		6		1,229		-		1,235
Investment		15,009		577,310		4,091,798		4,684,117		24,555		872,818		4,071,441		4,968,814
Property income		17		1,274		4,761		6,053		27		1,364		5,717		7,108
Financial institutions		101,891		262,853		1,388,664		1,753,408		128,752		560,121		1,520,231		2,209,104
Other		700		38,944		15,417		55,061		674		40,658		19,063		60,395
Total at Cost		117,617		880,381		5,500,641		6,498,639		154,013		1,476,190		5,616,452		7,246,656

Measured at fair value
Foreign currency
Financial institutions		10,066		107,401		2,955,253		3,072,719		15,213		42,307		1,906,739		1,964,259
Mark to Market		-		1,014		59,190		60,204		-		194		44,001		44,195
Total at fair value		10,066		108,415		3,014,443		3,132,923		15,213		42,501		1,950,740		2,008,454

Fundraising		-		(1,650)		(19,922)		(21,572)		-		(4,066)		(21,048)		(25,114)

Total		127,683		987,145		8,495,162		9,609,990		169,226		1,514,626		7,546,144		9,229,996

68

		Consolidated
Measured at amortized cost		September 30, 2014		December 31, 2013		Annual interest		Amortization		Collateral
Brazilian currency
Power increases
CPFL Renováveis
BNDES		-		1,235		TJLP + 3.1% to 4.3%		75 monthly installments from September 2007		CPFL Energia guarantee and Promissory Note

Investment
CPFL Paulista
FINEM IV		16,026		64,103		TJLP + 3.28% to 3.4%		60 monthly installments from January 2010		CPFL Energia guarantee and receivables
FINEM V		111,996		137,195		TJLP + 2.12% to 3.3%		72 monthly installments from February 2012		CPFL Energia guarantee and receivables
FINEM V		7,565		8,874		Fixed rate 8%		90 monthly installments from August 2011		CPFL Energia guarantee and receivables
FINEM V		47,818		53,481		Fixed rate 5.5%		96 monthly installments from February 2013		CPFL Energia guarantee and receivables
FINEM VI		257,665		284,373		TJLP + 2,06% to 3,08%		72 monthly installments from January 2014		CPFL Energia guarantee and receivables
FINEM VI		12,293		12,684		Fixed rate 2,5%		114 monthly installments from June 2013		CPFL Energia guarantee and receivables
FINEM VI		221,396		204,849		Fixed rate 2,5%		96 monthly installments from December 2014		CPFL Energia guarantee and receivables
FINAME		44,367		50,706		Fixed rate 4.5%		96 monthly installments from January 2012		CPFL Energia guarantee
CPFL Piratininga
FINEM III		6,680		26,719		TJLP + 3.28% to 3.4%		60 monthly installments from January 2010		CPFL Energia guarantee and receivables
FINEM IV		60,320		73,892		TJLP + 2.12% to 3.3%		72 monthly installments from February 2012		CPFL Energia guarantee and receivables
FINEM IV		2,439		2,861		Fixed rate 8%		90 monthly installments from August 2011		CPFL Energia guarantee and receivables
FINEM IV		24,867		27,812		Fixed rate 5.5%		96 monthly installments from February 2013		CPFL Energia guarantee and receivables
FINEM V		75,309		80,513		TJLP + 2,06% to 3,08%		72 monthly installments from January 2014		CPFL Energia guarantee and receivables
FINEM V		3,229		3,288		Fixed rate 2,5%		114 monthly installments from June 2013		CPFL Energia guarantee and receivables
FINEM V		55,095		48,237		Fixed rate 2,5%		96 monthly installments from December 2014		CPFL Energia guarantee and receivables
FINAME		21,038		24,044		Fixed rate 4.5%		96 monthly installments from January 2012		CPFL Energia guarantee
RGE
FINEM IV		10,201		40,805		TJLP + 3.28 to 3.4%		60 monthly installments from January 2010		CPFL Energia guarantee and receivables
FINEM V		67,792		83,046		TJLP + 2.12 to 3.3%		72 monthly installments from February 2012		CPFL Energia guarantee and receivables
FINEM V		18,343		20,516		Fixed rate 5.5%		96 monthly installments from February 2013		CPFL Energia guarantee and receivables
FINEM VI		137,653		157,318		TJLP + 2,06% to 3,08%		72 monthly installments from January 2014		CPFL Energia guarantee and receivables
FINEM VI		1,301		1,420		Fixed rate 2,5%		114 monthly installments from June 2013		CPFL Energia guarantee and receivables
FINEM VI		81,409		73,013		Fixed rate 2,5%		96 monthly installments from December 2014		CPFL Energia guarantee and receivables
FINAME		10,557		12,065		Fixed rate 4.5%		96 monthly installments from January 2012		CPFL Energia guarantee
FINAME		301		345		Fixed rate 10,0%		90 monthly installments from May 2012		Fiduciary alienation of assets
CPFLSanta Cruz
Bank credit note - Unibanco		1,487		3,159		TJLP + 2.9%		54 monthly installments from December 2010		CPFL Energia guarantee and receivables
FINEM		10,005		-		Fixed rate 6%		111 monthly installments from April 2015		CPFL Energia guarantee
FINEM		2,763		-		SELIC + 2,19%		72 monthly installments from April 2015		CPFL Energia guarantee
FINEM		6,412		-		TJLP + 2,19%		72 monthly installments from April 2015		CPFL Energia guarantee
CPFL Leste Paulista
Bank credit note - Unibanco		1,636		2,688		TJLP + 2,9%		54 monthly installments from June 2011		CPFL Energia guarantee and receivables
FINEM		2,313		-		Fixed rate 6%		111 monthly installments from April 2015		CPFL Energia guarantee
FINEM		1,002		-		SELIC + 2,19%		72 monthly installments from April 2015		CPFL Energia guarantee
FINEM		2,325		-		TJLP + 2,19%		72 monthly installments from April 2015		CPFL Energia guarantee
CPFL Sul Paulista
Bank credit note - Unibanco		1,772		2,911		TJLP + 2,9%		54 monthly installments from June 2011		CPFL Energia guarantee and receivables
FINEM		1,669		-		Fixed rate 6%		111 monthly installments from April 2015		CPFL Energia guarantee
FINEM		1,154		-		SELIC + 2,19%		72 monthly installments from April 2015		CPFL Energia guarantee
FINEM		2,678		-		TJLP + 2,19%		72 monthly installments from April 2015		CPFL Energia guarantee
CPFL Jaguari
Bank credit note - Unibanco		728		1,547		TJLP + 2,9%		54 monthly installments from December 2010		CPFL Energia guarantee and receivables
Bank credit note - Santander		2,034		2,136		TJLP + 3,1%		96 monthly installments from June 2014		CPFL Energia guarantee
Bank credit note - Santander		606		607		UMBNDES + 2.1%		96 monthly installments from June 2014		CPFL Energia guarantee
FINEM		2,614		-		Fixed rate 6%		111 monthly installments from April 2015		CPFL Energia guarantee
FINEM		911		-		SELIC + 2,19%		72 monthly installments from April 2015		CPFL Energia guarantee
FINEM		2,114		-		TJLP + 2,19%		72 monthly installments from April 2015		CPFL Energia guarantee
CPFL Mococa
Bank credit note - Unibanco		912		1,824		TJLP + 2,9%		54 monthly installments from January 2011		CPFL Energia guarantee and receivables
Bank credit note - Santander		2,617		2,747		TJLP + 3,1%		96 monthly installments from June 2014		CPFL Energia guarantee
Bank credit note - Santander		1,935		1,358		UMBNDES +1.99% to 2.1%		96 monthly installments from June 2014		CPFL Energia guarantee
Bank credit note - Santander		4,334		2,305		TJLP + 2,99%		96 monthly installments from October 2015		CPFL Energia guarantee
CPFL Serviços
FINAME		1,688		1,701		Fixed rate 2.5% to 5.5%		96 monthly installments from April 2012		CPFL Energia guarantee and equipment fiduciary alienation
FINAME		356		-		Fixed rate 6%		72 monthly installments from April 2016		CPFL Energia guarantee and equipment fiduciary alienation
FINAME		1,326		1,258		Fixed rate 6% to 10%		90 monthly installments from May 2012		CPFL Energia guarantee and equipment fiduciary alienation
FINAME		15,244		11,699		Fixed rate 2.5% to 5.5%		114 monthly installments from February 2013		CPFL Energia guarantee and equipment fiduciary alienation
FINAME		77		87		TJLP + 4,2%		90 monthly installments from May 2012		CPFL Energia guarantee and equipment fiduciary alienation
FINAME		2,863		-		Fixed rate 6%		90 monthly installments from November 2014		CPFL Energia guarantee and equipment fiduciary alienation
FINAME		59		-		Fixed rate 6%		96 monthly installments from June 2016		CPFL Energia guarantee and equipment fiduciary alienation
CERAN
BNDES		372,435		409,365		TJLP + 3,69%to5%		168 monthly installments from December 2005		Pledge of shares, credit and concession rights and revenue and CPFL Energia guarantee
BNDES		52,209		54,956		UMBNDES + 5% (1)		168 monthly installments from February 2006		Pledge of shares, credit and concession rights and revenue and CPFL Energia guarantee
CPFL Transmissão
FINAME		10,416		4,667		Fixed rate 3,0%		96 monthly installments from July 2015		CPFL Energia guarantee
CPFL Renováveis
FINEM I		328,979		352,830		TJLP + 1,95%		168 monthly installments from October 2009		PCH Holding a joint debtor, Letters of guarantee
FINEM II		29,449		31,997		TJLP + 1,90%,		144 monthly installments from June 2011		CPFL Energia guarantee, fiduciary alienation of assets and joint fiduciary assignment of credit rights
FINEM III		575,656		605,263		TJLP + 1,72%		192 monthly installments from May 2013		CPFL Energia guarantee, plegde of shares, fiduciary alienation of assets and joint fiduciary assignment of credit rights
FINEM V		104,552		113,106		TJLP + 2,8%to3,4%		143 monthly installments from December 2011		PCH Holding 2 and CPFL Renováveis debtor solidarity.
FINEM VI		75,149		76,673		TJLP + 2,05%		192 monthly installments from October 2013		CPFL Renováveis pledge of shares, pledge of receivables
FINEM VII		181,254		194,041		TJLP - 1,92 %		156 monthly installments from October 2010		Pledge of shares, fiduciary alienation and equipment fiduciary alienation
FINEM VIII		48,446		50,811		TJLP + 2,02%		192 monthly installments from January 2014		Pledge of shares and Reserve Account of SPE Assignment of Receivables
FINEM IX		41,429		46,994		TJLP + 2,15%		120 monthly installments from May 2010		Pledge of shares, fiduciary alienation and equipment fiduciary alienation
FINEM X		902		1,108		TJLP		84 monthly installments from October 2010		Pledge of shares, fiduciary alienation and equipment fiduciary alienation
FINEM XI		129,511		138,101		TJLP + 1,87%to1,9%		168 monthly installments from January 2012		CPFL Energia guarantee, fiduciary alienation of assets and joint fiduciary assignment of credit rights
FINEM XII		340,251		336,782		TJLP + 2,18%		192 monthly installments from July 2014		CPFL Energia guarantee, fiduciary alienation of assets, joint fiduciary assignment of credit rights and pledge of shares
FINEM XIII		298,079		-		TJLP + 2,02%to2,18%		192 monthly installments from November 2014		Pledge of shares and equipaments, fiduciary alienation.
FINAME I		170,188		190,396		Fixed rate 5.5%		108 monthly installments from January 2012		CPFL Energia guarantee, fiduciary alienation of assets and fiduciary assignment of credit rights
FINAME II		27,402		31,168		Fixed rate 4.5%		102 monthly installments from June 2011		CPFL Energia guarantee, fiduciary alienation of assets and fiduciary assignment of credit rights
FINAME III		119,170		129,659		Fixed rate 2.5%		108 monthly installments from January 2014		Pledge of CPFL Renováveis shares Pledge of shares and Reserve Account of SPE Assignment of receivables
FINEP I		2,506		2,506		Fixed rate 3.5%		61 installments from October 2014		Bank Garantee
BNB		119,659		133,192		Fixed rate 9.5% to 10%		168 monthly installments from January 2009		Fiduciary alienation
BNB (f)		174,095		175,695		Fixed rate 10%		222 monthly installments from May 2010		CPFL Energia guarantee
BNB		33,014		-		Fixed rate 9.5%		228 monthly installments from July 2009		CPFL Energia guarantee, fiduciary alienation of assets and joint fiduciary assignment of credit rights
NIB		75,212		79,109		IGPM + 8,63%		Interest and principal quarterly paid started in June 2011 until September 2023		No guarantee
Bridge BNDES II		-		84,507		TJLP + 3,02 %		1 installment in February 2014		Pledge of SPE shares
Bridge BNDES III		-		194,242		TJLP + 3,02 %		1 installment in February 2014		Pledge of SPE shares
CPFL Brasil
FINEP		2,862		3,461		Fixed rate 5%		81 monthly installments from August 2011		Receivables

69

Purchase of assets
CPFL Serviços
FINAME		-		146		TJLP + 2,15%		36 monthly installments from March 2011		Fiduciary alienation of assets
FINAME		4,463		4,911		Fixed rate 2.5% to 8.7%		96 monthly installments from April 2012		Fiduciary alienation of assets and CPFL Energia guarantee
FINAME		1,589		2,051		TJLP + 1,72%		60 monthly installments from May 2012		CPFL Energia guarantee

Financial Institutions
CPFL Paulista
Banco do Brasil - Law 8727		-		4,648		IGP-M + 7.42%		240 monthly installments from May 1994		Receivables (CPFL Paulista and São Paulo Government)
Banco do Brasil - Working capital		108,396		105,124		107% of CDI		1 installment in April 2015		CPFL Energia guarantee
Banco do Brasil - Working capital (a)		71,806		133,334		98.50% of CDI		4 annual installments from July 2012		CPFL Energia guarantee
Banco do Brasil - Working capital (b)		-		95,704		99.00% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (d)		282,839		261,334		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
CPFL Piratininga
Banco do Brasil - Working capital (a)		6,604		12,263		98.5% of CDI		4 annual installments from July 2012		CPFL Energia guarantee
Banco do Brasil - Working capital (b)		-		12,282		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (d)		49,780		45,995		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
RGE
Banco do Brasil - Working capital (a)		31,050		57,656		98.5% of CDI		4 annual installments from July 2012		CPFL Energia guarantee
Banco do Brasil - Working capital (b)		-		35,338		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
CPFL Santa Cruz
Banco do Brasil - Working capital (b)		-		4,340		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (d)		37,335		34,496		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
CPFL Leste Paulista
Banco do Brasil - Working capital (b)		-		11,156		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco IBM - Working capital		7,790		8,140		100.0% of CDI		14 semiannual installments from December 2012		CPFL Energia guarantee
Banco IBM - Working capital		27,205		-		CDI + 0,1%		12 semiannual installments from October 2014		CPFL Energia guarantee
Banco IBM - Working capital		7,703		-		CDI + 0,27%		12 semiannual installments from march 2015		CPFL Energia guarantee
CPFL Sul Paulista
Banco do Brasil - Working capital (b)		-		5,982		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (d)		23,759		21,952		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
CPFL Jaguari
Banco do Brasil - Working capital (b)		-		3,755		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (d)		3,281		3,031		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
Banco IBM - Working capital		16,288		16,615		100.0% of CDI		14 Semi-annual installments from December 2012		CPFL Energia guarantee
Banco IBM - Working capital		14,658		-		CDI + 0,1%		12 semiannual installments from October 2014		CPFL Energia guarantee
CPFL Mococa
Banco do Brasil - Working capital (b)		-		1,908		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (d)		21,496		19,861		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
Banco IBM - Working capital		5,285		5,392		100.0% of CDI		14 Semi-annual installments from December 2012		CPFL Energia guarantee
Banco IBM - Working capital		15,000		-		CDI + 0,27%		12 semiannual installments from March 2015		CPFL Energia guarantee
CPFL Serviços
Banco IBM - Working capital		7,025		7,325		CDI + 0,10%		11 semiannual installments from June 2013		CPFL Energia guarantee
CPFL Geração
Banco do Brasil - Working capital		618,901		628,828		107.0% of CDI		1 installment in April 2015		CPFL Energia guarantee
CPFL Renováveis
Banco Safra		28,507		27,713		CDI+ 0.4%		Annual installment until 2014		No guarantee
HSBC (e)		331,264		350,329		CDI + 0.5%		8 annual installment from June 2013		Shares alienation
Banco do Brasil - Promissory Note		-		144,428		108.5% of CDI		1 installment in January 2014		Shares alienation
Banco Itaú - Promissory Note		-		150,175		105% of CDI		Semi-annual until June 2014		No guarantee
CPFL Telecom
Banco IBM - Working capital		37,438		-		CDI + 0,18%		12 semiannual installments from August 2014		CPFL Energia guarantee

Other
Eletrobrás
CPFL Paulista		5,790		6,918		RGR + 6%to6,5%		monthly installments from August 2006		Receivables and promissory notes
CPFL Piratininga		276		390		RGR + 6%		monthly installments from August 2006		Receivables and promissory notes
RGE		10,268		11,834		RGR + 6%		monthly installments from August 2006		Receivables and promissory notes
CPFL Santa Cruz		1,744		2,173		RGR + 6%		monthly installments from January 2007		Receivables and promissory notes
CPFL Leste Paulista		800		961		RGR + 6%		monthly installments from February 2008		Receivables and promissory notes
CPFL Sul Paulista		874		1,072		RGR + 6%		monthly installments from August 2007		Receivables and promissory notes
CPFL Jaguari		45		58		RGR + 6%		monthly installments from June 2007		Receivables and promissory notes
CPFL Mococa		236		275		RGR + 6%		monthly installments from January 2008		Receivables and promissory notes
Other		35,029		36,713
Subtotal Brazilian Currency - Cost		6,498,639		7,246,656

Foreign Currency
Measured at fair value
Financial Institutions
CPFL Paulista
Bank of America Merrill Lynch		247,181		238,318		US$ + 3,69 % (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
Bank of America Merrill Lynch		369,178		352,685		US$ + Libor 3 months + 1.48% (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
Bank of America Merrill Lynch		110,379		-		US$+Libor 3 months+1.70% (4)		1 installment in September 2018		CPFL Energia guarantee and promissory notes
Bank of Tokyo-Mitsubishi (b)		122,677		-		US$+Libor 3 months+0.80% (3)		4 semiannual installments from September 2017		CPFL Energia guarantee and promissory notes
Citibank		122,667		117,821		US$ + Libor 6 months + 1.77% (2)		1 installment in September 2016		CPFL Energia guarantee and promissory notes
Citibank		122,745		-		US$+Libor 3 months + 1.35% (4)		1 installment in March 2019		CPFL Energia guarantee and promissory notes
Mizuho Bank (c)		183,924		-		US$+Libor 3 months+1.55% (3)		3 semiannual installments from March 2018		CPFL Energia guarantee and promissory notes
Morgan Stanley		122,688		117,843		US$ + Libor 6 months + 1.75% (2)		1 installment in September 2016		CPFL Energia guarantee and promissory notes
Scotiabank		59,469		57,299		US$ + 3,3125% (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
CPFL Piratininga
Citibank		19,656		18,878		US$ + Libor 6 months + 1.69%(2)		1 installment in August 2016		CPFL Energia guarantee and promissory notes
Citibank		153,644		-		US$ + Libor 6 monthss + 1.14% (2)		1 installment in January 2017		CPFL Energia guarantee and promissory notes
Citibank		122,745		-		US$ + Libor 3 months + 1.35% (4)		1 installment in March 2019		CPFL Energia guarantee and promissory notes
Santander		110,599		106,348		US$ + 2.58% (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
Scotiabank		77,674		74,840		US$ + 3.3125% (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
Sumitomo (b)		123,025		-		US$ + Libor 3 months + 1.35% (3)		1 installment in April 2018		CPFL Energia guarantee and promissory notes
RGE
Bank of Tokyo-Mitsubishi		44,229		42,252		US$ + Libor 3 months + 0.82%(3)		1 installment in April 2018		CPFL Energia guarantee and promissory notes
Bank of Tokyo-Mitsubishi		201,289		192,298		US$ + Libor 3 months + 0.83%(3)		1 installment in May 2018		CPFL Energia guarantee and promissory notes
Citibank		36,847		-		US$ + Libor 3 months + 1.25%(4)		2 annual installments from May 2018		CPFL Energia guarantee and promissory notes
Citibank		173,013		164,567		US$ + Libor 6 months + 1.45% (3)		1 installment in April 2017		CPFL Energia guarantee and promissory notes
J.P. Morgan		115,681		111,235		US$ + 2.64% (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
CPFL Santa Cruz
J.P. Morgan		23,737		22,813		US$ + 2.38% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
Santander		21,918		20,805		USD + 2.544% (3)		1 installment in June 2016		CPFL Energia guarantee and promissory notes

70

CPFL Leste Paulista
Citibank		-		11,226		US$ + Libor 6 months + 1.52%(2)		1 installment in September 2014		CPFL Energia guarantee and promissory notes
Scotiabank		30,191		29,037		US$ + 2.695% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
CPFL Sul Paulista
Citibank		-		11,226		US$ + Libor 6 months + 1.52%(2)		1 installment in September 2014		CPFL Energia guarantee and promissory notes
J.P. Morgan		12,462		11,977		US$ + 2.38% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
Santander		24,110		22,885		US$ + 2.544% (3)		1 installment in June 2016		CPFL Energia guarantee and promissory notes
Scotiabank		12,680		12,195		US$ + 2.695% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
CPFL Jaguari
Citibank		-		10,284		US$ + Libor 6 months + 1.57%(2)		1 installment in August 2014		CPFL Energia guarantee and promissory notes
Santander		33,973		32,247		US$ + 2.544% (3)		1 installment in June 2016		CPFL Energia guarantee and promissory notes
Scotiabank		15,699		15,099		US$ + 2.695% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
CPFL Mococa
Citibank		-		9,822		US$ + Libor 6 months + 1.52%(2)		1 installment in September 2014		CPFL Energia guarantee and promissory notes
Scotiabank		13,284		12,776		US$ + 2.695% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
CPFL Geração
Citibank		-		147,482		US$ + Libor 6 months + 1.69% (2)		1 installment in August 2016		CPFL Energia guarantee and promissory notes
HSBC		245,356		-		US$+Libor 3 months + 1.30% (3)		1 installment in March 2017		CPFL Energia guarantee and promissory notes

Mark to market		60,204		44,195

Total Foreign Currency - fair value		3,132,923		2,008,454

*Fundraising costs()**		(21,572)		(25,114)

Total - Consolidated		9,609,990		9,229,996

The subsdiaries hold swaps converting the operating cost of currency variation to interest tax variation in reais, corresponding to :
(1) 176,19% of CDI		(3) 104,1% to 109% of CDI
(2) 99% to 104% of CDI		(4) 109,1% to 109,5% of CDI
Efective rate:
(a) 106% to 106,99% of CDI		(d) 109,47% of CDI
(b) 107% to 107,99% of CDI		(e) CDI + 0,73%
(c) 108,49% of CDI		(f) Fixed rate 10,57%

(*) In accordance with CPC 08/IAS 39, this refers to the fundraising costs attributable to issuance of the respective debts.

In accordance with CPCs 38 and 39 and IAS 32 and 39, the Company and its subsidiaries classified their debts, as segregated in the tables above, as (i) other financial liabilities (or measured at amortized cost), and (ii) financial liabilities measured at fair value through profit and loss.

The objective of classification of financial liabilities measured at fair value is to compare the effects of recognition of income and expense derived from marking hedge derivatives to market, tied to the loans and financing, in order to obtain more relevant and consistent accounting information. At September 30, 2014, the total balance of the loans and financing measured at fair value was R$ 3,132,923 (R$ 2,008,454 at December 31, 2013).

Changes in the fair values of these loans and financing are recognized in the financial income (expense) of the subsidiaries. Losses of R$ 60,204 (R$ 44,195 at December 31, 2013), on marking the debts to market, less the gains of R$ 14,019 (R$ 18,080 at December 31, 2013), of marking to market the derivative financial instruments contracted as a hedge against foreign exchange variations (Note 32), results in a total net loss of R$ 46,185 (R$ 26,114 at December 31, 2013).

71

The maturities of the principal non-current balances of loans and financing are scheduled as follows:

Maturity	Consolidated
From October 1, 2015	144,386
2016	1,938,933
2017	1,315,615
2018	1,526,751
2019	1,541,293
2020 to 2024	1,418,969
2025 to 2029	532,698
2030 to 2034	17,326
Subtotal	8,435,972
Mark to market	59,191
Total	8,495,162

Main additions in the period:

72

Brazilian currency

R$ thousand

Company

Bank / credit line

Total approved

Nine months of 2014 released

Released net of fundraising costs

Interest

Destination of the resources

Investment

CPFL Paulista

FINEM VI (a) (b)

790,000

26,969

26,969

Monthly

Subsidiary's investment plan

CPFL Piratininga

FINEM V (a) (b)

220,000

12,442

12,442

Monthly

Subsidiary's investment plan

RGE

FINEM VI (a) (b)

274,997

8,354

8,354

Monthly

Subsidiary's investment plan

CPFL Santa Cruz

FINEM (b)

25,360

19,050

19,050

Monthly

Subsidiary's investment plan

CPFL Leste Paulista

FINEM (b)

13,045

5,600

5,600

Monthly

Subsidiary's investment plan

CPFL Sul Paulista

FINEM (b)

12,280

5,460

5,460

Monthly

Subsidiary's investment plan

CPFL Jaguari

FINEM (b)

10,398

5,600

5,600

Monthly

Subsidiary's investment plan

CPFL Serviços

FINAME (b)

8,029

8,029

8,029

Monthly

Acquisition of electrical equipment and vehicules

CPFL Transmissão

FINAME (b)

23,824

5,740

5,740

Monthly

Acquisition of electrical equipment

CPFL Renováveis

BNB (b)

(c)

(c)

(c)

(c)

(c)

CPFL Renováveis

FINEM XIII

379,948

296,144

296,144

Monthly

Subsidiary's investment plan

Financial Institutions

CPFL Leste Paulista

Bank credit note - Banco IBM (b)

33,746

33,746

33,746

Semiannual

Reinforce working capital

CPFL Mococa

Banco IBM (b)

15,000

15,000

15,000

Semiannual

Reinforce working capital

CPFL Jaguari

Bank credit note - Banco IBM (b)

13,986

13,986

13,986

Semiannual

Reinforce working capital

CPFL Renováveis

Banco do Brasil - Promissory Note (b)

138,000

138,000

138,000

(d)

(d)

CPFL Telecom

Bank credit note - Banco IBM (b)

37,989

37,989

37,989

Semiannual

Reinforce working capital

(a)The outstanding balance was cancelled
(b)The agreement has no restrictive covenants
(c)The indirect subsidiary Rosa dos Ventos, purchased in February 2014, owned these operations, which are consolidated in the Company's financial statements as from March 2014.
(d)The outstanding balance of the promissory notes issued by the indirectly owned subsidiaries Atlântica I, Atlântica II, Atlântica IV and Atlântica V was settled in January 2014, using funds from a new issue under the same conditions.

Foreign currency

R$ thousand

Company

Bank / credit line

Total approved

Nine months of 2014 released

Released net of fundraising costs

Interest

Destination of the resources

Instituições Financeiras:

CPFL Paulista

Bank of America Merrill Lynch - Law 4131/62

106,020

106,020

106,020

Quartely

Extend the debt profile

CPFL Paulista

Banco Tokyo-Mitsubishi - Law 4131/62

117,400

117,400

116,226

Quartely

Extend the debt profile

CPFL Paulista

Citibank - Law 4131/62

117,250

117,250

117,250

Quartely

Extend the debt profile

CPFL Paulista

Mizuho Bank - Law 4131/62

174,900

174,900

173,413

Quartely

Extend the debt profile

CPFL Piratininga

Citibank - Law 4131/62

151,875

151,875

151,875

Semmiannual

Extend the debt profile

CPFL Piratininga

Citibank - Law 4131/62

117,250

117,250

117,250

Quartely

Extend the debt profile

CPFL Piratininga

Sumitomo - Law 4131/62

110,275

110,275

109,448

Quartely

Reinforce working capital

RGE

Citibank - Law 4131/62

33,285

33,285

33,285

Quartely

Reinforce working capital

CPFL Geração

HSBC - Law 4131/62

232,520

232,520

232,520

Quartely

Extend the debt profile

73

Prepayment

CPFL Geração – Citibank - The maturity of the subsidiary CPFL Geração's foreign currency debt to Citibank, originally scheduled for August 2016, was settled in 2014.

RESTRICTIVE COVENANTS

The loan and financing agreements are subject to certain restrictive covenants and include clauses that require the Company and/or its subsidiaries to maintain certain financial ratios within pre-established parameters. Some loans contracted in 2014 have the clauses related to financial indicators, which are calculated half yearly in accordance with the Financial Statement of the company:

Foreign currency loans - Citibank, Tokyo – Mitsubishi Bank, Bank of America Merrill Lynch, Mizuho, Sumitomo and HSBC (Law 4.131) – half yearly measured based on Company’ financial statements

· Net indebtedness to adjusted EBITDA – maximum of 3.75; and

· Adjusted EBITDA to Net Financial Income - minimum of 2.25.

For purposes of determining covenants, the definition of EBITDA takes into consideration inclusion of the main regulatory assets and liabilities, it also takes into account proportional consolidation of its subsidiaries, associates and joint ventures (for both EBITDA and assets and liabilities) based on the interest directly or indirectly held by CPFL Energia.

FINEM XIII – CPFL Renováveis

· Maintaining the Debt Service Coverage Ratio (cash balance for the previous year + cash generation for the current year) / debt service charge for the current year) at 1.3 or more during the effective term of the contract;

The details of the restrictive conditions for other debts are presented in the Financial Statements of December 31, 2013.

Company Management monitor these ratios systematically and constantly to ensure that the contractual conditions are complied with. Company Management believes that all the restrictive covenants and clauses for which the indicators are measured half yearly or annually have been adequately complied with in accordance with the latest base periods, September 30, 2014 and December 31, 2013, respectively.

( 16 ) ACCRUED INTEREST ON DEBENTURES AND DEBENTURES

74

			Consolidated
			September 30, 2014								December 31, 2013
			Current and noncurrent interest		Current		Noncurrent		Total		Current and noncurrent interest		Current		Noncurrent		Total
Parent Company
4th Issue	Single series		50,635		1,290,000		-		1,340,635		12,438		-		1,290,000		1,302,438
			50,635		1,290,000		-		1,340,635		12,438		-		1,290,000		1,302,438

CPFL Paulista
6th Issue	Single series		18,507		-		660,000		678,507		31,674		-		660,000		691,674
7th Issue	Single series		8,974		-		505,000		513,974		20,173		-		505,000		525,173
			27,481		-		1,165,000		1,192,481		51,847		-		1,165,000		1,216,847

CPFL Piratininga
3rd Issue	Single series		14,666		260,000		-		274,666		6,331		-		260,000		266,331
6th Issue	Single series		3,085		-		110,000		113,085		5,279		-		110,000		115,279
7th Issue	Single series		4,176				235,000		239,176		9,388				235,000		244,388
			21,927		260,000		345,000		626,927		20,998		-		605,000		625,998

RGE
6th Issue	Single series		14,021		-		500,000		514,021		23,995		-		500,000		523,995
7th Issue	Single series		3,021		-		170,000		173,021		6,791		-		170,000		176,791
			17,042		-		670,000		687,042		30,786		-		670,000		700,786

CPFL Santa Cruz
1st Issue	Single series		2,450		-		65,000		67,450		416		-		65,000		65,416

CPFL Brasil
2nd Issue	Single series		9,141		-		228,000		237,141		1,948		-		228,000		229,948

CPFL Geração
3rd Issue	Single series		14,892		264,000		-		278,892		6,429		-		264,000		270,429
4th Issue	Single series		-		-		-		-		5,809		-		680,000		685,809
5th Issue	Single series		43,778		-		1,092,000		1,135,778		9,329		-		1,092,000		1,101,329
6th Issue	Single series		5,667		-		460,000		465,667		16,254		-		460,000		476,254
7th Issue	Single series		32,153		-		635,000		667,153		-		-		-		-
8th Issue	Single series		1,777		-		71,277		73,055		-		-		-		-
			98,268		264,000		2,258,277		2,620,545		37,821		-		2,496,000		2,533,821

CPFL Renováveis
1st Issue - SIIF	1st to 12nd series		2,148		36,187		488,520		526,855		814		34,872		489,858		525,544
1st Issue - PCH Holding 2	Single series		51,325		8,700		149,492		209,517		32,177		-		158,193		190,370
1st Issue - Renováveis	Single series		19,385		21,500		408,500		449,385		5,065		-		430,000		435,065
2nd Issue - Renováveis	Single series		139		-		300,000		300,139		-		-		-		-
			72,997		66,387		1,346,512		1,485,896		38,056		34,872		1,078,051		1,150,979

*Fund raising costs()**			-		(1,268)		(30,670)		(31,938)		-		-		(34,832)		(34,832)

Total			299,939		1,879,120		6,047,119		8,226,178		194,311		34,872		7,562,219		7,791,402

(*) In accordance with CPC 08/IAS 39, this refers to the fundraising costs attributable to issuance of the respective debts.

75

		Consolidated
		Issued		Annual Remuneration		Annual Effective rate		Amortization Conditions		Collateral
Parent Company
4th Issue	Single series	129.000		CDI + 0,40%		CDI + 0,51%		1 installment in May 2015		Unsecured


CPFL Paulista
6th Issue	Single series	660		CDI + 0,8% (2)		CDI + 0,87%		3 annual installments from July 2017		CPFL Energia guarantee
7th Issue	Single series	50,500		CDI + 0,83% (3)		CDI + 0,89%		4 annual installments from February 2018		CPFL Energia guarantee


CPFL Piratininga
3rd Issue	Single series	260		107% of CDI		108,23% of CDI		1 installment in April 2015		CPFL Energia guarantee
6th Issue	Single series	110		CDI + 0,8% (2)		CDI + 0,91%		3 annual installments from July 2017		CPFL Energia guarantee
7th Issue	Single series	23,500		CDI + 0,83% (2)		CDI + 0,89%		4 annual installments from February 2018		CPFL Energia guarantee


RGE
6th Issue	Single series	500		CDI + 0,8% (2)		CDI + 0,88%		3 annual installments from July 2017		CPFL Energia guarantee
7th Issue	Single series	17,000		CDI + 0,83% (3)		CDI + 0,88%		4 annual installments from February 2018		CPFL Energia guarantee


CPFL Santa Cruz
1st Issue	Single series	650		CDI + 1,4%		CDI + 1,52%		2 annual instalments from June 2017		CPFL Energia guarantee

CPFL Brasil
2nd Issue	Single series	2,280		CDI + 1,4%		CDI + 1,48%		2 annual instalments from June 2017		CPFL Energia guarantee

CPFL Geração
3rd Issue	Single series	264		107% of CDI		108,23% of CDI		1 installment in April 2015		CPFL Energia guarantee
4th Issue	Single series	6.800		CDI + 1,4%		CDI + 1,49%		2 annual instalments from June 2017		CPFL Energia guarantee
5th Issue	Single series	10,920		CDI + 1,4%		CDI + 1,48%		2 annual instalments from June 2017		CPFL Energia guarantee
6th Issue	Single series	46,000		CDI + 0,75% (1)		CDI + 0,75%		3 annual instalments from August 2018		CPFL Energia guarantee
7th Issue	Single series	63,500		CDI + 1,06%		CDI + 1,11%		1 installment in April 2019		CPFL Energia guarantee
8th Issue	Single series	1		IPCA + 5,86% (1)		103,33% of CDI		1 installment in April 2019		CPFL Energia guarantee


CPFL Renováveis
1st Issue - SIIF	1st to 12nd Series	432,299,666		TJLP + 1%		TJLP + 1% + 0,6%		39 consecutive semi-annual installments from 2009		Fiduciary alienation
1st Issue - PCH Holding 2	Single series	1,581		CDI + 1,6%		CDI + 1,8%		9 annual installments from June 2015		CPFL Renováveis guarantee
1st Issue - Renováveis	Single series	43,000		CDI + 1,7%		CDI + 1,82%		Annual installments from May 2015		BVP and PCH Holding fiduciary assigment of dividends
2st Issue - Renováveis	Single series	300,000		114,0% of CDI		115,43% of CDI		5 annual instalments from June 2017		Unsecured

The Company and its subsidiaries hold swaps that convert the prefixed component of interest on the operation to interest rate variation in reais, corresponding to:
(1) 100.15% to 106.9% of CDI				(3) 108% to 108.1% of CDI
(2) 107% to 107.9% of CDI

The maturities of the non-current balance of debentures are scheduled as follows:

Maturity		Consolidated
From October 1, 2015		18,093
2016		87,887
2017		1,186,496
2018		1,620,261
2019		1,776,785
2020 to 2024		1,230,625
2025 to 2029		126,971
Total		6,047,119

Main additions in the period:

CPFL Geração - 7th and 8th issues

The 7th and 8th single series of guaranteed unsecured debentures, not convertible into shares, were issued in May 2014, as described below:

(i) 7th issue: 63,500 debentures were issued, with a total value of R$ 635,000 (R$ 633,440 net of issuance costs). The funds will be used to refinance the subsidiary's debts. Interest will be paid half-yearly and the principal will be amortized in a single installment at maturity;

(ii) 8th issue: One (1) debenture was issued, with a total value of R$ 70,000 (R$ 68,873 net of issuance costs). The funds will be invested in one of the subsidiary's projects. Interest will be paid annually and the principal will be amortized in a single installment at maturity;

76

CPFL Renováveis – 2nd issue

In 2014, a single series of 300,000 registered, book-entry, unsecured debentures, with a unit value of R$ 1,000 (one thousand reais), amounting to a total of R$ 300,000 (R$ 298,700 net of issuance costs) were subscribed and paid up by the subsidiary CPFL Renováveis. The principal will be paid annually from March 2017, with half-yearly interest from September 2014. The funds will be used to reinforce the working capital and for the investment plan of the subsidiary.

RESTRICTIVE COVENANTS

The debentures are subject to certain restrictive covenants, including clauses that require the Company and its subsidiaries to maintain certain financial ratios within pre-established parameters, calculated half-yearly. The details of these are shown in the December 31, 2013 financial statements.

Debenture issues in 2014 are subject to restrictive clauses in relation to the following financial ratios:

CPFL Geração - 7th and 8th issues

· Net indebtedness to adjusted EBITDA – maximum of 3.75; and

· Adjusted EBITDA to Net Financial Income - minimum of 2.25.

The ratios will be measured, half yearly in the Company, from June 2015.

CPFL Renováveis – 2nd issue

Maintaining a Net Debt/EBITDA ratio of 6.0 or less in 2014, 5.6 in 2015, 4.6 in 2016 and 3.75 from 2017. The ratios will be measured yearly.

For purposes of determining covenants, the definition of EBITDA takes into consideration inclusion of the main regulatory assets and liabilities, it also takes into account proportional consolidation of its subsidiaries, associates and joint ventures (for both EBITDA and assets and liabilities) based on the interest directly or indirectly held by CPFL Energia.

The details of the restrictive covenants for the other debentures are presented in the December 31, 2013 Financial Statements.

Company Management monitors these ratios systematically and constantly to ensure that the conditions are complied with. Company Management believes that all the restrictive covenants and clauses for which the indicators are measured half yearly or annually have been adequately complied with in accordance with the latest base periods, September 30, 2014 and December 31, 2013, respectively.

( 17 ) POST-EMPLOYMENT BENEFIT OBLIGATION

The subsidiaries sponsor supplementary retirement and pension plans for their employees. The main characteristics of these plans are as follows:

I - CPFL Paulista

77

The plan currently in force for the employees of the subsidiary CPFL Paulista through Fundação CESP is a Mixed Benefit Plan, in the form, to October 31, 1997, of a Defined Benefit Plan (Proportional Supplementary Defined Benefit – BSPS), and after that date, adoption of a mixed variable contribution model for scheduled retirement and a defined benefit plan for benefits for risk (disability and death).

As a result of the Retirement Plan modification occurred in October 1997, a commitment calculated at the time by the external actuaries of Fundação CESP, was established by the subsidiary CPFL Paulista, which will be settled until 2027. Such commitment is annually adjusted at 6% p.a. and monetarily restated at the IGP-DI rate (FGV). At the end of each year, after appraisal by external actuaries, the balance of the commitment is adjusted to reflect the equilibrium of the equity of the Fundação CESP pension plans. The amount of the commitment at September 30, 2014 is
R$ 827,665 (R$ 840,602 at December 31, 2013). The premises and methodology used to calculate this commitment are in accordance with the standards of the National Complementary Welfare Superintendency - PREVIC and may not be consistent with those used for the actuarial liability in accordance with IAS 19 (2011). Therefore differs from the carrying amount of the post-employment benefit obligation, that is recorded by the subsidiary, in accordance with CPC 23 (R1) / IAS 19.

The subsidiary’s managers may opt for a Free Benefit Generator Plan – PGBL (defined contribution), operated by either Banco do Brasil or Bradesco.

II - CPFL Piratininga

The plan currently in force for the employees of the subsidiary CPFL Piratininga through Fundação CESP is a Supplementary Retirement and Benefit Plan (Plano de Suplementação de Aposentadorias e Pensão), in the form, to March 31, 1998, of a Defined Benefit Plan (Proportional Supplementary Defined Benefit – BSPS), and after that date, adoption of a Defined Benefit Plan and a variable contribution plan.

As a result of the Retirement Plan modification in September 1997, Eletropaulo Metropolitana El. São Paulo S.A. (Bandeirante’s predecessor) by the external actuaries of Fundação CESP, was established by the subsidiary CPFL Piratininga, which will be settled up to 2026. Such commitment is annually adjusted at 6% p.a. and monetarily restated at the IGP-DI rate (FGV). At the end of each year, after appraisal by external actuaries, the balance of the commitment is adjusted to reflect the equilibrium of the equity of the Fundação CESP pension plans. The amount of the commitment at September 30, 2014 is R$ 212,231 (R$ 217,011 at December 31, 2013). The premises and methodology used to calculate this commitment are in accordance with the standards of the National Complementary Welfare Superintendency - PREVIC and may not be consistent with those used for the actuarial liability in accordance with IAS 19 (2011). Therefore which differs from the carrying amount of the post-employment benefit obligation, that is recorded by the subsidiary, which is in accordance with CPC 33 (R1) / IAS 19.

Managers may opt for a Free Benefit Generator Plan – PGBL (defined contribution), operated by either Banco do Brasil or Bradesco.

III - RGE

A defined benefit type plan, with a benefit level equal to 100% of the adjusted average of the most recent salaries, less the presumed Social Security benefit, with a Segregated Net Asset managed by ELETROCEEE. Only those whose work contracts were transferred from CEEE to RGE are entitled to this benefit. A defined benefit private pension plan was set up in January 2006 with Bradesco Vida e Previdência for employees admitted from 1997.

IV - CPFL Santa Cruz

The benefits plan of the subsidiary CPFL Santa Cruz, managed by BB Previdência - Fundo de Pensão do Banco do Brasil, is a defined contribution plan.

78

V - CPFL Leste Paulista, CPFL Sul Paulista, CPFL Mococa e CPFL Jaguari

In December 2005, the companies joined the CMSPREV private pension plan, managed by IHPREV Pension Fund. The plan is structured as a defined contribution plan.

VI - CPFL Geração

The employees of the subsidiary CPFL Geração belong to the same pension plan as CPFL Paulista.

With the modification of the Retirement Plan, at that point maintained by CPFL Paulista, in October 1997, a commitment was recognized by the subsidiary CPFL Geração, calculated by the external actuaries of Fundação CESP to be settled to 2027. Such commitment is annually adjusted at 6% p.a. and monetarily restated at the IGP-DI rate (FGV). At the end of each year, after appraisal by external actuaries, the balance of the commitment is adjusted to reflect the equilibrium of the equity of the Fundação CESP pension plans. The amount of the commitment at September 30, 2014 is
R$ 17,046 (R$ 17,310 at December 31, 2013). The premises and methodology used to calculate this commitment are in accordance with the standards of the National Complementary Welfare Superintendency - PREVIC and may not be consistent with those used for the actuarial liability in accordance with IAS 19 (2011). Therefore which differs from the carrying amount recorded by the subsidiary, which is in accordance with CPC 03 (R1) / IAS 19.

Managers may opt for a Free Benefit Generator Plan – PGBL (defined contribution), operated by either Banco do Brasil or Bradesco.

VII - Changes in the defined benefit plans

The changes in the period in the net actuarial liability in accordance with CPC 33 (R1) are as follows:


	CPFL Paulista		CPFL Piratininga		CPFL Geração		RGE		Total
Net actuarial liabilities at of December 31, 2013	364,085		44,895		-		3,046		412,026
Expense (income) recognized in income statement	30,274		5,984		57		(192)		36,123
Sponsors' contributions transferred during the period	(64,772)		(18,947)		(1,339)		(5,180)		(90,238)
Actuarial loss	-		-		-		2,326		2,326
Effect of the limit on the assets to be accounted for	-		-		1,282		-		1,282
Net actuarial liabilities at of September 30, 2014	329,586		31,932		-		-		361,518
Other contributions	15,038		460		69		51		15,618
Total liabiliy	344,623		32,392		69		51		377,135

Current									81,493
Noncurrent									295,642

The income and expense recognized as operating cost in the actuary’s report are shown below:

79

	Nine months 2014
	CPFL Paulista		CPFL Piratininga		CPFL Geração		RGE		Consolidado
Service cost	870		2,952		114		(33)		3,903
Interest on actuarial obligations	303,694		78,069		6,939		20,811		409,513
Expected return on plan assets	(274,290)		(75,036)		(7,095)		(20,971)		(377,392)
Effect of the limit on the assets to be accounted for	-		-		99		-		99
Total expense/(income)	30,274		5,984		57		(192)		36,123

	Nine months 2013
	CPFL Paulista		CPFL Piratininga		CPFL Geração		RGE		Consolidado
Service cost	1,150		4,774		129		343		6,396
Interest on actuarial obligations	284,383		74,387		6,535		19,241		384,546
Expected return on plan assets	(249,133)		(66,017)		(6,273)		(18,223)		(339,646)
Effect of the limit on the assets to be accounted for	-		-		67		-		67
Total expense	36,400		13,144		458		1,361		51,363

The principal assumptions taken into consideration in the actuarial calculation were those considered in the December 31, 2013 and 2012 financial statements, as follows:

	December 31, 2013		December 31, 2012

Nominal discount rate for actuarial liabilities:	11.72% p.a.		8.78% p.a.
Nominal Return Rate on Assets:	11.72% p.a.		8.78% p.a.
Estimated Rate of nominal salary increase:	7.10% p.a.		6.69% p.a.
Estimated Rate of nominal benefits increase:	0.0% p .a.		0.0% p.a.
Estimated long-term inflation rate (basis for establishing nominal rates above)	5.00% p.a.		4.6% p.a.
General biometric mortality table:	AT-83		AT-83
Biometric table for the onset of disability:	Mercer Disability		Mercer Disability
Expected turnover rate:	0.3 / (Service time + 1)		0.3 / (Service time + 1)
Likelihood of reaching retirement age:	100% when a beneficiary of the Plan first becomes eligible		100% when a beneficiary of the Plan first becomes eligible
	100% when a beneficiary of the Plan first becomes eligible		100% when a beneficiary of the Plan first becomes eligible

( 18 ) REGULATORY CHARGES

	Consolidated
	September 30, 2014		December 31, 2013
Fee for the use of water resources	2,058		1,590
Global reverse fund - RGR	15,993		15,983
ANEEL inspection fee	1,462		1,869
Energy development account - CDE	24,570		12,937
Total	44,083		32,379

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( 19 ) TAXES AND SOCIAL CONTRIBUTIONS PAYABLE

	Consolidated
	September 30, 2014		December 31, 2013
Current
ICMS (State VAT)	244,842		117,895
PIS (Tax on Revenue)	14,115		10,156
COFINS (Tax on Revenue)	65,255		45,892
IRPJ (Corporate Income Tax)	48,145		62,771
CSLL (Social Contribution Tax)	16,079		29,659
PIS (REFIS)	4,100		4,100
COFINS (REFIS)	18,886		18,886
Other	21,567		28,704
Total	432,988		318,063

Noncurrent
PIS (REFIS)	2,732		5,807
COFINS (REFIS)	12,584		26,748
Total	15,315		32,555

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( 20 ) PROVISION FOR TAX, CIVIL AND LABOR RISKS AND ESCROW DEPOSITS

	Consolidated
	September 30, 2014				December 31, 2013
	Provision for tax, civil and labor risks		Escrow Deposits		Provision for tax, civil and labor risks		Escrow Deposits
Labor
Various	123,476		88,187		119,707		80,516

Civil
Various	143,620		137,766		149,735		174,961

Tax
FINSOCIAL	27,074		76,609		25,682		73,633
Income Tax	117,698		822,402		128,332		779,899
Other	14,629		31,606		20,555		33,785
	159,401		930,618		174,568		887,318

Other	13,985		205		23,985		384

Total	440,481		1,156,776		467,996		1,143,179

The changes in the provisions for tax, civil and labor risks are shown below:

	Consolidated
	December 31, 2013		Addition		Reversal		Payment		Monetary Restatement		September 30, 2014
Labor	119,707		56,628		(22,632)		(41,450)		11,222		123,476
Civil	149,735		80,500		(20,289)		(83,391)		17,065		143,620
Tax	174,568		5,879		(26,058)		(2,196)		7,208		159,401
Other	23,985		-		(10,000)		-		-		13,985
	467,996		143,007		(78,979)		(127,037)		35,494		440,481

In 2014, the subsidiary CPFL Renováveis wrote off the receivable of R$ 10,000 in relation to the compensation arising from assessment of the fair value of contingent liabilities identified in the business combination of the indirectly-controlled subsidiary Bons Ventos, as a result of the maturity established in the sale agreement for the subsidiary.

The provisions for tax, civil and labor risks were based on assessment of the risks of losing litigation to which the Company and its subsidiaries are parties, where a loss is probable in the opinion of the external legal advisers and the Management of the Company and its subsidiaries.

Details of the provisions for tax, civil and labor risks and escrow deposits are presented in the financial statements of December 31, 2013.

Possible losses - the Company and its subsidiaries are parties to other suits and risks in which Management, supported by its external legal advisers, believes that the chances of a successful outcome are possible, due to a solid defensive position in these cases. Consequently, no provision has been established for these suits. It is not yet possible to predict the outcome of the courts’ decisions or any other decisions in similar proceedings considered probable or remote. The claims relating to possible losses, at September 30, 2014, were as follows: (i) R$ 387,827 labor (R$ 244,277 at December 31, 2013) related mainly to workplace accidents, risk premium, overtime, etc; (ii) R$ 409,924 civil, related mainly to bodily injury, environmental impacts and tariff increases (R$ 413,850 at December 31, 2013); (iii) R$ 2,893,302 tax, related mainly to Income tax, ICMS, FINSOCIAL, PIS and COFINS (R$ 2,704,881 at December 31, 2013), one of the main issues is the deductibility of the expense recognized in 1997 in relation to the pension plan for employees of the subsidiary CPFL Paulista with Fundação CESP of R$ 1,000,098 (estimated), involving an escrow deposit of R$ 683,365; and (iv) R$ 28,842 regulatory at September 30, 2014 (R$ 27,628 at December 31, 2013).

82

The regulatory possible loss mainly relates to collection of the system service charge – ESS, in accordance with CNPE Resolution nº 03, of March 6, 2013, in which the subsidiaries and jointly-controlled subsidiaries of the Company obtained, through the Brazilian Association of Independent Producers of Electric Energy (Associação Brasileira dos Produtores Independentes de Energia Elétrica – APINE) and the Brazilian Clean Energy Generation Association (Associação Brasileira de Geração de Energia Limpa - ABRAGEL), an injunction suspending collection of the above-mentioned charge, leading the Company’s legal advisers to qualify the risk of loss as possible. The total risk amount is R$ 16,844, mainly related to the indirect subsidiaries CPFL Renováveis (R$ 11,631), Ceran (R$ 4,212) and Paulista Lajeado (R$ 911).

Based on the opinion of their external legal advisers, Management of the Company and its subsidiaries consider that the registered amounts represent recent forecast.

( 21 ) USE OF PUBLIC UTILITIES

		Consolidated
Companies		September 30, 2014		December 31, 2013	Number of remaining installments
CERAN		84,076		83,176	258

Current		3,911		3,738
Noncurrent		80,166		79,438

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( 22 ) OTHER ACCOUNTS PAYABLE

		Consolidated
		Consolidated
		Current				Noncurrent
		September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
Consumers and concessionaires		54,485		43,804		-		-
Energy efficiency program - PEE		241,936		218,419		23,515		11,537
Research & Development - P&D		109,648		164,180		19,763		4,842
National scientific and technological development fund - FNDCT		1,859		1,966		-		-
Energy research company - EPE		929		982		-		-
Fund of reversal		-		-		17,750		17,750
Advances		75,964		34,879		6,023		-
Provision for socio-environmental costs and decommissioning of assets		-		-		44,590		34,471
Payroll		7,449		17,639		-		-
Profit sharing		31,447		36,601		4,171		4,171
Collections agreement		88,336		73,240		-		-
Guarantees		-		-		27,211		29,133
Tariff discounts - CDE		27,615		9,246		-		-
Account payable - bussiness combination		10,623		10,477		-		-
Other		65,367		52,095		1,774		1,981
Total		715,659		663,529		144,796		103,886

( 23 ) SHAREHOLDERS’ EQUITY

The shareholders’ interest in the Company’s equity at September 30, 2014 and December 31, 2013 are shown below:

		Number of shares
		September 30, 2014				December 31, 2013
Shareholders		Common shares		Interest %		Common shares		Interest %
BB Carteira Livre I FIA		288,569,602		29.99		288,569,602		29.99
Caixa de Previdência dos Funcionários do Banco do Brasil - Previ		477,700		0.05		487,700		0.05
Camargo Correa S.A.		837,860		0.09		837,860		0.09
ESC Energia S.A.		234,092,930		24.33		234,092,930		24.33
Bonaire Participações S.A.		1,200,000		0.12		6,308,790		0.66
Energia São Paulo FIA		141,929,430		14.75		136,820,640		14.22
Fundação Petrobras de Seguridade Social - Petros		1,759,900		0.18		1,759,900		0.18
Fundação Sistel de Seguridade Social		19,500		0.00		19,500		0.00
BNDES Participações S.A.		64,842,768		6.74		64,842,768		6.74
Antares Holdings Ltda.		16,039,720		1.67		16,039,720		1.67
Brumado Holdings Ltda.		34,502,100		3.59		34,502,100		3.59
Members of the Board of Directors		800		0.00		-		-
Members of Executive Board		102,300		0.01		102,350		0.01
Other shareholders		177,899,650		18.49		177,890,400		18.49
Total		962,274,260		100.00		962,274,260		100.00

Details of the items included in shareholders’ equity are described in the financial statements of December 31, 2013.

23.1 - Change in capital - controlling shareholder

On June 28, 2014, the shareholder Bonaire Participações S.A. issued a Notice to Shareholders to communicate the approval of a reduction of R$ 206,541 in its capital, with no cancellation of shares. The shareholders were reimbursed as follows: (i) R$ 171,339 in cash, (ii) R$ 35,202 by delivery of 5,108,790 (five million, one hundred and eight thousand seven hundred and ninety) Company´s common shares not tied to the Company's shareholders' agreement, which were held by Bonaire.

The period for creditors to oppose this transaction started on June 30, 2014 and ended on August 29, 2014.

84

23.2 - Dividends:

As decided in the AGM/EGM held on April 29, 2014, the Company registered a dividend payable of R$ 567,802 in relation to the second half-year of 2013, of which R$ 565,631 had been paid by September 30, 2014. Additionally, pursuant to the bylaws and based on profit and loss for the first semester of 2014, on August 27, 2014, Company Management approved the declaration of an interim dividend of R$ 422,195, attributing a value of R$ 0.438746730 to each share, payable on October 1, 2014.

( 24 ) EARNINGS PER SHARE

Earnings per share – basic and diluted

Basic and diluted earnings (loss) per share for the quarters and nine months ended at September 30, 2014 and 2013 are calculated by dividing the net income attributable to controlling shareholders by the average weighted number of common shares outstanding in the periods presented. Specifically in the case of diluted earnings per share, the dilutive effects of potential convertible notes are taken into account, as shown below:

	3rd quarter 2014		Nine months 2014		3rd quarter 2013		Nine months 2014
Numerator
Net income attributable to controlling shareholders	96,041		437,171		351,813		636,489
Denominator
Weighted average shares outstanding during the year	962,274,260		962,274,260		962,274,260		962,274,260
Net income per share - basic	0.10		0.45		0.37		0.66

Numerator
Net income attributable to controlling shareholders	96,041		437,171		351,813		636,489
Dilutive effect of convertible debentures of subsidiary CPFL Renováveis (*)	(9,190)		(10,142)		(7,623)		(8,927)
Net income attributable to the Controlling Shareholders	86,851		427,030		344,190		627,561

Denominator
Weighted average shares outstanding during the year	962,274,260		962,274,260		962,274,260		962,274,260
Net income per share - diluted	0.09		0.44		0.36		0.65

(*) Proportional to the Company’s percentage interest in each period in the subsidiary

The dilutive effect of the numerator in calculation of diluted earnings (losing) per share takes into account the dilutive effects of the debentures convertible into shares issued by subsidiaries of the indirectly controlled entity CPFL Renováveis. Calculation of the effects was based on the assumption that these debentures would be converted into common shares of the subsidiary at the beginning of each year.

85

( 25 ) OPERATING REVENUE

		Consolidated
		2014				2013
Revenue from Eletric Energy Operations		3rd quarter		Nine months		3rd quarter		Nine months
Consumer class
Residential		1,626,033		4,761,547		1,349,604		4,305,308
Industrial		995,438		2,818,314		912,176		2,696,738
Commercial		834,907		2,497,042		681,932		2,202,560
Rural		134,368		359,405		104,459		308,975
Public administration		117,728		341,688		99,190		300,986
Public lighting		83,343		229,456		68,830		215,838
Public services		147,162		416,478		119,455		362,129
(-) Adjustment of excess and surplus revenue of reactive		(19,425)		(60,716)		(17,548)		(40,581)
Billed		3,919,553		11,363,213		3,318,098		10,351,953
Unbilled (net)		21,949		46,217		93,252		53,704
Emergency charges - ECE/EAEE		1		1		1		(256)
Reclassification to network usage charge - TUSD - captive consumers		(1,355,686)		(3,991,469)		(1,176,830)		(4,067,933)
Electricity sales to final consumers		2,585,817		7,417,962		2,234,521		6,337,468

Furnas Centrais Elétricas S.A.		119,506		358,323		110,565		327,951
Other concessionaires and licensees		485,880		1,194,153		424,995		1,367,455
Current electric energy		303,737		718,086		41,843		175,189
Electricity sales to wholesaler´s		909,123		2,270,563		577,403		1,870,595

Revenue due to network usage charge - TUSD - captive consumers		1,355,686		3,991,469		1,176,830		4,067,933
Revenue due to network usage charge - TUSD - free consumers		246,682		728,299		227,541		737,485
(-) Adjustment of revenue surplus and excess responsive		(3,848)		(13,351)		(4,048)		(10,348)
Revenue from construction of concession infrastructure		230,253		636,053		235,266		753,092
Resources provided by the Energy Development Account - CDE		194,061		569,358		173,260		451,404
Other revenue and income		93,693		396,854		96,926		253,353
Other operating revenues		2,116,527		6,308,683		1,905,775		6,252,919
Total gross revenues		5,611,467		15,997,208		4,717,699		14,460,982

Deductions from operating revenues
ICMS		(772,607)		(2,253,542)		(643,516)		(2,090,531)
PIS		(83,299)		(234,007)		(67,184)		(203,902)
COFINS		(383,701)		(1,078,243)		(309,537)		(939,344)
ISS		(1,927)		(5,229)		(1,341)		(3,762)
Global reversal reserve - RGR		(593)		(1,769)		(562)		(295)
Fuel consumption account - CCC		-		-		-		(34,432)
Energy development account - CDE		(73,711)		(197,866)		(38,812)		(116,437)
Research and development and energy efficiency programs		(29,267)		(88,733)		(28,601)		(83,910)
PROINFA		(24,387)		(74,839)		(26,022)		(72,709)
Emergency charges - ECE/EAEE		(1)		(1)		(1)		255
IPI		-		(10)		(9)		(32)
		(1,369,492)		(3,934,240)		(1,115,584)		(3,545,098)
Net revenue		4,241,976		12,062,968		3,602,115		10,915,884

	Consolidated
	2014				2013
*Revenue from eletric energy operations - in GWh ()**	3rd quarter		Nine months		3rd quarter		Nine months
Consumer class
Residential	3,964		12,325		3,798		11,477
Industrial	3,551		10,524		3,722		10,999
Commercial	2,162		6,973		2,052		6,541
Rural	598		1,718		552		1,525
Public administration	302		949		295		911
Public lighting	412		1,213		403		1,184
Public services	462		1,402		453		1,363
Billed	11,451		35,103		11,275		34,001
Own comsuption	8		25		8		26
Electricity sales to final consumers	11,459		35,128		11,283		34,027

Furnas Centrais Elétricas S.A.	763		2,263		763		2,263
Other concessionaires and licensees	2,519		6,840		2,479		8,058
Current electric energy	796		1,718		353		826
Electricity sales to wholesaler´s	4,078		10,821		3,596		11,148
(*) Information not reviewed by the independent auditors

86

	Consolidated
*Number of consumers ()**	September 30, 2014		September 30, 2013
Consumer class
Residential	6,691,946		6,467,170
Industrial	57,602		58,659
Commercial	486,163		491,627
Rural	246,361		245,614
Public Administration	50,408		49,160
Public Lighting	9,874		9,487
Public Services	8,172		7,908
Total	7,550,526		7,329,625
(*) Information not reviewed by the independent auditors

In accordance with ANEEL’s Order 4,097 of December 30, 2010, concerning the basic procedures for preparation of the financial statements, the energy distribution subsidiaries reclassified part of the amount related to revenue from under the heading “Electricity sales to final consumers”, Commercialization activities, to “Other operating revenues”, Distribution activities, under the heading “Revenue from Network Usage Charge - TUSD captive consumers”.

25.1 - Adjustment of surplus and excess reactive power

The tariff regulation procedure (Proret), approved by ANEEL Resolution n° 463 of November 22, 2011, determined that income received as a result of excess demand and surplus reactive power, from the contractual tariff review date for the 3rd periodic tariff review cycle, should be accounted for as special obligations and would be amortized from the next tariff review.

In accordance with ANEEL Order nº 4991, of December 29, 2011, relating to the basic procedures for preparation of the financial statements, the electric energy subsidiaries adjusted income from adjustment of excess and surplus reactive power, reducing the accounts of “Electric energy supply” and “Tariff for the Use of the Distribution System – TUSD free consumers” as a reduction of intangible assets (“Special Obligations”).

On February 7, 2012, the Brazilian Association of Electric Energy Distributors (Associação Brasileira de Distribuidores de Energia Elétrica - ABRADEE) succeeded in suspending the effects of Resolution 463. Consequently, the request for advance final relief was granted and the order to account for income from excess demand and surplus reactive power as special obligations was suspended. The suspensive effect applied for by ANEEL in its interlocutory appeal was granted in June 2012 and the advance relief originally granted in favor of ABRADEE was suspended. The subsidiaries are awaiting the court’s decision on the final treatment of this income. At September 30, 2014, a provision for these amounts is registered under Special Obligations, in accordance with CPC 25 and IAS 37, and shown net in the intangible asset of concession.

87

25.2 Periodic Tariff Review (“RTP”) and Annual Tariff Adjustment (“RTA”)

The details of the tariff adjustments of the distributors are shown below:

				2014				2013
Company		Month		Annual Tariff Review - RTA		Effect perceived by consumers (a)		Annual Tariff Review - RTA		Effect perceived by consumers (a)
CPFL Paulista		April		17.18%		17.23%		5.48%		6.18%
CPFL Piratininga		October (b)		19.73%		22.43%		7.42%		6.91%
RGE		June		21.82%		22.77%		-10.32%		-10.64%
CPFL Santa Cruz		February		14.86%		26.00%		9.32%		-0.94%
CPFL Leste Paulista		February		-7.67%		-5.32%		6.48%		3.36%
CPFL Jaguari		February		-3.73%		3.70%		2.71%		2.68%
CPFL Sul Paulista		February		-5.51%		43.00%		2.27%		2.21%
CPFL Mococa		February		-2.07%		-9.53%		7.00%		5.10%

(a) Represents the average effect perceived by consumers as a result of elimination from the tariff base of financial components added in the previous tariff adjustment (not reviewed by the independent auditors).

(b) As mentioned in Note 35.1, the annual tariff adjustment for the subsidiary CPFL Piratininga occurred in October 2014.

25.3 Extraordinary Tariff Review (“RTE”)

In order to encompass the effects of Provisional Measure 579/2012, (converted into Law 12783 in January 2013) – Extension of the concessions and other topics of interest, ANEEL ratified the result of the 2013 Extraordinary Tariff Review (“RTE”), applied for consumption from January 24, 2013. The extraordinary review encompassed the electric energy quotas of the generation plants that renewed their concession contracts. The total energy produced by these plants was divided into quotas for the distributors. The effects of the elimination of the Global Reversal Reserve - RGR and Fuel Consumption Account - CCC, the reduction in the Energy Development Account - CDE and the decrease in the transmission costs were also computed. This RTE has no impact on the net profit or loss. ANEEL ratified the result of the 2013 extraordinary review for the distribution subsidiaries with the following resolutions. The average effects for the distributors’ consumers were:

Distributors		Resolution n°		*Consumer's perception ()**
CPFL Paulista		1,433		-20.42%
CPFL Piratininga		1,424		-26.70%
RGE		1,411		-22.81%
CPFL Santa Cruz		1,452		-23.72%
CPFL Jaguari		1,450		-25.33%
CPFL Mococa		1,451		-24.38%
CPFL Leste Paulista		1,449		-26.42%
CPFL Sul Paulista		1,453		-23.83%

(*)Information not reviewed by the independent auditors

25.4 – Resources provided by the Energy Development Account - CDE

88

Provisional Measure 579, of September 11, 2012 (converted into Law 12783 of January 11, 2013) determined that the resources related to the low income subsidy, as well as other tariff discounts should be fully subsidized by resources from the CDE. Income of R$ 569,382 was recorded in the nine months of 2014 (R$ 451,404 in the nine months of 2013), R$ 57,174 for the low income subsidy (R$ 52,005 in the nine months of 2013) and R$ 512,208 for other tariff discounts
(R$ 399,399 in the nine months of 2013), set against accounts receivable – Resources provided by the CDE/CCEE (Note 10) and payable accounts - Resources provided by the CDE (Note 22).

( 26 ) COST OF ELECTRIC ENERGY

	2014				2013
Electricity purchased for resale	3rd quarter		Nine months		3rd quarter	Nine months
Itaipu Binacional	345,929		1,018,014		347,926	959,185
Current Electric Energy	143,957		2,359,607		180,113	521,590
PROINFA	66,849		198,699		56,954	176,764
Energy purchased of bilateral contracts and through action in the regulated market	2,477,523		6,561,024		1,592,942	5,125,278
Resources provided by the energy development account - CDE/CCEE	(205,400)		(2,180,110)		(225,763)	(720,870)
Credit of PIS and COFINS	(250,895)		(718,227)		(178,012)	(553,197)
Subtotal	2,577,963		7,239,007		1,774,160	5,508,749

Electricity Network Usage Charge
Basic Network Charges	211,696		506,516		146,435	411,282
Transmission from Itaipu	10,491		27,798		8,900	26,027
Connection Charges	11,205		33,699		10,935	33,467
Charges of Use of the Distribution System	8,283		24,197		6,879	22,115
System Service Charges - ESS	(152,096)		(151,320)		153,670	474,767
Reserve Energy charges	-		10,898		(2,597)	33,161
Resources provided by the energy development account - CDE	-		(12)		(132,422)	(460,059)
Credit of PIS and COFINS	(6,687)		(37,278)		(17,360)	(47,145)
Subtotal	82,893		414,499		174,440	493,615

Total	2,660,856		7,653,506		1,948,600	6,002,363

	Consolidated
	2014				2013
*Electricity purchased for resale - in GWh ()**	3rd quarter		Nine months		3rd quarter		Nine months
Itaipu Binacional	2,630		7,783		2,740		8,039
Current Electric Energy	446		4,115		713		2,202
PROINFA	267		749		261		734
Energy purchased of bilateral contracts and through action in the regulated market	11,108		31,293		10,386		32,261
Total	14,451		43,940		14,100		43,236
(*) Information not reviewed by the independent auditors

26.1 Resources provided by the CDE/CCEE – Law 12783/2013, Decree 7945/2013, 8203/2014 and 8221/2014

As mentioned in Note 27.1 to the December 31, 2013 financial statements, the Law 12783/2013 and Decree 7945/2013, amended by Decree 8203/2014 and further Decree 8221/2014, which made certain changes in relation to contracting of energy and the objectives of the Energy Development Account - CDE sector charge and also introduced (i) the passthrough of CDE funds to the distribution concessionaires in relation to hydrological risk, involuntary exposure, energy security - ESS and CVA ESS and Energy costs for the period of 2013 and January 2014, and (ii) passthrough to the distribution concessionaires of costs related to involuntary exposure and output of the thermoelectric plants through the Electric Energy Commercialization Chamber - CCEE from February 2014. Additionally, Order 3998 of September 30, 2014 included the hydrological risk of the renewed energy quotas as involuntary exposure, from July 2014.

In the nine months of 2014 a total amount of R$ 2,180,122 was recognized as a result of these regulations (R$ 1,180,929 in the nine months of 2013).

The effects of these items were registered as a reduction of the cost of electric energy under resources provided by the CDE/CCEE, set against other credits under “Receivables from resources provided by the Energy Development Account - CDE/CCEE” (Note 10), in accordance with CPC 07 / IAS 20 Government Grants and Assistance.

89

The following table summarizes the resources provided by the CDE/CCEE per distributor controlled by the Company, recognized in the nine months of 2014 and 2013.

	Nine months 2014
	Electricity purchased for resale								Electricity network usage charge				Total
	Involuntary exposure		Quotas and hydrological risk		Electricity purchased - regulated market		*Electricity purchased - tariff review ()**		System service charges - ESS		*System service charges - ESS - tariff review ()**		Total
CPFL Paulista	726,024		(6,241)		236,075		-		6		-		955,864
CPFL Piratininga	390,313		(357)		318,252		-		2		-		708,210
CPFL Santa Cruz	61,393		(17)		19,751		-		1		-		81,128
CPFL Leste Paulista	6,576		(8)		-		-		-		-		6,568
CPFL Sul Palista	6		(7)		200		-		-		-		199
CPFL Jaguari	142		(48)		320		-		-		-		414
CPFL Mococa	-		(5)		-		-		-		-		(5)
RGE	389,209		(98)		38,630		-		3		-		427,744
Total	1,593,573		(6,781)		593,318		-		12		-		2,180,122


	Nine months 2013
	Electricity purchased for resale								Electricity network usage charge				Total
	Involuntary exposure		Quotas and hydrological risk		Electricity purchased - regulated market		*Electricity purchased - tariff review ()**		System service charges - ESS		*System service charges - ESS - tariff review ()**		Total
CPFL Paulista	122,407		18,111		-		327,252		215,365		44,207		727,343
CPFL Piratininga	53,721		1,175		-		166,938		88,160		(122)		309,872
CPFL Santa Cruz	8,682		(9)		-		-		15,116		-		23,790
CPFL Leste Paulista	-		0		-		-		5,891		-		5,891
CPFL Sul Palista	-		(2)		-		-		3,617		-		3,615
CPFL Jaguari	97		167		-		-		4,542		-		4,805
CPFL Mococa	-		(2)		-		-		2,590		-		2,588
RGE	20,172		9		-		2,153		72,138		8,553		103,024
Total	205,078		19,449		-		496,343		407,420		52,638		1,180,929

(*) In the tariff review of April 2013 for the subsidiary CPFL Paulista, through Order 1144/2013, ANEEL granted full coverage of the positive balances of CVA calculated on energy purchased and the ESS charge for 2012, as well as positive amounts of the CVA for energy purchased in the availability auction, in the accrual period of January 2013.

In addition to the CDE contributions, the distribution subsidiaries are receiving, via the CCEE, the financial excess of the Energy Reserve Account - CONER, regulated by REN 613/2014. The amount of R$ 206,975 is registered under "System service charge – ESS" in 2014.

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( 27 ) OPERATING COSTS AND EXPENSES

	Parent company
	Operating Expenses
	General
	2014				2013
	3rd quarter		Nine months		3rd quarter		Nine months
Personnel	4,313		12,340		4,408		10,934
Materials	6		10		14		19
Outside Services	650		3,025		658		3,049
Depreciation and Amortization	43		130		18		53
Other:	795		1,618		817		2,721
Leases and Rentals	36		104		32		95
Publicity and Advertising	23		151		343		1,013
Legal, Judicial and Indemnities	390		556		349		1,018
Donations, Contributions and Subsidies	292		622		126		500
Other	54		186		(33)		94
Total	5,806		17,123		5,915		16,775

91

	Consolidated
	3rd quarter
					Services rendered to third parties				Operating expenses												Total
	Operating costs				Services rendered to third parties				Sales				General				Other				Total
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Personnel	129,918		110,089		1		-		28,083		28,314		55,358		47,235		-		-		213,360		185,638
Employee pension plans	12,045		10,302		-		-		-		-		-		-		-		-		12,045		10,302
Materials	28,160		21,451		72		284		1,267		1,145		1,819		1,837		-		-		31,318		24,718
Outside services	43,013		45,560		666		510		25,798		24,683		57,544		43,087		-		-		127,021		113,840
Depreciation and amortization	186,595		165,747		-		-		7,927		8,214		18,886		15,767		-		-		213,407		189,727
Costs related to infrastructure construction	-		-		230,253		235,266		-		-		-		-		-		-		230,253		235,266
Other	13,434		11,635		(3)		(3)		30,565		28,947		38,419		43,754		85,984		50,317		168,399		134,650
Collection charges	-		-		-		-		13,800		12,805		-		-		-		-		13,800		12,805
Allowance for doubtful accounts	-		-		-		-		14,773		14,029		-		-		-		-		14,773		14,029
Leases and rentals	7,233		6,297		-		-		-		4		2,566		3,610		-		-		9,800		9,910
Publicity and advertising	185		131		-		-		8		35		4,199		4,179		-		-		4,391		4,345
Legal, judicial and indemnities	-		-		-		-		-		-		28,869		34,937		-		-		28,869		34,937
Donations, contributions and subsidies	-		-		-		-		1,645		1,993		945		585		-		-		2,590		2,577
Inspection fee	-		-		-		-		-		-		-		-		4,815		7,059		4,815		7,059
Loss/(Gain) on disposal and decommissioning and other on noncurrent assets	-		-		-		-		-		-		-		-		7,629		(30,268)		7,629		(30,268)
Intangible of concession amortization	-		-		-		-		-		-		-		-		73,541		73,525		73,541		73,525
Financial compensation for water resources utilization	3,396		3,292		-		-		-		-		-		-		-		-		3,396		3,292
Other	2,619		1,916		(3)		(3)		339		82		1,840		443		-		-		4,796		2,438
Total	413,163		364,785		230,989		236,057		93,640		91,304		172,027		151,680		85,984		50,317		995,803		894,143

	Consolidated
	Nine months
					Services rendered to third parties				Operating expenses												Total
	Operating costs				Services rendered to third parties				Sales				General				Other				Total
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Personnel	386,720		320,925		2		-		81,546		81,324		157,269		146,342		-		-		625,537		548,591
Employee pension plans	36,123		51,363		-		-		-		-		-		-		-		-		36,123		51,363
Materials	78,853		69,978		523		1,079		3,333		3,116		5,412		5,105		-		-		88,121		79,277
Outside services	121,762		131,560		1,739		1,504		81,399		78,252		167,691		147,217		-		-		372,591		358,532
Depreciation and amortization	552,410		497,714		-		-		24,154		25,206		55,143		43,225		-		-		631,706		566,145
Costs related to infrastructure construction	-		-		636,053		753,092		-		-		-		-		-		-		636,053		753,092
Other	40,592		31,502		(7)		(7)		107,443		111,135		135,391		411,299		267,037		232,122		550,455		786,052
Collection charges	-		-		-		-		40,370		39,184		-		-		-		-		40,370		39,184
Allowance for doubtful accounts	-		-		-		-		61,005		64,603		-		-		-		-		61,005		64,603
Leases and rentals	21,929		19,435		-		-		-		10		9,697		9,022		-		-		31,625		28,467
Publicity and advertising	560		247		-		-		90		189		11,230		9,806		-		-		11,880		10,242
Legal, judicial and indemnities	-		-		-		-		-		-		108,304		366,346		-		-		108,304		366,346
Donations, contributions and subsidies	-		-		-		-		4,890		6,040		2,985		2,745		-		-		7,875		8,785
Inspection fee	-		-		-		-		-		-		-		-		16,041		21,182		16,041		21,182
Loss/(Gain) on disposal and decommissioning and other on noncurrent assets	-		-		-		-		-		-		-		-		31,170		(12,008)		31,170		(12,008)
Intangible of concession amortization	-		-		-		-		-		-		-		-		219,025		222,946		219,025		222,946
Financial compensation for water resources utilization	9,916		7,791		-		-		-		-		-		-		-		-		9,916		7,791
Other	8,186		4,029		(7)		(7)		1,089		1,111		3,175		23,379		800		2		13,243		28,514
Total	1,216,460		1,103,040		638,310		755,668		297,875		299,034		520,905		753,189		267,037		232,122		2,940,586		3,143,053

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( 28 ) FINANCIAL INCOME AND EXPENSES

	Parent company								Consolidated
	2014				2013				2014				2013
	3rd quarter		Nine months		3rd quarter		Nine months		3rd quarter		Nine months		3rd quarter		Nine months
Financial Income
Income from financial investments	34,189		86,666		33,900		39,595		114,279		322,483		111,939		206,254
Arrears of interest and fines	-		-		-		2		36,035		108,056		33,722		110,276
Restatement of tax credits	-		1,456		227		1,133		6,057		15,903		2,405		6,813
Restatement of escrow deposits	7		7		125		448		16,039		56,991		8,870		26,992
Monetary and exchange adjustment	-		-		-		-		1,050		45,138		5,204		22,559
Adjustment to expected cash flow (note 9)	-		-		-		-		(20,824)		48,777		-		-
Discount on purchase of ICMS credit	-		-		-		-		1,212		3,359		5,788		14,752
PIS and COFINS on insterest on shareholders' equity	-		-		-		(6,702)		-		-		-		(6,702)
Other	1,278		2,756		653		3,254		16,839		47,466		14,630		47,739
Total	35,474		90,887		34,906		37,729		170,686		648,172		182,558		428,682

Financial Expense
Debt charges	(37,371)		(105,013)		(35,231)		(48,138)		(396,355)		(1,135,388)		(371,300)		(923,209)
Monetary and exchange variations	(32)		(28)		(126)		(584)		(96,307)		(226,275)		(27,916)		(101,189)
Adjustment to expected cash flow (note 9)	-		-		-		-		-		-		(16,544)		(113,115)
Interest and fines on taxes	-		-		-		-		-		-		485		(60,007)
(-) Capitalized borrowing costs	-		-		-		-		2,009		16,286		17,028		46,042
Public utilities	-		-		-		-		(553)		(7,495)		(2,785)		(7,686)
Other	(1)		(245)		7		(33)		(54,461)		(117,229)		(23,187)		(69,863)
Total	(37,403)		(105,286)		(35,350)		(48,755)		(545,666)		(1,470,101)		(424,219)		(1,229,028)

Net financial income (expense)	(1,929)		(14,400)		(444)		(11,026)		(374,980)		(821,929)		(241,661)		(800,345)

Interest was capitalized at an average rate of 8.42% p.a. in the nine months of 2014 (7.82% in the nine months of 2013) on qualifying assets, in accordance with CPC 20 (R1) and IAS 23.

In the nine months of 2014, the line monetary and exchange restatement includes the effects of losses of R$ 1,784 (gain of R$ 244,382 on the third quarter of 2014) and gain of R$ 181,588 in the nine months of 2013 (R$ 58,191 on the third quarter of 2013) on derivative instruments (Note 32).

( 29 ) SEGMENT INFORMATION

The Company’s operating segments are based on the internal financial information and management structure and are separated by type of business: electric energy distribution, conventional generation, renewable generation, commercialization and services rendered.

Profit or loss, assets and liabilities per segment include items directly attributable to the segment, as well as those that can be allocated on a reasonable basis, if applicable. Average prices used between segments are based on similar market transactions. Note 1 shows the subsidiaries in accordance with their areas of operation and provides further information about each subsidiary and its business area and segments.

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The segregated information by operating segment is shown below, in accordance with the criteria established by Company Management:

	Distribution		Generation (conventional sources)		Generation (Renewable sources)		Commercialization		Services		*Other ()**		Elimination		Total
Nine months 2014
Net revenue	9,479,425		572,661		669,601		1,255,503		85,745		33		-		12,062,968
(-) Intersegment revenues	13,491		294,135		302,033		279,849		136,360		-		(1,025,868)		-
Income from electric energy service	734,395		402,205		142,152		182,060		25,132		(17,069)		-		1,468,876
Financial income	388,009		64,207		70,831		22,074		12,166		90,885		-		648,172
Financial expense	(671,752)		(269,272)		(395,863)		(21,350)		(6,576)		(105,288)		-		(1,470,101)
Income before taxes	450,653		295,153		(182,879)		182,784		30,722		(31,472)		-		744,960
Income tax and social contribution	(208,292)		(5,115)		(47,951)		(63,635)		(10,870)		7,731		-		(328,133)
Net Income	242,361		290,038		(230,831)		119,149		19,851		(23,741)		-		416,827
Total assets (**)	15,528,353		4,606,865		9,298,520		583,576		383,086		1,500,801		-		31,901,202
Capital expenditures and other intangible assets	502,356		5,230		174,327		2,520		69,339		18				753,790
Depreciation and amortization	(431,481)		(97,486)		(312,037)		(3,340)		(6,176)		(212)		-		(850,732)

Nine months 2013
Net revenue	8,647,486		446,325		523,020		1,246,881		52,091		81		-		10,915,884
(-) Intersegment revenues	11,674		243,387		200,133		187,866		80,407		-		(723,467)		-
Income from electric energy service	1,225,022		410,440		125,453		24,493		2,082		(17,021)		-		1,770,468
Financial income	301,952		23,055		34,132		21,476		10,389		37,678		-		428,682
Financial expense	(692,832)		(157,230)		(311,215)		(15,929)		(3,059)		(48,762)		-		(1,229,028)
Income before taxes	834,141		351,000		(151,630)		30,040		9,412		(28,105)		-		1,044,858
Income tax and social contribution	(319,656)		(31,453)		(37,229)		(11,484)		(3,945)		(14,912)		-		(418,679)
Net Income	514,484		319,547		(188,859)		18,556		5,467		(43,016)		-		626,180
Total assets (**)	15,263,417		4,515,880		9,470,564		342,516		243,612		1,206,806		-		31,042,796
Capital expenditures and other intangible assets	626,288		6,267		707,237		2,811		17,645		337		-		1,360,586
Depreciation and amortization	(423,912)		(97,491)		(262,080)		(2,845)		(2,710)		(53)		-		(789,091)

(*) Other: refers mainly to assets, liabilities and transaction recorded in CPFL Energia that are not related to identified segments.

(**) Intangible assets, net of amortization, recorded in CPFL Energia, was allocated to the respective segments.

(***) The amounts for the total assets refer to December 31, 2013.

( 30 ) RELATED PARTY TRANSACTIONS

The Company’s controlling shareholders are as follows:

· ESC Energia S.A.

Controlled by the Camargo Corrêa group, which operates in a number of segments, including construction, cement, footwear, textiles, aluminum and highway concessions.

· Energia São Paulo Fundo de Investimento em Ações

Controlled by the following pension funds: (a) Fundação CESP, (b) Fundação SISTEL de Seguridade Social, (c) Fundação Petrobras de Seguridade Social - PETROS, and (d) Fundação SABESP de Seguridade Social - SABESPREV.

· Bonaire Participações S.A.

Controlled by Energia São Paulo Fundo de Investimento em Ações.

· Fundo BB Carteira Livre I - Fundo de Investimento em Ações

Fund controlled by PREVI - Caixa de Previdência dos Funcionários do Banco do Brasil.

The direct and indirect participations in operating subsidiaries are described in Note 1.

Controlling shareholders, subsidiaries and associated companies, jointly-controlled entities under common control and that in some way exercise significant influence over the Company are considered to be related parties.

The main transactions are listed below:

a) Bank deposits and short-term investments – refer mainly to bank deposits and short-term financial investments with the Banco do Brasil, as mentioned in note 5. The Company and its subsidiaries also have Exclusive Investment Funds, managed by BB DTVM, among others.

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b) Loans and Financing and Debentures – relate to funds raised from the Banco do Brasil in accordance with notes 15 and 16. The Company also guarantees certain loans raised by its subsidiaries, as mentioned in notes 15 and 16.

c) Other Financial Transactions – the amounts in relation to Banco do Brasil are bank costs and collection expenses.

d) Energy purchased, energy sales and charges – Refers to energy purchased or sold by distribution, comercialization and generation subsidiaries through short or long-term agreements and tariffs for the use of the distribution system (TUSD). Such transactions, when performed at the free Market, are made under conditions considered by the Company as being similar to market conditions at the time of the negotiation, in accordance with internal policies established in advance by Company Management. When performed at the regulated market, are in accordance with the rules established by the sector.

e) Intangible assets, Property, plant and equipment, Materials and Service – refer to the acquisition of equipment, cables and other materials for use in distribution and generation, and contracting of services such as construction and information technology consultancy.

f) Advances – advances for investments in research and development.

g) Intercompany loan - refers to the agreement with: (i) the subsidiary EPASA, with contractual terms of 113.5% of the CDI, with maturity on January, 2017; (ii) contracts with a non-controlling shareholder of the subsidiary CPFL Renováveis, maturing by November 2014, at interest of 8% p.a. + IGP-M.

Certain subsidiaries have supplementary retirement plans operated by Fundação CESP, offered to the employees of the subsidiaries. These plans hold investments in Company’s shares (Note 17).

To ensure that commercial transactions with related parties are conducted under normal market conditions, the Company set up a “Related Parties Committee”, comprising representatives of the controlling shareholders, responsible for analyzing the main transactions with related parties.

The subsidiaries CPFL Paulista and CPFL Geração renegotiated with the joint ventures BAESA, ENERCAN and Foz do Chapecó the original maturities of June to September 2014 for the energy purchase invoices to January 2015.

The total remuneration of key management personnel in the nine months of 2014, in accordance with CVM Decision 560/2008, was R$ 24,003 (R$ 25,337 in the nine months of 2013). This amount comprises R$ 23,294 in respect of short-term benefits (R$ 28,350 in the nine months of 2013) and R$ 709 for post-employment benefits (R$ 662 in the nine months of 2013) and recorded by the accrual method. A provision of R$ 3,675 for other long-term benefits was reversed in 2013.

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Transactions between related parties involving controlling shareholders, entities under common control or with significant influence and jointly-controlled subsidiaries:

	Consolidated
	ASSET				LIABILITY				INCOME				EXPENSE
	September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013		Nine months 2014		Nine months 2013		Nine months 2014		Nine months 2013
Bank deposits and short-term investments
Banco do Brasil S.A.	126,330		115,968		-		-		9,075		4,281		1		-

Loans and financing, debentures and derivatives contracts
Banco do Brasil S.A.	-		-		1,255,246		1,638,769		-		-		133,943		98,579

Other financial transactions
Banco do Brasil S.A.	-		-		-		-		-		1,224		4,688		4,521
JBS S/A	-		-		-		-		-		78		-		-
BAESA – Energética Barra Grande S.A.	-		-		-		-		-		-		2,528		212
Foz do Chapecó Energia S.A.	-		-		-		-		-		-		5,151		551
ENERCAN - Campos Novos Energia S.A.	-		-		-		-		-		-		4,078		432

Advances
BAESA – Energética Barra Grande S.A.	-		-		835		862		-		-		-		-
Foz do Chapecó Energia S.A.	-		-		1,183		1,222		-		-		-		-
ENERCAN - Campos Novos Energia S.A.	-		-		1,374		1,496		-		-		-		-
EPASA - Centrais Elétricas da Paraiba	-		-		532		549		-		-		-		-

Energy purchase and sale and charges
Afluente Transmissão de Energia Elétrica S.A.	-		-		40		24		-		-		935		845
Arizona 1 Energia Renovável S.A	-		-		-		-		-		-		617		-
Baguari I Geração de Energia Elétrica S.A.	-		-		6		5		-		-		187		173
Braskem S.A	-		-		-		-		694		18,654		-		-
Caetite 2 Energia Renovável S.A.	-		-		-		-		-		-		565		454
Caetité 3 Energia Renovável S.A.	-		-		-		5		-		-		571		418
Calango 1 Energia Renovável S.A.	-		-		-		-		-		-		682		-
Calango 2 Energia Renovável S.A.	-		-		-		-		-		-		584		-
Calango 3 Energia Renovável S.A.	-		-		-		-		-		-		682		-
Calango 4 Energia Renovável S.A.	-		-		-		-		-		-		633		-
Calango 5 Energia Renovável S.A.	-		-		-		-		-		-		673		-
Companhia de Eletricidade do Estado da Bahia – COELBA	632		728		-		-		9,454		3,783		-		-
Companhia Energética de Pernambuco - CELPE	688		545		-		-		5,649		3,113		-		-
Companhia Energética do Rio Grande do Norte - COSERN	229		223		-		191		1,703		1,435		717		822
Energética Águas da Pedra S.A.	-		-		113		120		-		-		2,904		2,673
Estaleiro Atlântico Sul S.A.	-		-		-		-		5,221		3,932		-		-
Fras-le	-		-		-		-		-		6		-		-
Goiás Sul Geração de Enegia S.A.	-		-		-		-		-		-		115		106
Mel 2 Energia Renovável S.A.	-		-		-		-		-		-		460		376
NC ENERGIA S.A.	-		-		-		-		1,837		16,996		-		-
Rio PCH I S.A.	-		-		208		220		-		-		5,470		5,094
SE Narandiba S.A.	-		-		-		-		-		-		92		97
Serra do Facão Energia S.A. - SEFAC	-		-		632		547		-		-		14,876		13,712
Tavex Brasil S.A	-		-		-		-		1,252		8,264		-		-
ThyssenKrupp Companhia Siderúrgica do Atlântico	210		-		387		178		6,775		345		4,348		4,695
Vale Energia S.A.	7,133		6,960		-		-		65,068		68,028		5,445		-
VALE S.A.	-		-		-		-		-		-		-		1,419
BAESA – Energética Barra Grande S.A.	-		-		53,768		29,568		-		-		68,523		53,559
Foz do Chapecó Energia S.A.	1,384		-		103,662		111,019		12,598		3,947		232,420		219,997
ENERCAN - Campos Novos Energia S.A.	558		544		98,314		103,252		4,976		7,769		164,505		159,015
EPASA - Centrais Elétricas da Paraiba	-		2		31,702		17,094		22,986		78,820		152,194		59,665

Intangible assets, Property, plant and equipment, Materials and Service
Banco do Brasil S A	-		-		-		-		-		-		122		122
Barrocão Empreendimento Imobiliário SPE Ltda.	-				-		-		-		67		-		-
Boa Vista Empreendimento Imobiliário SPE Ltda.	-		2		-		-		-		52		-		-
Cia.de Saneamento Básico do Estado de São Paulo - SABESP	106		85		42		36		311		736		1		15
Companhia Energética do Rio Grande do Norte - COSERN	-		-		-		-		-		-		86		48
Concessionária do Sistema Anhanguera - Bandeirante S.A.	-		-		-		-		-		-		11		-
Estaleiro Atlântico Sul S.A.	1		-		-		-		9		-		-		-
Ferrovia Centro-Atlântica S.A.	4		507		-		-		9		-		-		-
HM 11 Empreendimento Imobiliário SPE Ltda	-		-		-		-		24		9		-		-
HM 12 Empreendimento Imobiliário SPE Ltda	-		-		-		-		-		9		-		-
HM 25 Empreendimento Imobiliário SPE Ltda.	-		-		-		-		-		63		-		-
Hortolândia 4A Empreendimento Imobiliário SPE Ltda	-		-		-		-		-		41		-		-
Indústrias Romi S.A.	4		4		-		-		34		32		-		-
Itaúsa	-		-		-		-		-		-		-		477
Jaguariúna III Empreendimento Imobiliário SPE Ltda.	-		-		-		-		-		56		-		-
JBS S/A	-		-		-		-		2,221		-		-		-
LUPATECH	-		-		-		-		-		-		-		3
Renovias Concessionária S.A.	-		-		-		-		-		-		-		6
Rodovias Integradas do Oeste - SP Vias	-		26		16		28		-		-		-		-
SAMM - Sociedade de Atividades em Multimídia Ltda.	23		306		-		-		207		236		-		-
TOTVS S.A.	-		-		14		42		-		-		48		2,191
BAESA – Energética Barra Grande S.A.	-		66		-		-		1,087		1,012		-		-
Foz do Chapecó Energia S.A.	-		-		-		-		1,195		1,110		-		-
ENERCAN - Campos Novos Energia S.A.	-		-		-		-		1,087		1,012		-		-
EPASA - Centrais Elétricas da Paraíba S.A.	215		-		-		-		508		59		-		-

Intercompany loans
EPASA - Centrais Elétricas da Paraíba S.A.	92,006		86,655		-		-		7,746		4,398		-		-
Noncontrolling shareholders - CPFL Renováveis	6,898		6,862		-		-		608		273		-		-

Dividends and Interest on shareholders´ equity
BAESA – Energética Barra Grande S.A.	-		48		-		-		-		-		-		-
Chapecoense Geração S.A.	-		21,744		-		-		-		-		-		-
ENERCAN - Campos Novos Energia S.A.	13,423		16,054		-		-		-		-		-		-
EPASA - Centrais Elétricas da Paraiba	14,891		14,891		-		-		-		-		-		-

( 31 ) RISK MANAGEMENT

The business of the Company and its subsidiaries mainly comprises the generation, commercialization and distribution of electric energy. As public utilities concessionaires, the operations and/or tariffs of its principal subsidiaries are regulated by ANEEL.

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Risk management structure:

The Board of Directors is responsible for directing the way the business is run, which includes monitoring of business risks, exercised by means of the corporate risk management model used by the Company. The responsibilities of the Executive Board are to develop the mechanisms for measuring the impact of the exposure and probability of its occurrence, supervising the implementation of risk mitigation measures and informing the Board of Directors. It is assisted in this process by: i) the Corporate Risk Management Committee, whose mission is to assist in identifying the main business risks, analyzing measurement of the impact and probability and assessing the mitigation measures used; ii) the Risk Management, Internal Control and Consolidated Processes Division, responsible for developing the Corporate Risk Management model for the CPFL Group in respect of strategy (policy, direction and risk maps), processes (planning, measurement, monitoring and reporting), systems and governance.

The risk management policy was established to identify, analyze and treat the risks faced by the Company and its subsidiaries, and includes reviewing the model adopted whenever necessary to reflect changes in market conditions and in the Group’s activities, with a view to developing an environment of disciplined and constructive control.

In its supervisory role, the Company’s Board of Directors also counts on the support of the Management Procedures Committee to provide guidance for the Internal Auditing work and in preparing proposals for improvements. The Internal Auditing team conducts both periodic and “ad hoc” reviews in order to ensure alignment of the procedures to directives and strategies set by the shareholders and management.

The Fiscal Council’s responsibilities include certifying that Management has the means to identify and prevent, through the use of an appropriated information system, (a) the main risks to which the Company is exposed, (b) the probability that these will materialize and (c) the measures and plans adopted.

The main market risk factors affecting the businesses are as follows:

Exchange rate risk: This risk derives from the possibility that the subsidiaries might incur losses and cash constraints due to fluctuations in currency exchange rates, increasing the balances of liabilities denominated in foreign currency. The exposure in relation to funds raised in foreign currency is largely covered by contracting swap operations, which allow the Company and its subsidiaries to exchange the original risks of the operation for the cost of the variation in the CDI. This risk is quantified in Note 32. The Company’s subsidiaries’ operations are also exposed to exchange variations on the purchase of electric energy from Itaipu. The compensation mechanism - CVA protects the companies against possible losses. However, the compensation only comes into effect as a result of consumption and the consequent billing of energy after the next tariff adjustment in which such losses have been considered.

Interest Rate Risk: This risk derives from the possibility that the Company and its subsidiaries might incur losses due to fluctuations in interest rates that increase financial expenses on loans, financing and debentures. The subsidiaries have tried to increase the proportion of pre-indexed loans or loans tied to indexes with lower rates and little fluctuation in the short and long term. The quantification of this risk is presented in note 32.

Credit Risk: This risk arises from the possibility of the subsidiaries incurring losses resulting from difficulties in collecting amounts billed to customers. This risk is evaluated by the subsidiaries as low, as it is spread over the number of customers and in view of the collection policy and cancellation of supply to defaulting consumers.

Risk of Energy Shortages: The energy sold by the subsidiaries is primarily generated by hydropower plants. A prolonged period of low rainfall could result in a reduction in the volume of water in the power plants’ reservoirs, compromising the recovery of water levels and resulting in losses due to the increased cost of energy purchased or a reduction in revenue due to the introduction of comprehensive electric energy saving programs or other rationing programs, as in 2001. The hydrological situation in the Southeast, Mid-West and Northeast regions, are unfavorable on 2014. Consequently, the current energy scenario for the Interconnected System requires attention and monitoring, especially during the wet season of these regions, which begins on November.

97

Risk of Acceleration of Debts: The Company has loans and financing agreements and debentures with restrictive clauses (covenants) normally applicable to these kinds of arrangement, involving compliance with economic and financial ratios. These covenants are monitored and do not restrict the capacity to operate normally, if met at the contractual intervals or if prior agreement is obtained from the creditors for failure to meet.

Regulatory risk: The electric energy supplied tariffs charged to captive consumers by the distribution subsidiaries are fixed by ANEEL, at intervals established in the Concession Agreements entered into with the Federal Government and in accordance with the periodic tariff review methodology established for the tariff cycle. Once the methodology has been ratified, ANEEL establishes tariffs to be charged by the distributor to the final consumers. In accordance with Law 8.987/1995, the fixed tariffs should insure the economic and financial balance of the concession contract at the time of the tariff review, which could result in lower increases than those expected by the electric energy distributors, albeit offset in subsequent periods by other adjustments.

Risk Management for Financial instruments

The Company and its subsidiaries maintain operating and financial policies and strategies to protect the liquidity, safety and profitability of their assets. They accordingly have procedures in place to control and follow-up on the transactions and balances of financial instruments, in order to monitor the risks and current rates in comparison with market conditions.

Risk management controls: In order to manage the risks inherent to the financial instruments and to monitor the procedures established by Management, the Company and its subsidiaries use the MAPS software system to calculate the mark to market, stress testing and duration of the instruments, and assess the risks to which the Company and its subsidiaries are exposed. Historically, the financial instruments contracted by the Company and its subsidiaries supported by these tools have produced adequate risk mitigation results. It must be stressed that the Company and its subsidiaries routinely contract derivatives, only in the event of exposure that Management regards as a risk and with the appropriate levels of approval. The Company and its subsidiaries do not enter into transactions involving exotic or speculative derivatives. Furthermore, the Company meets the requirements of the Sarbanes-Oxley Law, and therefore has internal control policies focused on achieving a strict control environment to minimize the exposure to risks.

98

( 32 ) FINANCIAL INSTRUMENTS

The main financial instruments, classified in accordance with the group’s accounting practices, are:

									Consolidated
									September 30, 2014				December 31, 2013
	Note		Category		Measurement		*Level ()**		Accounting balance		Fair value		Accounting balance		Fair value


Asset
Cash and cash equivalent	5		(a)		(2)		Level 1		1,870,662		1,870,662		2,105,618		2,105,618
Cash and cash equivalent	5		(a)		(2)		Level 2		2,129,623		2,129,623		2,100,804		2,100,804
Financial investments			(a)		(2)		Level 1		5,627		5,627		24,806		24,806
Derivatives	32		(a)		(2)		Level 2		400,125		400,125		318,490		318,490
Financial asset of concession - distribution	9		(b)		(2)		Level 3		3,084,387		3,084,387		2,771,593		2,771,593
									7,490,424		7,490,424		7,321,312		7,321,312

Liability
Loans and financing - principal and interest	15		(c)		(1)		Level 2		6,480,187		5,711,973		7,221,542		6,416,990
Loans and financing - principal and interest	15 (**)		(a)		(2)		Level 2		3,129,803		3,129,803		2,008,454		2,008,454
Debentures - principal and interest	16		(c)		(1)		Level 2		8,226,178		8,106,899		7,791,402		7,859,140
Derivatives	32		(a)		(2)		Level 2		8,641		8,641		2,950		2,950
									17,844,808		16,957,316		17,024,348		16,287,534
(*) Refers to the hierarchy for determination of fair value
(**) As a result of the initial designation of this financial liability, the financial statements showed a loss of R$ 16,009 in the nine months of 2014 (gain of R$ 23,087 in the nine months of 2013)

Category:			Measurement:
(a) - Measured at fair value through profit or loss			(1) - Measured at amortized cost
(b) - Available for sale			(2) - Mensured at fair value
(c) - Other finance liabilities
(d) - Loans and receivables
(e) - Held to maturity

The financial instruments for which the recorded amounts approximate to their fair values at the date of these interim financial statements, due to the nature of these financial instruments, are:

· Financial assets: (i) consumers, concessionaires and licensees, (ii) leases, (iii) receivable from associates, subsidiaries and parent company, (iv) financial asset of concession - transmission, (v) receivables from resources provided by CDE/CCEE ,(vi) pledges, funds and tied deposits, (vii) services rendered to third parties, (viii) Collection agreements.

· Financial liabilities: (i) suppliers, (ii) regulatory charges, (iii) public utility, (iv) consumers and concessionaires, (v) Nacional scientific and technological development fund - FNDCT, (vi) energy research company - EPE, (vii) collection agreement, (viii) reversal fund, (iv) Business combination and (x) tariff discount CDE.

a) Valuation of financial instruments

As mentioned in note 4, the fair value of a security relates to its maturity value (redemption value) marked to present value by the discount factor (relating to the maturity date of the security) obtained from the market interest graph, in Brazilian Reais.

CPC 40 (R1) and IFRS 7 require classification at three levels for measurement of the fair value of financial instruments, based on observable and unobservable information in relation to valuation of a financial instrument at the measurement date.

CPC 40 (R1) and IFRS 7 also define observable information as market data obtained from independent sources and unobservable information that reflects market assumptions.

The three levels of fair value are:

· Level 1: quoted prices in an active market for identical instruments;

· Level 2: observable information other than quoted prices in an active market that are observable for the asset or liability, directly (i.e. as prices) or indirectly (i.e. derived from prices);

· Level 3: inputs for the instruments that are not based on observable market data.

Since the distribution subsidiaries have classified their financial asset of concession as available-for-sale, the relevant factors for measurement at fair value are not publicly observable. The fair value hierarchy classification is therefore level 3. In Note 9 are describe the changes and the respective gains (losses) in net income, for the period, was R$ 48,777, with no effect on equity, as well the main assumptions used.

99

The Company recognizes in “Investments at cost” in the financial statements the 5,93% interest held by the indirect subsidiary Paulista Lajeado Energia S.A. in the total capital of Investco S.A. (“Investco”), in the form of 28,154 common shares and 18,593 preferred shares. Since Investco’s shares are not quoted on the stock exchange and the main objective of its operations is to generate electric energy for commercialization by the shareholders who hold the concession, the Company opted to recognize the investment at cost.

b) Derivatives

The Company and its subsidiaries have the policy of using derivatives to reduce their risks of variations in exchange and interest rates, without any speculative purposes. The Company and its subsidiaries have exchange rate derivatives compatible with the exchange rate risks net exposure, including all the assets and liabilities tied to exchange rates.

The derivative instruments entered into by the Company and its subsidiaries are currency or interest rate swaps with no leverage component, margin call requirements or daily or periodical adjustments. As the majority of the derivatives entered into by the subsidiaries (Note 15) have terms fully aligned with the debts protected, and in order to obtain more relevant and consistent accounting information through the recognition of income and expenses, these debts were designated at fair value, for accounting purposes. Other debts with different terms from their respective derivatives contracted as a hedge continue to be recorded at amortized cost. Furthermore, the Company and its subsidiaries do not adopt hedge accounting for derivative operations.

At September 30, 2014, the Company and its subsidiaries had the following swap operations:

100

		Market values (accouting balance)
Company / strategy / counterparts		Assets		Liabilities		Fair value, net		Values at cost, net		Gain/(Loss) on marking to market		Currecy / index		Maturity range		Notional		Negotiation market
Derivatives for protection of debts designated at fair value
Exchange rate hedge
CPFL Paulista
Bank of America Merrill Lynch		95,042		-		95,042		86,960		8,082		dollar		July 2016		156,700		over the counter
Citibank		38,425		-		38,425		36,710		1,715		dollar		September 2016		85,750		over the counter
Morgan Stanley		38,596		-		38,596		36,974		1,622		dollar		September 2016		85,475		over the counter
Scotiabank		10,190		-		10,190		9,283		908		dollar		July 2016		49,000		over the counter
Bank of America Merrill Lynch		22,175		-		22,175		20,933		1,242		dollar		July 2016		340,380		over the counter
Citibank		3,650		-		3,650		4,626		(975)		dollar		March 2019		117,250		over the counter
Bank of Tokyo-Mitsubishi		2,958		-		2,958		4,628		(1,670)		dollar		March 2019		117,400		over the counter
Bank of America Merrill Lynch		5,277		-		5,277		4,222		1,055		dollar		September 2018		106,020		over the counter
Bank of America Merrill Lynch		6,950		-		6,950		5,966		984		dollar		March 2019		116,600		over the counter
J.P.Morgan		3,473		-		3,473		2,983		490		dollar		March 2019		58,300		over the counter
		226,736		-		226,736		213,284		13,452

CPFL Piratininga
Citibank		-		(313)		(313)		(909)		597		dollar		January 2017		151,875		over the counter
Citibank		6,923		-		6,923		6,687		236		dollar		August 2016		12,840		over the counter
Scotiabank		13,310		-		13,310		12,124		1,185		dollar		July 2016		64,000		over the counter
Santander		7,838		-		7,838		7,802		36		dollar		July 2016		100,000		over the counter
Citibank		3,650		-		3,650		4,626		(975)		dollar		March 2019		117,250		over the counter
HSBC		5,355		-		5,355		5,081		274		dollar		April 2018		55,138		over the counter
J.P.Morgan		5,395		-		5,395		5,083		312		dollar		April 2018		55,138		over the counter
		42,470		(313)		42,158		40,494		1,664

CPFL Santa Cruz
J.P.Morgan		3,400		-		3,400		3,237		163		dolar		July 2015		20,000		over the counter
Santander		1,297		-		1,297		1,305		(8)		dolar		June 2016		20,000		over the counter
		4,697		-		4,697		4,542		154
CPFL Leste Paulista
Scotiabank		4,744		-		4,744		4,541		202		dollar		July 2015		25,000		over the counter

CPFL Sul Paulista
J.P.Morgan		1,785		-		1,785		1,700		85		dollar		July 2015		10,500		over the counter
Scotiabank		1,992		-		1,992		1,907		85		dollar		July 2015		10,500		over the counter
Santander		1,426		-		1,426		1,436		(9)		dollar		June 2016		22,000		over the counter
		5,204		-		5,204		5,043		161
CPFL Jaguari
Scotiabank		2,467		-		2,467		2,362		105		dollar		July 2015		13,000		over the counter
Santander		2,010		-		2,010		2,023		(13)		dollar		June 2016		31,000		over the counter
		4,476		-		4,476		4,384		92
CPFL Mococa
Scotiabank		2,087		-		2,087		1,998		89		dollar		July 2015		11,000		over the counter

CPFL Geração
HSBC		12,982		-		12,982		11,965		1,017		dollar		March 2017		232,520		over the counter

RGE
Citibank		38,978		-		38,978		38,112		866		dollar		April 2017		128,590		over the counter
J.P.Morgan		20,164		-		20,164		19,041		1,123		dollar		July 2016		94,410		over the counter
Bank of Tokyo-Mitsubishi		6,294		-		6,294		7,183		(889)		dollar		April 2018		36,270		over the counter
Bank of Tokyo-Mitsubishi		27,658		-		27,658		31,137		(3,479)		dollar		May 2018		168,346		over the counter
Citibank		2,690		-		2,690		3,122		(433)		dollar		May 2019		33,285		over the counter
		95,784		-		95,784		98,596		(2,812)

Subtotal		399,180		(313)		398,867		384,848		14,019

Derivatives for protection of debts not designated at fair value
Exchange rate hedge
CPFL Geração
Votorantim		795		-		795		1,084		(290)		dollar		October 2014 to December 2014		41,307		over the counter

Exchange price index
CPFL Geração
Santander		75		-		75		(168)		243		IPCA		April 2019		35,235		over the counter
J.P.Morgan		75		-		75		(168)		243		IPCA		April 2019		35,235		over the counter
		150		-		150		(335)		485

Hedge interest rate variation ⁽¹⁾
CPFL Paulista
Bank of America Merrill Lynch		-		(2,347)		(2,347)		(15)		(2,332)		CDI		July 2019		660,000		over the counter
J.P.Morgan		-		(1,172)		(1,172)		(0)		(1,172)		CDI		February 2021		300,000		over the counter
Votorantin		-		(364)		(364)		1		(365)		CDI		February 2021		100,000		over the counter
Santander		-		(377)		(377)		1		(378)		CDI		February 2021		105,000		over the counter
		-		(4,260)		(4,260)		(13)		(4,247)
CPFL Piratininga
J.P.Morgan		-		(391)		(391)		(2)		(389)		CDI		July 2019		110,000		over the counter
Votorantim		-		(423)		(423)		4		(427)		CDI		February 2021		135,000		over the counter
Santander		-		(300)		(300)		3		(303)		CDI		February 2021		100,000		over the counter
		-		(1,114)		(1,114)		5		(1,119)

RGE
HSBC		-		(1,778)		(1,778)		(11)		(1,767)		CDI		July 2019		500,000		over the counter
Votorantim		-		(695)		(695)		(1)		(694)		CDI		February 2021		170,000		over the counter
		-		(2,474)		(2,474)		(12)		(2,461)


CPFL Geração
Votorantim		-		(480)		(480)		30		(510)		CDI		August 2020		460,000		over the counter


Subtotal		945		(8,328)		(7,384)		758		(8,142)

Total		400,125		(8,641)		391,484		385,607		5,877

Current		17,269		-
Noncurrent		382,855		(8,641)

For further details of terms and information about debts and debentures, see notes 15 and 16
(¹) The interest rate hedge swaps have half-yearly validity, so the notional value reduces in accordance with amortization of the debt.

101

Certain subsidiaries opted to mark to market debts for which they have fully tied derivative instruments (Note 15).

The Company and its subsidiaries have recorded gains and losses on their derivatives. However, as these derivatives are used as a hedge, these gains and losses minimized the impact of variations in exchange and interest rates on the protected debts. For the quarters and nine months ended September 30, 2014 and 2013, the derivatives resulted in the following impacts on profit or loss, recorded as “Financial expenses – monetary and exchange variations” (Note 28):

				Gain (Loss)
				2014				2013
Company		Hedged risk / transaction		3rd quarter		Nine months		3rd quarter		9 meses
CPFL Energia		Interest rate variation		-		-		72		292
CPFL Energia		Mark to market		-		-		(72)		(429)
CPFL Paulista		Interest rate variation		(11)		86		548		620
CPFL Paulista		Exchange variation		124,685		(231)		32,391		119,226
CPFL Paulista		Mark to market		(8,721)		(1,882)		(5,796)		(23,870)
CPFL Piratininga		Interest rate variation		10		63		174		199
CPFL Piratininga		Exchange variation		50,102		(1,839)		28,068		57,375
CPFL Piratininga		Mark to market		(3,936)		1,418		(13,762)		(17,894)
RGE		Interest rate variation		(13)		29		378		585
RGE		Exchange variation		48,301		(1,797)		8,591		32,697
RGE		Mark to market		(4,210)		1,122		629		(6,363)
CPFL Geração		Interest rate variation		75		254		96		96
CPFL Geração		Exchange variation		23,445		3,776		4,337		13,608
CPFL Geração		Mark to market		(1,872)		(124)		(1,317)		(1,494)
CPFL Santa Cruz		Exchange variation		3,876		(342)		746		1,061
CPFL Santa Cruz		Mark to market		(248)		187		(23)		(201)
CPFL Leste Paulista		Exchange variation		3,099		(551)		784		2,505
CPFL Leste Paulista		Mark to market		(179)		9		(60)		(227)
CPFL Sul Paulista		Exchange variation		4,663		(848)		1,049		1,878
CPFL Sul Paulista		Mark to market		(309)		166		(46)		(287)
CPFL Jaguari		Exchange variation		4,472		(1,032)		1,022		1,167
CPFL Jaguari		Mark to market		(321)		221		(32)		(217)
CPFL Mococa		Exchange variation		1,572		(455)		450		1,433
CPFL Mococa		Mark to market		(96)		(14)		(35)		(170)
				244,382		(1,784)		58,191		181,588

c) Sensitivity Analysis

In compliance with CVM Instruction n° 475/08, the Company and its subsidiaries performed sensitivity analyses of the main risks to which their financial instruments (including derivatives) are exposed, mainly comprising variations in exchange and interest rates.

If the risk exposure is considered active, the risk to be taken into account is a reduction in the pegged indexes, resulting in a negative impact on the income of the Company and its subsidiaries. Similarly, if the risk exposure is considered a liability, the risk is of an increase in the pegged indexes and the consequent negative effect on income. The Company and its subsidiaries therefore quantify the risks in terms of the net exposure of the variables (dollar, CDI, IGP-M, TJLP and IPCA), as shown below:

102

c.1) Exchange rates variation

If the level of net exchange rate exposure at September 30, 2014 is maintained, the simulation of the consolidated effects by type of financial instrument for three different scenarios would be:

		Consolidated
Instruments		Exposure R$ thousand		Risk		Exchange depreciation of 10,2%*		Exchange depreciation of 25%**		Exchange depreciation of 50%**
Financial liability instruments		(3,187,674)				(326,701)		(1,205,294)		(2,083,888)
Derivatives - plain vanilla swap		3,185,693				326,498		1,204,545		2,082,593
		(1,981)		dollar apprec.		(203)		(749)		(1,295)

Total (increase)/decrease		(1,981)				(203)		(749)		(1,295)

(1) Exchange rate at September 30, 2014: R$ 2.45.
(*) In accordance with exchange graphs contained in information provided by the BM&F. Exchange rate used: R$ 2.70
(**) In compliance with CVM Instruction 475/08, the percentage of exchange appreciation are related to the information provided by the BM&F.

c.2) Variation in interest rates

Assuming that (i) the scenario of net exposure of the financial instruments indexed to variable interest rates at September 30, 2014 is maintained, and (ii) the respective accumulated annual indexes for the last 12 months remain stable (CDI 10.32% p.a.; IGP-M 3.54% p.a.; TJLP 5% p.a. and IPCA 6.75% p.a.), the effects on the Company’s financial statements for the next 12 months would be a net financial expense of R$ 955,840 (CDI R$ 761,825; IGP-M R$ 2,663; and TJLP
R$ 191,365 and IPCA income of R$ 13). The risk to which the instruments are exposed is evaluated based on the net position. In the event of fluctuations in the indexes in accordance with the three scenarios described, the effect on the net financial expense would as follows:

		Consolidated
Instruments		Exposure R$ thousand		Risk		Scenario I*		Raising/drop index by 25%**		Raising/drop index by 50%**
Financial asset instruments		4,902,868				76,485		222,100		367,715
Financial liability instruments		(9,417,444)				(146,912)		(426,610)		(706,308)
Derivatives - plain vanilla swap		(2,867,449)				(44,732)		(129,895)		(215,059)
		(7,382,026)		CDI apprec.		(115,160)		(334,406)		(553,652)

Financial liability instruments		(75,212)		IGP-M apprec.		(2,068)		(3,251)		(4,434)

Financial liability instruments		(3,827,302)		TJLP apprec.		-		(47,841)		(95,683)

Financial liability instruments		(73,055)				(314)		997		2,309
Derivatives - plain vanilla swap		73,240				315		(1,000)		(2,314)
		185		drop in the IPCA		1		(3)		(6)

Total (increase)/decrease		(11,284,355)				(117,227)		(385,501)		(653,774)
(*) The CDI, IGP-M, TJLP and IPCA indexes considered of 11.88%, 6.29%, 5% and 7.18%, respectively, were obtained from information available in the market.
(**) In compliance with CVM Instruction 475/08, the percentage of raising index were applied to scenario I indexes.

103

( 33 ) REGULATORY ASSETS AND LIABILITIES

The Company has the following assets and liabilities for regulatory purposes, which are not recorded in the interim financial statements.

	Consolidated
	September 30, 2014		June 30, 2014		December 31, 2013		September 30, 2013		June 30, 2013		December 31, 2012
Assets
Consumers, Concessionaires and Licensees
Discounts TUSD (*) and Irrigation	1,795		2,301		16,821		28,167		39,513		65,534
	1,795		2,301		16,821		28,167		39,513		65,534
Deferred Costs Variations
CVA (**)	1,151,731		810,102		547,402		498,567		694,043		897,364
	1,151,731		810,102		547,402		498,567		694,043		897,364
Prepaid Expenses
Overcontracting	324,767		303,593		170,084		101,460		66,543		74,885
Low income consumers' subsidy - losses	-		-		-		-		-		2,064
Neutrality of the sector charges	9,731		3,506		-		6,540		5,497		2,850
Tariff adjustment	19,145		28,056		13,309		1,523		2,663		2,696
Other financial components	17,387		20,505		41,608		54,186		68,250		92,582
	371,030		355,660		225,001		163,709		142,953		175,078
Liabilities
Deferred Gains Variations
Parcel "A"	(1,454)		(1,454)		(1,454)		(1,454)		(1,454)		(1,443)
CVA (**)	(715,434)		(474,889)		(330,266)		(300,008)		(298,582)		(373,784)
	(716,889)		(476,343)		(331,720)		(301,462)		(300,037)		(375,227)
Other Accounts Payable
Replacement reibursement in PTR (***)	(85,935)		(102,768)		(138,621)		(154,987)		(177,032)		(242,987)
Discounts TUSD and Irrigation (*)	0		-		(193)		(323)		(453)		(363)
Tariff adjustment	(27,337)		(23,286)		(16,692)		(0)		-		-
Overcontracting	(7,387)		(9,737)		(29,928)		(29,762)		(40,346)		(28,919)
Low income consumers' subsidy - Gains	(0)		-		(5)		(7,124)		(10,587)		(22,813)
Neutrality of the sector charges	(18,820)		(28,692)		(34,745)		(50,569)		(58,064)		(66,985)
Other financial components	(120,569)		(53,471)		(29,393)		(16,378)		(21,521)		(4,254)
	(260,048)		(217,954)		(249,576)		(259,143)		(308,003)		(366,321)

Total net	547,619		473,766		207,928		129,838		268,470		396,428

(*) Network Usage Charge - TUSD
(**) Deferred Tariff Costs and Gains Variations from Parcel "A" itens - ("CVA")
(***) Periodic tariff review

( 34 ) NON CASH TRANSACTIONS

	Parent company				Consolidated
	September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
Transactions resulting from business combinations
Loans, financing and debentures	-		-		(34,894)		-
Property, plant and eqiupment acquired through business combination	-		-		49,685		-
Intangible asset acquired in business combination, net of tax effects	-		-		44,662		-
Other net assets acquired through business combination	-		-		11,477		-
	-		-		70,930		-
Cash acquired in the business combination	-		-		(2,466)		-
Acquisition price paid	-		-		68,464		-

Corporate restructuring
Settlement of debentures by controlled CPFL Brazil	-		-		-		(1,092,000)
Issue of debentures by controlled CPFL Geração	-		-		-		1,092,000

Other transactions
Capital increase in subsidiaries with advance for future capital increase	59,397		-		-		-
Provision for socio-environmental costs capitalized in property, plant and equipment	-		-		9,193		1,279
Interest capitalized in property, plant and equipment	-		-		10,668		39,105
Interest capitalized in intangible of the concession - distribution infraestruture	-		-		5,439		6,937
Transfer from financial concession asset and intangible to property, plant and equipment as result of Spin-off generation activity on the distribuition	-		-		5,828		-
Transfer between property, plant and equipament and other assets	-		-		7,165		11,346
Realization of noncontrolling's capital reserve against to receivables	-		-		1,316		-

104

( 35 ) RELEVANT FACTS AND SUBSEQUENT EVENT

35.1 – Annual Tariff Adjustment – CPFL Piratininga

On October 23, 2014, ANEEL published Resolution 1810, fixing the annual tariff adjustments of CPFL Piratininga from October 23, 2014. The tariffs increased by 19.73%, on average, of which 15.81% relates to the annual economic adjustment and 3.92% to the pertinent financial components. The average effect perceived by consumers is a 22.43% tariff increase. With Order 4073, ANEEL also amended the 2013 tariff adjustment index from 7.42% to 7.58%, in accordance with the administrative appeal filed by the subsidiary. The financial effect is included in the 2014 annual tariff adjustment.

35.2 – Approval of fundraising – CPFL Telecom

An EGM held by the subsidiary CPFL Telecom on September 29, 2014 approved a fundraising transaction with the BNDES for a total amount of up to R$ 95,333, to be used in the subsidiary's investments plan. The transaction will be guaranteed by the Company

35.3 - Law 12973 of May 13, 2014

Publication of this Law introduced important changes in the regulations relating to Corporate income tax - IRPJ, Social Contribution on Net Income - CSSL, Employees’ profit participation program/Public Service Employee Savings Program (PIS/Pasep) and Contribution for Social Security Financing - Cofins regulations, including revocation of the Transitional Tax System (RTT) from January 1, 2014, for those early adopting the measures, and January 1, 2015 for those that are not early adopting the Law.

The managements of the Company and its subsidiaries have assessed the impacts of the Law and will only apply the articles in 2015, and are not opting for the early adoption.

This option was stated in the Declaration of Federal Contributions and Taxes - DCTF related to the month of August, which was filed in October.

35.4 Association between CPFL Renováveis and Dobrevê Energia S.A. – (DESA acquisition)

As described on Note 11.7, on February 2014, the subsidiaries CPFL Renováveis and CPFL Geração signed an association agreement, whereby the merger of WF2 Holding AS (“WF2”), wholly owner of the DESA’s shares on the incorporation date, by CPFL Renováveis. Arrow - Fundo de Investimentos e Participações (“FIP Arrow”) held all shares of WF2.

On October 1, 2014 the association was concluded, as follows.

The shareholders of both CPFL Renováveis, and WF2 approved the Protocol and Justification for Merger and the Termination of the Association Agreement in Extraordinary General Meetings held on September 30, 2014, or which the approvals come into effect on October 1, 2014. Consequently, on October 1, 2014, FIP Arrow contributed in CPFL Renováveis the net assets of WF2 as a capital increase, in turn CPFL Renováveis issued to FIP Arrow 61,752,782 new ordinary shares, whereby FIP Arrow became a shareholder of CPFL Renováveis, with an interest of 12.27%.

After the capital increase, the subsidiary CPFL Renováveis merged with WF2, which is now terminated, and CPFL Renováveis, now holds 100% of WF2's interest in DESA. Consequently, DESA is now controlled by CPFL Renováveis.

105

The exchange ratio of the shares of 100% of WF2 by 12.27% of CPFL Renováveis (after the new ordinary shares issued) was freely negotiated and agreed by the parties and reflects the best valuation of WF2 and CPFL Renováveis

The association of CPFL Renováveis and DESA, resulted in a business combination pursuant to CPC 15 (RI) – Combinação de Negócios and IFRS 3 (R) – “Business Combinations”, whereby CPFL Renováveis obtained control of DESA and paid it through the issuance of new shares. As a result of this shares issuance, the Shareholders’ Equity of CPFL Renováveis increased by R$ 833,633, representing the fair value of the shares issued, and which was transferred to WF2 in the acquisition date.

As a result of the transaction described above, and through its subsidiary CPFL Geração, the Company’s interest in CPFL Renováveis was diluted from 58.83% to 51.61% and it computed a variation of R$ 180,284 in its equity interest (from non-controlling to controlling shareholders), which was recognized as an equity transaction, in accordance with ICPC 09 (R1) and IFRS 10, i.e. a transaction with the partners as owners, and accounted for directly in Shareholders’ Equity in the capital reserve, as follows:

			Before capital increase						After capital increase
	Shareholders' equity attributable to:		Number of shares		Shareholders' equity percentage (1)		Interest		Number of shares		Shareholders' equity percentage (2)		Interest		Interest increase

	CPFL Energia - controlling shareholder		259,748,799		58.83%		2,037,299		259,748,799		51.61%		2,217,584		180,284
	Non-controlling shareholder		181,781,079		41.17%		1,425,772		243,533,861		48.39%		2,079,150		653,379

			441,529,878		100%		3,463,071		503,282,660		100%		4,296,734		833,663
(1)	Interest on September 30, 2014
(2)	Interest on October, 2014

Since the Association’s closing date was October 1, 2014, the above amounts are not registered at September 30, 2014.

35.4.1 Additional information about the association (DESA acquisition)

a) Assets acquired and liabilities recognized on the acquisition date

On the acquisition date, the total amount paid (fair value of the shares issued by CPFL Renováveis) was allocated to the assets acquired and liabilities assumed, including the intangible assets related to the right to operate the authorization, which will be amortized over the remaining period of the authorization tied to operation of the wind farms and SHP. The average term is estimated at 25 years. Consequently, as the total amount paid was allocated to identified assets and liabilities, no residual amount was allocated to goodwill for this transaction.

The subsidiary's management does not expect the amount allocated as the right to operate the acquisition to be tax-deductible and has therefore recorded deferred income tax and social contribution for the difference between the amount allocated to the assets and liabilities and their corresponding tax bases.

The allocation of the amount paid is based on internal analysis produced by the Management of the subsidiary CPFL Renováveis, which finalization of the economic/financial assessment report is pending. The subsidiary's management expects the economic/financial assessment report will be ended by March 2015. This allocation and, consequently, the initial accounting for the acquisition was provisionally made in October 1, 2014, for all items show below, based on the Management’s best estimate:

106

	WF2
	consolidated
	October 1, 2014


Current asset
Cash and cash equivalents	139,293
Other current assets	17,366

Noncurrent assets
Property, plant and equipment	1,299,277
Intangible - exploitation right	700,706
Other noncurrent assets	90,964

Current liabilities
Loans, financings and debentures	186,752
Other current liabilities	37,634

Noncurrent liabilities
Loans, financings and debentures	789,241
Deferred taxes	251,758
Payable for acquisition of assets	92,185
Net assets acquired	890,036
(-) Noncontrolling shareholders	(56,373)
Fair value of shares issued	833,663

b) Outflow of net cash on the association

No cash payment was made, considering that the acquisition happened by the share exchange, only the cash of WF2 (R$139,293) was incorporated.

c) Additional information

The Company’s consolidated statements for the nine-month period ended September 30, 2014 do not include the results of the consolidated operations of WF2, as these are only taken into consideration from October 1, 2014.

107

Additionally, considering that the initial accounting for this business combination was not concluded on the authorization date of these interim financial statements, the pro forma information of the net income and of the income or loss for the period of the acquiree are not available for disclosure.

108

OTHER RELEVANT INFORMATION


	SHAREHOLDING STRUCTURE								3rd quarter 2014
	CPFL ENERGIA S/A								Per units shares		Date of last change
	1 - SHAREHOLDERS OF THE COMPANY	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		668,886,922	69.51%	100.00%	-	0.00%	0.00%	668,886,922	69.51%
	1.1 Esc Energia S.A.	15.146.011/0001-51	234,092,930	24.33%	100.00%	-	0.00%	0.00%	234,092,930	24.33%	25-Mar-13
	1.2 Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I	73.899.742/0001-74	288,569,602	29.99%	100.00%	-	0.00%	0.00%	288,569,602	29.99%	26-Dec-12
	1.3 Bonaire Participações S.A.	33.754.482/0001-24	6,308,790	0.66%	100.00%	-	0.00%	0.00%	6,308,790	0.66%	9-Apr-12
	1.4 Energia São Paulo FIA	02.178.371/0001-93	136,820,640	14.22%	100.00%	-	0.00%	0.00%	136,820,640	14.22%	25-Mar-13
	1.5 Caixa de Previdência dos Funcionários do Banco do Brasil - Previ	33.754.482/0001-24	477,700	0.21%	100.00%	-	0.00%	0.00%	477,700	0.21%	8-Sep-14
	1.6 Camargo Correa S.A.	01.098.905/0001-09	837,860	0.37%	100.00%	-	0.00%	0.00%	837,860	0.37%	25-Mar-13
	1.7 Fundação Petrobras de Seguridade Social - Petros	34.053.942/0001-50	1,759,900	0.77%	100.00%	-	0.00%	0.00%	1,759,900	0.77%	7-Jun-13
	1.8 Fundação Sistel de Seguridade Social	00.493.916/0001-20	19,500	0.01%	100.00%	-	0.00%	0.00%	19,500	0.01%	26-Sep-13
	Noncontrolling shareholders		293,387,338	128.43%	100.00%	-	0.00%	0.00%	293,387,338	128.43%
	1.9 BNDES Participações S.A.	00.383.281/0001-09	64,842,768	28.38%	100.00%	-	0.00%	0.00%	64,842,768	28.38%	30-Nov-13
	1.10 Board of Directors		800	0.00%	100.00%	-	0.00%	0.00%	800	0.00%	30-Apr-14
	1.11 Executive officers		102,300	0.04%	100.00%	-	0.00%	0.00%	102,300	0.04%	31-Jan-14
	1.12 Other shareholders		228,441,470	100.00%	100.00%	-	0.00%	0.00%	228,441,470	100.00%
	Total		962,274,260	421.23%	100.00%	-	0.00%	0.00%	962,274,260	421.23%
	2 - Entity: 1.1 Esc Energia S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		1,108,804,612	100.00%	100.00%	-	0.00%	0.00%	1,108,804,612	100.00%
	1.1.1 VBC Energia S.A.	00.095.147/0001-02	554,402,306	50.00%	100.00%	-	0.00%	0.00%	554,402,306	50.00%	28-Nov-13
	1.1.2 Átila Holdings S/A	07.305.671/0001-00	554,402,306	50.00%	100.00%	-	0.00%	0.00%	554,402,306	50.00%	28-Nov-13
	Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
	Total		1,108,804,612	100.00%	100.00%	-	0.00%	0.00%	1,108,804,612	100.00%
	3 - Entity: 1.1.1 VBC ENERGIA S/A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		3,840,605	88.55%	98.39%	62,981	100.00%	1.61%	3,903,586	88.71%
	1.1.1.1 Camargo Corrêa Energia S.A.	04.922.357/0001-88	1,937,959	44.68%	97.63%	47,018	74.65%	2.37%	1,984,977	45.11%	28-Nov-13
	1.1.1.2 Camargo Corrêa S.A.	01.098.905/0001-09	1,902,646	43.87%	99.17%	15,963	25.35%	0.83%	1,918,609	43.60%	28-Nov-13
	Noncontrolling shareholders		496,670	11.45%	100.00%	-	0.00%	0.00%	496,670	11.29%
	1.1.1.3 Camargo Corrêa Investimento em Infra-Estrutura S.A.	02.372.232/0001-04	496,665	11.45%	100.00%	-	0.00%	0.00%	496,665	11.29%	28-Nov-13
	1.1.1.4 Other shareholders		5	0.00%	100.00%	-	0.00%	0.00%	5	0.00%
	Total		4,337,275	100.00%	98.57%	62,981	100.00%	1.43%	4,400,256	100.00%
	4- Entity: 1.1.2 Átila Holdings S/A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		821,452,787	100.00%	100.00%	-	0.00%	0.00%	821,452,787	100.00%
	1.1.2.1 Construções e Comércio Camargo Corrêa S.A.	61.522.512/0001-02	380,575,180	46.33%	100.00%	-	0.00%	0.00%	380,575,180	46.33%	31-Aug-11
	1.1.2.2 Camargo Corrêa S.A	01.098.905/0001-09	440,877,607	53.67%	100.00%	-	0.00%	0.00%	440,877,607	53.67%	1-Sep-09
	Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
	Total		821,452,787	100.00%	100.00%	-	0.00%	0.00%	821,452,787	100.00%
	5 - Entity: 1.1.1.1 Camargo Corrêa Energia S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		2,360,886	100.00%	77.41%	689,071	100.00%	22.59%	3,049,957	100.00%
	1.1.1.1.1 Camargo Corrêa Investimento em Infra-Estrutura S.A.	02.372.232/0001-04	2,360,886	100.00%	77.41%	689,071	100.00%	22.59%	3,049,957	100.00%	30-Apr-12
	Noncontrolling shareholders		-	0.00%	0.00%	4	0.00%	100.00%	4	0.00%
	1.1.1.1.2 Other shareholders		-	0.00%	0.00%	4	0.00%	100.00%	4	0.00%
	Total		2,360,886	100.00%	77.41%	689,075	100.00%	22.59%	3,049,961	100.00%
	6 - Entity: 1.1.1.2 Camargo Corrêa S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		48,943	99.99%	34.46%	93,099	100.00%	65.54%	142,042	100.00%
	1.1.1.2.1 Participações Morro Vermelho S.A.	03.987.192/0001-60	48,943	99.99%	34.46%	93,099	100.00%	65.54%	142,042	100.00%	30-Apr-12
	Noncontrolling shareholders		3	0.01%	75.00%	1	0.00%	25.00%	4	0.00%
	1.1.1.2.2 Other shareholders		3	0.01%	75.00%	1	0.00%	25.00%	4	0.00%
	Total		48,946	100.00%	34.46%	93,100	100.00%	65.54%	142,046	100.00%
	7 - Entity: 1.1.1.3 Camargo Corrêa Investimento em Infra-Estrutura S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		1,058,326,174	100.00%	100.00%	-	0.00%	0.00%	1,058,326,174	100.00%
	1.1.1.3.1 Camargo Corrêa S.A.	01.098.905/0001-09	1,058,326,174	100.00%	100.00%	-	0.00%	0.00%	1,058,326,174	100.00%	2-May-13
	Noncontrolling shareholders		4	0.00%	100.00%	-	0.00%	0.00%	4	0.00%
	1.1.1.3.2 Other shareholders		4	0.00%	100.00%	-	0.00%	0.00%	4	0.00%
	Total		1,058,326,178	100.00%	100.00%	-	0.00%	0.00%	1,058,326,178	100.00%
	8 - Entity: 1.1.2.1 Construções e Comércio Camargo Corrêa S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		527,213	100.00%	85.73%	87,780	100.00%	14.27%	614,993	100.00%
	1.1.2.1.1 Camargo Corrêa Construções e Participações S.A.	11.196.609/0001-02	527,213	100.00%	85.73%	87,780	100.00%	14.27%	614,993	100.00%	30-Apr-14
	Noncontrolling shareholders		1	0.00%	100.00%	-	0.00%	0.00%	1	0.00%
	1.1.2.1.2 Other shareholders		1	0.00%	100.00%	-	0.00%	0.00%	1	0.00%
	Total		527,214	100.00%	85.73%	87,780	100.00%	14.27%	614,994	100.00%
	9 - Entity: 1.1.1.2.1 Participações Morro Vermelho S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		2,249,991	100.00%	100.00%	-	0.00%	0.00%	2,249,991	33.33%
	1.1.1.2.1.1 RCABON Empreendimentos e Participações S.A	09.594.448/0001-55	749,997	33.33%	100.00%	-	0.00%	0.00%	749,997	11.11%	2-May-12
	1.1.1.2.1.2 RCNON Empreendimentos e Participações S.A	09.594.570/0001-21	749,997	33.33%	100.00%	-	0.00%	0.00%	749,997	11.11%	2-May-12
	1.1.1.2.1.3 RCPODON Empreendimentos e Participações S.A	09.594.541/0001-60	749,997	33.33%	100.00%	-	0.00%	0.00%	749,997	11.11%	2-May-12
	Noncontrolling shareholders		9	0.00%	0.00%	4,500,000	100.00%	100.00%	4,500,009	66.67%
	1.1.1.2.1.4 RCABPN Empreendimentos e Participações S.A	09.594.459/0001-35	-	0.00%	0.00%	1,498,080	33.29%	100.00%	1,498,080	22.19%	1-Oct-08
	1.1.1.2.1.5 RCNPN Empreendimentos e Participações S.A	09.594.480/0001-30	-	0.00%	0.00%	1,498,080	33.29%	100.00%	1,498,080	22.19%	1-Oct-08
	1.1.1.2.1.6 RCPODPN Empreendimentos e Participações S.A	09.594.468/0001-26	-	0.00%	0.00%	1,498,080	33.29%	100.00%	1,498,080	22.19%	1-Oct-08
	1.1.1.2.1.7 RRRPN Empreendimentos e Participações S.A	09.608.284/0001-78	-	0.00%	0.00%	5,760	0.13%	100.00%	5,760	0.09%	1-Oct-08
	1.1.1.2.1.8 Other shareholders		9	0.00%	100.00%	-	0.00%	0.00%	9	0.00%
	Total		2,250,000	100.00%	33.33%	4,500,000	100.00%	66.67%	6,750,000	100.00%
	10 - Entity: 1.1.2.1.1 Camargo Corrêa Construções e Participações S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		2,398,357,921	100.00%	100.00%	-	0.00%	0.00%	2,398,357,921	100.00%
	1.1.2.1.1.1 Camargo Corrêa S.A.	01.098.905/0001-09	2,398,357,921	100.00%	100.00%	-	0.00%	0.00%	2,398,357,921	100.00%	15-Oct-13
	Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
	1.1.2.1.1.2 Other shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
	Total		2,398,357,921	100.00%	100.00%	-	0.00%	0.00%	2,398,357,921	100.00%
											(continue)

109


	11 - Entity: 1.1.1.2.1.1 RCABON Empreendimentos e Participações S.A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		749,850	100.00%	99.99%	40	26.67%	0.01%	749,890	99.99%
	1.1.1.2.1.1.1 Rosana Camargo de Arruda Botelho	535.804.358-68	749,850	100.00%	99.99%	40	26.67%	0.01%	749,890	99.99%	1-Oct-08
	Noncontrolling shareholders		-	0.00%	0.00%	110	73.33%	100.00%	110	0.01%
	1.1.1.2.1.1.2 Other shareholders		-	0.00%	0.00%	110	73.33%	100.00%	110	0.01%
	Total		749,850	100.00%	99.98%	150	100.00%	0.02%	750,000	100.00%
	12 - Entity: 1.1.1.2.1.2 RCNON Empreendimentos e Participações S.A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		749,850	100.00%	99.99%	40	26.67%	0.01%	749,890	99.99%
	1.1.1.2.1.2.1 Renata de Camargo Nascimento	535.804.608-97	749,850	100.00%	99.99%	40	26.67%	0.01%	749,890	99.99%	1-Oct-08
	Noncontrolling shareholders		-	0.00%	0.00%	110	73.33%	100.00%	110	0.01%
	1.1.1.2.1.2.2 Other shareholders		-	0.00%	0.00%	110	73.33%	100.00%	110	0.01%
	Total		749,850	100.00%	99.98%	150	100.00%	0.02%	750,000	100.00%
	13 - Entity: 1.1.1.2.1.3 RCPODON Empreendimentos e Participações S.A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		749,850	100.00%	100.00%	-	0.00%	0.00%	749,850	99.98%
	1.1.1.2.1.3.1 Regina de Camargo Pires Oliveira Dias	153.204.398-81	749,850	100.00%	100.00%	-	0.00%	0.00%	749,850	99.98%	1-Oct-08
	Noncontrolling shareholders		-	0.00%	0.00%	150	100.00%	100.00%	150	0.02%
	1.1.1.2.1.3.2 Other shareholders		-	0.00%	0.00%	150	100.00%	100.00%	150	0.02%
	Total		749,850	100.00%	99.98%	150	100.00%	0.02%	750,000	100.00%
	14 - Entity: 1.1.1.2.1.4 RCABPN Empreendimentos e Participações S.A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		1,499,890	99.99%	100.00%	-	0.00%	0.00%	1,499,890	99.99%
	1.1.1.2.1.4.1 Rosana Camargo de Arruda Botelho	535.804.358-68	1,499,890	99.99%	100.00%	-	0.00%	0.00%	1,499,890	99.99%	1-Oct-08
	Noncontrolling shareholders		110	0.01%	100.00%	-	0.00%	0.00%	110	0.01%
	1.1.1.2.1.4.2 Other shareholders		110	0.01%	100.00%	-	0.00%	0.00%	110	0.01%
	Total		1,500,000	100.00%	100.00%	-	0.00%	0.00%	1,500,000	100.00%
	15 - Entity: 1.1.1.2.1.5 RCNPN Empreendimentos e Participações S.A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		1,499,890	99.99%	100.00%	-	0.00%	0.00%	1,499,890	99.99%
	1.1.1.2.1.5.1 Renata de Camargo Nascimento	535.804.608-97	1,499,890	99.99%	100.00%	-	0.00%	0.00%	1,499,890	99.99%	1-Oct-08
	Noncontrolling shareholders		110	0.01%	100.00%	-	0.00%	0.00%	110	0.01%
	1.1.1.2.1.5.2 Other shareholders		110	0.01%	100.00%	-	0.00%	0.00%	110	0.01%
	Total		1,500,000	100.00%	100.00%	-	0.00%	0.00%	1,500,000	100.00%
	16 - Entity: 1.1.1.2.1.6 RCPODPN Empreendimentos e Participações S.A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		1,499,850	99.99%	100.00%	-	0.00%	0.00%	1,499,850	99.99%
	1.1.1.2.1.6.1 Regina de Camargo Pires Oliveira Dias	153.204.398-81	1,499,850	99.99%	100.00%	-	0.00%	0.00%	1,499,850	99.99%	1-Oct-08
	Noncontrolling shareholders		150	0.01%	100.00%	-	0.00%	0.00%	150	0.01%
	1.1.1.2.1.6.2 Other shareholders		150	0.01%	100.00%	-	0.00%	0.00%	150	0.01%
	Total		1,500,000	100.00%	100.00%	-	0.00%	0.00%	1,500,000	100.00%
	17 - Entity: 1.1.1.2.1.7 RRRPN Empreendimentos e Participações S.A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		5,940	100.00%	100.00%	-	0.00%	0.00%	5,940	100.00%
	1.1.1.2.1.7.1 Rosana Camargo de Arruda Botelho	535.804.358-68	1,980	33.33%	100.00%	-	0.00%	0.00%	1,980	33.33%	1-Oct-08
	1.1.1.2.1.7.2 Renata de Camargo Nascimento	535.804.608-97	1,980	33.33%	100.00%	-	0.00%	0.00%	1,980	33.33%	1-Oct-08
	1.1.1.2.1.7.3 Regina de Camargo Pires Oliveira Dias	153.204.398-81	1,980	33.33%	100.00%	-	0.00%	0.00%	1,980	33.33%	1-Oct-08
	Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
	Total		5,940	100.00%	100.00%	-	0.00%	0.00%	5,940	100.00%
	18 - Entity: 1.2 Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		130,163,541	100.00%	100.00%	-	0.00%	0.00%	130,163,541	100.00%
	1.2.1 Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI	33.754.482/0001-24	130,163,541	100.00%	100.00%	-	0.00%	0.00%	130,163,541	100.00%	3-Nov-09
	Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
	Total		130,163,541	100.00%	100.00%	-	0.00%	0.00%	130,163,541	100.00%
	19 - Entity: 1.3 Bonaire Participações S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		66,728,877	100.00%	100.00%	-	0.00%	0.00%	66,728,877	100.00%
	1.3.1 Energia São Paulo Fundo de Investimento em Ações	02.178.371/0001-93	66,728,877	100.00%	100.00%	-	0.00%	0.00%	66,728,877	100.00%	21-Jul-14
	Noncontrolling shareholders		1	0.00%	100.00%	-	0.00%	0.00%	1	0.00%
	1.3.2 Other shareholders		1	0.00%	100.00%	-	0.00%	0.00%	1	0.00%
	Total		66,728,878	100.00%	100.00%	-	0.00%	0.00%	66,728,878	100.00%
	20 - Entity: 1.4 Energia São Paulo Fundo de Investimento em Ações	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		796,479,768	100.00%	100.00%	-	0.00%	0.00%	796,479,768	100.00%
	1.4.1 Fundos de Investimento em Cotas de Fundo de Investimento em Participações 114	07.792.436/0001-00	353,528,507	44.39%	100.00%	-	0.00%	0.00%	353,528,507	44.39%	16-Nov-04
	1.4.2 Fundação Petrobras de Seguridade Social - Petros	34.053.942/0001-50	181,405,069	22.78%	100.00%	-	0.00%	0.00%	181,405,069	22.78%	16-Nov-04
	1.4.3 Fundação Sabesp de Seguridade Social - Sabesprev	65.471.914/0001-86	4,823,881	0.61%	100.00%	-	0.00%	0.00%	4,823,881	0.61%	16-Nov-04
	1.4.4 Fundação Sistel de Seguridade Social	00.493.916/0001-20	256,722,311	32.23%	100.00%	-	0.00%	0.00%	256,722,311	32.23%	16-Nov-04
	Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
	Total		796,479,768	100.00%	100.00%	-	0.00%	0.00%	796,479,768	100.00%
	21 - Entity: 1.4.1 Fundos de Investimento em Cotas de Fundo de Investimento em Participações 114	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		353,528,507	100.00%	100.00%	-	0.00%	0.00%	353,528,507	100.00%
	1.4.1.1 Fundação CESP	62.465.117/0001-06	353,528,507	100.00%	100.00%	-	0.00%	0.00%	353,528,507	100.00%	16-Nov-04
	Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
	Total		353,528,507	100.00%	100.00%	-	0.00%	0.00%	353,528,507	100.00%
	22 - Entity: 1.9 BNDES Participações S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
	Controlling shareholders		1	100.00%	100.00%	-	0.00%	0.00%	1	100.00%
	1.9.1 Banco Nacional de Desenv. Econômico e Social ( 1 )	33.657.248/0001-89	1	100.00%	100.00%	-	0.00%	0.00%	1	100.00%	15-Dec-09
	Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
	Total		1	100.00%	100.00%	-	0.00%	0.00%	1	100.00%

	( 1 ) State agency - Federal Government Number of shares is expressed in units.

110

Quartely Social Report (Nine Months) 2014 /2013 (*)


Company: CPFL ENERGIA S.A.

1 - Basis for Calculation	Nine months of 2014 Value (R$ thousand)			Nine months of 2013 Value (R$ thousand)
Net Revenues (NR)	12,062,968			10,915,884
Operating Result (OR)	744,960			1,044,859
Gross Payroll (GP)	512,655			489,749
2 - Internal Social Indicators	Value (thousand)	% of GP	% of NR	Value (thousand)	% of GP	% of NR
Food	44,355	8.65%	0.37%	40,648	8.30%	0.37%
Mandatory payroll taxes	138,941	27.10%	1.15%	134,042	27.37%	1.23%
Private pension plan	27,057	5.28%	0.22%	26,830	5.48%	0.25%
Health	28,753	5.61%	0.24%	25,958	5.30%	0.24%
Occupational safety and health	2,201	0.43%	0.02%	2,303	0.47%	0.02%
Education	1,544	0.30%	0.01%	1,762	0.36%	0.02%
Culture	0	0.00%	0.00%	0	0.00%	0.00%
Trainning and professional development	5,286	1.03%	0.04%	8,684	1.77%	0.08%
Day-care / allowance	729	0.14%	0.01%	713	0.15%	0.01%
Profit / income sharing	41,424	8.08%	0.34%	31,533	6.44%	0.29%
Others	5,005	0.98%	0.04%	3,861	0.79%	0.04%
Total - internal social indicators	295,295	57.60%	2.45%	276,334	56.42%	2.53%
3 - External Social Indicators	Value (thousand)	% of OR	% of NR	Value (thousand)	% of OR	% of NR
Education	70	0.01%	0.00%	890	0.09%	0.01%
Culture	6,148	0.83%	0.05%	8,297	0.79%	0.08%
Health and sanitation	343	0.05%	0.00%	634	0.06%	0.01%
Sport	0	0.00%	0.00%	153	0.01%	0.00%
War on hunger and malnutrition	0	0.00%	0.00%	0	0.00%	0.00%
Others	5,092	0.68%	0.04%	2,556	0.24%	0.02%
Total contributions to society	11,653	1.56%	0.10%	12,530	1.20%	0.11%
Taxes (excluding payroll taxes)	3,381,993	454.06%	28.04%	3,237,409	309.84%	29.66%
Total - external social indicators	3,393,646	455.62%	28.14%	3,249,939	311.04%	29.77%
4 - Environmental Indicators	Value (thousand)	% of OR	% of NR	Value (thousand)	% of OR	% of NR
Investments relalated to company production / operation	24,079	3.23%	0.20%	31,734	3.04%	0.29%
Investments in external programs and/or projects	38,615	5.18%	0.32%	40,742	3.90%	0.37%
Total environmental investments	62,694	8.42%	0.52%	72,476	6.94%	0.66%
Regarding the establishment of "annual targets" to minimize residues, the consumption in production / operation and increase efficiency in the use of natural resources, the company:	( ) do not have targets ( ) fulfill from 51 to 75% ( ) fulfill from 0 to 50% (X) fulfill from 76 to 100%			( ) do not have targets ( ) fulfill from 51 to 75% ( ) fulfill from 0 to 50% (X) fulfill from 76 to 100%
5 - Staff Indicators	Nine months of 2014			Nine months of 2013
Nº of employees at the end of period	8,921			8,386
Nº of employees hired during the period	1,804			1,388
Nº of outsourced employees	ND			ND
Nº of interns	185			226
Nº of employees above 45 years age	2,100			1,989
Nº of women working at the company	2,062			1,906
% of management position occupied by women	8.72%			10.04%
Nº of Afro-Brazilian employees working at the company	1,593			1,224
% of management position occupied by Afro-Brazilian employees	1.22%			2.17%
Nº of employees with disabilities	272			278
6 - Relevant information regarding the exercise of corporate citizenship	Nine months of 2014			Nine months of 2013
Ratio of the highest to the lowest compensation at company	24.43			23.83
Total number of work-related accidents	40			20
Social and environmental projects developed by the company were decided upon by:	( ) directors	(X) directors and managers	( ) all employees	( ) directors	(X) directors and managers	( ) all employees
Health and safety standards at the workplace were decided upon by:	( ) directors and managers	( ) all employees	(X) all + Cipa	( ) directors and managers	( ) all employees	(X) all + Cipa
Regarding the liberty to join a union, the right to a collective negotiation and the internal representation of the employees, the company:	( ) does not get involved	( ) follows the OIT rules	(X) motivates and follows OIT	( ) does not get involved	( ) follows the OIT rules	(X) motivates and follows OIT
The private pension plan contemplates:	( ) directors	( ) directors and managers	(X) all employees	( ) directors	( ) directors and managers	(X) all employees
The profit / income sharing contemplates:	( ) directors	( ) directors and managers	(X) all employees	( ) directors	( ) directors and managers	(X) all employees
In the selection of suppliers, the same ethical standards and social / environmental responsibilities adopted by the company:	( ) are not considered	( ) are suggested	(X) are required	( ) are not considered	( ) are suggested	(X) are required
Regarding the participation of employees in voluntary work programs, the company:	( ) does not get involved	( ) supports	(X) organizes and motivates	( ) does not get involved	( ) supports	(X) organizes and motivates
Total number of customer complaints and criticisms:	in the company	in Procon	in the Courts	in the company (**)	in Procon (**)	in the Courts
Total number of customer complaints and criticisms:	1,414,838	1,043	4,317	1,298,605	744	4,813
% of complaints and criticisms attended to or resolved:	in the company	in Procon	in the Courts	in the company (**)	in Procon (**)	in the Courts
% of complaints and criticisms attended to or resolved:	100%	100%	35.5%	100%	100%	7.2%
Total value-added to distribute (R$ 000):	Nine months of 2014	5,994,615		Nine months of 2013	5,835,555
Value-Added Distribution (VAD):	58.1% government 10% employees 5.2% shareholders 25% third parties 1.7% retained			57.2% government 9.8% employees 6.2% shareholders 22.3% third parties 4.5% retained
7 - Other information
Responsible: Sergio Luiz Felice, phone: 55-19-3756-8018, [email protected]
(*) Information not reviewed by the independent auditors

111

Shareholders of CPFL Energia S/A holding more than 5% of the shares of the same type and class, as of September 30, 2014:

Shareholders		Common shares		Interest - %
ESC Energia S.A.		234,092,930		24.33
BB Carteira Livre I FIA		288,569,602		29.99
Bonaire Participações S.A.		6,308,790		0.66
Energia São Paulo FIA		136,820,640		14.22
Caixa de Previdência dos Funcionários do Banco do Brasil - Previ		477,700		0.05
Camargo Correa S.A.		837,860		0.09
Fundação Petrobras de Seguridade Social - Petros		1,759,900		0.18
Fundação Sistel de Seguridade Social		19,500		0.00
BNDES Participações S.A.		64,842,768		6.74
Other shareholders		228,544,570		23.75
Total		962,274,260		100.00

Quantity and characteristic of secutiries held by directly or indirectly Controlling Shareholders, Executive Officers, Board of Directors, Fiscal Council and Free Float, as of Sptember 30, 2014 and 2013:

		September 30, 2014				September 30, 2013
Acionistas		Common shares		Interest - %		Common shares		Interest - %
Controlling shareholders		668,886,922		69.51		668,896,922		69.51
Administrator		-		-		-		-
Members of the Executive Officers		102,300		0.01		102,350		0.01
Members of the Board of Directors		800		0.00		-		-
Fiscal Council Members		-		-		-		-
Other shareholders		293,284,238		30.48		293,274,988		30.48
Total		962,274,260		100.00		962,274,260		100.00
Outstanding shares - free float		293,284,238		30.48		293,274,988		30.48

The Company is committed to arbitration in the Market Arbitratoin Chamber, in accordance with the

Arbitration Clause in Article 44 of the Company’s By-Laws.

112

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

To the Board of Directors and Shareholders of

CPFL Energia S.A.

São Paulo - SP

Introduction

We have reviewed the accompanying individual and consolidated interim financial information
of CPFL Energia S.A. (“CPFL Energia” or “Company”), identified as Parent Company and Consolidated, respectively, included in the Interim Financial Information Form (“ITR”), for the quarter ended September 30, 2014, which comprises the balance sheets as of September 30, 2014, and related statements of income, comprehensive income for the three-month and nine-month periods then ended, changes in shareholders' equity and cash flows for the nine-month period then ended, including the explanatory notes.

Management is responsible for the preparation of these individual interim financial information
in accordance with technical pronouncement CPC 21 (R1) - Interim Financial Reporting and consolidated interim financial information in accordance with technical pronouncement CPC 21 (R1) and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as for the presentation of such information in accordance with the standards issued by the Brazilian Securities and Exchange Commission (“CVM”) applicable to the preparation of Interim Financial Information (“ITR”). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and International standards on review
of interim financial information statement (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with standards on auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual interim financial information

Based on our review, nothing has come to our attention that causes us to believe that
the accompanying individual interim financial information included in the Interim Financial Information Form referred to above is not prepared, in all material respects, in accordance
with technical pronouncement CPC 21 (R1) applicable to the preparation of Interim Financial Information (“ITR”) and presented in accordance with the standards issued by the Brazilian Exchange and Securities Commission (“CVM”).

Conclusion on the consolidated interim financial information

113

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information included in the Interim Financial Information Form referred to above is not prepared, in all material respects, in accordance
with technical pronouncement CPC 21 (R1) and IAS 34 applicable to the preparation of Interim Financial Information (“ITR”) and presented in accordance with the standards issued by the Brazilian Securities Commission (“CVM”).

Emphases of matter

Founds Transferred from Energy Development Account - CDE

As mentioned in note 26.1, the Company and its subsidiaries recorded as a reduction of cost of energy purchased, founds transferred directly from the Energy Development Account (“CDE”) and through the Chamber of Electric Energy Commercialization (“CCEE”) concerning to the three-month and nine-month periods ended September 30, 2014. Our conclusion is not modified due to this matter.

Other matters

Statements of value added

We have also reviewed the individual and consolidated statements of value added (“DVA”)
for the nine-month period ended September 30, 2014, prepared under Management's responsibility, the presentation of which is required by the standards issued by the Brazilian Securities and Exchange Commission (“CVM”) applicable to the preparation of Interim Financial Information (ITR) and is considered as supplemental information for IFRSs that do not require the presentation of DVA. These statements were subject to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that there are not fairly presented, in all material respects, in relation to the individual and consolidated interim financial information taken as a whole.

Campinas, October 31, 2014

DELOITTE TOUCHE TOHMATSU	Marcelo Magalhães Fernandes
Auditores Independentes	Engagement Partner

The sheets related to the Interim Financial Information (ITR) reviewed by us are marked for identification purposes only.

114

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 10, 2014

CPFL ENERGIA S.A.

	By:	/S/ GUSTAVO ESTRELLA
	Name: Title:	Gustavo Estrella Chief Financial Officer and Head of Investor Relations

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.