6-K

Provisioned Amount:

Guarantee due on 12/31/2014

Movement in the period

Guarantee due on 12/31/2015

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of April 2016

Commission File Number 1-34129

CENTRAIS ELÉTRICAS BRASILEIRAS S.A. -

ELETROBRAS

(Exact name of registrant as specified in its charter)

BRAZILIAN ELECTRIC POWER COMPANY

(Translation of Registrant’s name into English)

Avenida Presidente Vargas, 409 - 13th floor,

Edifício Herm. Stoltz - Centro, CEP 20071-003,

Rio de Janeiro, RJ, 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 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

Explanatory Note

This Form 6-K includes a free translation of the financial statements originally issued in Portuguese by Centrais Elétricas Brasileiras S.A. – Eletrobras which comprise the balance sheets as of December 31, 2015 and 2014, and respective statements of income, comprehensive income, changes in stockholders’s equity and cash flows for the years then ended, prepared in accordance with accounting practices adopted in Brazil and International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). Also included is a free translation of the independent auditor’s report originally issued in Portuguese by KPMG Auditores Independentes. This report, states that the audit was conducted in accordance with generally accepted auditing standard in Brazil and ISAB and includes a qualification regarding risks relating to compliance with laws and regulations - Car Wash Operation. The financial statements as prepared by management include in footnote 4 XI the same qualifications. The Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários) did not object to Eletrobras’ filing of the financial statements with the qualifications by both management and in the opinion issued by KPMG Auditores Independentes.

Based on certain ongoing investigations as described by Eletrobras in footnote 4 XI, KPMG Auditores Independentes has informed us that, at this date, it is not possible to conclude the audit in accordance with the standards of the Public Company Accounting Oversight Board (PCOB). Therefore, there can be no assurance that the content of any report ultimately issued in accordance with PCAOB standards will be the same as that issued in accordance with Brazilian auditing standards. Also, the U. S. Securities and Exchange Commission (SEC) generally interprets Regulation S-X Rule 2-02(b), which is incorporated into Form 20-F, to require an unqualified audit report from a registered public accounting firm.

Translation of Independent auditor’s report on the financial statements

This audit report has been translated for convenience purpose and was issued originally in Portuguese solely for the purpose of complying with rules and regulations of the Brazilian securities and exchange commission CVM – Comissao de Valores Mobiliarios, therefore solely for use in Brazil. KPMG Auditores Independentes accepts no responsibility for the use of this audit report outside of Brazil or for any other purpose.

The Officers and Shareholders of

Centrais Elétricas Brasileiras S.A. - Eletrobras

Brasília – Distrito Federal

We have examined the accompanying individual and consolidated financial statement of Centrais Elétricas Brasileiras S.A. - Eletrobras (“Company”), identified as Parent Company and Consolidated, respectively, which comprise the balance sheets as of December 31, 2015 and respective statements of income, comprehensive income, changes in stockholders’s equity, cash flows for the year then ended, as well as summary of significant accounting policies and other notes to the financial statements.

Management’s responsibility for the financial statements

The Company management is responsible for the preparation and fair presentation of the individual and consolidated financial statements in accordance with accounting practices adopted in Brazil and International Financial Reporting Standards (IFRS), issued by the Internacional Accounting Standards Board (IASB) as well as for the internal controls as it considers necessary to enable the preparation of financial statements free of material misstatements, regardless of whether due to fraud error.

Independent auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit, conducted in accordance with the Brazilian and International Standards on Auditing. These standards require compliance with ethical requirements by the auditor and that the audit is planned and performed for the purpose of obtaining reasonable assurance that the financial statements are free from material misstatements.

An audit involves performing selected procedures to obtain evidence with respect to the amounts and disclosures presented in the financial statements. The procedures selected depend on the auditor’s judgment, and include the assessment of the risks of material misstatements of the financial statements, regardless of whether due to fraud or error. In the assessment of the risks, the auditor considers the relevant internal controls for the preparation and fair presentation of the Company’s financial statements, in order to plan audit procedures that are appropriate in the circumstances, but not for purposes of expressing an opinion on the effectiveness of the Company’s internal controls. An audit also includes evaluating the adequacy of the accounting practices used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements taken as a whole.

We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

Basis for qualified opinion

Risks relating to compliance with laws and regulations - Car Wash Operation

As further described in note 4, item XI, in connection with the investigation processes by federal public authorities in the operation known as “Lava Jato” (Car Wash), the Company became aware of alleged illegal acts, including bribery payments by management and former management of constructing suppliers involved on certain projects, to employees and/or management and/or executive directors of the Company and/or of its consolidated investees and/or of investees accounted for under the equity method.

Consequently, as approved by its Board of Directors, the Company hired a specialized independent firm to conduct an investigation related to the Car Wash operation and potential lack of compliance with laws and regulations applicable in Brazil and in the USA. In addition, the Company hired an Independent Special Commission to conduct an oversight of such investigation.

As the actions in respect of such investigation are still in progress, without any conclusive results, eventual impacts resulting from the ultimate resolution of this matter on the Company’s financial statements as of and for the year ended December 31, 2015 are still unknown and could not be reasonably estimated by the Company. Consequently, it was not possible for us to determine if it was necessary adjustments or disclosures, as a result of such matter, in the financial statements mentioned above.

Qualified opinion

In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the individual and consolidated financial statements referred to above present fairly, in all material respects, the individual and consolidated financial position of the Company as at December 31, 2015, and its individual and consolidated financial performance and its respectives cash flows for the year then ended in accordance with accounting practices adopted in Brazil and in accordance with International Financial Reporting Standards (IFRS), issue by International Accounting Standards Board (IASB.).

Emphasis of matter

Receivables subject to approval by the regulatory agency

As described in Note 2.1, at the end of the fiscal year 2012, the Company accepted the conditions for early renewal of some generation and transmission concessions established by the Federal Government of Brazil, resulting in changes in the profitability of such concessions as of 2013 and the right for certain residual balances of transmission and generation assets, subject to approval by the National Electricity Regulatory Agency (ANEEL). On December 31, 2015, the residual balances of generation and transmission assets object of such indemnification amounted to R$ 10,972,365 thousand and were determined by the Company from its best estimates and interpretation of the legislation, and may change until the final approval and their realization.

Our opinion is not qualified in light of this issue.

Going concern of the subsidiaries and affiliated companies

As mentioned in Note 16, the subsidiaries of the power distribution segment and also the generation subsidiaries Eletrobras Termonuclear SA (Eletronuclear) and Companhia de Geração Térmica de Energia Elétrica (CGTEE) have been presenting continuous losses in their operations, negative working capital and/or liabilities in excess of assets, and the associates Norte Energia S.A., Madeira Energia S.A., ESBR Participações S.A., São Manoel e Teles Pires Participações S.A have relevant negative working capital at December 31, 2015. In addition, as described in Note 2, the concessions of these distribution subsidiaries expired on July 15, 2015, and to this date, there is no evidence of renewal. The operational continuity of the subsidiaries and associates mentioned above. depends on financial support from third parties, the Company and/or other shareholders.

Our opinion is not qualified in light of these issues.

Other matters

Statements of value added

We have examined the individual and consolidated statements of value added (DVA) for the year ended at December 31, 2015, the presentation of which is required by Brazilian corporation law for public companies, which is the responsibility of the Company’s management, considered as supplementary information by IFRS, which does not require the presentation of the statements of added value. The statement were submitted to same audit procedures described previously and, in our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph, nothing has come to our attention that causes us to believe that they were not prepared, in all material respects, consistently with the individual and consolidated financial information taken as a whole.

Rio de Janeiro, March 30, 2016

KPMG Auditores Independentes

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CENTRAIS ELÉTRICAS BRASILEIRAS S.A - ELETROBRAS

BALANCE SHEET OF YEARS ENDING ON DECEMBER 31, 2015 AND 2014

( in thousands of reais )


		PARENT COMPANY				CONSOLIDATED

ASSETS	NOTE	12/31/2015		12/31/2014		12/31/2015		12/31/2014

CURRENT
Cash and cash equivalents	5		691,719		88,194		1,393,973		1,407,078
Restricted cash	5		647,433		1,743,525		647,433		1,743,525
Marketable Securities	6		3,454,526		421,817		6,842,774		3,730,345
Accounts receivables	7		379,214		399,133		4,137,501		4,427,216
Financial assets - concessions and Itaipu	18		371,007		2,387,622		965,212		3,437,521
Financing and loans	9		6,820,948		5,228,931		3,187,226		2,696,021
Fuel Consumption Account - CCC	26		195,966		521,964		195,966		521,964
Equity investment income	10		255,468		677,544		309,360		289,574
Recoverable taxes	11		373,962		591,217		716,651		900,431
Income tax and social contribution	11		928,743		374,504		1,475,598		762,726
Reimbursment rights	12		-		-		2,265,242		3,673,639
Warehouse			360		798		631,669		512,614
Nuclear fuel inventory	13		-		-		402,453		340,319
Indemnification - Law 12.783/2013	8		-		-		-		3,738,295
Derivatives	44		-		-		21,307		124,635
Hydrological risk	15		-		-		195,830		-
Business Acquisition - Assets	43		-		-		4,623,785		-
Others			239,811		377,540		1,425,416		2,245,290

TOTAL CURRENT ASSETS			14,359,157		12,812,789		29,437,396		30,551,193

NON-CURRENT
LONG-TERM ASSETS
Reimbursment rights	12		-		-		8,238,140		6,129,423
Financing and loans	9		30,277,797		27,327,950		14,400,394		11,988,543
Accounts receivables	7		125,383		174,324		1,833,457		1,743,504
Marketable Securities	6		191,763		204,665		194,990		224,734
Nuclear fuel inventory	13		-		-		578,425		661,489
Recoverable taxes	11		-		-		2,623,186		2,538,131
Income tax and social contribution	11		1,645,382		1,464,148		3,067,591		2,467,631
Collateral and deposits			2,204,685		1,558,624		5,079,707		3,808,155
Fuel Consumption Account - CCC	26		13,331		3,944		13,331		3,944
Financial assets - Concessions and Itaipu	18		3,078,559		2,948,729		28,416,433		28,969,262
Derivatives	44		-		-		25,004		135,276
Advancements for future capital increase	14		189,493		175,636		1,215,532		1,140,633
FUNAC refund			-		-		-		595,445
Hydrological risk	15		-		-		598,161		-
Others			2,116,312		859,843		1,487,335		1,070,214

			39,842,705		34,717,863		67,771,686		61,476,384

INVESTMENTS
Evaluated by the equity method	16		39,794,944		47,387,245		20,777,270		18,700,146
Maintained at fair value	16		1,018,143		1,212,142		1,177,260		1,370,371

			40,813,087		48,599,387		21,954,530		20,070,517

PP&E	17		148,246		127,623		29,546,645		31,168,232

Intangible Assets	19		-		9,714		935,151		1,365,371

TOTAL NON-CURRENT ASSETS			80,804,038		83,454,587		120,208,012		114,080,504



TOTAL ASSETS			95,163,195		96,267,376		149,645,408		144,631,697

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CENTRAIS ELÉTRICAS BRASILEIRAS S.A - ELETROBRAS

BALANCE SHEET OF YEARS ENDING ON DECEMBER 31, 2015 AND 2014

( in thousand reais )


		PARENT COMPANY						CONSOLIDATED

	NOTE	12/31/2015			12/31/2014			12/31/2015			12/31/2014
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT
Financing and loans	23		2,572,745			2,759,514			4,224,448			4,931,531
Debentures	24		-			-			357,226			325,732
Compulsory Loan	25		57,630			50,215			57,630			50,215
Suppliers	21		416,126			548,589			10,128,507			7,489,134
Customer Advances	22		593,404			448,759			648,236			501,572
Taxes payable	27		280,637			58,736			1,556,578			1,168,168
Income tax anbd social contribution	27		196,000			-			581,344			18,138
Fuel Consumption Account - CCC	26		-			301,471			-			301,471
Shareholders’ compensation	29		42,478			61,995			84,076			64,402
Estimated obligations			109,497			96,107			1,018,788			1,174,679
Refund obligations	12		299,632			655,158			396,208			702,728
Post-employment benefits	30		22,557			10,856			114,861			258,898
Provisions for contingencies	31		543,345			-			590,725			32,082
Regulatory Fees	28		-			-			695,400			930,297
Lease	23		-			-			132,972			74,507
Concessions payable - use of public property			-			-			3,920			3,645
Derivatives	44		18,860			24,706			20,608			26,573
Business Acquisition - Liabilities	43		412,225			-			5,575,009			-
Others			123,133			118,365			1,913,107			1,230,236

TOTAL CURRENT LIABILITIES			5,688,269			5,134,471			28,099,643			19,284,008

NON-CURRENT
Financing and loans	23		27,463,707			23,260,512			42,173,812			34,607,594
Suppliers	21		-			-			9,449,421			10,047,367
Debentures	24		-			-			205,248			434,191
Advancement from clients	22		-			-			659,082			718,451
Compulsory Loan	25		466,005			469,459			466,005			469,459
Asset decommission oblitaion	32		-			-			1,201,186			1,314,480
Operational provisions			-			1,100,499			-			1,100,499
Fuel Consumption Account - CCC	26		452,948			474,770			452,948			474,770
Provisions for contingencies	31		8,901,900			4,829,381			13,556,129			8,950,364
Post-employment benefits	30		252,966			448,407			1,858,824			2,001,268
Provisions for outstanding liabilities	42		7,793,798			2,794,236			257,907			97,449
Onerous contracts	34		-			-			1,489,292			1,130,201
Refund obligations	12		-			-			2,483,378			2,529,893
Lease	23		-			-			1,119,183			1,252,154
Concessions payable - use of public property			-			-			59,644			59,815
Advancement for future capital increase	33		219,294			193,606			219,294			193,606
Derivatives	44		-			-			78,521			70,336
Regulatory Fees	28		-			-			462,195			609,721
Taxes payable	27		181,991			-			900,309			837,551
Income tax and social contribution	27		733,289			291,878			1,003,796			569,380
Others			917,014			730,606			1,710,369			1,030,640

TOTAL NON-CURRENT LIABILITIES			47,382,912			34,593,354			79,806,543			68,499,189

SHAREHOLDERS’ EQUITY
Capital stock	36		31,305,331			31,305,331			31,305,331			31,305,331
Capital reserves	36		26,048,342			26,048,342			26,048,342			26,048,342
Profit reserves	36		-			2,259,039			-			2,259,039
Adjustments to equity			39,452			42,947			39,452			42,947
Accrued losses			(12,181,172	)		-			(12,181,172	)		-
Other comprehensive income			(3,113,481	)		(3,116,108	)		(3,113,481	)		(3,116,108	)
Values recognized in ORA classified as assets held for sale			(6,458	)		-			(6,458	)		-
Non-controlling shareholders			-			-			(352,792	)		308,949

TOTAL SHAREHOLDERS’ EQUITY			42,092,014			56,539,551			41,739,222			56,848,500

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			95,163,195			96,267,376			149,645,408			144,631,697

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CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRAS

INCOME STATEMET FOR THE YEARS ENDING ON DECEMBER 31, 2015 AND 2014

( in thousands of reais )


		PARENT COMPANY						CONSOLIDATED

	NOTE	12/31/2015			12/31/2014			12/31/2015			12/31/2014

NET OPERATIONAL REVENUE	38		2,497,392			2,708,903			32,588,838			30,137,807


OPERATIONAL COSTS

Energy purchased for resale and charges upon use of eletricity network	41		(2,869,832	)		(3,007,183	)		(10,766,227	)		(10,424,699	)
Fees for using the electric grid			-			-			(1,737,959	)		(1,523,379	)
Fuel to produce electricity			-			-			(1,249,836	)		(1,479,633	)
Construction			-			-			(3,237,537	)		(2,899,648	)

			(2,869,832	)		(3,007,183	)		(16,991,559	)		(16,327,359	)

GROSS INCOME			(372,440	)		(298,280	)		15,597,279			13,810,448


OPERATIONAL EXPENSES

Personnel, material, and services	40		(520,505	)		(496,823	)		(9,495,417	)		(8,485,373	)
Compensation and refund			-			-			(348,874	)		(386,824	)
Depreciation			(5,368	)		(6,271	)		(1,417,856	)		(1,387,034	)
Amortization			-			-			(424,744	)		(390,262	)
Donations and contributions			(167,659	)		(198,220	)		(215,116	)		(251,415	)
Operating provisions / reversals	42		(10,232,634	)		(3,836,562	)		(14,639,285	)		(1,754,660	)
Plan of personnel adjustment			-			-			-			(219,299	)
Others			(538,531	)		(345,618	)		(2,131,954	)		(1,675,350	)

			(11,464,697	)		(4,883,494	)		(28,673,246	)		(14,550,217	)

OPERATIONAL INCOME BEFORE STATEMENT OF INCOME			(11,837,137	)		(5,181,774	)		(13,075,967	)		(739,769	)


INCOME

Financial Income
Income from interest, commissions, and fees			3,007,812			2,410,701			1,128,406			1,071,107
Income from financial applications			591,799			428,512			1,122,643			1,020,654
Additional interest on energy			425,158			90,755			709,404			323,300
Monetary adjustment assets			1,265,430			658,363			3,765,236			841,821
Exchange variation assets			10,019,982			438,794			10,251,948			3,293,940
Compensation on indemnities - Law 12.783/13			-			-			115,407			1,018,952
Updating regulatory asset			-			-			229,608			-
Gains with derivatives			-			-			-			382,614
Other financial income			118,341			98,539			629,589			747,433

Financial expenses
Debts			(2,448,285	)		(1,510,250	)		(6,340,459	)		(3,448,734	)
Fees with leases			-			-			(273,391	)		(279,716	)
Fees on shareholders’			(27,250	)		(55,090	)		(40,511	)		(87,047	)
Monetary adjustment liabilities			(14,887	)		-			(1,362,380	)		(495,680	)
Exchange variation liabilities			(8,724,960	)		-			(10,219,318	)		(2,998,387	)
Updating regulatory liabilities			-			-			(130,502	)		-
Loss with derivatives			-			-			(221,666	)		-
Other financial expenses			(288,950	)		(124,273	)		(1,063,039	)		(695,632	)

			3,924,190			2,436,051			(1,699,025	)		694,625

RESULT PRIOR TO EQUITY			(7,912,947	)		(2,745,723	)		(14,774,992	)		(45,144	)

RESULT OF EQUITY METHOD INVESTMENTS	39		(5,879,344	)		(49,267	)		531,446			(1,216,840	)

OPERATIONAL INCOME BEFORE TAXES			(13,792,291	)		(2,794,990	)		(14,243,546	)		(1,261,984	)


Current income tax and social contribution	27		(169,455	)		-			(546,812	)		(82,483	)
Deferred income tax and social contribution	27		(479,861	)		(236,065	)		(163,300	)		(1,618,035	)


NET LOSS			(14,441,607	)		(3,031,055	)		(14,953,658	)		(2,962,502	)


PORTION ATTRIBUTED TO CONTROLLING SHAREHOLDERS			(14,441,607	)		(3,031,055	)		(14,441,607	)		(3,031,055	)
PORTION ATTRIBUTED TO NON-CONTROLLING SHAREHOLDERS			-			-			(512,051	)		68,553


NET LOSS PER SHARE	37		(R$10.67665	)		(R$2.24085	)		(R$10.67665	)		(R$2.24085	)

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CENTRAIS ELÉTRICAS BRASILEIRAS S.A - ELETROBRAS

STATEMENT OF CHANGES TO SHAREHOLDERS’ EQUITY AS OF DECEMBER 31, 2015 AND 2014

( in thousand reais )

PROFIT RESERVES

CAPITAL STOCK

CAPITAL RESERVES

LEGAL

STATUTORY

ADJUSTMENTS
ON EQUITY

As of December 31, 2014

31,305,331

26,048,342

2,233,017

26,022

42,947

Accrued translation adjustments

Adjustments post-employment benefits

Fair value of financial instruments available for sale

Deferred IR/CS on other comprehensive income

Adjustment subsidiaries / affiliates

Financial instruments - hedge

Realization adjustment on equity

(3,495

)

Net loss

Proposed dividends

(26,022

)

Unclaimed shareholders’ compensation - statute of limitations

Absorption of losses

(2,233,017

)

As of December 31, 2015

31,305,331

26,048,342

39,452

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CENTRAIS ELÉTRICAS BRASILEIRAS S.A - ELETROBRAS

STATEMENT OF CHANGES TO SHAREHOLDERS’ EQUITY AS OF DECEMBER 31, 2015 AND 2014

( in thousand reais )


	ACCRUED LOSSES			OTHER COMPREHENSIVE INCOME			SHAREHOLDERS’ EQUITY PARENT COMPANY			SHAREHOLDERS’ EQUITY NON- CONTROLLING SHAREHOLDERS			CONSOLIDATED SHAREHOLDERS’ EQUITY
As of December 31, 2014		-			(3,116,108	)		56,539,551			308,949			56,848,500

Accrued translation adjustments					67,482			67,482						67,482
Adjustments post-employment benefits					247,803			247,803						247,803
Fair value of financial instruments available for sale					(113,241	)		(113,241	)					(113,241	)
Deferred IR/CS on other comprehensive income					38,502			38,502						38,502
Adjustment subsidiaries / affiliates		2,415			(243,909	)		(241,494	)		(149,690	)		(391,184	)
Financial instruments - hedge					(468	)		(468	)					(468	)
Realization adjustment on equity		3,495						-						-
Net loss		(14,441,607	)					(14,441,607	)		(512,051	)		(14,953,658	)
Proposed dividends								(26,022	)					(26,022	)
Unclaimed shareholders’ compensation - statute of limitations		21,508						21,508						21,508
Absorption of losses		2,233,017						-						-

As of December 31, 2015		(12,181,172	)		(3,119,939	)		42,092,014			(352,792	)		41,739,222

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CENTRAIS ELÉTRICAS BRASILEIRAS S. - ELETROBRAS

STATEMENT OF CHANGES TO SHAREHOLDERS’ EQUITY AS OF DECEMBER 31, 2014 AND 2013

( in thousand reais )

PROFIT RESERVE

CAPITAL STOCK

CAPITAL RESERVES

LEGAL

STATUTORY

DIVIDENDOS ADICIONAIS

ADJUSTMENTS ON EQUITY

As of January 01, 2013 - Resubmitted

31,305,331

26,048,342

2,233,017

9,916,882

433,962

208,672

Additional dividends

(433,962

)

Financial fees - Decree 2.673/98

Accrued translation adjustments

Adjustments post-employment benefits

Fair value of financial instruments available for sale

Deferred IR/CS on other comprehensive income

Adjustment subsidiaries / affiliates

Financial instruments - hedge

Realization adjustment on equity

(140,304

)

Realization of reserves

(739,997

)

Net profit (loss) in the year

Proposed dividends

Approval of proposed dividends by AGO

433,962

Absorbtion of losses

(6,186,949

)

As of December 31, 2013 - Resubmitted

31,305,331

26,048,342

2,233,017

2,989,936

433,962

68,368

Additional dividends

(433,962

)

Acquisition of investments

Accrued translation adjustments

Adjustments post-employment benefits

Fair value of financial instruments available for sale

Deferred IR/CS on other comprehensive income

Adjustment subsidiaries / affiliates

Financial instruments - hedge

Realization adjustment on equity

(25,421

)

Realization of reserves

67,141

Net profit (loss) in the year

Unclaimed shareholders’ compensation - statute of limitations

Absorption of losses

(3,031,055

)

As of December 31, 2014

31,305,331

26,048,342

2,233,017

26,022

42,947

LOGO

CENTRAIS ELÉTRICAS BRASILEIRAS S. - ELETROBRAS

STATEMENT OF CHANGES TO SHAREHOLDERS’ EQUITY AS OF DECEMBER 31, 2014 AND 2013

( in thousand reais )



	ACCRUED LOSSES			OTHER COMPREHENSIVE INCOME			SHAREHOLDERS’ EQUITY PARENT COMPANY			SHAREHOLDERS’ EQUITY NON-CONTROLLING SHAREHOLDERS			CONSOLIDATED SHAREHOLDERS’ EQUITY
As of January 01, 2013 - Resubmitted		-			(2,273,587	)		67,872,619			196,648			68,069,267

Additional dividends								(433,962	)					(433,962	)
Financial fees - Decree 2.673/98								-						-
Accrued translation adjustments					38,889			38,889						38,889
Adjustments post-employment benefits					609,151			609,151						609,151
Fair value of financial instruments available for sale					(180,080	)		(180,080	)					(180,080	)
Deferred IR/CS on other comprehensive income					(277,069	)		(277,069	)					(277,069	)
Adjustment subsidiaries / affiliates					398,028			398,028			3,262			401,290
Financial instruments - hedge					(12,190	)		(12,190	)					(12,190	)
Realization adjustment on equity		127,927						(12,377	)					(12,377	)
Realization of reserves		739,997						-						-
Net profit (loss) in the year		(6,186,949	)					(6,186,949	)		(4,712	)		(6,191,661	)
Proposed dividends		(433,962	)					(433,962	)					(433,962	)
Approval of proposed dividends by AGO		(433,962	)					-						-
Absorbtion of losses		6,186,949						-						-

As of December 31, 2013 - Resubmitted		-			(1,696,858	)		61,382,098			195,198			61,577,296

Additional dividends								(433,962	)					(433,962	)
Acquisition of investments								-			43,252			43,252
Accrued translation adjustments					(58,137	)		(58,137	)					(58,137	)
Adjustments post-employment benefits					(407,875	)		(407,875	)					(407,875	)
Fair value of financial instruments available for sale					77,888			77,888						77,888
Deferred IR/CS on other comprehensive income					(26,482	)		(26,482	)					(26,482	)
Adjustment subsidiaries / affiliates					(993,232	)		(993,232	)		1,946			(991,286	)
Financial instruments - hedge					(11,412	)		(11,412	)					(11,412	)
Realization adjustment on equity		25,421						-						-
Realization of reserves		(67,141	)					-						-
Net profit (loss) in the year		(3,031,055	)					(3,031,055	)		68,553			(2,962,502	)
Unclaimed shareholders’ compensation - statute of limitations		41,720						41,720						41,720
Absorption of losses		3,031,055						-						-

As of December 31, 2014		-			(3,116,108	)		56,539,551			308,949			56,848,500

LOGO

CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRAS

STATEMENT OF ADDED VALUE FOR YEARS ENDING ON DECEMBER 31, 2015 AND 2014

( in thousands of reais )


	PARENT COMPANY						CONSOLIDATED
	2015			2014			2015			2014
1 - INCOME (EXPENSES)
Sale of goods, products, and services		3,003,060			2,907,125			43,225,876			35,626,308

		3,003,060			2,907,125			43,225,876			35,626,308

2 - INPUT ACQUIRED FROM THIRD PARTIES
Materials, services and others		(660,206	)		(458,623	)		(10,946,896	)		(9,580,553	)
Regulatory fees		-			-			(2,313,660	)		(1,005,014	)
Energy purchased for resale		(2,869,832	)		(3,007,183	)		(10,766,227	)		(10,424,699	)
Fuel for production of energy		-			-			(1,249,836	)		(1,479,633	)
Operating provisions (reversals)		(10,232,634	)		(3,943,609	)		(14,639,285	)		(1,861,707	)

		(13,762,672	)		(7,409,415	)		(39,915,904	)		(24,351,606	)



3 - GROSS ADDED VALUE		(10,759,612	)		(4,502,290	)		3,309,972			11,274,702


4 - WITHHOLDING
Depreciation, amortization, and depletion		(5,368	)		(6,271	)		(1,842,600	)		(1,777,296	)



5 - NET ADDED VALUE PRODUCED BY ENTITY		(10,764,980	)		(4,508,561	)		1,467,372			9,497,406


6 - ADDED VALUE RECEIVED IN TRANSFER
Result of Equity Method Investment		(5,879,344	)		(49,267	)		531,446			(1,216,840	)
Financial income		15,428,522			4,125,664			17,952,241			5,205,754

		9,549,178			4,076,397			18,483,687			3,988,914



7 - TOTAL ADDED VALUE TO DISTRIBUTE		(1,215,802	)		(432,164	)		19,951,059			13,486,320

ADDED VALUE DISTRIBUTION

PERSONNEL
Personnel, fees, and wages		367,137			349,395			5,756,728			5,353,573
Retirement and pension plan		31,693			34,423			248,117			255,747

		398,830			383,818			6,004,845			5,609,320

TAXES
TAXES, FEES, AND CONTRIBUTIONS		1,154,984			327,240			9,033,490			6,076,958

		1,154,984			327,240			9,033,490			6,076,958

THIRD PARTIES
Financial fees and rents		11,504,332			1,689,613			19,651,266			4,511,129
Donations and contributions		167,659			198,220			215,116			251,415

		11,671,991			1,887,833			19,866,382			4,762,544

SHAREHOLDERS
Non-controlling shareholders		-			-			(512,051	)		68,553
Profit withheld or losses in the period		(14,441,607	)		(3,031,055	)		(14,441,607	)		(3,031,055	)

		(14,441,607	)		(3,031,055	)		(14,953,658	)		(2,962,502	)



		(1,215,802	)		(432,164	)		19,951,059			13,486,320

LOGO

CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRAS

STATEMENT OF COMPREHENSIVE INCOME FOR YEARS ENDING ON DECEMBER 31, 2015 AND 2014

( in thousands of reais )


	PARENT COMPANY						CONSOLIDATED

Share in comprehensive income of subsidiaries	2015			2014			2015			2014


Net loss in the year		(14,441,607	)		(3,031,055	)		(14,953,658	)		(2,962,502	)


Other items in comprehensive income
Accrued translation adjustments		67,482			(58,137	)		121,353			(42,279	)
Actuarial gains and loss adjustments		247,803			(407,875	)		(236,798	)		(971,565	)
Deferred IR / CSLL		-			-			-			(404,332	)
Cash flow hedge adjustments		(468	)		(11,412	)		(468	)		(12,320	)
Deferred IR / CSLL		-			-			-			309
Fair value of financial instruments available for sale		(113,241	)		77,888			(109,493	)		99,820
Deferred IR / CSLL		38,502			(26,482	)		37,228			(33,939	)
Share in the comprehensive income of subsidiaries, affiliates, and companies under joint control		(243,909	)		(993,232	)		33,383			(464,478	)
Deferred IR / CSLL		-			-			1,274			411,480


Other items in comprehensive income		(3,831	)		(1,419,250	)		(153,521	)		(1,417,304	)


Total comprehensive income		(14,445,438	)		(4,450,305	)		(15,107,179	)		(4,379,806	)


Portion attributable to controlling shareholders								(14,445,438	)		(4,448,359	)
Portion attributable to non-controlling shareholders								(661,741	)		68,553


								(15,107,179	)		(4,379,806	)

LOGO

CENTRAIS ELÉTRICAS BRASILEIRAS S.A - ELETROBRAS

STATEMENT OF CASH FLOW FOR THE YEARS ENDING ON DECEMBER 31, 2015 AND 2014

(in thousand reais)


		PARENT COMPANY						CONSOLIDATED
	NOTE	12/31/2015			12/31/2014			12/31/2015			12/31/2014
OPERATIONAL ACTIVITIES

Income before income tax and social contribution			(13,792,291	)		(2,794,990	)		(14,243,546	)		(1,261,984	)
Adjustments to conciliate profit with operation-generated cash:
Depreciation and amortization			5,368			6,271			1,842,600			1,777,296
Net monetary variations			(1,250,543	)		(658,363	)		(914,656	)		(1,329,742	)
Net exchange variations			(402,289	)		(172,286	)		863,808			291,510
Financial fees			(812,876	)		(1,208,618	)		2,001,687			(109,124	)
Income from financial asset	38		-			-			(838,087	)		(714,409	)
Result of equity method investments	39		5,879,344			49,267			(531,446	)		1,216,839
Provision (reversal) for outstanding liabilities	42		5,392,577			831,851			-			-
Provision (reversal) for doubtful credits	42		15,755			(269,051	)		658,679			(122,662	)
Provision (reversal) for contingencies	42		5,698,790			3,389,682			7,073,623			3,655,627
Provision (reversal) for impairment of assets	42		(1,852	)		-			5,842,473			149,346
Provision (reversal) onerous contract	42		-			-			366,477			(1,800,401	)
Provision (reversal) for plan for personnel adjustment			-			-			-			219,299
Provision (reversal) for investment loss	42		(1,001,986	)		(411,122	)		(610,746	)		(313,672	)
Provision (reversal) for loss of financial asset	42		-			-			-			(791,868	)
Provision (reversal) for losses on fixed asset	42		-			-			-			235,064
Provision (reversal) for environmental compensations	42		-			-			-			104,904
Provision (reversal) hydrological risk - GSF	42		-			-			451,340			-
Fees on the global reversal reserve			253,348			308,167			253,348			308,167
Adjustment fair value / market value			78,107			86,621			157,066			170,509
Minor shareholders’ share			-			-			775,835			(103,868	)
Fees on shareholders’ share			27,250			55,090			40,511			87,047
Derivatives			-			-			221,666			(392,354	)
Others			382,486			169,772			333,761			513,693

			14,263,479			2,177,281			17,987,939			3,051,201

(Increase)/decresae in operational assets
Accounts receivables			-			-			130,905			(441,152	)
Marketable Securities			(2,823,260	)		1,291,683			(2,886,138	)		2,366,099
Reimbursemnt rights	12		-			-			(700,320	)		2,991,052
Warehouse			438			(60	)		(119,055	)		133,229
Nuclear fuel inventory	13		-			-			20,930			(150,590	)
Financial asset - Itaipu and public service concessions			1,886,785			136,864			1,886,785			136,864
Business Acquisition - Assets			-			-			(4,623,785	)		-
Hydrological risk			-			-			(342,651	)		-
Others			220,854			81,668			357,948			(317,166	)

			(715,183	)		1,510,155			(6,275,381	)		4,718,336

Increase/(decrease) in operational liabilities
Suppliers			21,022			74			3,094,034			7,669,536
Advancement from clients	22		-			-			(57,349	)		(53,898	)
Lease			-			-			(74,506	)		(67,166	)
Estimated obligations			13,390			48,782			(165,866	)		(153,105	)
Reimbursment obligations	12		-			-			2,491			(7,534,600	)
Regulatory fees	28		-			-			(382,423	)		29,997
Business Acquisition - Liabilities			412,225			-			5,575,009			-
Others			570,649			43,196			1,152,395			(383,602	)

			1,017,286			92,052			9,143,785			(492,838	)

Cash from operational activities			773,291			984,498			6,612,797			6,014,715


Payment of financial fees			(1,824,581	)		(891,036	)		(2,805,404	)		(1,222,341	)
Payment of fees of the global reversal reserve			(952,355	)		(216,209	)		(952,355	)		(216,209	)
Receipt of annual permitted income (financial asset)			-			-			965,764			703,266
Receipt of indemnities from financial assets	8		-			-			4,027,661			2,773,092
Receipt of financial fees			2,015,719			1,837,714			1,113,278			172,000
Payment of income tax and social contribution			(270,922	)		(275,748	)		(610,223	)		(667,150	)
Receipt of investment return on equity			708,614			614,250			412,874			106,232
Payment of pension plan			(9,023	)		(10,626	)		(201,469	)		(387,296	)
Payment of judicial contingencies	31		(663,071	)		(1,057,040	)		(904,505	)		(1,177,462	)
Juidicial deposits			(113,569	)		(696,568	)		(677,944	)		(906,386	)

Cash net of operational activities			(335,897	)		289,235			6,980,474			5,192,461


FINANCING ACTIVITIES

Loans and financing received			2,179,371			4,598,969			7,543,513			7,410,882
Payment of loan and financing - principal			(3,165,385	)		(2,086,613	)		(5,381,995	)		(3,238,117	)
Payment of shareholders’ compensation			(19,937	)		(811,950	)		(23,056	)		(814,993	)
Payment of refinancing of taxes and contributions - principal			-			-			(117,058	)		(103,785	)
Others			-			-			(2,431	)		49

Cash net of financing activities			(1,005,951	)		1,700,406			2,018,973			3,254,036


INVESTMENT ACTIVITIES

Granting of loans and financing			(1,440,381	)		(6,356,002	)		(751,524	)		(255,379	)
Receipt of loans and financing			3,735,678			3,537,458			2,539,101			506,264
Acquisition of fixed assets			(24,094	)		(1,998	)		(4,139,891	)		(2,801,858	)
Acqusition of intangible assets			-			-			(384,307	)		(117,046	)
Acquisition of concession assets			-			-			(3,153,701	)		(3,262,535	)
Acquisition/investment of capital on equity			(312,310	)		(370,347	)		(2,433,066	)		(3,903,911	)
Granting of advancement for future capital increase			(13,520	)		(13,794	)		(737,631	)		(906,024	)
Net cash flow at the acquisition of subsidiary			-			-			-			159,703
Others			-			-			48,467			(56,216	)

Cash net of investment activities			1,945,373			(3,204,683	)		(9,012,552	)		(10,637,002	)


Increase (decrease) of cash and cash equivalents			603,525			(1,215,042	)		(13,105	)		(2,190,505	)


Cash and cash equivalents at the beginning of the year	5		88,194			1,303,236			1,407,078			3,597,583
Cash and cash equivalents at the end of the year	5		691,719			88,194			1,393,973			1,407,078

			603,525			(1,215,042	)		(13,105	)		(2,190,505	)

LOGO

CENTRAIS ELÉTRICAS BRASILEIRAS S.A.

Eletrobras

(Public Company)

CNPJ 00.001.180/0001-26

Notes to the financial statements for the years ending December 31, 2015 and 2014

(In thousands of Reais)

NOTE 1 - OPERATIONAL CONTEXT

Centrais Elétricas Brasileiras S.A. (Eletrobras or the Company) is a publicly traded company, headquartered in Brasília-DF- Setor Comercial Norte, Quadra 4, Bloco B, 100, sala 203-Asa Norte, registered with the Brazilian Securities Commission - CVM and the Securities and Exchange Commission-SEC, with shares traded on the stock exchanges of the São Paulo Stock Exchange (BOVESPA) – Brazil, Madrid (LATIBEX) – Spain and New York (NYSE) – United States of America. The Company is a joint stock company controlled by the Federal Government. It has as its corporate objective the performance of studies, projects, construction and operation of generating plants, transmission lines and distribution of electricity, as well as the conclusion of acts of commerce arising out of these activities. It has as its objective, in addition, to provide financing, to provide guarantees in the country and abroad, to the public service companies of electricity and that are under its control and in favor of technical-scientific research entities; to promote and support research of interest to the electricity sector, in particular activities of generation, transmission and distribution, as well as to conduct studies of the utilization of water catchment areas for multiple purposes; to contribute to the training of the technical personnel required by the Brazilian electrical sector, as well as in the preparation of skilled workers through specialized courses and it may also grant aid to educational institutions of the country or scholarships abroad and make agreements with entities that collaborate in the training of specialized technical personnel; to collaborate, technically and administratively, with companies in relation to which it participates in shareholding and with the Ministry of Mines and Energy.

The Company performs the function of holding, managing investments in corporate participations, holding a controlling share interest in six direct companies of generation and/or transmission of electric energy, as listed below:

● Furnas Centrais Elétricas S.A. -FURNAS;

● Centrais Elétricas do Norte do Brasil S.A. -ELETRONORTE;

● Companhia Hidro Elétrica do São Francisco - CHESF;

● ELETROSUL Centrais Elétricas S.A.;

● Eletrobras Termonuclear S.A. – ELETRONUCLEAR; and

● Companhia de Geração Térmica de Energia Elétrica - CGTEE.

LOGO

Beyond the control of generation and/or transmission of electric energy, as listed above, the Company holds a direct controlling interest in seven electricity distribution companies:

● Boa Vista Energia S.A. – Boa Vista;

● Companhia de Eletricidade do Acre – Eletroacre;

● Centrais Elétricas de Rondônia - Ceron;

● Companhia Energética de Alagoas - Ceal;

● Companhia Energética do Piauí - Cepisa;

● CELG-Distribuição S.A. – Celg-D and

● Amazonas Distribuidora Energia S.A. – Amazonas D.

On December 31, 2015, the Company classified assets and liabilities of the subsidiary CELG-D. as an asset held for sale, because the Company is committed with the sale of the equities held in that subsidiary and expects that the sale will be finished by December 31, 2016. More information will be available in Note 43.

The Company still holds the controlling interest in Eletrobras Participações S.A.. – Eletropar. Additionally, it holds equity interest in Itaipu Binacional – Itaipu (under joint control pursuant to an international treaty signed between the Governments of Brazil and Paraguay), of Inambari Geração de Energia S.A., of Centrales Hidroelectricas de Centroamerica S.A.- CHC and of Rouar S.A., (under joint control with the Uruguyan State Usinas y Transmissiones Elétricas de Uruguay - UTE).

On July 1, 2015, the subsidiary Amazonas Energia started in the unbundling process, where electricity generation and transmission activities, until then provided by Amazonas Distribuidora, were separated from its distribution activity. Thus, a new company is created in the Eletrobras System, named Amazonas Geração e Transmissão de Energia S.A. (“Amazonas GT”), under direct control of Amazonas D. The second phase of the unbundling process, which is ongoing, will conclude the corporate restructuring, wherein Amazonas GT will be a wholly-owned subsidiary of Eletrobras.

The Company is an indirect controller or participates in a minority form directly or indirectly in a number of other companies in the segments of generation, transmission and distribution of electricity (see Note 16).

The commercialization of generated energy is based on two distinct market environments, being one regulated (energy destined for distribution concessionaires) and another characterized by freely contracted agreements (free market). Law No. 10.848, of March 15, 2004, provides differentiation between energy coming from new ventures and existing companies, determining the realization of separate auctions for each of these methods.

The Company is authorized, directly or through its affiliates or subsidiaries, to associate itself, with or without contribution of resources, to establish business consortia or participation in companies, with or without controlling power abroad, intended directly or indirectly for the exploration of production or transmission or distribution of electricity.

LOGO

The Company is responsible, in addition, for sectoral resource management, represented by the Global Reversion Reserve (RGR), Energy Development Account - CDE, and Fuel Consumption Account - CCC. These funds finance programs of the Federal Government for universalization of access to electricity, public lighting efficiency, incentives for alternative sources of electrical energy, electrical energy conservation and the purchase of fossil fuels used in isolated systems of electric power generation, whose financial movements do not affect the result of the Company (except for the administrative fee in certain Funds).

The Company also acts as marketing agent of electric power for Itaipu Binacional and for agents participating in the Incentive Program to Alternate Sources of Electrical Energy – PROINFA.

The issuance of these consolidated financial statements was authorized by the Board of Directors, on March 30, 2016.

NOTE 2 - PUBLIC SERVICE ELECTRIC POWER CONCESSIONS

Eletrobras, through its subsidiaries, owns 45,391 GW* of installed capacity, 68.08 thousand kilometers* of transmission lines and seven power distributors that serve approximately 6.6* million consumers, with two being, Amazonas Energia and Eletrobras Distribuição Roraima, operating in isolated systems in the northern region of Brazil (* Information not audited by the independent auditors).

LOGO

The Company, through its subsidiaries, holds various public service electric power concessions, for which the details, installed capacity and expiration dates are listed below:

I – Concessions under O&M System – renewed - Law No. 12,783/13

●

Electric power generation and Authorization



Concessions under O&M System - GENERATION

Concessions/Permits	Location	Installed Capacity (MW)*	Expiration

UHE Paulo Afonso I	BA	180	12/31/2042
UHE Paulo Afonso II	BA	443	12/31/2042
UHE Paulo Afonso III	BA	794	12/31/2042
UHE Paulo Afonso IV	BA	2,462	12/31/2042
UHE Apolônio Sales	BA	400	12/31/2042
UHE Luiz Gonzaga (Itaparica)	BA	1,480	12/31/2042
UHE Xingó	SE	3,162	12/31/2042
UHE Furnas	MG	1,216	12/31/2042
UHE Luiz Carlos Barreto de Carvalho	SP / MG	1,050	12/31/2042
UHE Marimbondo	SP / MG	1,440	12/31/2042
UHE Porto Colômbia	SP / MG	320	12/31/2042
UHE Funil	MG	216	12/31/2042
UHE Corumbá I	GO	375	12/31/2042
UHE Serra da Mesa	GO	1,275	11/12/39
UHE Funil	BA	30	12/31/2042
UHE Pedra	BA	20	12/31/2042
UHE Boa Esperança	PI	237	12/31/2042
UHE Coaracy Nunes	AP	78	12/31/2042

●

Electric power transmission


Contract	Holder	Period (years)	Expiration

057/2001	Eletrosul	30	12/31/2042
058/2001	Eletronorte	30	12/31/2042
061/2001	Chesf	30	12/31/2042
062/2001	Furnas	30	12/31/2043

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II - Principal Concessions under Exploration System

●

Electrical Power Generation



Concessions under Exploration System - GENERATION

Concessions/Permits	Location	Installed Capacity (MW)(*)		Expiration Year

UHE Sobradinho	BA / PE		1,050.3	2052
UTE Camaçari	BA		68.7	2027
UHE Belo Monte	PA		11,233.1	2045
UHE Tucuruí	PA		8,535.0	2024
UHE Samuel	RO		216.8	2029
UTE Rio Madeira	RO		119.4	2018
UTE Santana	AP		177.7	2019
UTE Santarém	PA		14.8	2034
UTE Electron (7)	AM		121.1	2020
UHE Dardanelos	MT		261.0	2042
UHE Mauá	PR		177.9	2042
UHE Teles Pires	PA / MT		1,820.0	2046
UHE Jirau (1)	RO		3,750.0	2043
UTE Presidente Médici – Candiota I and II (2)	RS		446.0	2015
UTE Candiota III (3)	RS		350.0	2041
UTE Tabatinga	AM		316.4	2016
UTE Belem de Simões	AM		316.4	2016
UHE Balbina	AM		249.5	2027
UHE Aparecida	AM		282.5	2020
UTE Mauá	AM		409.5	2020
UTE Santa Cruz (6)	RJ		500.0	2015
UHE Mascarenhas de Moraes	MG		476.0	2023
UHE Itumbiara	MG / GO		2,082.0	2020
UHE Manso	MT		212.0	2035
UHE Simplício/Anta	RJ / MG		305.7	2041
UHE Peixe Angical	TO		498.8	2036
UHE Baguari	MG		140.0	2041
UHE Foz do Chapecó	Uruguay		855.0	2036
UTN Angra I	RJ		640.0	2024
UTN Angra II	RJ		1,350.0	2041
UTN Angra III	RJ		1,405.0	40 years
UHE Piloto (5)	BA		2.0	2015
UHE Araras (5)	CE		4.0	2015
UHE Curemas	PB		3.5	2024
EOL São Pedro do Lago	BA		30.0	2046
EOL Pedra Branca	BA		30.0	2046
EOL Sete Gameleiras	BA		30.0	2046
EOL Caiçara I	RN		27.0	2047
EOL Junco I	RN		24.0	2047
EOL Junco II	RN		24.0	2047
EOL Caiçara II	RN		18.0	2047

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Concessions under Exploration System - GENERATION

Concessions/Permits	Location	Installed Capacity (MW)(*)	Expiration Year
Casa Nova	BA	180.0	2043
EOL Baraúnas I	BA	29.7	2049
Morro Branco I	BA	29.7	2049
Mussambê	BA	29.7	2049
Ventos de Santa Joana XI	PI	29.6	2049
Ventos de Santa Joana XVI	PI	28.9	2049
Ventos de Santa Joana X	PI	29.6	2049
Ventos de Santa Joana XIII	PI	29.6	2049
Ventos de Santa Joana XII	PI	28.9	2049
Ventos de Santa Joana XV	PI	28.9	2049
Ventos de Santa Joana IX	PI	29.6	2049
Acauã Energia S.A.	BA	12.0	2049
Arapapá Energia S.A.	BA	10.0	2049
Angical 2 Energia S.A.	BA	14.0	2049
Teiú 2 Energia S.A.	BA	14.0	2049
Caititú 2 Energia S.A.	BA	14.0	2049
Carcará Energia S.A.	BA	10.0	2049
Carcará Energia S.A.	BA	14.0	2049
Caititú 3 Energia S.A.	BA	14.0	2049
Papagaio Energia S.A.	BA	18.0	2049
Coqueirinho 2 Energia S.A.	BA	20.0	2049
Ventos de Santa Joana IV	PI	30.0	2049
Serra das Vacas I S.A.	PE	30.0	2049
Ventos de Santa Joana V	PI	30.0	2049
Serra das Vacas II S.A.	PE	30.0	2049
Serra das Vacas III S.A.	PE	30.0	2049
Serra das Vacas IV S.A.	PE	30.0	2049
Ventos de Santa Joana III	PI	30.0	2049
Ventos de Santa Joana I	PI	30.0	2049
Ventos de Santo Augusto IV	PI	30.0	2049
Ventos de Santa Joana VII	PI	30.0	2049
Tamanduá Mirim 2 Energia S.A.	BA	24.0	2049
Banda de Couro S.A.	BA	29.7	2049
Baraúnas II S.A.	BA	21.6	2049
UHE Curuá-Una	PA	30.3	2028
UTE Rio Acre	AC	45.5	2018
UTE Rio Branco I	AC	18.7	2020
UTE Rio Branco II	AC	31.8	2020
UTE- Senador Arnon Afonso Farias	RR	86.0	2024
UTE Serra do Navio	SE	23.3	2037
Parque Eólico Miassaba 3	RN	68.5	2045

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Concessions under Exploration System - GENERATION

Concessions/Permits	Location	Installed Capacity (MW)(*)	Expiration Year
Parque Eólico Rei dos Ventos 3	RN	60.1	2045
UHE Passo São João	RS	77.0	2041
UHE São Domingos	MS	48.0	2037
PCH Barra do Rio Chapéu	SC	15.2	2034
PCH João Borges	SC	19.0	2035
PCH Coxilha Rica (4)	SC	18.0	2042
PCH Santo Cristo (3)	SC	19.5	2042
Coxilha Seca - Capão do Inglês	RS	10.0	2049
Coxilha Seca - Coxilha Seca	RS	30.0	2049
Coxilha Seca - Galpões	RS	8.0	2049
EOL Chuí I	RS	24.0	2047
EOL Chuí II	RS	22.0	2047
EOL Chuí IV	RS	22.0	2047
EOL Chuí V	RS	30.0	2047
EOL Chuí VI	RS	24.0	2047
EOL Chuí VII	RS	22.0	2047
EOL Chuí 09	RS	17.9	2049
Sant’Ana do Livramento - Cerro Chato IV	RS	10.0	2047
Sant’Ana do Livramento - Cerro Chato V	RS	12.0	2047
Sant’Ana do Livramento - Cerro Chato VI	RS	24.0	2047
Sant’Ana do Livramento - Cerro dos trindades	RS	8.0	2047
Sant’Ana do Livramento - Ibirapuitã	RS	24.0	2047
Parque Hermenegildo - Verace 24	RS	19.7	2049
Parque Hermenegildo - Verace 25	RS	7.2	2049
Parque Hermenegildo - Verace 26	RS	14.3	2049
Parque Hermenegildo - Verace 27	RS	16.1	2049
Parque Hermenegildo - Verace 28	RS	12.5	2049
Parque Hermenegildo - Verace 29	RS	17.9	2049
Parque Hermenegildo - Verace 30	RS	17.9	2049
Parque Hermenegildo - Verace 31	RS	9.0	2049
Parque Hermenegildo - Verace 34	RS	14.3	2049
Parque Hermenegildo - Verace 35	RS	12.5	2049
Parque Hermenegildo - Verace 36	RS	21.5	2049
Santa Vitória do Palmar - Verace I	RS	20.0	2047
Santa Vitória do Palmar - Verace II	RS	20.0	2047
Santa Vitória do Palmar - Verace III	RS	26.0	2047
Santa Vitória do Palmar - Verace IV	RS	30.0	2047
Santa Vitória do Palmar - Verace V	RS	30.0	2047
Santa Vitória do Palmar - Verace VI	RS	18.0	2047
Santa Vitória do Palmar - Verace VII	RS	30.0	2047
Santa Vitória do Palmar - Verace VIII	RS	26.0	2047
Santa Vitória do Palmar - Verace IX	RS	30.0	2047
Santa Vitória do Palmar - Verace X	RS	28.0	2047

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Concessions under Exploration System - GENERATION

Concessions/Permits	Location	Installed Capacity (MW)(*)	Expiration Year
Megawatt Solar	SC	0.9	-
EOL Cerro Chato I	RS	30.0	2045
EOL Cerro Chato II	RS	30.0	2045
EOL Cerro Chato III	RS	30.0	2045
UTE São Jerônimo (2)	RS	20.0	2015
UTE Nutepa (2)	RS	24.0	2015
UTE Cidade Nova (7)	AM	29.7	2015
UTE Iranduba	AM	50.0	2020
UTE Distrito (7)	AM	124.7	2015
UTE São José	AM	73.4	2016
UTE Flores	AM	124.4	2016
UTE Roberto Silveira	RJ	30.0	2027
UHE Batalha	MG / GO	52.5	2041
UHE Retiro Baixo	MG	82.0	2041
Três Irmãos	Tietê	807.5	2044
Serra do Facão	GO	212.6	2036
Santo Antonio (Mesa)	RO	3,567.50	2043
Teles Pires	PA / MT	1,819.8	2046
Rei dos Ventos 1	RN	58.5	2045
Famosa 1	RN	22.5	2047
Pau Brasil	CE	15.0	2047
Rosada	RN	30.0	2048
São Paulo	CE	17.5	2047
Bom Jesus	CE	18.0	2049
Cachoeira	CE	12.0	2049
Pitimbu	CE	18.0	2049
Jandaia	CE	28.8	2047
Jandaia 1	CE	19.2	2047
São Caetano	CE	25.2	2049
São Caetano 1	CE	18.0	2049
São Clemente	CE	19.2	2047
São Galvão	CE	22.0	2049
Carnaúba I	RN	22.0	2049
Carnaúba II	RN	18.0	2049
Carnaúba III	RN	16.0	2049
Carnaúba V	RN	24.0	2049
Cervantes I	RN	16.0	2049
Cervantes II	RN	12.0	2049
Punaú I	RN	24.0	2049
Arara Azul	RN	27.5	2049
Bentevi	RN	15.0	2049
Ouro Verde I	RN	27.5	2049
Ouro Verde II	RN	30.0	2049
Ouro Verde III	RN	25.0	2049

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Concessions under Exploration System - GENERATION

Concessions/Permits	Location	Installed Capacity (MW)(*)		Expiration Year
Santa Rosa	CE		20.0	2049
Uirapuru	CE		28.0	2049
Ventos de Angelim	CE		24.0	2049
Serra do Mel I	RN		28.0	2049
Serra do Mel II	RN		28.0	2049
Serra do Mel III	RN		28.0	2049
Itaguaçu da Bahia	BA		28.0	2049
Ventos de Santa Luiza	BA		28.0	2049
Ventos de Santa Madalena	BA		28.0	2049
Ventos de Santa Marcella	BA		28.0	2049
Ventos de Santa Vera	BA		28.0	2049
Ventos de Santo Antônio	BA		28.0	2049
Ventos de São Bento	BA		28.0	2049
Ventos de São Cirilo	BA		28.0	2049
Ventos de São João	BA		28.0	2049
Ventos de São Rafael	BA		28.0	2049
São Januário	CE		19.2	2047
Nsa Sra de Fátima	CE		28.8	2047
UHE Jirau	RO		3,750.0	2043
UHE Sinop	MT		406.0	2045
UHE São Manoel	PA		700.0	2049
Brasventos Eolo	RN		58.5	2045

1) In September 2013, the Company initiated its operation, and currently it is operation with 20 generating units, with 75 MW, for a total of 50 generating units.

2) Concession contract no. 67.

(3) In licensing phase of Installation, initiation of operation 22 months after issuance of Installation License.

(4) Initiation of construction and indefinite operation in relation to negative opinion of National Institute of Historic and Artistic Heritage.

(5) Non-operating plants with expired concession agreements, pending ANEEL authorization to dissolve the contract.

(6) Plant not yet extended.

(7) Plant currently deactivated.

III – Concessions under O&M System without renewal



Generation Companies under special Management pursuant to Law No. 12,783/2013 without renewal Concessions under O&M System

Concessions/Permits	Installed Capacity (MW) (*)	Expiration Year	Expiration Year
Dona Rita	2.41	06.2013	(1)
Sinceridade	1.42	04.2013	(1)
Neblina	6.47	04.2013	(1)
Ervália	6.97	07.2015	(1)
Coronel Domiciano	5.04	07.2015	(1)

(1) These plants have been returned to the concession grantor under the responsibility of Furnas until the conclusion of the new tender for concession of PCHs.

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The concession contract No. 067/2000, of UTEs Presidente Médici (Phases A and B), São Jerônimo and Nutepa owned by subsidiary CGTEE ended on July 7, 2015.

As set forth in the concession contract and in the applicable legislation, the subsidiary CGTEE formalized, in the proper time, the interest to renew the concession of the plants.

To date, the concession grantor has no final position on the subsidiary and, therefore, until the end of the process, the subsidiary CGTEE will keep on exploring these units under the same terms as the current concession. The Concession Grantor has not provided an estimate term to conclude this process.

The legislation does not include indication on the terms applicable to the renewal of those concessions, and it is not possible to define the impacts affecting income or assets held by the subsidiary CGTEE. Nevertheless, CGTEE measured the possible amount of compensation, according to the New Replacement Value (VNR) and maintains a provision that reduces to zero the accounting balance of the assets of UTEs São Jerônimo, Nutepa and Presidente Médici (Phase A), reflecting the expectation of no-compensation of these assets due to them being outdated.

The decision on the renewal of the concession shall be subject to analysis by the Subsidiary CGTEE, following presentation of the position by the Concession Grantor.

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IV. Electric Power Transmission


Project	State	Period (years)	Expiration
- LT Teresina II - Sobral - Fortaleza, in 500 kv	PI/CE	30	2034
- LT Colinas - Miracema - Gurupi - Peixe Nova - Serra da Mesa II, in 500kv	TO/GO	30	2036
- LT Coletora Porto Velho / Araraquara II, in 600kv	RO/SP	30	2039
- LT São Luiz II - São Luiz III, in 239 kv	MA/CE	30	2040
- LT Ceará-Mirim II - João Câmara III, in 500kv / LT Ceará-Mirim II - Campina Grande III, in 500kv/ LT Ceará-Mirim II - Extremoz II, in 230kv / LT Campina Grande III - Campina Grande II, in 230kv.	RN/PB	30	2041
- LT Luiz Gonzaga - Garanhuns, in 500kv / LT Garanhuns - Campina Grande III, in 500kv / LT Garanhuns - Pau Ferro, in 500kv / LT Garanhuns - Angelim I, in 230kv.	AL/PE/PB	30	2041
- Transmission Line Camaçari IV/Pirajá (BA), in 230 kV, in simple circuit with an approximate extension of 45 km and Transmission Line Pituaçu/Pirajá (BA), in 230 kV, in simple circuit with an approximate extension of 5 km.	BA	30	2042
- Transmission Line Eunápolis/Teixeira de Freitas II, circuit 1 (BA), in 230 kV, with an approximate extension of 145 km and Substation Teixeira de Freitas II, in 230/138 kV (BA).	BA	30	2038
- Transmission Line Russas/Banabuiu C2 (CE), in 230 kV, in simple circuit with an approximate extension of 110 km; Transmission Line Touros/Ceará MirimII (RN), in 230 kV, in simple circuit with an approximate extension of 56,17 km; Transmission Line Mossoró IV/Mossoró II (RN), in 230 kV, in simple circuit with an approximate extension of 40 km; Substation Touros, in 230 kV (RN); and Substation Mossoró IV, in 230 kV (RN).	CE / RN	30	2042
- Transmission Lines Paraíso/Açu II (RN), in 230 kV, circuit 3, with an approximate extension of 123 km, Açu/Mossoró II (RN), in 230 kV, circuit 2, with an approximate extension of 69 km and João Câmara/Extremoz II (RN), in 230 kV, C1, with an approximate extension of 82 km, Substation João Câmara, in 230 kV (RN) and Substation Extremoz II, in 230 kV (RN).	RN	30	2040
- Transmission Line Paraíso/Lagoa Nova (RN), in 230 kV, in simple circuit with an approximate extension of 65 km, and Substation Lagoa Nova, in 230/69 kV (RN).	RN	30	2041
- Transmission Line Teresina II/Teresina III (PI), in 230 kV, in double circuit, with an approximate extension of 26 km, and Substation Teresina III, in 230/69 kV (PI).	PI	30	2041
- Transmission Line Camaçari IV/Sapeaçu (BA), in 500 kV, in simple circuit with an approximate extension of 105 km.	BA	30	2041
- Transmission Line Igaporã III/Pindaí II (BA), in 230 kV, in simple circuit with an approximate extension of 46 km; Transmission Line Igaporã III/Igaporã II C1 and C2 (BA), in 230 kV, in simple circuit with an approximate extension of 2 km each; Substation Igaporã III, in 500/230 kV - (6+1) x 250 MVA (BA).	BA	30	2042
- Transmission Line Jardim/Nossa Senhora do socorro (SE), in 230 kV, in double circuit, with an approximate extension of 1,3 km; Transmission Line Messias/Maceió II (AL), in 230 kV, in double circuit, with an approximate extension of 20 km; Substation Nossa Senhora do Socorro, in 230/69 kV (SE) - 300MVA; Substation Maceió II, in 230/69 kV (AL) - 400MVA.; Substation Poções II, in 230/138 kV (BA) - 200MVA.	SE / AL / BA	30	2042
- Transmission Line Morro do Chapéu/Irecê (BA), in 230 kV, in simple circuit with an approximate extension of 65 km, and Substation Morro do Chapéu, in 230/69 kV (BA).	BA	30	2041
- Transmission Line Paraíso/Açu II (RN), in 230 kV, with extension of 132.8 km.	RN	30	2037
- Transmission Line Recife II/Suape II (PE), in 500 kV, in simple circuit with an approximate extension of 44 km.	PE	30	2041
- Transmission Line Sapeaçu/Santo Antônio de Jesus (BA), in 230 kV, in simple circuit with an approximate extension of 31 km.	BA	30	2041
- Transmission Lines Sobral III/Acaraú II (CE), in 230 kV, C2, with an approximate extension of 97 km, and Substation Acaraú II, in 230 kV (CE).	CE	30	2040
- Substation Arapiraca III, in 230/69 kV (AL), and Transmission Line, in double circuit, Rio Largo II/Penedo, in 230 kV, with an approximate extension of 44 km.	AL	30	2040

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Project	State	Period (years)	Expiration
- Transmission Line Eunápolis/Teixeira de Freitas II, circuit 2 (BA), in 230 kV, with an approximate extension of 152 km.	BA	30	2039
- Transmission Line Funil/Itapebi (BA), in 230 kV, with an approximate extension of 223 km.	BA	30	2037
- Transmission Line Ibicoara/Brumado (BA), in 230 kV, with an approximate extension of 94.5 km.	BA	30	2037
- Transmission Lines Igaporã/Bom Jesus da Lapa II (BA), in 230 kV, C1, with an approximate extension of 115 km, and Substation Igaporã, in 230 kV (BA).	BA	30	2040

- Transmission Lines Pau Ferro/Santa Rita II (PE/PB), in 230kV, with an approximate extension of 85 km .	PE / PB	30	2039
- Substation Camaçari IV in 500 kV(BA)	BA	30	2040

- Substation Ibiapina, in 230/69 kV (CE).	CE	30	2041

- Substation Mirueira II, in 230/69 kV (PE) - 300MVA and Substation Jaboatão II, in 230/69 kV (PE)- 300MVA.	PE	30	2042
- Substation Suape II in 500 kV(PE)	PE	30	2039

- Transmission Line Jardim/Penedo (SE/AL), in 230 kV, with an approximate extension of 110 km.	SE / AL	30	2038
- Transmission Line Milagres/Coremas (CE/PB), in 230 kV, with extension of 119.8 km.	CE / PB	30	2035
- Transmission Line Picos/Tauá (PI/CE), in 230 kV, with an approximate extension of 183 km.	PI / CE	30	2037
- Transmission Line Pirapama/Suape III, with extension of 41.8 km; and Substation Suape III, in 230/69 kv (PE)	PE	30	2039
- Transmission Lines and Paulo Afonso III/Zebu (AL), in 230kV, with extension of 10.8 km	BA / AL	30	2039
- Substation Ibicoara in 500/230 kV(PE)	BA	30	2037

- Substation Pólo, in 230/69 kV (BA).	BA	30	2040

Expansion of Interconnection South-Southeast	PR/ SP	30	2031

LT 230 kV - SE Ribeiro Goncalves / SE Balsas	PI / MA	30	2039

LT 230 kV - SE São Luis II / SE São Luis III	MA	30	2038

34 tranmission substations, 1 frequency converter and 9,838.33 Km of transmission lines in 525 kv, 230kv and 138 kv.	-	30	2042
Substation Missões in 230/69 kv	-	30	2039
SE Ivinhema 2 230/138 kV with 2x150 MVA expansion)	-	30	2044

LT 230 kV Collection Porto Velho/Porto Velho “C” 1 - 22km	RO	30	2039

LT 230 kV Collection Porto Velho/Porto Velho “C” 2 - 22km	RO	30	2039

LT 230 kV Monte Claro/Garibaldi 33,5km	RS	30	2040

LT 230 kV Presidente Médice/Santa Cruz 1 - 237.4km	RS	30	2038

LT 500 kv - LT Jorge Teixeira/ LT Lechuga, double circuit	AM	30	2040

LT 500 kV - LT Presidente Dutra-São Luis II / SE Miranda II	MA	30	2039

LT 525 kV Campos Novos/Blumenau 357.8km and Substation Biguaçu 525 Kv	SC	30	2035

LT 525 kV Campos Novos/Nova Rita 257.43 km and Módulos na SE Nova Santa Rita and SE Campos Novos	SC,RS	30	2036
LT 525 kV Ivaiporã/Cascavel D’oeste 203.4km	PR	30	2034

LT 525 kV Salto Santiago/Ivaiporã 168.[5km	PR	30	2034

LT Bom Despacho 3 – Ouro Preto 2 – 500 kV	MG	30	2039
LT collection 500/230 Kv Porto Velho/Porto Velho and two converters CA/CC/CA back to back in 400 MW	RO	30	2039
LT Macaé – Campos C3	RJ	30	2035

LT Mascarenhas – Linhares 230 kV – CS SE Linhares – 230/138 kV	ES	30	2040

LT Tijuco Preto – Itapeti – Nordeste 345 kV	SP	30	2036

LT 345 kV Furnas – Pimenta 2, 62.7kv	MG	30	2035

LT 500 kV Rio Verde Norte – Trindade (193 km) / LT 230 kV Trindade – Xavantes (37 km) / LT 230 kV Trindade – Carajás (29 km)	GO	30	2040

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Project	State	Period (years)	Expiration
LT Collection Porto Velho – Araraquara 2 (2.375 km) / Rectifier Station No. 2 CA/CC, in 500/±600 kV – 3,150 MW - Inverter Station No. 02 CC/CA, in ±600/500 kV – 2.950 MW	RO	30	2039
LT 230 kV Serra da Mesa - Niquelândia 100 km LT 230 kV Niquelândia – Barro Alto 88 km	GO	30	2039
LT 230 kV CS Barra dos Coqueiros – Quirinópolis 52 km LT 230 kV CD Chapadão – Jataí 256 km LT 230 kV CS Palmeiras – Edéia 60 km LT 138 kV CS Jataí – Mineiros 65 km LT 138 kV CS Mineiros - Morro Vermelho 60 km LT 138 kV CS Jataí - UTE Jataí 51 km LT 138 kV CS Jataí - UTE Perolândia LT 138 kV CS Mineiros - UTE Água Emendada LT 138 kV CS Morro Vermelho - Alto Taquari 31 km LT 138 kV CS Edéia - UTE Tropical Bioenergia I 49 km	-	30	2039
2 LT 500 kV in section of LT Campinas – Ibiúna and SE Itatiba 500/138 kV	SP	30	2039
LT 230 kV Irapé – Araçuaí 2	MG	30	2035
LT 345 kV Itutinga – Juiz de Fora	MG	30	2035
Consórcio Caldas Novas - Expansion of Substation of Usina de Corumbá 345/138 kV (150 MVA) owned by Furnas	-	30	2041
SE Niquelândia 230/69 kV	-	30	2042
LT 500 kV Barreiras II - Rio das Éguas LT 500 kV Rio das Éguas - Luziânia LT 500 kV Luziânia - Pirapora (967 km)	-	30	2043
LT 500 kV Marimbondo II - Assis, CS (296,5 km)	-	30	2043
LT 500 kV Brasília Leste - Luziânia - C1 and C2 LT 230 kV Brasília Geral-Brasília Sul - C3 LT 345 kV Brasília Sul - Samambaia - C3 (94,5 km)	-	30	2043
LT 500 kV Itatiba - Bateias LT 500 kV Araraquara 2 - Itatiba LT 500 kV Araraquara 2 - Fernão days (847 km)	-	30	2044
LT 230 kV Barro Alto - Itapaci, C2 (69 km)	-	30	2044
LT-CC ±800 kV (2.092 km) - Xingu Converter Station ±800 kV 4.000 MW and Estreito Converter Station ±800 kV 3.850 MW.	-	30	2044
LT Xavantes – Pirineus, CS, in 230 Kv	GO	30	2041
SE - Caxias 6 (330 MVA) 230/69 Kv	RS	30	2040
SE - Foz do Chapecó (100 MVA) 230/138 Kv	SC	30	2041
SE - Ijuí 2 230/69Kv	RS	30	2040
SE - Lageado Grande (83 MVA) 230/69 Kv (enlargement)	RS	30	2040
SE - Nova Petrópolis 2 (166 MVA) 230/69 Kv	RS	30	2040
SE Zona Oeste (Transformador 500/138 kV)	RJ	30	2042
Substation Natal III, in 230/69kV (RN) Transmission Line Natal II/Natal III, com 23 km	RN	30	2039
Substation Santa Rita II, in 230/69kV (PB)	PB	30	2039
Substation Zebu, in 230/69kV (AL)	AL	30	2039
LT 230Kv Campos Novos - Santa Marta	SC/RS	30	2032
LT 525kv Ivaiporã - Cascavel	PR	30	2035
LT Coletora Porto Velho (RO) - Araraquara 2 (SP), ±600 kV com 2.375 Km	RO/SP	30	2039
LT 230kv Cascavel Oeste - Umuarama	PR	30	2042
LT 525kv Curitiba - Curitiba Leste	PR	30	2042
LT 230 kv Santo Ângelo-Maçambará; LT Pinhalzinho-Foz do Chapecó, simple circuit ,C1; LT Pinhailzinho-Foz do Chapecó, simple circuit, C2.	-	30	2044
Construction of LT Collection Porto Velho - Araraguara 2, assembly and associated services.	RO/SP	-	-
LT 230 kv Nova Santa Rita - Camaquã 3; LT 230Kv Camaquã 3 - Quinta; LT 525kv Salto Santiago - Itá; LT 525kv Itá - Nova Santa Rita.	RS	30	2042
LT 525 kv Nova Santa Rita - Povo Novo; LT 525Kv Povo Novo - Marmeleiro; LT 525kv Marmeleiro - Santa Vitória do Plamar; Section of LT 230 kv Camaquã 3.	RS	30	2042
Basic Transmission Grid	Various	30	2042
SE Nobres 230/138 kV	MG	30	2041
SE Miramar 230/69 kV	Amazonas and Roraima	30	2041
SE Lucas do Rio Verde 230/ 138 kV	Mato Grosso	30	2031
LT Lechuga - Jorge Teixeira, C3, 230 kV, 3x150 MVA	Amazonas	30	2043
Rectifying Station No. 01 CA/CC, 800/+- 600kV - 310Mw and Inverter Station No. 01 CC/CA +- 600/500kV - 2950MW	RO/SP	30	2039
Transmission Line Porto Velho - Abunã (RO), Rio Branco (AC), com 487 Km de extensão and 230 kV	Various	30	2039
LT 230 kV Rio Branco I -- Feijó; LT 230 kV Feijó - Cruzeiro do Sul; SE 230/69 kV Feijó - (3+1R) x 10 MVA; SE 230/69 kV Cruzeiro do Sul - (6+1R) x 10 MVA	AC	30	2034
LT Coxipó-Cuiabá- Rondonópolis (MT), in 230 kV with 193 Km and SE Seccionadora Cuiabá	MT	30	2034
LT Jauru-Juba (MT) and Maggi - Nova Mutum (MT), ambas in 230 kV and with 402 km, SE Juba and SE Maggi - 230/138 kV	MT	30	2038
LT Colinas-Miracema-Gurupi-Peixe Nova Serra da Mesa 2 (TO/GO), in 500 kV with 695 Km SE Serra da mesa 2 and SE Peixe 2	TO/GO	30	2036
LT Jaurú - Cuiabá (MT), com 500 kv and com 348 Km and SE Jaurú, with 500/230 kV	MT	30	2039
LT Oriximiná/Cariri, in 500 kV, with 586 Km, SE Silves 500/138kv and SE Lechuga 500/230 kv	PA/AM	30	2038
LT Coletora Porto Velho (RO) - Araraquara 2 (SP), ±600 kV with 2,375 Km	RO/SP	30	2039
LT Porto Velho - Samuel - Ariquemes - Ji-Paraná - Pimenta Bueno - Vilhena (RO), Jaurú (MT), with 987 Km, 230 kV	RO/MT	30	2039
LT Xingu - Estreito - Pará (PA) to Minas Gerais (MG), in 800 kV with 2,093 km.	PA/MG	30	2044
LT Lechuga (AM) - Equador - Boa Vista (RR), with 500 kV and with 715 km, and SE Equador 500kv, SE Boa Vista 500/230 kv	AM/RR	30	2032

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●

Energy Distribution



Concessions under Exploration System - DISTRIBUTION

Concessions/ Permits	Geographic Region	Cities served (*)		Expiration da Concession
Cia. de Eletricidade do Acre - Eletroacre	State of Acre		22	2015
Centrais Elétricas de Rondônia - Ceron	State of Rondônia		52	2015
Companhia Energétca de Alagoas - Ceal	State of Alagoas		102	2015
Companhia Energética do Piauí - Cepisa	State of Piauí		224	2015
Amazonas Energia	State of Amazonas		62	2015
Boa Vista Energia	State of Roraima		1	2015
CELG-Distribuição S.A.¹	State of Goiás		237	2045

* Not audited by independent auditors

(1) Concession extended under the terms of the fifth amendment to the concession contract No. 63/2000 – ANEEL, executed on December 29, 2015.

2.1. Extensions of public electric power concessions

The following amounts of indemnities related to certain assets of concessions extended remain without approval by the concession grantor:


	12/31/2015

Description	Chesf		Eletronorte		Eletrosul		Furnas		CGTEE		Total
Generation
Modernizations and improvements		697,124		-		-		995,718		-		1,692,842
Thermal generation		-		-		-		557,409		356,937		914,346
Transmission
Modernizations and improvements (RBNI)		-		-		-		-		-		-
Basic grid - existing services (RBSE)		1,588,752		1,732,910		513,455		4,530,060		-		8,365,177

Total		2,285,876		1,732,910		513,455		6,083,187		356,937		10,972,365

	12/31/2014

Description	Chesf		Eletronorte		Eletrosul		Furnas		CGTEE		Total
Generation
Modernizations and improvements		487,822		-		-		995,718		-		1,483,540
Thermal generation		-		186,355		-		673,030		356,937		1,216,322
Transmission
Modernizations and improvements (RBNI)		289,676		-		-		552,138		-		841,814
Basic grid - existing services (RBSE)		1,187,029		1,732,910		513,455		3,977,922		-		7,411,316

Total		1,964,527		1,919,265		513,455		6,198,808		356,937		10,952,992

Until the concession grantor approves these compensation amounts, including definition on means, term to receive, and applicable compensation, these amounts will not be monetarily corrected, but kept at the historical cost.

Through Normative Resolutions 589 and 596, the National Electric Energy Agency - ANEEL, for purposes of indemnification, defined the criteria for calculating the New Replacement Value (VNR) for the existing transmission assets on May 31, 2000, which still has not been depreciated (RBSE), and the criteria and procedures for calculating the share of investments linked to reversible assets, not yet amortized or depreciated, of hydroelectric plants, whose concessions were extended or not, pursuant to Law No. 12.783.

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The subsidiary Eletrosul, according to ANEEL Normative Resolution number 589, of 12/10/2013, presented to ANEEL, its evaluation reports of electric power transmission assets existing on May 31, 2000 (“Evaluation Report”), for the purposes of indemnification of the so-called Existing Basic Grid System – RBSE provided for in article 15, §2 of Law No. 12,783/13, in the amounts of R$ 1,061,000. On July 14, 2015, ANEEL, by means of order No. 2,296, approved upon deliberation by the Executive Board, the value of R$ 1,007,043 related to these assets, while the book value is R$ 513,455.

On September 3, 2015, the subsidiary Eletronorte resubmitted to ANEEL the report of valuation of electricity transmission assets existing on May 31, 2000, for purposes of compensation of facilities named Basic Network Existing System – RBSE (for the acronym in Portuguese) provided for under the terms in Article 15, §2 in Law No. 12,783/13, and the new claimed valued is R$ 2,926 million, while the value currently accounted for is R$ 1,733 million.

On March 6, 2015, the subsidiary Chesf submitted to ANEEL the report of valuation of electricity transmission assets existing on May 31, 2000, for purposes of compensation of facilities named RBSE and other transmission facilities – RPC, provided for under the terms in Article 15, §2 in Law 12,783/2013, in the amount of R$ 5,627,200, while the book value is R$ 1,588,752.

On May 21, 2015, the subsidiary Furnas submitted to ANEEL the report of valuation of electricity transmission assets existing on May 31, 2000, for purposes of compensation of facilities named RBSE and other transmission facilities– RPC, provided for under the terms in Article 15, §2 in Law 12,783/2013, in the amount of R$ 10,699,000. On December 15, 2015, ANEEL by means of order No. 4,042, approved upon deliberation by the Board, the amount of R$ 8,999,520 related to these assets, while the book value is R$ 4,530,060.

On October 2, 2015, the subsidiary Furnas submitted documents supporting investments linked to reversible assets, not amortized or depreciated, of hydro-electric plants Corumbá, Funil, Furnas, Luiz Carlos de Barreto de Carvalho, Maribondo, and Porto Colômbia, with total installed power of 4,617 MW*, which concessions had been renewed under the terms in Law No. 12,783/2013, for purposes of the process to request additional generation compensation. The documents submitted indicate the value of R$ 1,311,900 as base value for the additional compensation, while the residual accounting value of those assets, on the same date, was R$ 995,718.

The surplus between the amounts claimed in the mentioned assessment reports on transmission assets, and the book values, has not been recognized in the financial statements, because part of these values are subject to approval by ANEEL, and there is definition regarding means, term to receive, and applicable compensation.

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	Book value		Approved / Requested Value		Variation
Eletrosul		513,455		1,007,043		493,588
Furnas		4,530,060		8,999,520		4,469,460
Chesf*		1,588,752		5,627,200		4,038,448
Eletronorte*		1,732,910		2,926,000		1,193,090

Total		8,365,177		18,559,763		10,194,586

* The values required by indemnities are subject to ANEEL approval.

2.2. Extension of the distribution concessions

On October 15, 2012, the Eletrobras’ distributors whose concessions expired in 2015, had the right to express interest in an extension of the concession for a further period of 30 years, which they did within the time limit set.

Decree No. 8,461, dated June 2, 2015, regulating the extension of concessions for electricity distribution and authorizing the Ministry of Mines and Energy (“MME”) to extend concessions for electricity distribution under the terms in article 7, in Law No. 12,783, dated January 11, 2013, for thirty (30) years, set forth that the following criteria should be complied with:

I. Effective service quality, to be determined by means of indicators Equivalent Duration of Interruption with Internal Origin by Consuming Unit (“DECi”) and Equivalent Frequency of Interruption with Internal Origin by Consuming Unit (“FECi”);

II. Financial and economic effectiveness, to be determined by means of EBITDA and level of debt, which means the concessionaire ability to comply with its financial and economic obligations in a sustainable manner;

III. Operational and economic rationality; and

IV. Fee model.

These criteria should be complied with using metrics for continuous improvement established by the Concession Grantor, to be detailed in the amendments to the Concession Contracts, to be executed by the distributors. On November 5, 2015, MME by means of Order No. 3/2015-SE-MME, informed that the draft of the Amendment to the Concession Contract of Public Services of Electricity Distribution, approved by ANEEL by means of Order No. 3,540, dated October 20, 2015, should be submitted to decision-making bodies of each Distributor, with annual limits set forth to meet the criteria in items I (Effective service quality) and II (Economic and financial effectiveness) in article 1 in Decree No. 8,461/2015, under the terms in Exhibit II to Technical Note No. 0335/2015-SCT-SFE-SFF-SRDSRM.

Under the terms in the Amendment, failure to comply with these goals referred to in items I and II above, for five (5) years, starting on January 1, 2016, for two (2) consecutive years, or failure to comply with any of these goals by the end of the five-year term, shall cause termination of the concession.

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Equally, starting in the sixth (6^th) year, the failure to comply with these goals shall characterize default and shall imply the opening of the termination process, according to the following: (i) Criterion I – Effective service quality: if there is non-compliance for three consecutive years; or (ii) Criterion II – Economic and financial effectiveness: if there is non-compliance for two consecutive years. However, in this case, the concessionaire may submit a plan to transfer the shareholding control as alternative to the termination, including the feasibility to alter the control and the benefit of this measure to adjust services provided.

The decree also establishes that concessions that are not extended or that have been subject to termination shall be subject to bids according to guidelines of the Ministry of Mines and Energy (MME). The compensation to be paid to a former concessionaire for investments on reversible assets that are not depreciated and not amortized should be calculated according to the new value of replacement -VNR and should consider the go-live of the facilities.

At the 164^th General Meeting of Eletrobras, held on December 28, 2015, upon request, by the representative of the Federal Government, the matters related to the extension of concession contracts of subsidiaries was removed from the agenda of matters related to the extension of concession contracts of subsidiaries – Cepisa, Ceal, Eletroacre, Ceron, Boa Vista and Amazonas D., due to the fact that these distribution companies requested, on December 28, 2015, extension of the term to execute the respective amendment, under the terms in Provisional Measure No. 706, to be deliberated at the Extraordinary Meeting of Eletrobras to be called.

Provisional Measure No. 706, dated December 28, 2015, amended the text of the paragraph two of article 11 in Law No. 12,783/2012, setting forth that the concessionaire should execute the amendment within 210 days, from the calling by the Concession Grantor.

Thus, the above-mentioned distribution companies have until July 26, 2016 to execute the amendments to the concession contract for distribution of electricity and are working on updated studies to submit to the new Shareholders’ Meeting of Eletrobras.

The distribution concessions for these companies part of the Eletrobras group had contracts terminated in July 2015, however, in light of the terms in Law No. 8,987, dated February 13, 1995, article 42 “concessions shall remain in force for the period needed to prepare evaluations and calculations required to organize bidding processes that will grant the replacing concessions, which term shall not be less than 24 months.” (See Note 19).

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NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are defined below. These policies have been applied consistently in all of the periods presented, unless otherwise stated.

3.1. Basis of preparation

The preparation of financial statements requires the use of certain critical accounting estimates and, also, the exercise of judgment on the part of the directors of the Company, in the process of applying the accounting policies of the Eletrobras System. Those transactions, disclosures or balances that require a higher level of judgment, which have greater complexity and for which assumptions and estimates are significant, are disclosed in Note 4.

The financial statements have been prepared on the basis of historical cost, except for certain financial instruments that are measured by their fair values and some assets linked to concessions that were measured by the new replacement value new - VNR (generating and transmission companies) or by Regulatory Remuneration Base - BRR (distributors). The historical cost is usually based on the fair value of considerations on the date of the transactions.

These financial statements are presented in Reais, which is the functional currency of the Company and its subsidiaries, associated companies and jointly-controlled companies. All financial information presented in Reais were rounded to thousands, except when otherwise indicated.

3.1.1. Individual and consolidated financial statements

The Company’s consolidated financial statements include the individual (“Parent Company” or “Controller”) financial statements of the parent company, identified as Controller, and the consolidated financial statements, prepared in accordance with accounting practices used in Brazil and with International Financial Reporting Standards (“IFRSs”) issued by the International Accounting Standards Board (IASB). Accounting practices adopted in Brazil include those in Brazilian corporate legislation and the pronouncements, guidance and interpretations issued by the Accounting Pronouncements Committee (CPC) and approved by the Federal Accounting Council (CFC) and the securities and exchange commission (CVM).

The presentation of the Value Added Statements (DVA), individual and consolidated, is required by Brazilian corporate law and by the accounting practices adopted in Brazil and applicable to public companies. The IFRSs do not require presentation of this statement. Consequently, by the IFRS, this statement is presented as supplementary information, without prejudice to the financial statements.

In the individual financial statements, the subsidiaries are accounted for by the equity method.

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As there is no difference between the consolidated shareholders’ net equity and the consolidated result attributable to shareholders of the parent company, appearing in the consolidated financial statements, and the shareholders’ equity and results of the parent company, in the individual financial statements, the Company opted to present these individual and consolidated financial statements in a single set, side-by-side.

(b) Changes in accounting policies and disclosures

(b.1) Changes to IFRs and new interpretations with mandatory application starting in this fiscal year without significant effects on the consolidated financial statements

In this fiscal year, the Company has applied several amendments and new interpretations of IFRs and CPCs issued by IASB and CPC, that come into effect for accounting periods starting on January 1, 2015. These amendments and annual improvements had no relevant effects on the consolidated financial statements.

(b. 2) New and revised standards and interpretations already issued and not yet adopted

The International Accounting Standards Board – IASB published or changed the following principal accounting pronouncements, guidelines or interpretations, whose adoption should be made mandatory in subsequent periods:

Applicable on or from January 1, 2016:

Revision IAS 16/CPC27 and IAS 38/CPC 04 (R1) – the amendment aims to include information about the concept of future expectation of reduction in selling price and to clarify the method of depreciation based on income generated by an activity.

Changes to IAS 16/CPC 27 prohibit companies from using the depreciation method based on revenue for fixed assets. Changes to IAS 38/CPC 04(R1) introduce the refutable premise that the revenue is not an appropriate basis to determine amortization of an intangible asset.

Currently, Eletrobras does not use the depreciation method based on revenue generated by an activity. The Management of the Company believes that application of these changes to IAS 16 will have no material impact on the consolidated financial statements of Eletrobras.

IFRS Revision 11/CPC 19 (R2) - the amendment requires that the purchaser of a participation in a joint operation constitute a business, as defined in IFRS 3, applying the principles of IFRS 3/CPC 15 (R1), except for those that conflict with IFRS 11. A joint business also requires disclosure of relevant information required under IFRS 3 and other business combination rules.

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Changes must be applied prospectively to acquisitions of equity in joint operations (where joint operations are business, as defined under the terms in IFRS 3) starting in annual periods starting on or after January 1, 2016. The Management of the Company believes that application of these changes to IFRS 11 may have impact on the consolidated financial statements in the future, should there be such transactions.

IFRS Revision 10/CPC 36 (R3) and IAS 28/CPC 18 (R2) – clarifies that in a transaction between an investor and associate or joint venture, the recognition of gain or loss depends on whether the goods sold or contributed constitute a business. The Management of the Company believes that application of these changes to IFRS 10 and IAS 28 may have impact on the consolidated financial statements in the future, should there be such transactions.

Revision IAS 1/CPC 26 (R1) – Clarifications concerning the judgment process of disclosures in the Financial Statements. Changes to IAS 1/CPC26 offer guidelines regarding application of the concept of materiality in practical terms.

The Management of the Company believes that application of these changes to IAS 1 will have no material impact on the consolidated financial statements of Eletrobras.

Amendments to IFRSs – Annual Improvements Cycles 2012-2014

Annual Improvements to IFRs 2012-2014 Cycle include several changes to a series of IFRs, that are summarized below:

Changes to IFRS 5/CPC 31 introduce specific guidelines to IFRS 5 regarding when an entity reclassifies an asset (or set of disposal) from “held for sale” to “held for distribution to stakeholders” (or vice-versa). Changes clarify that these change must be considered as a continuity of the original plan of sale and, therefore, requirements set forth in IFRS 5 regarding the change to the sales plan are not applicable. Changes clarify also the guidelines related to discontinuity of accounting “held for distribution.”

Changes to IFRS 7/CPC 40 (R1) provided additional guidelines to clarify if a service contract is a continuous engagement in an asset transferred for purposes of disclosures required related to transferred assets.

Changes to IAS 19/CPC 33 (R1) clarify that the rate used to discount post-retirement benefits obligations must be determined based on market return by the end of the reporting period regarding high-quality corporate bonds. The evaluation of the market size for high-quality corporate bonds should be at the currency level (that is, the same currency used to pay the benefits). For currencies that do not have high liquidity market for such high-quality corporate bonds, the basis should be market return on governmental bonds denominated in that currency by the end of the reporting period.

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The Management of the Company does not believe that application of these changes should have a relevant effect on the consolidated financial statement of Eletrobras.

Applicable on or from January 1, 2018 (*):

IFRS 15 – Revenue Recognition (new pronouncement) – specifies how and when recognition of revenue from contracts with clients will be done as well as requires that the entity provide users of financial statements more informative and relevant information.

IFRS 9 – Financial Instruments – its objective is to replace IAS 39 – Financial Instruments – Recognition and Measurement, and to establish principles for disclosure of financial assets and liabilities, as well as to add a new model for impairment and changes limited to classification and measurement requirements while introducing an evaluation criterion of “fair value recognized in other comprehensive income” for some simple debt instruments.

The Company is proceeding with its analysis of the impacts of these new pronouncements in its financial statements.

Applicable on or from January 1, 2019 (*):

IFRS 16 – Leasing (new pronouncement) – the purpose is to introduce requirements for recognition, measurement, presentation, and disclosure of leasing. The pronouncement offers a unique accounting model for leases, requiring that the lessee recognizes assets and liabilities for all lease agreements, unless when the contract term is less than 12 months or the value of the asset object of the lease is low. For lessors, there are no substantial changes, and they should continue to classify lease agreements as operating or financial, as defined in IAS 17.

The Company is proceeding with its analysis of the impacts of these new pronouncements or changes in its financial statements.

(*) These changes have not yet been approved by the Accounting Pronouncement Committee.

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3.2. Basis of consolidation and investments in subsidiaries

The following accounting policies are applied in the preparation of the consolidated financial statements, which include equity investments of the Company and its subsidiaries.

In the consolidated financial statements the financial information of the subsidiaries and of the jointly controlled and affiliated projects are recognized through the equity method and are initially recognized by their cost value and then adjusted for purposed of recognition of the Company in profit or loss and other comprehensive income of the affiliate.

When necessary, the financial statements of the jointly controlled and affiliated subsidiaries are adjusted to conform to the accounting policies adopted by the Company.

The subsidiaries, jointly controlled subsidiaires and affiliates are essentially domiciled in Brazil.

(a) Controlled companies / Subsidiaries

Controlled companies are all entities in which the Eletrobras system holds control. The Eletrobras system controls an entity when it is exposed or is entitled to variable returns arising from its involvement with the entity and has the capacity to interfere in these returns because of the power it exercises over the entity. The subsidiaries are fully consolidated from the date on which control is transferred to the Eletrobras system. The consolidation is interrupted from the date on which the Electrobras system ceases to have control.

The consolidated financial statements include the financial statements of the Company and its subsidiaries.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated statements of income and comprehensive income from the effective date of acquisition until the effective date of disposal, as applicable.

All transactions, balances, income and expenses among the companies of the Company are eliminated in full in the consolidated financial statements.

The Company adopts the following consolidation practices:

Elimination of the investments of the investor in investee companies, to offset their participation in respective net equity assets;

Elimination of balances of intercompany receivables and payables;

Elimination of intercompany income and expenditures;

Highlighting of the minority non-controlling shareholder interest in shareholders’ equity and in the consolidated income statement of the investee companies.

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The Company uses the criteria of full consolidation, as described in the table below. Participation is given on the total capital of the subsidiary.


Subsidiaries	12/31/2015				12/31/2014
	Equity				Equity
	Direct		Indirect		Direct		Indirect

Amazonas Energia		100%		-		100%		-
Boa Vista Energia		100%		-		100%		-
Ceal		100%		-		100%		-
CELG- D (1)		51%		-		51%		-
Cepisa		100%		-		100%		-
Ceron		100%		-		100%		-
CGTEE		100%		-		100%		-
Chesf		100%		-		100%		-
Eletroacre		94%		-		94%		-
Eletronorte		99%		-		99%		-
Eletronuclear		100%		-		100%		-
Eletropar		84%		-		84%		-
Eletrosul		100%		-		100%		-
Furnas		100%		-		100%		-
RS Energia		-		-		-		-
Porto Velho Transmissora		-		-		-		-
Chuí IX		-		99.99%		-		99.99%
Coxilha Seca		-		99.99%		-		99.99%
Estação Transmissora (¹)		-		-		-		-
Artemis		-		-		-		-
Rio Branco Transmissora		-		-		-		-
Cerro Chato I		-		-		-		-
Cerro Chato II		-		-		-		-
Cerro Chato III		-		-		-		-
Hermenegildo I		-		99.99%		-		99.99%
Hermenegildo II		-		99.99%		-		99.99%
Hermenegildo III		-		99.99%		-		99.99%
Linha Verde Transmissora		-		100%		-		100%
Uirapuru		-		75%		-		75%
Energia dos Ventos V (²)		-		99.99%		-		-
Energia dos Ventos VI (²)		-		99.99%		-		-
Energia dos Ventos VII (²)		-		99.99%		-		-
Energia dos Ventos VIII (²)		-		99.99%		-		-
Energia dos Ventos IX (²)		-		99.99%		-		-
Extremoz Transmissora do Nordeste S/A (³)		-		100.00%		-		-
Transenergia Goiás S.A (²)		-		98.35%		-		-
Complexo Eólico Pindaí I
Acauã Energia S.A.		-		99.93%		-		99.93%
Angical 2 Energia S.A.		-		99.96%		-		99.96%
Arapapá Energia S.A.		-		99.90%		-		99.90%
Caititu 2 Energia S.A.		-		99.96%		-		99.96%
Caititu 3 Energia S.A.		-		99.96%		-		99.96%
Carcará Energia S.A.		-		99.96%		-		99.96%
Corrupião 3 Energia S.A.		-		99.96%		-		99.96%
Teiú 2 Energia S.A.		-		99.95%		-		99.95%
Complexo Eólico Pindaí II
Coqueirinho 2 Energia S.A.		-		99.98%		-		99.98%
Papagaio Energia S.A.		-		99.96%		-		99.96%
Complexo Eólico Pindaí III
Tamanduá Mirim 2 Energia S/A(³)		-		83.01%		-		-

(1)* Subsidiary classified as non-current asset held for sale (see note 43)

* * (2) Acquisition of equity in 205 by Subsidiary Furnas

*** (3) Acquisition of equity in 2015 by Subsidiary CHESF

The consolidated financial statements include the balances and transactions of exclusive funds whose only shareholders are the Company and its subsidiaries, composed of public, private securities and debentures of companies with a low credit rating and high paper liquidity.

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(a.1) Changes in Group equity in existing subsidiaries

Changes in Company equity in subsidiaries that do not result in loss of Group shareholding control over the subsidiaries are recorded in financial statements as capital transactions. Accounting balances of Company equity and non-controlling shareholders are adjusted to reflect changes in the respective equity held on subsidiaries. The difference between the value under which non-controlling shareholders’ equity in subsidiaries are adjusted and the fair value of compensation paid or received is recorded directly in shareholders’ equity and attributed to Company shareholders.

When the Company loses the shareholding control on a subsidiary, the gain or loss is recognized in the financial statements and is calculated according to the difference between: (i) the sum of fair value of compensation received and the fair value of the residual equity; and (ii) the previous balance of assets (including goodwill) and liabilities of the subsidiary and non-controlling equity, if any. All values recognized before in “Other comprehensive income” related to the subsidiary are accounted for as if the Company had sold directly the corresponding assets or liabilities of the subsidiary (that is, reclassified as income nor transferred to another item in the shareholders’ equity, as required or permitted by applicable IFRS). The fair value of any investment held in the former subsidiary on the date when shareholding control is lost shall be recorded at fair value in the initial recognition to be accounted for subsequently under the terms in IAS 39 Financial Instruments: Recognition and Measurement (equivalent to CPC 38) or, when applicable, the cost in the initial recognition of an investment in an affiliate or joint venture.

(b) Investments in affiliates

Affiliates are all entities over which the Company has significant influence, and that are not configured as a subsidiary or a jointly-controlled subsidiary.

Any amount that exceeds the cost of the acquisition over the Company’s participation of the Company in the identifiable net fair value of assets, liabilities and contingent liabilities of the affiliate on the date of acquisition is recognized as goodwill. The premium is added to the book value of the investment. Any amount of the Company’s participation in the net fair value of assets, liabilities and contingent liabilities identifiable that exceeds the cost of acquisition, after revaluation, is recognized immediately in income.

When the portion of the Company exceeds the participation in that affiliate in prejudice to it (including any long-term participation which, in essence, is included in the net investment in the affiliate), the Company ceases to recognize its participation in additional losses. The additional losses are recognized only if the Company has incurred legal or constructive obligations or made payments on behalf of the affiliate.

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(c) Joint ventures

A joint venture is a contractual agreement by which the Company and other parties exercise an economic activity subject to joint control, a situation in which decisions on financial and strategic operating policies related to joint venture activities require approval from all the parties that share control.

When a subsidiary of the Company directly exercises its activities by means of a joint venture, the Company’s participation in jointly controlled assets and any liabilities incurred jointly with the other controllers is recognized in the Financial Statements of the respective subsidiary and classified according to its type. Costs and liabilities incurred jointly in relation to participations in jointly controlled assets are recorded in accrual-based accounting. Any gains from the sale or use of the Company’s participation in the income from jointly controlled assets and its share in any expenses incurred by the joint venture are recognized when it is likely that the economic benefits associated to the transactions will be transferred to/from the Company, and its value can be reliably measured.

3.3. Cash and cash equivalents

Cash and cash equivalents include cash, bank deposits and other short-term investments of high liquidity with original maturities of up to three months and with insignificant risk of change in value.

3.4. Accounts receivables and allowance for doubtful accounts

The accounts receivable from customers (consumers and resellers) are composed of credits from the provision and supply of electric energy, invoiced and not invoiced, the former by an estimate, including those resulting from energy transacted within the framework of the Chamber for Commercialization of Electric Energy -CCEE, accounting for based on accrual accounting and are recognized initially at fair value and subsequently measured at amortized cost less an allowance for doubtful accounts.

The balance also includes the supply of energy that has not been billed, originating substantially from distribution activity that is measured on the basis of estimates, based on the history of consumption of MW/hr.

Accounts receivable are normally settled in a period of up to 45 days, for which reason book values substantially represent the fair value on the date the books are closed.

If the period of receipt is equivalent to one year or less, the accounts receivable are classified under current assets. Otherwise, they are presented under non-current assets (Note 7).

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3.5. Fuel Consumption Account - CCC

Per the terms of Law No. 8,631 of March 4, 1993, the Company administers the values relating to collections made by dealers of the public electric energy service, for credit in the Fuel Consumption Account - CCC, corresponding to annual quotas intended for expenditures for fuels for electric power generation. The values recorded in the current assets, offsetting current liabilities, correspond to the availability of resources, maintained in a connected bank account, and to quotas not paid by concessionaires. The values recorded in the assets are corrected by the profitability of application and represent a restricted account, and may not be used for other purposes.

Operations with the CCC do not affect the income or loss for the financial year of the Company.

3.6. Guarantees and Connected Deposits

The amounts recorded are intended for legal and/or contractual services. They are valued at acquisition cost plus interest and monetary correction based on legal provisions and adjusted by the provision for loss on realization, when applicable. Their redemption is conditional on completion of the legal procedures to which these deposits are linked.

3.7. Warehouse Inventory and Fuel - CCC

The inventory is recorded at the average purchase cost, net of provisions for losses, when applicable, and does not exceed the replacement cost or net realizable value. Inventory costs are determined by the average cost method. The net realizable value is the estimated selling price of stocks, less all estimated costs for its completion and costs necessary to make the sale.

The materials in warehouse inventory and fuel – CCC are classified as current assets and is recorded at the average cost of acquisition, which does not exceed market value.

3.8. Nuclear fuel inventory

Composed of the uranium concentrate in stock, the corresponding services and nuclear fuel elements used in the thermonuclear power plants Angra I and Angra II, and these are recorded at acquisition cost.

In its initial stages of formation, the uranium ore and the services needed for its manufacture are purchased, and classified for accounting purposes under non-current assets - realizable in long-term, presented under the heading of Nuclear Fuel Inventory. After the manufacturing process is completed, the portion concerning the forecast of consumption for the 12 months following is classified under current assets.

The consumption of nuclear fuel elements is appropriated to the income for the year in a proportional manner, considering the monthly energy effectively generated in relation to the total energy scheduled for each fuel element. Inventories and evaluations of used nuclear fuel elements which pass through the process of generating electricity and are stored in the used fuel storage tank are periodically conducted.

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3.9. Fixed Assets

Fixed assets are measured by the historical cost deducted from accumulated depreciation. The historical cost includes expenses directly attributable to the acquisition of the assets, and also includes, in the case of qualifying assets, the borrowing costs capitalized in accordance with the accounting policy of the Company. Such fixed assets are classified under the appropriate fixed asset categories when completed and ready for their intended use. The depreciation of these assets starts when they are ready for intended use on the same basis of other fixed assets.

Depreciation is recognized on the basis of the estimated useful life of each asset on the linear method, so that the value of the cost less its residual value after its useful life is fully written-off (except for land and construction in progress). The Company considers that the estimated useful life of each asset is similar to depreciation rates determined by the ANEEL, which are considered by the market as acceptable to express adequately the time of the useful life of the assets. Additionally, in connection with the Company’s understanding concerning the current regulatory framework of concessions, including Law 12,783/2013, the indemnification at the end of the concession was considered based on the lowest value between the VNR or the net book value, with this factor being considered in the measurement of fixed asset (See details in Note 17).

Assets held through financial commercial leasing are depreciated over the expected useful life in the same manner as the assets themselves or over a lesser period, if applicable, in accordance with terms of the lease in question.

An item of fixed assets is written off after disposal or when there are no future economic benefits arising from the continued use of the asset. Any gains or losses on the sale or write-down of a fixed assets item are determined as the difference between the amounts received in the sale and the book value of the asset and are recognized in income or loss for the financial year.

3.9.1. Borrowing costs

Interest and where appropriate exchange variation for each month incurred in relation to loans and financing are added to the acquisition cost for the fixed asset in formation, considering the following criteria for capitalization:

The capitalization period occurs when the qualifying asset is under construction, ending with the capitalization of interest when the item is available for use;

Interest is capitalized considering the weighted average rate on the loans and financing in effect on the date of capitalization or, for those assets in relation to which specific loans were obtained, the rates of these specific loans;

Capitalized interest on a monthly basis does not exceed the value of the interest expenses determined in the capitalization period;

Capitalized interest is depreciated considering the same criteria and estimated useful life determined for the item in which it is incorporated.

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Gains on investments, arising from the temporary application of the resources obtained with specific loans and financing still not expenses with the qualifiable asset are deducted from loans and financing costs eligible for capitalization, when the effect is material.

All other costs for loans and financing are recognized in the income or loss for the financial year in which they are incurred.

3.10. Concession contracts

The Company has concession contracts in the segments of generation, transmission and distribution of electricity, signed with the concession grantor (Brazilian federal government) for periods ranging between 20 years and 35 years, being all contracts, by segment, very similar in terms of rights and obligations of the concessionaire and the power grantor. The time periods of the principal concessions are described in Note 2.

I – Tariff System

a) The tariff system of electrical distribution is controlled by the ANEEL and these rates are adjusted annually and reviewed every four years, on the basis of the maintenance of the economic-financial balance of the concessionaire, taking into consideration the prudent investments made and the structure of costs and expenses of the Company of reference. Charges for services occurs directly to users, based on the volume of energy consumed and the rate authorized (See Note 18).

b) The tariff system for electric power transmission is regulated by the ANEEL and periodic revisions are carried out, being established a Permitted Annual Income – RAP, updated annually by an index of inflation and, subject to periodic revisions to cover new investments and possible aspects of economic-financial balance of the concession contracts. We emphasize that this tariff system was changed beginning with the renewal of concessions affected directly by Law No. 12,783/2013.

c) The electrical power generation tariff system was generally based on a regulated tariff until 2004 and thereafter, in connection with the changes in the regulation of the sector, has changed from tariff basis for a price system, and the electricity generators can have the freedom to participate in auctions of electric energy intended for the regulated market. There is in this case a base price, being the final price determined through competition among participants in the auction. Additionally, the electric power generators can make bilateral contracts of sale with consumers who fit into the category of free consumers (definition based on power demanded in MW). We emphasize that this tariff system was changed beginning with the renewal of concessions affected directly by Law No. 12,783/2013.

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II – Transmission and Distribution Concessions

The concession contracts regulate the exploitation of public services of distribution and transmission of electrical energy by the Company, where:

1) Electric power distribution

a) The contract establishes what services the operator must provide and to whom (consumer class) the services must be provided;

b) The contract establishes performance standards for public service provision, with respect to the maintenance and improvement of quality of service to consumers, and the dealer has an obligation, on delivery of the concession, to return the infrastructure under the same conditions under which it is received at the signature of those contracts. To comply with these obligations, ongoing investments are carried out throughout the term of the lease. Therefore, the assets connected with the concession can be replaced, several times, until the end of the concession;

c) At the end of the concession, the assets connected with the infrastructure must be reverted to the power grantor upon payment of compensation determined by the depreciated Regulatory Remuneration Base-BRR.

2) Electric power transmission

a) The price (tariff) is regulated and called the Permitted Annual Income (RAP). The electric power transmitting agency cannot negotiate prices with users. For some contracts, the RAP is fixed and updated monetarily by the price index once a year. For other contracts, the RAP is updated monetarily by the price index once a year and revised every five years. Generally, the RAP of any electric power transmission company is subject to annual review due to the increase of the asset and operating expenses resulting from modifications, replacements and expansions of facilities. The tariff levels (RAP) were changed beginning with the renewal of concessions affected directly by Law No. 12,783/2013.

b) The assets are reversible at the end of the concession, with the right to receive compensation (cash) of the concession grantor on investments not yet amortized, determined by the new replacement value - VNR. There are still active concessions renewed pending approval by the ANEEL, and, consequently, pending compensation.

II. 1 - Application of the ICPC 01 (IFRIC 12) – Service concession contracts, applicable to contracts of public-private concession contracts in which the public entity:

a) Controls or regulates the type of services that can be provided using the underlying infrastructures;

b) Controls or regulates the price at which the services are provided;

c) Controls/owns a significant interest in the infrastructure at the end of the concession.

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A public-private concession presents, typically, the following characteristics:

a) An underlying infrastructure for the concession which is used for providing services;

b) An agreement/contract between the grantor and the operator;

c) The operator provides a set of services during the concession;

d) The operator receives a remuneration throughout the concession contract, either directly from government authorities or from the users of the infrastructure, or both;

e) The infrastructures are transferred to the grantor at the end of the concession, typically for free or also for valuable consideration.

In accordance with the ICPC 01, the concession infrastructures in the context of the standard are not recognized by the concessionaire as fixed assets, since it is considered that the operator has no control over these assets to be recognized in accordance with one of the following accounting models, depending on the type of operator remuneration commitment assumed by the concession grantor under the contract:

1) The financial asset model

This model is applicable when the concessionaire has the unconditional right to receive certain monetary amounts regardless of the level of use of infrastructures covered by the concession and results in the recording of a financial asset, which was classified as loans and receivables (generation and transmission) or is available for sale (distribution).

2) Intangible asset model

This model is applicable when the concessionaire under the concession, is remunerated depending on the degree of utilization of the infrastructures (credit and demand risk) in relation to the concession and results in the recording of an intangible asset.

3) Mixed Model

This model applies when the award includes remuneration commitments simultaneously guaranteed by the concession grantor and remuneration commitments dependent on the level of use of infrastructures of the concession.

Based on the characteristics established in the concession contracts of the electric power distribution company and its subsidiaries and the requirements of the norm, the following assets are recognized in relation to the electrical distribution business:

Estimated portion of the investments and not amortized or depreciated until the end of the lease is classified as a financial asset to be an unconditional right to receive cash or another financial asset directly from the granting authority; and

The remaining portion to determine the financial asset (residual value) will be classified as an intangible asset by virtue of its recovery being subject to public service use, in this case, energy consumption by consumers.

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The infrastructure received or constructed from the distribution activity is recovered through two cash flows, namely:

Partly through energy consumption made by consumers (issuance of the monthly invoices from the measurement of energy and power consumed/sold) during the period of the concession; and

Partly as compensation of reversible assets at the end of the term of the concession, this being received directly from government authorities or to whomever this task was delegated.

This compensation will be performed based on the investment installments connected with the reversible assets, not yet amortized or depreciated, that have been made with the objective of guaranteeing the continuity and timeliness of service provided.

The concessions of electric power distribution of its subsidiaries are free of charge. In this manner, there are no fixed financial obligations and payments to be made to the power grantor.

For the activity of electric power transmission the Permitted Annual Income - RAP is received from companies that use their infrastructure through a usage tariff for the transmission system (TUST). This tariff results from the apportionment among users of transmission of some specific values; (i) the RAP of all transmission companies; (II) the services provided by the National System Operator - ONS; and (iii) the regulatory charges.

The granting authority delegated to generators, distributors, consumers, exporters and importers the monthly payment of the RAP, which is guaranteed by the broadcasting regulatory framework, constitutes unconditional contractual right to receive cash or another financial asset, and therefore the credit risk is low.

Considering that the Company is exposed to credit and demand risks and that the income is earned based on the availability of transmission line, the whole infrastructure was recorded as a financial asset.

This financial asset includes furthermore the compensation that will be made based on the investment installments connected with the reversible assets, not yet amortized or depreciated, that have been made with the objective of guaranteeing the continuity and timeliness of service provided.

III. Generation Concessions

Hydroelectric and thermal generation – the concessions, not directly affected by Law No. 2,013/12.783 are within the scope of ICPC 01 (IFRIC 12), bearing in mind that the characteristics of price and not of regulated tariff. From January 1, 2013, the concessions affected directly by Law No. 12,783/2013, until then outside the scope of ICPC 01 (IFRIC 12), become part of the scope of these regulations, considering the change in price system, becoming a regulated tariff for these concessions, along the lines already applied to distribution concessions until then.

Nuclear generation - Has a defined tariff system, but differs from other generation contracts, due to being an authorization and not a concession. There is no defined period for the end of the authorization as well as the characteristics of significant control of assets by the grantor at the end of the authorization period.

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IV. Itaipu Binacional

a) Itaipu Binacional is governed by a Binational Treaty of 1973 in which tariff conditions were established, and the basis of formation of the tariff is determined exclusively to cover expenses and debt service of this Company;

b) the tariff basis and terms of commercialization will be in effect until 2023, which corresponds to a significant part of the useful life of the plant, when the tariff basis and the terms of commercialization must be revised.

c) Itaipu’s tariff basis was established preponderantly in order to permit the payment of debt service, which has final maturity in 2023, and to maintain their operating and maintenance expenses;

d) The commercialization of Itaipu energy was subrogated to the Company, originating from previously signed contracts with the distributors in which the payment conditions were previously defined.

e) Through Law No. 10,438 of April 26, 2002 the purchasing and transfer commitments were subrogated to the Company for distribution of electricity services of Itaipu Binacional signed up to then by Furnas and Eletrosul, subsidiaries of the Company, with the electric power distribution concessionaires. Debts from energy commercialization of Itaipu Binacional were renegotiated with the Company giving rise to financing agreements. Such contracts were initially recorded at fair value and subsequently measured by the amortized cost, using the effective interest method.

f) The terms of the agreement guarantee the reimbursement the Company even in cases of absence of power generation capacity or operational problems with the plant.

V. Financial asset – Public Service Concessions.

The Company recognizes a credit receivable from the power grantor (or form whomever the power grantor has granted it) when it has unconditional right to receive cash at the end of the concession in relation to compensation for investments made by distributors, electric power generators and transmitters, and not recovered through the provision of concession-related services. These financial assets are recorded at present value and are calculated based on the estimated portion of the investments and not amortized or depreciated until the end of the concession. The distribution assets are remunerated on the basis of the regulatory remuneration Weighted Average Cost of Capital -WACC (cost of capital), with this factor being included in the tariff base and the generation and transmission are remunerated on the basis of the internal rate of return of the project. In the case of generation, only the assets linked to concessions directly affected by Law No. 12,783/2013 and formed beginning with the mentioned Law, are considered financial assets that will be remunerated in the same forms as the transmitters, since the acquisition of such assets is approved by the MME and the ANEEL.

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These accounts receivable are classified between current and non-current considering the expectation of receipt of these values, based on the date of closure of the concessions.

3.11. Intangible assets

The Company recognizes as an intangible asset the right to charge users for the services provided for distribution of electricity (for generation of the Amazonas Energia infrastructure, which has an exclusive connection with the distribution activity of this Company, and is also classified as intangible). The intangible asset is determined as being the residual value of construction income earned for the construction or acquisition of infrastructure held by the Company and the value of the financial asset in relation to the unconditional right to receive cash at the end of the grant as compensation.

The asset is presented net of accrued amortization and of losses due to the reduction in recoverable value (impairment), when applicable.

The amortization of intangible assets reflects the pattern in which the future economic benefits are expected to be consumed by the Company, or the end of the concession period, or whichever occurs first. The consumption pattern of assets is related to their economic useful life, considering that the assets constructed by the Company are part of the basis of calculation for measuring the tariff for concession services.

The amortization of the intangible asset begins when it is available for use, at its location and in the necessary condition for it to be able to operate in the manner intended by the Company. Depreciation ceases when the asset has been fully consumed or written down, or is no longer integrated in the calculation base of the tariff for concession services, whichever occurs first.

The Company performs annually recoverability of assets test using the present value method of the future cash flows generated by the asset, considering that there is no active market for the assets connected with the concession. (See Note 20).

Intangible assets comprise basically the usage rights of the concession, but also include goodwill on acquisition of investments and specific expenses associated with the acquisition of rights, plus the respective costs of deployment, when applicable.

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Intangible assets with defined useful lives, purchased separately, are recorded at cost, deducting amortization and losses due to the reduction in the accrued recoverable value. Amortization is recognized linearly based on the estimated useful life of the assets. The estimated useful life and the depreciation method are reviewed at the end of each financial year and the effect of any changes in the estimate is accounted for prospectively.

Intangible assets with indefinite useful lives, purchased separately, are recorded at cost, deducting amortization and losses due to the reduction in the accrued recoverable value.

3.11.1. Concessions for Valuable Consideration (Use of Public Asset - UBP)

The Company and certain subsidiaries have contracts for concessions for valuable consideration with the Government for the use of public assets for the generation of electric power in certain plants.

The values identified in the contracts are the future prices and, therefore, the Company and those subsidiaries have adjusted these contracts to the present value based on the discount rate determined on the date of the obligation.

The update of the obligation in relation to the discount rate and monetary variation, defined in the concession agreement is capitalized in the asset, during the construction of the power plants and from the date of entry into commercial operation, it is recognized directly in the income.

These assets are recorded in intangible assets offsetting the noncurrent liabilities.

3.11.2. Expenses with Studies and Projects

Expenses incurred with studies and projects, including feasibility studies and hydroelectric plant inventories and power transmission lines, are recognized as operating expenditures, when incurred, and until it has effective proof of the economic viability of their use or the granting of the concession or authorization. From the concession and/or authorization for use of the public service of electricity or the evidence of economic viability of the project, the expenses incurred are capitalized as cost of development of the project. Currently, the Company does not have capitalized values regarding spending on studies and projects.

3.12. Recognition of the receivables and the Installment A obligations and other financial items

On November 25, 2014, the ANEEL decided to add the concession contracts and permits, of the electricity distribution companies in Brazil, in order to eliminate any uncertainty, until then existing, with regard to the recognition and realization of time differences, whose values are passed annually on to the tariff for electrical energy distribution – Installment A (CVA) and other financial components. Pursuant to the addendum issued by the ANEEL, the regulatory body guarantees that the CVA values and other financial components will be incorporated in the calculation of compensation, at the end of the concession.

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As a consequence, the Technical Guideline - OCPC08 (“OCPC08”) was issued by the CPC which has as its objective to address the basic requirements for recognition, measurement and disclosure of these assets or financial liabilities that are characteristic of the unconditional right (or obligation) to receive (or to deliver) cash or another financial instrument to a clearly identified counterpart.

In accordance with OCPC 08, the addendum to the Concession Contracts, represented a new element that ensures, from the date of its signature, the right or imposes an obligation on the concessionaire receiving or paying for the assets and liabilities in relation to the counterparty – the Granting Authority. This new event changes, from that date, the environment and the previously existing contractual terms and extinguishes the uncertainties regarding the ability of realization of the asset or enforcement of the liability. These are conditions, therefore, that differ in essence from those which occurred previously.

The effects of the addendum to the concession agreement and permission are not the nature of the accounting policy change, but, indeed, of a new situation and, consequently, their application was be prospective. Therefore, the record of the amounts receivable (obligations) was effected in asset (or financial liability) accounts, where appropriate, in contrast to the income or loss for the financial year (income from sale of goods and services).

3.13. Impairment of non-financial assets, excluding goodwill

At the end of each financial year, the Company assesses whether there is any indication that their non-financial assets have suffered any impairment losses. If any such indication exists, the recoverable amount of the asset is estimated in order to measure the amount of that loss. When it is not possible to estimate the recoverable amount of an asset individually, the Company calculates the recoverable amount of the cash-generating unit to which the asset belongs.

When a reasonable and consistent allocation basis can be identified, the corporate assets are also allocated to the individual cash-generating units or to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

In assessing the usage value, estimated future cash flows are discounted to present value at a discount rate that reflects current market assessment: the time value of the currency and the risks specific to the asset for which the future cash flow estimation was performed.

If the recoverable value of an asset (or cash-generating unit) calculated is less than its book amount, the book value of the asset (or cash-generating unit) is reduced to its recoverable value. The impairment loss is recognized immediately in income statement.

When the impairment loss is subsequently reversed, an increase in the book value of the asset (or cash-generating unit) occurs, in relation to the revised estimate of its recoverable value. This increase may not exceed the book value that would have been determined if no impairment loss had been recognized for the asset (or cash-generating unit) in previous years. The reversal of the impairment loss is recognized immediately in income statement.

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3.14. Goodwill

The goodwill arising from a business combination is stated at cost on the date of the business combination, net of accumulated loss in recoverable value, if applicable.

For the purpose of impairment test, the goodwill is allocated to each of the Company’s cash-generating units (or groups of cash-generating units) that will benefit from the synergies of the combination.

Considering that the investment operations of the Company are linked to operations that have concession contracts, the goodwill arising from the acquisition of such entities represents the entitlement right of concession with defined useful life, being recognized as an intangible asset of the concession, and the depreciation made in accordance with the period of the concession.

3.15. Non-current assets held for sale

Non-current assets and groups of assets are classified as held for sale should their accounting value be recovered mainly by means of a sale transaction and not by continuous use. This condition is met only when the asset (or group of assets) is available for immediate sale in their current status, subject only to usual terms for the sale of such asset (or group of assets), and its sale is deemed as highly probable. The Management must be committed with the sale, which is expected to be considered, upon recognition, as concluded sale within a year from the date of classification.

When the Company is committed with a sales plan that involves the loss of control of a subsidiary, when criteria in the above paragraph are met, all assets and liabilities held by this subsidiary are classified as held for sale in the consolidated financial statements, even when after the sale the Company still holds some equity in the company.

Non-current assets (or group of assets) classified as held for sale are measured by the lower value between the accounting value previously recorded and the fair value less cost of sale. Assets and liabilities related are presented separately at the balance sheet.

3.16. Business combinations

In the consolidated financial statements, business acquisitions are accounted for by the acquisition method. The consideration transferred in the business combination is measured at fair value. This fair value is calculated by the sum of the fair values of the assets transferred to the Company and of the liabilities entered into by the Company, at the date of purchase, with the old controllers of the purchased company and the shares issued by the Company in exchange for control of the purchased company. Acquisition-related costs are generally recognized in the income statement when incurred.

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At the date of acquisition, the assets acquired and liabilities assumed that are identifiable are recognized by the fair value at the date of acquisition, except for:

● assets or deferred tax liabilities and assets and liabilities related to benefit agreements with employees, which are recognized and measured in accordance with IAS 12 - Income Taxes and IAS 19 - Employee Benefits (equivalent to CPC 32 and CPC 33), respectively;

● liabilities or equity instruments, related to payment arrangements based on shares of the purchased company or payment arrangements based on Group shares, concluded in substitution of payment arrangements based on shares of the purchased company that are measured in accordance with IFRS 2 - Payments Based on Shares (equivalent to CPC 10(R1)) at the date of purchase; and

● assets (or groups for disposal) classified as held for sale in accordance with IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations (equivalent to CPC 31), which are measured according to this standard.

The goodwill is measured as the excess of the sum: (1) of the consideration transferred; (2) for the value of the non-controlling shares of the purchased company and; (3) for the fair value of the shares of the purchaser previously held in the purchased company (if any) over the net values, at the date of purchase, of the assets acquired and liabilities assumed that are identifiable. If, after the valuation, the net values of the identifiable assets acquired and liabilities assumed at the date of acquisition are greater than the sum: (1) of the consideration transferred; (2) the value of the non-controlling shares in the purchased company and; (3) the fair value of the shares of the purchaser previously held in the purchased company (if any), the excess is recognized immediately in income as a gain.

The non-controlling shares, corresponding to the current holdings and which give their holders the right to a proportional share of the net assets of the entity, in the case of liquidation, may be initially measured at fair value. They may also be measured on the basis of the proportional part of the non-controlling shares in the recognized values of the identifiable net assets of the purchased company. The selection of the method of measurement is made on a transaction by transaction basis. Other types of non-controlling shares are measured at their fair value or, where applicable, as described in another IFRS and CPC.

When the consideration transferred by the Company, in a business combination, includes assets or liabilities resulting from an agreement of the contingent consideration, the contingent consideration is measured at fair value at the date of acquisition. In addition, it is included in the consideration transferred in the business combination. The variations in the fair value of contingent consideration, classified as measurement period adjustments, are adjusted retroactively, with the corresponding adjustments in the goodwill. Measurement period adjustments correspond to adjustments resulting from additional information obtained during the “measurement period” and the related facts and circumstances existing at the date of acquisition. The measurement period shall not exceed one year from the date of purchase.

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Subsequent accounting for variations in the fair value of the contingent consideration, not classified as measurement period adjustments, depends on the form of classification of the contingent consideration. The contingent consideration classified as equity is not revalued on the dates of subsequent financial statements and its corresponding liquidation is accounted for in equity. The contingent consideration classified as an asset or liability is revalued on the dates of subsequent financial statements in accordance with IAS 39 (equivalent to CPC 38), or IAS 37 - Provisions, Contingent Liabilities and Contingent Assets (equivalent to CPC 25), as applicable, and the corresponding gain or loss is recognized in the income.

When a business merger is performed in stages, the shares previously held by the Company in the purchased company are revalued at fair value at the date of acquisition (i.e. the date on which the Company acquires the control) and the corresponding gain or loss, if any, is recognized in the income. The values of the shares in the purchased company prior to the date of acquisition, which were previously recognized in “other comprehensive income” are reclassified in the income, to the extent that such treatment is appropriate if that participation is divested.

If the initial accounting for a business combination is incomplete at the close of the period in which this combination occurred, the Company records the provisional values of the items whose accounting is incomplete. These provisional values are adjusted during the measurement period (see above), or additional assets and liabilities are recognized to reflect the new information obtained related to facts and circumstances existing at the date of acquisition which, if known, would have affected the values recognized at that date.

Business combinations that occurred up to December 31, 2008 were accounted for in accordance with CVM Instruction 247/1996. The goodwill and negative goodwill recorded on acquisitions of holdings of non-controlling shareholders after January ¹, 2009, the date of initial adoption of the IFRS, are allocated entirely to the concession contract and recognized in the intangible assets.

3.17. Taxation

Expenses related to income tax and social contributions represent the sum of the current and deferred taxes. Additionally, the option of calculating taxes on the results of the Company is by the method of actual profits.

3.17.1. Current taxes

The provision for income tax (IRPJ) and social contributions (CSLL) is based on the taxable income for the year. Taxable income differs from income presented in the income statement because it excludes taxable income or expenses deductible in other periods, in addition to deleting items that are not taxable or not deductible on a permanent basis. The provision for income tax and social contributions is calculated individually for each company based on the Company’s current rates at the end of the period.

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3.17.2. Deferred taxes

The deferred income tax and social contributions are recognized at the end of each reporting period, on temporary differences between the balances of assets and liabilities recognized in the financial statements and the corresponding tax bases used in the computation of taxable income, including the balance of tax losses, when applicable. The deferred tax liabilities are generally recognized for all taxable temporary differences and deferred asset taxes are recognized on all deductible temporary differences, only when it is probable that the Company will present sufficient future taxable income in relation to which these deductible temporary differences can be utilized, considering the profitability history as well.

The recovery of the balance of deferred asset taxes is reviewed at the end of each reporting period and, when it is no longer probable that future taxable income will be available to allow the recovery of all or part of asset the balance of the asset is adjusted by the amount which is expected to be recovered.

Deferred asset and liability taxes are measured by the tax rates applicable in the period in which the liability is expected to be settled or the asset is realized, based on tax rates provided for by the legislation in effect at the end of each reporting period, or when new legislation has been substantially approved. The measurement of deferred tax on liabilities and assets reflects the tax consequences that would result in the manner which the Company expects, at the end of each reporting period, to recover or liquidate the book value of these assets and liabilities.

The current and deferred taxes are recognized in the income, except when they correspond to items recorded in other comprehensive income, or directly in equity, in which case the current and deferred taxes are also recognized in other comprehensive income or directly in net equity, respectively. When the current and deferred taxes originate from the initial accounting for a business combination, the tax effect is considered in the accounting of the business combination.

3.18. Financial instruments

Assets and financial liabilities are recognized when an entity of the Company is a party to the contractual provisions of the instrument.

Assets and financial liabilities are initially measured at fair value.

Transaction costs directly attributable to the acquisition or issue of financial assets and liabilities (except for financial assets and liabilities recognized at fair value in the income) are added or deducted from the fair value of the assets or financial liabilities, if applicable, after the initial recognition. Transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through income or loss are recognized immediately in income.

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3.18.1. Financial assets

Financial assets are classified into the following specific categories: financial assets at fair value through income or loss, investments held to maturity, financial assets available for sale and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined on the date of initial recognition.

Financial assets at fair value through income or loss

A financial asset is classified as held for negotiation if:

(a)

It is purchased primarily to be sold in the short term; or

(b)

On initial recognition is part of a portfolio of identified financial instruments that the Eletrobras system manages as a group and has a recent actual pattern of short-term income taking; or

(c)

It is a derivative that has been designated as an effective hedge instrument.

A financial asset held for negotiation, in addition, can be designated at fair value through income or loss on initial recognition if:

(a)

Such a designation eliminates or reduces significantly an inconsistent measurement or recognition that would otherwise would arise; or

(b)

The financial asset is part of a managed group of assets or financial liabilities or both, and

(c)

Their performance is evaluated on a fair value basis, in accordance with a documented risk management strategy or investment of the Company, and when information about the grouping is provided internally on the same basis; or

(d)

It is part of a contract containing one or more embedded derivatives and IAS 39 - Financial instruments: Recognition and Measurement (equivalent to CPC 38) permits the combined contract (asset or liability) to be fully assigned to fair value through income or loss.

Financial assets are classified at fair value through income or loss when they are held for negotiation with the purpose of selling in the short term or designated by fair value through income or loss.

Financial liabilities at fair value through income or loss are shown at fair value, and gains or losses are recognized in the income. Net gains and losses recognized in the income incorporate the dividends or interest earned by the financial asset, being included under other financial income and expenses in the income statement.

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(a)	Held to maturity investments

Investments held to maturity are non-derivative financial assets with fixed or determinable payments and fixed maturity that the Company has the positive intention and ability to hold to maturity. After initial recognition, investments held to maturity are measured at amortized cost using the effective interest method, less any impairment losses.

(b)	Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables (including trade accounts receivable and others, cash and cash equivalents, accounts receivable of Installment A and others) are initially recorded at their purchase price, which is the fair value of the price paid, including transaction expenses. After initial recognition, they are measured at amortized cost value using the effective interest method, less any impairment losses.

The interest income is recognized by applying the effective interest rate.

(a)	Financial assets available for sale

Financial assets available for sale are non-derivative financial assets that are designated as available for sale and not classified as:

1) Financial assets at fair value through income or loss

2) Investments held to maturity, or

3) Loans and receivables.

Changes in the book value of financial assets available for sale related to variations in exchange rates, income from interest calculated using the effective interest method and dividends on stock investments available for sale are recognized in income. Changes in the fair value of available for sale financial assets are recognized in Other comprehensive results. When the investment is disposed of impairment, the cumulative gain or loss previously recognized in the Other comprehensive income account is reclassified to income.

3.18.2. Impairment of non-financial assets

Financial assets, except those designated at fair value through the income or loss, are evaluated for indicators of impairment indexes in the end of each reporting period. The impairment losses are recognized if, and only if, there is objective evidence of impairment of the financial asset as a result of one or more events that occurred after their initial recognition, with an impact on the estimated future cash flows of that asset.

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In the case of equity investments classified as available for sale, a significant or prolonged decline in the fair value of the title, below its cost, it is also evidence that the assets are deteriorated. If any evidence of this type exists for financial assets available for sale, the cumulative loss will be removed from equity and recognized in the consolidated income statement. This cumulative loss is measured as the difference between the acquisition cost and the current fair value, less any impairment loss on recoverable value, over the financial asset previously recognized in the income statement. Impairment losses recognized in the income statement on equity instruments are not reversed through the consolidated income statement. If, in a subsequent period, the fair value of a debt instrument classified as available for sale increases and the increase can be objectively related to an event that occurred after the impairment loss has been recognized in income, the impairment loss is reversed through an entry in income.

For certain categories of financial assets, such as accounts receivable, assets are evaluated collectively, even if they do not present evidence that they are recorded for the value greater than that recoverable, when evaluated on an individual basis. Objective evidence of impairment for a credit portfolio may include: the past experience of the Company in the collection of payments and the increase in the number of late payments, after the average period of receipt, as well as observable changes in national or local economic conditions related to non-payment of receivables.

For financial assets recorded at the amortized cost value, the impairment recorded corresponds to: the difference between the book value of the asset and the present value of the estimated future cash flows, discounted by the original effective interest rate of the financial asset.

For financial assets recorded at cost, the impairment amount corresponds to the difference between the book value of the asset and the present value of the estimated future cash flows, discounted by the current rate of return for a similar financial asset. That loss due to the reduction in the recoverable value will not be reversed in subsequent periods.

The book value of the financial asset is reduced directly by impairment loss for all financial assets with the exception of receivables, where the book value is reduced through the use of a provision. Subsequent recoveries of amounts previously provisioned are credited to the provision. Changes in the book value of the provision are recognized in the income statement.

For financial assets recorded at amortized cost, if in a subsequent period the amount of the loss from the reduction in the recoverable value decreases and the decrease can be related objectively to an event occurring after the reduction in the recoverable value has been recognized, the previously recognized loss is reversed through income, since the book value of the investment at the date of this reversal does not exceed the amortized cost if the reduction in the impairment had not been recognized.

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3.18.3. De- recognition of financial assets

The Company desrecognize a financial asset only when the contractual rights to the cash flows from the asset expire or are transferred along with the risks and benefits of ownership. If the Company does not transfer or retain substantially all the risks and rewards of ownership of the financial asset, but continue to control the transferred asset, the Company recognizes the participation retained and its liabilities on the values that it will have to pay. If retains substantially all the risks and rewards of ownership of the financial asset transferred, the Company continues to recognize this asset, in addition to a loan guaranteed by the income received.

In the derecognition of a financial asset, the difference between the book value of the asset and the sum of the consideration received and receivable and the accrued gain or loss that has been recognized in the Other comprehensive income account and accrued in equity is recognized in income statement.

3.18.4. Financial liabilities and equity instruments

Debt and equity instruments issued by an entity of the Eletrobras system are classified as financial liabilities or equity, in accordance with the nature of the contractual agreement and the definitions of financial liabilities and equity instruments. An equity instrument is a contract that evidences a residual interest in the assets of a company after deducting all its liabilities. Equity instruments issued by the Eletrobras system are recognized when resources are received, net of direct costs of issuance.

Financial liabilities are classified as financial liabilities at fair value through income or other financial liabilities.

The other financial liabilities, which include loans and financing, suppliers, and other accounts payable are measured at amortized cost value using the effective interest method.

The effective interest method is used for calculating the amortized cost of a financial liability and to allocate its interest expense for the period. The effective interest rate is the rate that exactly discounts the estimated future cash flows (including fees and points paid or received that constitute an integral part of the effective interest rate, transaction costs and other premiums or discounts) throughout the estimated life of the financial liability or, where appropriate, for a smaller period, for the initial recognition of the net book value.

3.18.5. De-recognition of financial liabilities

The Company reduces financial liabilities only when the Company’s obligations are extinguished and cancelled or when they expire. The difference between the book value of financial liabilities written down and the consideration paid and payable is recognized in income statement.

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3.18.6. Financial guarantee contracts

A financial guarantee contract consists of contract that requires the issuer to make specified payments in order to reimburse the holder for loss incurred due to the fact the debtor specified does not make the payment on the due date, according to the initial or amended terms of the debt instrument.

Financial guarantees are initially recognized in the financial statements at fair value on the date of issuance of the guarantee. Subsequently the obligations concerning guarantees are measured by the greatest initial value less the depreciation rates recognized, and the best estimate of the value required to liquidate the guarantee.

These estimates are defined on the basis of experience with similar transactions and in the history of past losses and in the judgment of the administration of the Company. Fees received are recognized based on the straight-line method over the life of the guarantee. Any increased obligations in relation to guarantees are presented when occurring in the operating expenses (see Note 22).

3.18.7. Derivative financial instruments

The Company has derivative financial instruments to manage its exposure to interest rate and foreign exchange risks, including fixed-term exchange contracts, interest rate and currency swaps. Note 44 includes more detailed information about the derivative financial instruments.

Derivatives are initially recognized at fair value on the date of the contract, and are subsequently remeasured at fair value at the end of the financial year. Any gains or losses are recognized in income immediately, unless the derivative is designated and effective as a hedge instrument; in this case, the moment of recognition in income depends on the nature of the hedging relationship.

(See item 3.18.9)

3.18.8. Embedded derivatives

Derivatives embedded in non-derivative, principal contracts are treated as a separate derivative when their risks and characteristics are not closely related to those of the principal contracts and these are not measured at fair value through profit or loss.

3.18.9. Hedge accounting

The Company has a hedge accounting policy and derivative financial instruments accounting designated as hedging operations, which are initially recognized at fair value on the date on which the derivative contract is taken out, being also subsequently revalued at fair value. Derivatives are presented as financial assets when the fair value of the instrument is positive, and as liabilities when the fair value is negative.

At the beginning of the hedging relationship, the Company documents the relationship between hedging instrument and the hedged item, with its objectives in risk management and its strategy to assume various hedging transactions. Additionally, at the beginning of the hedge and in an ongoing manner, the Company documents if the hedge instrument used in a hedging relationship is highly effective in offsetting changes in fair value or cash flow of the hedged item attributable to the risk of the hedge.

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For the purpose of hedge accounting, the Company uses the following classifications:

(a)	Hedging at the fair value

Changes at the fair value of the derivatives are designated and classified as fair value hedges are recorded in income with any changes in the fair value of the hedged items attributable to the risk covered. Changes in the fair value of the hedging instruments and the hedged item, attributable to the risk of hedging are recognized in income.

The hedge accounting is discontinued prospectively when the Company cancels the hedging relationship, the hedging instrument expires or is sold, terminated or executed, or when it is no longer classified as hedge accounting. The adjustment to fair value of the hedge item, originating from the risk of hedging, is recorded in income or loss from that date.

(b)	Cash flow hedging

The effective portion of changes in the fair value of derivatives, which is designated and qualified as hedging of cash flow, is recognized in the other comprehensive income account. The gains or losses related to the part not effective are recognized immediately in income.

The values previously recognized in other comprehensive income account and accrued in equity are reclassified to the income in the financial year in which the item which is the subject of the hedge is recognized in income statement.

Hedge accounting is discontinued when the Company cancels the hedging relationship, the hedging instrument expires or is sold, terminated or executed, or does not qualify any more as hedge accounting. Any gains or losses recognized in other comprehensive income and accrued in equity, as of that date, remain in equity and are recognized when the forecasted transaction is ultimately recognized in income. When nothing more is expected than the projected transaction to occur, the gains or losses accrued and deferred in equity are recognized immediately in income statement.

The Company uses derivative financial instruments for its management of financial risks, as described in Note 44. Beginning on October 1, 2013, the Company adopted accounting procedures for hedging in conformance with the provisions of CPC 38 (IAS 39) for the purpose of reducing the volatility in the financial statements generated by the marketing of derivative financial instruments and greater transparency of the Risk Management activities of the Company.

From the initial date, the Company has designated its hedges of interest rates as a Cash Flow Hedge, and for this reason, the effective variation of the fair value of the hedging instruments will be represented in the Other comprehensive income account. As the debt protected is recognized in the financial results, the variation of the fair value represented in Other comprehensive income of the hedge is recognized in the financial results based on the effective interest rate. Each quarter effectiveness tests are performed to assess whether the derivative instruments effectively protect and should continue to protect related debt. If during the effectiveness test there is an ineffective portion, this value is recognized immediately in the financial results.

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Each hedge relationship is documented so that the debt protected is identified, the derivative, the objective, the strategy of risk management, the contractual terms are designated for Hedge Accounting and the method of measurement of prospective and retrospective effectiveness is indicated.

3.19. Post-employment benefits

3.19.1. Retirement liabilities

The Company and its subsidiaries sponsor various pension plans, which are generally funded by payments to these pension funds, determined by periodic actuarial calculations. The Company has defined benefit plans and also defined and variable contribution plans. In defined contribution plans, the Company makes fixed contributions into a separate entity. Additionally, it does not have any legal obligations to make contributions, if the fund does not have sufficient assets to pay all employees the benefits relating to the services provided in the current and previous periods tied to this kind of plan. A defined benefit plan is different from a defined contribution plan, since, in these defined benefit plans, a retirement benefit amount that an employee will receive on retirement is established, usually dependent on one or more factors such as age, length of service and remuneration. In this type of plan, the Company has an obligation to honor the commitment, if the fund does not have sufficient assets to pay all employees the benefits relating to the services provided in the current and previous periods connected with this kind of plan.

The liability recognized in the Balance Sheet with respect to defined benefit plans is the present value of the defined benefit obligation on the date of the balance sheet, less the fair value of the assets of the plan. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows. Interest rates used in this discount are consistent with market securities, which are denominated in the currency in which the benefits will be paid and that have upcoming maturities of those of the respective obligation of the pension plan.

Actuarial gains and losses arising from adjustments based on experience, in changes in actuarial assumptions and the income of the assets of the plan, are debited or credited in other comprehensive income.

Service costs passed on are recognized immediately in income statement in the period of occurrence of a change of the plan.

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With regard to defined contribution plans, the Company makes the payment of contributions in a mandatory, contractual or voluntary manner. The Company has no additional payment obligations once the contributions is made. The contributions are recognized as employee benefit expense when due. Contributions made in advance are recognized as an asset in the proportion in which a cash refund or a reduction in the future payments may be available.

3.19.2. Other post-employment obligations

Some companies of the Company offer post-retirement health care benefits to their employees, in addition to life insurance for active and inactive employees. The entitlement to these benefits is usually conditional upon the employee staying in the job until retirement age and the completion of a minimum time of service, or the disability of the employee in relation to being an active employee.

The expected costs of these benefits are accrued over the period of employment, employing the same accounting methodology that is used for the defined benefit pension plans. Actuarial gains and losses arising from adjustments based on experience, in changes in actuarial assumptions, are debited or credited in other comprehensive income, in the period expected for remaining service of the employees. These obligations are evaluated annually by qualified, independent actuaries.

3.19.3 Termination Benefits

Termination benefits are payable when employment is terminated by the Eletrobras system before the normal retirement date, or whenever an employee accepts voluntary termination in exchange for these benefits. The Eletrobras System recognizes termination benefits on the first of the following dates: (i) when the Eletrobras System no longer can withdraw the offer of these benefits; and (ii) when the entity recognizes the restructuring costs that are within the scope of the CPC 25/IAS 37 and involve the payment of termination benefits. In the case of an offer made to encourage voluntary termination, termination benefits are measured based on the number of employees who, hopefully, will accept the offer. The benefits that expire after 12 months from the balance sheet date are discounted to present value.

3.20. Provisions

Provisions are recognized for present obligations (legal or presumed) resulting from past events, in which it is possible to estimate reliably values and whose liquidation is probable. The amount recognized as a provision is the best estimate of the considerations required to liquidate the obligation at the end of each reporting period, taking into consideration the risks and uncertainties related to the obligation. When the provision is measured on the basis of estimated cash flows to settle the obligation, its book value corresponds to the present value of those cash flows (in which the effect of the time value of money is relevant).

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When some or all of the economic benefits, required for the liquidation of a provision, can be recovered from a third party, an asset is recognized if, and only if, the reimbursement is virtually certain and the value can be measured reliably.

3.20.1. Provision for assets decommissions

As provided for in IAS 37 - Provisions, Contingent Liabilities and Contingent Assets (equivalent to CPC 25) a provision throughout the economic useful life of thermonuclear plants is constituted. The purpose of this provision is to allocate to its period of operation the costs to be incurred in relation to its technical and operational deactivation, at the end of its useful life, estimated at 40 years.

The values are charged to income or loss for the financial year at present value based on annual rates fixed in U.S. dollars, the ratio of 1/40 of the estimated expenses, recorded immediately and converted by the exchange rate at the end of each period of validity (see Note 32).

3.20.2. Provision for legal obligations connected with legal proceedings.

Provisions for legal contingencies are constituted, whenever the loss is evaluated as probable and the amount is subject to reliable estimate. In this case, such a contingency would cause a probable outflow of resources for the liquidation of obligations and the amounts involved and would be measurable with sufficient security, taking into consideration the opinion of legal advisors, the nature of the actions, similarity with previous processes, complexity and the positions of the courts (case law).

3.20.3. Onerous Contracts

Present obligations resulting from contracts for valuable consideration are recognized and measured as provisions. A contract for valuable consideration exists when the unavoidable costs to satisfy the obligations of the contract exceed the economic benefits expected to be received throughout the same contract.

3.21. Advance for future capital increase

Advances of resources received from the controlling shareholder and for capital contribution shall be granted in an irrevocable character. They are classified as noncurrent liabilities and initially recognized at fair value and subsequently updated by the contractually established index.

3.22. Share capital

The common shares and preferred shares are classified in net equity.

Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction of the value entered, net of taxes.

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When the Company purchases its own shares (treasury shares), the amount paid, including any directly attributable incremental costs (net of income taxes), is deducted from the shareholders’ equity of the Company until the shares are cancelled or reissued. When these shares are subsequently reissued, any value received, net of any additional costs of the transaction, directly attributable and the respective effects of the income tax and social contribution, is included in shareholders’ equity of the Company.

3.23. Interest on shareholders’ equity and dividends

Interest on shareholders’ equity is imputed to dividends for the year being calculated taking as a limit a percentage on the equity, using the Long-Term Interest Rate – TJLP established by the Brazilian Government, as required by law, limited to 50% of net income for the year or 50% of the income reserves, before including the income from the period, whichever is greater.

The value of dividends above the mandatory minimum established by Law or another legal instrument, not yet approved in the General Assembly, are presented in Shareholders’ Equity, in a specific account called additional proposed dividends.

3.24. Other comprehensive income

Other comprehensive income includes income and expense items that are not recognized in the income statement. The components of other comprehensive income include:

Actuarial gains and losses on defined benefit pension plans;

Gains and losses arising from conversion of financial statements of foreign operations;

Equity valuation adjustment on the income and loss on in the remeasurement of financial assets available for sale; and

Equity valuation adjustment relating to the effective portion of gains or losses on hedging instruments in the hedging of cash flow.

3.25. Income recognition

Income is measured at the fair value of the consideration received or receivable, deducting any estimates of returns and other similar deductions.

3.25.1. Sale of energy and services

a) Generation and Distribution

Distribution income are classified as: i) Supply (sale) of Electrical Power to distributors; ii) Electrical power supply to the consumer, and; iii) Electrical Power in the Short-Term market. Income is measured at the fair value of the consideration received or receivable, net of taxes and of any discounts incident on it. Income from energy sales and services is recognized when it is probable that the economic benefits associated with the transactions will flow to the Company; the value of the income can be measured reliably; the risks and benefits related to the sale were transferred to the buyer; the costs incurred or to be incurred related to the transaction can be measured reliably; and the Company no longer holds control and responsibility over the energy sold. Construction income connected with the segment of electric power distribution and part of generation covered in the scope of the ICPC 01 / IFRIC 12 are also included..

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For generating concessions renewed under Law No. 12,783/2013, there was a change of the price system for tariffs, with periodic tariff review in the same manner already applied to the transmission activity up to then. The rate is calculated on the basis of operation and maintenance costs, plus the rate of 10%, with the income being recorded for coverage of operation and maintenance expenses on the basis of the cost incurred.

b) Transmission

1) Financial income arising from the remuneration of the financial asset, until the end of the concession period, earned in a prorated manner takes into consideration the average rate of return on investments.

2) Income for coverage of operation and maintenance expenses on the basis of the cost incurred.

3) Income from infrastructure development is recognized in the results in relation to the stage of completion of the work, in accordance with the stipulations in the CPC 17 (R1) technical pronouncement (equivalent to IAS 11) and measured based on fair values. Infrastructure development costs are recognized as they are incurred. The margin of construction adopted is established as being equal to zero, considering that:

(i) The Company activity is the transmission of electricity;

(ii) The entire income of construction is related to the construction of infrastructure for its activity, i.e., the transmission of electricity.

(iii) The Company outsources the infrastructure construction with unrelated parties.

3.25.2. Income from dividends and interest

Income from dividends from investments is recognized when the shareholder’s right to receive this dividend is established and provided that it is probable that the future economic benefits will flow to the Company and the value of the income can be measured reliably.

Income from a financial asset with interest is recognized when it is probable that the future economic benefits will flow to the Company and the value of the income can be measured reliably. The interest income is recognized by the straight-line method, based on time and at the effective interest rate on the amount of the outstanding principal. The effective interest rate is the one that discounts exactly the estimated future cash receipts during the estimated life of the financial asset in relation to the initial net book value of this asset.

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3.26. Commercial Leasing

According to the guidelines from Pronouncement CPC 06 (R1) - Commercial Leasing Operations and Technical Interpretation ICPC 03 - Complementary Aspects of Commercial Leasing Operations, it should be recorded in fixed assets that the Company holds rights over tangible assets intended for the maintenance of its activities, arising from financial commercial leasing that transfer to the lessee the benefits, risks and control of assets. At the beginning of the financial lease, these assets are capitalized at the lower value between the fair value of the leased and the present value of the minimum lease payments.

The financial leases are recorded as if they were a financed purchase, recognizing, at the time of purchase, a fixed asset and a financing liability (lease). Each installment paid of the lease is allocated partly to liabilities and partly to financial charges, so that in this manner a constant rate on the open debt balance is obtained. The corresponding obligations, net of finance charges, are included in other long-term liabilities.

Interest and other financial expenses are recognized in the income statement during the lease period, in order to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The fixed asset acquired through financial leasing (a) is classified as Non-Current Assets being amortized over its useful life (Note 23.3).

3.27. Government grants

Government grants are not recognized until there is reasonable assurance that the Company will meet the related conditions and that the grants will be received. Government grants are recognized systematically in the results during the periods in which the Company recognizes as expenses the related costs that the subsidy intends to compensate. Government grants receivable as compensation for expenses already incurred, with the purpose of offering immediate financial support to the Company, without corresponding future costs, are recognized in results of the period in which they are received and allocated to the income reserve and are not intended for the distribution of dividends.

3.28. Scheduled downtimes

Costs incurred prior to and during the shutdowns of power plants and transmission lines are charged to income in the period in which they are incurred.

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3.29. Calculation of the income or loss for the financial year

The income or loss is determined by the accounting system for the fiscal periods.

3.30. Earnings (Loss) per share

Basic earnings (loss) per share are calculated by dividing the income (loss) attributable to shareholders of the Company by the weighted average number of outstanding shares (total shares less the treasury shares). Diluted earnings (loss) per share are calculated by adjusting the weighted average number of shares outstanding to assume conversion of all diluted potential shares, in accordance with CPC 41 (IAS 33).

3.31. Presentation or reports by business segments

Operating segments are defined as business activities in relation to which income can be obtained and expenses incurred, whose operational reports are provided to the principal operating decision maker. The chief operating decision maker (“CODM”), who is responsible for resource allocation and for the evaluation of performance of the operating segments, is the Board of Directors, responsible for making the strategic decisions of the Company, which adopts the following segments:

(I)

Generation;

(II)

Transmission;

(III)

Distribution; and

(IV)

Administration.

There are no revenues derived from a single customer that represents 10 percent or more of the Company’s consolidated revenue for the years ended December 31, 2015 and 2013.

3.32. Added value statement - DVA

This statement is intended to provide evidence of the wealth created by the Company and its distribution, during a specific period. Is presented as required by Brazilian corporate legislation, as part of its separate financial statements and supplementary information to the consolidated financial statements, since it is not a planned statement and not compulsory in accordance with the IFRSs.

The DVA was prepared based on information obtained from the accounting records that serves as the basis of preparation of financial statements and following the provisions contained in the CPC 09 – Statement of Added Value. In its first part, it presents the wealth created by the Company, represented:

●

By gross income from sales, including the taxes incident on it, other income, including construction, and the effects of the allowance for doubtful accounts;

●

Through inputs acquired from third parties - cost of sales and purchases of materials, energy and services of third parties, including the taxes included at the time of acquisition, the effects of losses and recovery of asset values, and the depreciation and amortization; and,

●

Through the added value received from third parties – equity from unconsolidated companies, financial income and other income.

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The second part of the DVA presents the distribution of wealth among personnel, taxes, rates and contributions, third party capital remuneration and remuneration of shareholders’ equity.

NOTE 4 – ACCOUNTING ESTIMATES AND JUDGEMENTS

In applying the accounting policies, the Company Management must make judgments and prepare estimates regarding the book values of income, expenses, assets and liabilities, as well as the disclosures in the explanatory notes, on the base date of the financial statements, which are not easily obtained from other sources. The estimates and the respective assumptions are based on historical experience and other factors considered relevant. The estimates and underlying assumptions are revised on an ongoing basis. The effects of revisions made to accounting estimates are recognized in the period in which the estimates are revised, if the revision affects only that period, or also in later periods if the revision affects both the current period and future periods.

Although these estimates and assumptions are permanently monitored and reviewed by the Company Administration and its subsidiaries, the materialization in relation to the book value of income, expenses, assets and liabilities is inherently uncertain, due to its being based on judgment. Consequently, the Company may suffer effects arising out of the inaccuracy of these estimates and judgments that are substantial in future periods, that could have material adverse effects on the financial status, the result of activities and/or the cash flows.

Below, the main assumptions of the accounting estimates evaluated are presented as the most critical by the Administration of the Company and its subsidiaries, with respect to the future and other principal sources of uncertainty used which can lead to significant adjustments in financial values of assets and liabilities in the coming periods:

I.	Deferred tax assets and liabilities

Estimates of taxable income, the basis for the analysis of realization of net deferred tax assets, are based on the annual budgets and on the strategic plan, both reviewed periodically, as well as the profitability history. However, the future taxable income may be greater or less than the estimates considered by the Administration at the time of the definition of the need to record or not the amount of the deferred tax asset (see note 11).

II.	Provision for impairment of long-term assets

The Administration of the Company has considered assumptions and technical data in determining long-term asset recovery, to check if the fixed asset is not recorded in value that is higher than the recoverable value in the future, impairment should be recognized, depreciation by means of establishment of provision for losses. In this practice assumptions are applied, based on historical experience in asset management, together with the assets or cash-generating unit, and valuation practices usually used in the market. These assumptions may possible not be

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verified in the future, in particular in relation to the estimated economic useful life. Currently, the useful life adopted by the Company is in accordance with certain practices determined by the ANEEL, applicable on assets connected with the granting of the public electric power service, which may vary as a result of the periodic analysis of the economic useful life of assets, in effect. Additionally, the useful life is limited to the period of the concession only for operations within the scope of the ICPC 01/IFRIC 12.

Also they impact on determining the variables and assumptions used by the Administration of the Company and its subsidiaries in the determination of future discounted cash flows, for the purposes of recognition of the recoverable value of long-term assets, with various inherently uncertain events. Among these events are: the maintenance of electric power consumption levels; growth rate of economic activity in the country; and availability of water resources; beyond those inherent to the purpose of the periods of public electric power service concessions, in particular with regard to the value of their reversal at the end of the concession period. In this point, the assumption was adopted that the compensation is contractually provided, where applicable, through the new replacement value (VNR), for generation and transmission. These are the expected values of compensation at the end of the period of the electric power generation and, transmission concessions (see accounting practice in Note 3.11 and movement of supplies made in the period in Note 20). The most relevant was the discount rate used on cash flows, with the definition of a specific percentage for the generation segment, 7.00%. The rate used for Angra 3 considered specific characteristics of the nuclear segment, as well as assumptions related to financing, capital structure specific to the project and leveraged beta calculated upon assumptions used by ANEEL. The percentage used was 5.47%.

III.	Basis of determination of indemnification by the Federal Government on concessions

Law No. 12,783/2013, enacted on January 11, 2013, defined the new replacement value (VNR) as the basis for determining compensation by the power grantor in relation to public service concessions. The Company adopted, for the concessions still not extended, the assumption that the assets are reversible at the end of the concession contract. Following this assumption, for the concessions already extended, the values receivable from grantor, related to the Basic Grid of the Existing System – RBSE to investments made after the basic project of power plants and transmission lines (modernization and improvements) and thermal generation assets. These values are subject to approval by the ANEEL as disclosed in Note 2.1. The Company adopted the new replacement value (VNR), as a way of measuring the value to be indemnified by the Concession Grantor, of the portion of generation and transmission assets not fully depreciated at the end of the concession. For distribution assets the Regulatory Basis of Remuneration - BRR was defined for this measurement.

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IV.	Useful life of fixed assets

The Administration of the Company uses the criteria defined in ANEEL resolution 367, of June 2, 2009, in determining the estimated useful life of fixed assets, limited to the period of concession for the operations that are under the scope of ICPC 01/IFRIC 12, in order to understand that they present fairly the useful life (see Note 17).

V.	Provision for assets decommission

The Company recognizes a provision for decommissioning liabilities in relation to deactivation of assets related to its thermonuclear plants. To determine the value of the provision, assumptions and estimates are made in relation to discount rates, the estimated cost for decommissioning costs and removal of the entire local power plant and at the time expected in relation to the referred costs (see Note 32). The cost estimate is based on the legal and environmental requirements for the decommissioning costs and removal of the entire plant as well as the prices of products and services to be used at the end of its useful life.

VI.	Actuarial obligations

The actuarial obligations recorded are determined by actuarial calculations prepared by independent actuaries based on life expectancy of the participant (Table AT-2000), average age of retirement and inflation. However, the future actual results of benefits may be different from those existing and recorded in the accounting (see Note 30).

VII.	Provision for labor, tax and civil risks

Provisions for labor, tax and civil risks, when applicable, are incorporated for the risks with an expectation of probable loss, based on the evaluation of the Administration and of the internal and external legal advisors of the Company. The values provisioned are recorded on the basis of the estimates of the costs of outcomes of these contingencies. Contingent risks with a possible loss expectancy are disclosed by the Administration, with a provision not being constituted. This evaluation is supported by the judgment of the Administration, along with its legal advisors, considering the case law, decisions in initial and higher court instances, the history of any agreements and decisions, the experience of the Administration and of the legal advisors, as well as other applicable aspects. (See Note 31).

VIII.

Allowance for doubtful accounts - ADA

The Company records a provision concerning accounts receivable and loans granted that the Management believes there is uncertainty in relation to receipt. The ADA for clients is created based on amounts receivable from the residential consumer class and overdue for more than 90 days, from the commercial class and overdue more than 180 days, and from the industrial, rural, government, public illumination and public service classes overdue for more than 360 days. It also considers an individual analysis of securities receivable and each consumer’s balance, based on the Management’s experience regarding effective losses in the stock of real guarantees.

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The ADA on loans granted is created based on amounts receivable and overdue. This ADA is reversed whenever a debt is settled or renegotiated.

IX.	Evaluation of financial instruments

As described in Note 44, the Administration of the Company uses valuation techniques that include information that are not based on observable market data to estimate the fair value of certain types of financial instruments. Note 44 presents information about the main assumptions used in determining the fair value of financial instruments, as well as the analysis of the sensitivity of these assumptions. The Administration of the Company and its subsidiaries believes that the selected evaluation techniques and assumptions used are suitable to determine the fair value of the financial instruments.

X.	Onerous Contracts

The Company and the subsidiaries use assumptions related to economic costs and benefits of each contract for the determination of the existence or not of an onerous contract. In the case of long-term commitments such as purchase and sale of energy, one of the critical estimates in determining the amount of provision for the future sale of the contract is the Price of Settlement of Differences (PLD) the historical average approved by the Administration of the Company as a basis for the calculation of the provision of the onerous contract, exclusively for accounting purposes, as well as the discount rate used for the cash flows. The actual values of the PLD and/or of elements considered within the discount rate over the years can be higher or lower than the assumptions used by the Company. Additionally, the Company may have onerous contracts in concessions where the current expected cost for operation and maintenance is not fully covered by revenues (see Note 34).

XI.	Risks related to compliance with laws and regulations

Car Wash Operation

In 2014 the so-called “Car Wash Operation” was initiated, which according to public information, investigates the existence, of a supposed corruption scheme involving companies responsible especially for projects in Brazil’s infrastructure sector.

Due to the news published by the press in 2015 related to such Operation involving companies that also provide services to the subsidiary Eletrobras Termonuclear S.A. - Eletronuclear (“Eletronuclear”) (UTN Angra 3), and some specific purpose companies where Eletrobras or its subsidiaries appear as shareholder, 3 (three) commissions were organized at Eletrobras to verify the contracting processes of the companies in question. Considering the limitations of the work methods of these Commissions, the Board of Directors of Eletrobras decided to hire an independent law firm with the required expertise to conduct an independent investigation, aiming to evaluate the eventual existence of irregularities that violate the Foreign Corruption Practice Act (FCPA), the Brazilian anti-corruption Law and/or the code of ethics of Eletrobras in certain enterprises. The law firm Hogan Lovells was hired on June 10, 2015 for this purpose.

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This independent investigation was supervised by an Independent Commission for Investigation Management whose creation was approved by the Board of Directors of Eletrobras on July 31, 2015, for the purpose of ensuring the independence of the work performed by the firm Hogan Lovells. The members of the Commission are Dra. Ellen Gracie Northfleet, retired judge of the Federal Supreme Court, Dr. Durval José Soledade Santos, former director of the Comissão de Valores Mobiliários, and Dr. Manoel Jeremias Leite Caldas, a minority shareholders representative.

Also regarding the Car Wash Operation, it is important to note that on April 29, 2015, due to news concerning the alleged corruption scheme, the then President of Eletronuclear, Mr. Othon Luiz Pinheiro da Silva, requested a leave from his position and on August 4, 2015, he resigned from that position. Mr. Othon Luiz Pinheiro da Silva currently appears as defendant in a criminal lawsuit where Eletrobras requested to appear as assistant for the prosecution.

Regarding construction of Usina Angra 3, it is important to say that Eletronuclear has suspended the electromechanic assembly contracts and construction work contracts. The ANGRAMON consortium has filed a claim requesting termination of it´s contract. The preliminary injunction was not granted, and a final decision has not been issued yet.

Due to news mentioning the alleged involvement of the executive officer of Eletrobras Eletronorte, Mr. Adhemar Palocci and the executive officer of Eletrobras, Mr. Valter Luiz Cardeal, in the perpetration of alleged illegal acts related to the Car Wash Operation, on July 31, 2015, they both requested a leave from their positions as executive officers at Eletronorte and Eletrobras, respectively, and on August 5, 2015, Mr. Valter Luiz Cardeal requested leave from his position as member of the Board of Directors of CGTEE, Amazonas GT and Eletrosul. Mr. Adhemar Palocci and Mr. Valter Luiz Cardeal are still on leave.

To the extent that the investigation procedures carried out by the firm Hogan Lovells evolve and, is there are findings and relevant information and data sufficient for the Company to determine, under the terms in Brazilian and North-American legislation, eventual impacts on its Financial Statements, the appropriate legal and regulatory treatment will be applied

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Currently, as the investigation is still ongoing, it is not possible to identify and reflect eventual impacts, if any, related to these matters on these Financial Statements.

Filing of Form 20-F:

Since the the investigation procedures have not yet been completed, as described above, Eletrobras could not file Form 20-F on time for the year ended at December 31, 2014, and the New York Stock Exchange has granted an extension until May 18, 2016 for the Company to proceed with such filing. The filing of the 20-F Form is one of the governance requirements to keep Eletrobras’ stocks listed on this Stock Exchange.

NOTE 5 - CASH, CASH EQUIVALENTS AND RESTRICTED CASH


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
I - Cash and cash equivalents:
Cash and Banks		343,613		10,236		656,505		251,031
Financial applications		348,106		77,958		737,468		1,156,047

		691,719		88,194		1,393,973		1,407,078
II - Restricted cash:
CCC Funds		346,874		355,095		346,874		355,095
Trade - Itaipu		47,082		729,560		47,082		729,560
Trade - PROINFA		232,785		585,201		232,785		585,201
RGR Funds		20,692		73,669		20,692		73,669

		647,433		1,743,525		647,433		1,743,525

		1,339,152		1,831,719		2,041,406		3,150,603

The financial resources are maintained in the Banco do Brasil S.A., in accordance with the specific legislation for Mixed-Capital Companies under the control of the Federal Government, issued in Decree Law No. 1,290 of December 3, 1973, with amendments arising from Resolution 4,034, of November 30, 2001, the Central Bank of Brazil, which established new mechanisms for the applications of the companies that are members of the Indirect Federal Administration.

Financial applications for immediate liquidity are found in financial-extra-market investment funds, which have as a goal profitability in relation to the average referential rate of the Special System of Liquidation and Custody – SELIC, for the acronym in Portuguese.

Restricted cash – Are the resources collected by the respective funds that are used exclusively to meet their own regulatory provisions, and are not available to the Company.

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NOTE 6 MARKETABLE SECURITIES

By means of Resolution No. 3.284, of May 25, 2005 by the Central Bank of Brazil, it was established that the applications arising from resources of public enterprises and mixed-capital companies, that are members of the Indirect Federal Administration, can only be made in the off-market sector investment funds managed by Caixa Economica Federal and Banco do Brasil S.A., after the Company and its subsidiaries apply their resources in off-market Funds backed by public securities with substantially long-term maturity, which include both the enterprise investment program in the short term and the maintenance of the Company’s operating cash.

In relation to shares, the adjustment is made to present value. Investment certificates resulting from tax incentives of the Fundo de Investimento do Nordeste - FINOR and the Fundo de Investimentos da Amazônia – FINAM, for the acronym in Portuguese, are adjusted by provisions for losses on their realization and therefore are liquid.

The details of the securities are as follows:


PARENT COMPANY

CURRENT

Securities	Custodian Financing Agent	Expiration	Index	12/31/2015		12/31/2014
LTN	Banco do Brasil	After 90 days	Pre-fixed		2,740,281		332,211
LTN	CEF	After 90 days	Pre-fixed		214,210		13,315
NTN- B	Banco do Brasil	After 90 days	IPCA		275,094		-
NTN- F	Banco do Brasil	After 90 days	Pre-fixed		188,273		34,841
Committed Options	Banco do Brasil	-	-		-		41,104
Committed Options	CEF	-	-		36,668		347

TOTAL CURRENT					3,454,526		421,817


NON-CURRENT
Securities	12/31/2015	12/31/2014

FINOR/FINAM	916	1,240
BENEFICIARIES	190,847	203,425

TOTAL NON-CURRENT	191,763	204,665

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CONSOLIDATED

CURRENT

Securities	Custodian Financing Agent	Expiration	Index	12/31/2015		12/31/2014
LFT	Banco do Brasil	After 90 days	SELIC		195,368		310,652
LTN	Banco do Brasil	After 90 days	Pre-fixed		4,691,729		1,879,832
LTN	CEF	After 90 days	Pre-fixed		214,210		13,315
NTN- B	Banco do Brasil	After 90 days	IPCA		467,735		182,029
NTN- F	Banco do Brasil	After 90 days	Pre-fixed		191,693		51,008
Committed Options	Banco do Brasil	-	-		-		1,160,926
Committed Options	CEF	-	-		1,082,039		132,583

TOTAL CURRENT					6,842,774		3,730,345

NON-CURRENT

Securities	Custodian Financing Agent	Expiration	Index	12/31/2015		12/31/2014
NTN- B	Banco do Brasil	After 90 days	IPCA		405		352
FINOR/FINAM	-	-	-		916		1,240
BENEFICIARIES	-	-	-		190,847		203,425
OTHERS	-	-	-		2,822		19,717

TOTAL NON-CURRENT					194,990		224,734

6.1. BENEFICIARY SHARES - Securities acquired as a result of the restructuring of the Company’s investment in the subsidiary INVESTCO S.A.. These assets guarantee annual income equivalent to 10% of the income of the companies mentioned below, paid together with dividends, and will be redeemed at maturity scheduled for October 2032, through their conversion into preferred shares of the capital stock of these companies, as shown below:


	PARENT COMPANY AND CONSOLIDATED
	12/31/2015		12/31/2014
Lajeado Energia		451,375		451,375
Paulista Lajeado		49,975		49,975
Ceb Lajeado		151,225		151,225

Face value		652,575		652,575

Adjustment to present value		(461,728)		(449,150)

Present value		190,847		203,425

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NOTE 7 – ACCOUNTS RECEIVABLES


	CONSOLIDATED
	12/31/2015										12/31/2014
CURRENT	Coming due		Due after 90 days		+ 90 days		Renegotiated credits (b)		Total		Total
AES ELETROPAULO		18,072		-		-		-		18,072		54,004
AES SUL		24,294		-		-		-		24,294		35,904
AMPLA		26,661		-		-		-		26,661		28,902
ANDE										-
CEA		9,271		9,782		-		225,514		244,567		202,735
CEB		5,366		454		-		-		5,820		10,370
CEEE		29,908		-		-		-		29,908		42,767
CELESC		44,085		-		-		-		44,085		41,932
CELPA		39,191		-		8,210		18,891		66,292		69,552
CELPE		22,508		-		60		-		22,568		26,046
CEMAR		23,803		-		-		-		23,803		24,630
CEMIG		37,797		-		-		-		37,797		50,591
CESP		6,428		-		-		-		6,428		2,882
COELBA		36,008		-		59		-		36,067		32,813
COELCE		30,935		-		-		-		30,935		31,450
COPEL		67,248		-		-		-		67,248		107,239
CPFL		14,082		-		165		-		14,247		42,427
EBE		7,968		-		-		-		7,968		9,035
ELEKTRO		42,180		-		-		-		42,180		56,250
ENERGISA		24,451		4,495		58,552		-		87,498		17,832
ENERSUL		14,767		-		1,601		-		16,368		18,493
ESCELSA		17,457		-		60		-		17,517		22,231
LIGHT		55,856		-		122		-		55,978		56,731
PIRATININGA		3,215		-		54		-		3,269		6,244
RGE		27,095		-		1		-		27,096		15,925
Debt Rollover		-		-		-		22,840		22,840		22,076
CCEE Trade		126,415		292,605		20,458		-		439,478		60,366
Use of Electric Grid		211,521		3,648		36,172		-		251,341		412,377
PROINFA (a)		379,214		-		-		-		379,214		399,132
Household consumer		266,504		313,916		120,646		113,311		814,377		843,953
Industrial consumer		317,729		43,641		183,214		94,062		638,646		608,273
Rural consumer		27,495		22,520		16,587		38,022		104,625		185,909
Commerce, services, and other activities		196,370		82,103		60,768		75,289		414,529		371,712
Public entities		118,925		78,999		236,844		60,918		495,686		794,810
Others		712,777		31,030		124,478		41,258		909,544		879,372
(-) PCLD (Doubtful Accounts) (c)		(24,417)		(137,127)		(1,013,837)		(114,064)		(1,289,445)		(1,157,749)

		2,961,180		746,067		(145,787)		576,041		4,137,501		4,427,216
NON-CURRENT
CELG		-		-		-		-		-		-
CEB		-		-		14,111		-		14,111		-
CELPA		-		-		-		19,317		19,317		35,911
CEA										-		-
CCEE Trade		-		-		293,560		-		293,560		293,560
Use of Electric Grid		-		-		6,276		-		6,276		6,276
PROINFA (a)		-		-		125,383		-		125,383		174,324
Debt Rollover		-		-		-		489,556		489,556		930,380
Public entities		-		-		-		290,965		290,965		426,847
Household consumer		-		-		-		50,220		50,220		44,331
Industrial consumer		-		-		-		49,584		49,584		41,400
Rural consumer		-		-		-		65,673		65,673		60,196
Commerce, services, and other activities		-		-		-		175,812		175,812		192,403
Others		-		-		30,030		653,173		683,203		39,890
(-) PCLD (Doubtful Accounts) (c)		-		-		(326,699)		(103,504)		(430,203)		(502,014)

		-		-		142,661		1,690,796		1,833,457		1,743,504

		2,961,180		746,067		(3,126)		2,266,837		5,970,958		6,170,720

(a) Eletricity Trading -PROINFA

Electric energy trading operations under the Incentive Program for Alternative Energy Sources - PROINFA generated a negative net balance in fiscal 2015 of R$ 355,526 (December 31, 2014 - positive in R$ 72,113), producing no effect on net income or loss for the financial year of the Company, and this figure is included under the item Compensation Obligations. In the balance of reseller consumers is recorded the amount of R$ 504,597 from PROINFA referring to the Parent Company (December 31, 2014 - R$ 573,456).

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(b) Renegotiated credits

Are the amounts resulting from consolidating payments of debts on overdue energy supply accounts from consumers in default, or which are coming due, charged in energy bills.

Renegotiated credits from debt rollover are from a credit assignment contract between the Union and the subsidiaries Furnas and Eletrosul, in accordance with the Public Sector Finance Consolidation Program (Law no. 8,727, of November 5, 1993). The Union assumed, refinanced and rescheduled the debt into 240 payments, which matured starting in April of 1994. If any amounts are outstanding after a 20-year term the payments will be extended for another 120 months, since the Union only passes on funds received from the states, which in turn are limited by law due to revenue commitment. These represent R$ 512,396 as of December 31, 2015 (R$ 952,456 as of December 31, 2014).

The subsidiaries constitute and maintain provisions, from analysis of constant values of accounts receivable due and from the loss history, for which the amount is regarded by the Administration as sufficient to cover possible losses in the realization of these assets.

Subsidiaries that act in the Distribution sector use the following provision criteria:

Relevant Debts – Clients connected in High Tension

The provision includes values corresponding to (due) invoices of clients with due debts as they meet the following due scale, including the Non-Invoiced Income. This is the provision table:


CONSUMPTION CLASS		PROVISIONING PERIOD
Household		60 days
Industrial		180 days
Commercial, Rural		90 days
Public Entities		150 days
Public Service		120 days
Supply, Free Consumer, and PIE		60 days

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Non-relevant Debts

Clients connected to Low Tension: The provision includes values corresponding to (due) invoices of clients with due debts as they meet the following due scale:


CONSUMPTION CLASS		PROVISIONING PERIOD
Household		90 days
Industrial, Rural, Public Entities and Public Service		180 days
Commercial and Public Lighting		150 days

Installment Payment of Doubtful Accounts

Installment Payment of Doubtful Accounts includes the sum of the balance that is due and will be due, including interest, which values have been included in the provision of due amounts prior to the installment payment, when the full adjustment in installment was unsecured and compliant with the following criteria:


Number of Installments	Provision or Reversal of Private Classes	Provision of Reversal of Public Classes
Up to 36	Actual payment of 5 installments	4 installments invoiced, due and not paid
From 37 to 60	Actual payment of 5 installments	4 installments invoiced, due and not paid
More than 60	Actual payment of 6 installments	6 installments invoiced, due and not paid

The ADA balance is comprised as follows:


	CONSOLIDATED
	12/31/2015		12/31/2014

Consumers		609,403		651,875
Resellers		816,685		714,328
CCEE - Short term energy		293,560		293,560

		1,719,648		1,659,763

The subsidiary Furnas maintains a provision, constituted in 2007, amounting to R$ 293,560. This provision represents historical values relating to the marketing of energy within the framework of the now defunct Wholesale Energy Market - MAE, for the period from September 2000 to September 2002, whose financial settlement is suspended, on the basis of concession of injunctions in lawsuits proposed by electrical power distribution utilities, against the ANEEL and the MAE, today the CCEE.

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The movements in the Allowance for doubtful Accounts of consolidated electric power customer accounts are as follows:


	CONSOLIDATED


Balance on December 31, 2013		1,916,808

(+) Constitution		559,141
( - ) Reversal		(475,221)
( - ) Write off		(340,965)

Balance on December 31, 2014		1,659,763


(+) Constitution		832,632
( - ) Reversal		(286,629)
( - ) Write off		(486,118)

Balance on December 31, 2015		1,719,648

The Constitution and the reversal of the Allowance for doubtful Accounts are recorded in income or loss for the financial year as Operational Provisions (Note 42). The amounts recognized as the Allowance for doubtful Accounts are recognized as a definitive loss when there is no more expectation of recovery of resources.

The principal constitutions of the provision during the period occurred in the subsidiaries Furnas in the amount of R$ 137,507 and Boa Vista in the amount of R$ 197,353.

For tax purposes, any excess provision calculated, in relation to the terms of Articles 9 and 10 of Law No. 9,430/1996, were added to Actual Income and to the taxable base for the Social Contribution on Net Income – CSLL, for the acronym in Portuguese.

NOTE 8 – INDEMNIFICATIONS - LAW 12,783/2013

When concessions were renewed, the subsidiaries, Eletronorte Eletrosul and Chesf opted for receipt of 50% of the value in cash and the remainder in installments, and the subsidiary Furnas opted for receiving the large part of the compensation in installments, pursuant to Ministerial Ordinance 580/MME/MF, of November 1, 2012.

As provided for in legislation, the installment value will be received in monthly installments up to the date of the original closure of the concession, updated by the IPCA, plus the remuneration for the weighted average cost of capital (WACC) of 5.59% per annum. The update is counted from December 4, 2012, the date of signature of the addendum to the concession contract.

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The changes to values pertaining to the compensation receivable from the grantor in relation to Law No. 12,783/2013 is shown below:


	CONSOLIDATED
	12/31/2015		12/31/2014
Initial balance		3,738,295		5,496,179
Amounts received		(4,027,661)		(2,773,092)
Monetary adjustment		289,366		1,015,208

Final balance		-		3,738,295


Total CURRENT		-		3,738,295

		-		3,738,295

NOTE 9 - FINANCING AND LOANS


	12/31/2015

			PARENT COMPANY								CONSOLIDATED
			FEES CURRENT			PRINCIPAL							FEES CURRENT			PRINCIPAL
			FEES CURRENT					NON					FEES CURRENT					NON
	Avg. Rate		Value			CURRENT		CURRENT			Avg. Rate		Value			CURRENT		CURRENT


FURNAS		7.76		29,346			428,005		3,590,369	-		-		-			-		-
CHESF		5.02		174			13,602		17,188			-		-			-		-
ELETROSUL		9.53		35,971			147,653		1,957,886			-		-			-		-
ELETRONORTE		6.02		26,260			373,823		2,619,958			-		-			-		-
ELETRONUCLEAR		9.21		11,317			165,647		1,423,301			-		-			-		-
CGTEE		11.67		24,473			319,222		2,074,115			-		-			-		-
CEAL		13.78		2,622			307,221		856,905			-		-			-		-
CERON		13.09		1,092			131,367		607,023			-		-			-		-
CEPISA		12.28		26,855			543,082		654,379			-		-			-		-
ELETROACRE		12.97		-			80,467		202,548			-		-			-		-
BOA VISTA		12.11		177			17,194		37,048			-		-			-		-
AMAZONAS D		13.29		-			141,777		1,185,390			-		-			-		-
AMAZONAS GT		15.20		-			812,873		656,214			-		-			-		-

				158,287	-		3,481,933		15,882,324					-	-		-		-


ITAIPU		7.11		-			1,894,766		12,907,368	-		7.11		-			1,894,766		12,907,368
CEMIG		5.09		973			54,104		134,907			5.09		973			54,104		134,907
COPEL		6.39		471			35,102		50,744			6.39		471			35,102		50,744
CEEE		5.00		199			9,320		23,884			5.00		199			9,320		23,884
AES ELETROPAULO		10.00		338,017			10,561		-			10.00		338,017			10,561		-
CELPE		5.00		69			8,395		5,199			5.00		69			8,395		5,199
CELG		8.12		1,249			188,502		51,048			8.12		1,249			188,502		51,048
ENERGISA - MT		9.19		2,549			52,942		255,206			9.19		2,549			52,942		255,206
ENERGISA - TO		10.58		998			20,031		87,231			10.58		998			20,031		87,231
ENERGISA - MS		5.21		222			12,426		28,968			5.21		222			12,426		28,968
CELPA		5.00		70,479			248,059		274,415			5.00		70,479			248,059		274,415
CEMAR		2.12		1,080			69,842		205,017			2.12		1,080			69,842		205,017
CESP		5.09		123			5,569		15,056			5.09		123			5,569		15,056
COELCE		5.00		237			10,769		36,678			5.00		237			10,769		36,678
COSERN		5.00		23			2,161		2,499			5.00		23			2,161		2,499
COELBA		5.00		533			23,833		82,762			5.00		533			23,833		82,762
ESCELSA		5.00		206			12,593		28,609			5.00		206			12,593		28,609
GLOBAL		5.00		94,327			44,100		-			5.00		94,327			44,100		-
CELESC DISTRIB.		5.00		593			36,529		56,696			5.00		593			36,529		56,696
OTHERS				70,840			98,983		149,186					70,852			105,470		154,108
(-) PCLD				(163,607)			(77,440)		-					(163,607)			(77,440)		-

				419,581	-		2,761,147		14,395,473					419,593	-		2,767,633		14,400,394



				577,868	-		6,243,080		30,277,797					419,593	-		2,767,633		14,400,394

LOGO


	12/31/2014
	PARENT COMPANY									CONSOLIDATED
			FEES CURRENT			PRINCIPAL					FEES CURRENT			PRINCIPAL
			FEES CURRENT					NON			FEES CURRENT					NON
	Avg. Rate		Value			CURRENT		CURRENT		Avg. Rate	Value			CURRENT		CURRENT


FURNAS		5.96		27,419			321,569		3,660,132	-		-			-		-
CHESF		5.02		247			15,260		28,177	-		-			-		-
ELETROSUL		6.23		12,723			104,876		1,807,906	-		-			-		-
ELETRONORTE		5.85		24,581			337,373		2,806,723	-		-			-		-
ELETRONUCLEAR		5.00		4,196			61,722		1,417,595	-		-			-		-
CGTEE		5.08		9,864			237,209		1,818,594	-		-			-		-
CEAL		8.05		4,205			250,665		692,604	-		-			-		-
BOA VISTA		7.79		88			7,905		36,543	-		-			-		-
CERON		8.54		810			90,104		605,576	-		-			-		-
CEPISA		7.71		731			330,198		690,460	-		-			-		-
ELETROACRE		8.26		1,065			32,353		201,731	-		-			-		-
AMAZONAS		7.60		284			646,274		1,517,902	-		-			-		-
CELG		6.64		562			18,502		66,675			-	-		-		-

				86,775			2,454,010		15,350,618			-			-		-

ITAIPU		7.11		-			1,584,773		10,071,923	7.11		-			1,584,773		10,071,923
CEMIG		5.07		1,343			74,126		184,709	5.07		1,343			74,126		184,709
COPEL		6.39		784			52,164		82,903	6.39		784			52,164		82,903
CEEE		5.00		311			12,009		32,191	5.00		311			12,009		32,191
AES ELETROPAULO		9.44		336,852			11,074		-	9.44		336,852			11,074		-
CELPE		5.00		117			10,185		12,729	5.00		117			10,185		12,729
CEMAT		5.00		2,512			44,669		306,419	5.00		2,512			44,669		306,419
CELTINS		5.00		932			21,044		105,701	5.00		932			21,044		105,701
ENERSUL		5.17		287			13,194		40,383	5.17		287			13,194		40,383
CELPA		5.00		70,869			204,048		295,882	5.00		70,869			204,048		295,882
CEMAR		2.92		1,420			55,030		273,621	2.92		1,420			55,030		273,621
CESP		5.09		153			5,571		20,208	5.09		153			5,571		20,208
COELCE		5.00		316			10,918		52,239	5.00		316			10,918		52,239
COSERN		5.00		34			2,289		4,532	5.00		34			2,289		4,532
COELBA		5.00		707			27,060		114,351	5.00		707			27,060		114,351
CER		8.76										-			-		-
ESCELSA		5.00		269			13,177		40,546	5.00		269			13,177		40,546
GLOBAL		5.00		82,695			44,100		-	5.00		82,695			44,100		-
CELESC DIST.		5.00		793			49,954		89,774	5.00		793			49,954		89,774
OTHERS		6.44		63,626			114,035		249,219	6.44		63,627			121,909		260,430
(-) PCLD				(144,429)			(80,864)		-			(144,429)			(80,864)		-

				419,590	-		2,268,554		11,977,331			419,591	-		2,276,428		11,988,542


				506,365	-		4,722,564		27,327,949			419,591	-		2,276,428		11,988,542

Financing and loans are made with the Company’s own resources, as well as sector resources and external resources obtained through international development agencies, financial institutions, and arising from the release of securities in the international financial market.

All financing and loans are backed by formal contracts signed with mutuals. The receipts from these securities, for the most part, are set out in monthly installments, repayable in an average period of 10 years, with the average interest rate being, weighted by the balance of the portfolio, 8.74% per annum.

Financing and loans conceded at controller, with a currency update clause, represent approximately 42% of the total portfolio (38% as of December 31, 2014). And those that project an update based on indices that represent domestic prices in Brazil have attained 58% of the balance of the portfolio (62% as of December 31, 2014).

The market values of these assets are close to their book values, because they are industry-specific operations and formed, in part, through resources of Sector Funds and which do not find similar conditions as an evaluation parameter for market values.

LOGO

The increase of the balance of receivables from loans in the fiscal year is due, mainly, to exchange variation on loans granted to Itaipu, arising out of the appreciation of dollar compared to real, when compared to the exchange rate in December 2015 and December 2014. Dollar had positive variation of 47%.

The long-term installments of loans and financing granted, based on cash flows provided for contractually, expire in variable installments, as shown below:


	2017		2018		2019		2020		2021		After 2021		Total
Parent Company		5,308,612		4,660,575		4,553,474		4,458,283		4,451,743		6,845,109		30,277,796
Consolidated		2,309,541		2,501,514		2,566,158		2,584,985		2,707,376		1,730,821		14,400,395

9.1. – AES Eletropaulo/CTEEP - Court Action

The Company has receivables with Eletropaulo Eletricidade de São Paulo S.A. related to an ongoing lawsuit between AES Eletropaulo and CTEEP.

On September 18, 2015, a partial report was published under the process filed against Eletropaulo, saying that Eletropaulo is responsible for the payment of amounts due arising out of unpaid financing on the respective due dates, with Eletrobras and not Companhia de Transmissão de Energia Elétrica Paulista (“CTEEP”).

Thus the Company shall have a credit of R$ 2,382,255 (R$ 2,355,584 as of December 31, 2014), and R$ 348,578 (R$ 347,926 as of December 31, 2014) already recognized in its assets, under loans and financing, corresponding to the part considered undisputed by the Company. The final recognition of full credit should occur when it is classified as almost certain.

9.2 - Allowance for doubtful Accounts - ADA

The Company recognizes provisions for doubtful accounts in the amount of R$ 241,047 (R$ 225,293 as of December 31, 2014) corresponding to the principal and to the service of the debt of borrowers in default.

This volume of provision is considered sufficient by the administration to cover possible losses on these assets, based on behavior analysis of the portfolio.

In the composition of the provision are the credits with Celpa, controlled by Equatorial Energia, amounting to R$ 14,194 (R$ 17,614 as of December 31, 2014). This provision was considered necessary considering the process of judicial reorganization of Celpa.

LOGO

The movements in the ADA (Allowance for Doubtful Accounts) of the financing and loans of the Company are the following:


	PARENT COMPANY
Balance on December 31, 2013		494,345

(+) Additional		49,985
(-) Reversal / write off		(319,037)

Balance on December 31, 2014		225,293

(+) Additional		19,367
(-) Reversal / write off		(3,613)

Balance on December 31, 2015		241,047

The creation and reversal of the ADA are recorded in income or loss for the financial year as Operational Provisions (see Note 42). The amounts recognized as the Allowance for doubtful Accounts are carried to the definitive losses (written down) when there is no more expectation of recovery of resources.

NOTE 10 - EQUITY INVESTMENT INCOME

The figures refer to dividends and interest on shareholders’ equity, net of Income Tax Withheld at the Source, when applicable, resulting from equity investments held by the Company.


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
CURRENT
Eletronorte		10,016		454,402		-		-
Lajeado Energia		76,325		94,810		76,325		94,810
CGTEE		73,035		64,479		-		-
CEMAR		22,911		20,754		22,911		20,754
Eletrosul		37,024		8,531		-		-
Eletropar		1,046		-		-		-
CTEEP		20		11,008		20		11,008
CEB Lajeado		16,767		14,606		16,767		14,606
Enerpeixe		-		-		34,686		26,059
Goiás Transmissão		-		-		23,857		20,051
Chapecoense		-		-		22,288		9,512
Transenergia Renovável		-		-		13,979		15,648
IE Madeira		-		-		27,589		14,917
Manaus Construtora		-		-		9,178		12,351
Transenergia São Paulo		-		-		4,275		15,934
MGE Transmissão		-		-		11,447		6,812
Serra do Facão		-		-		9,154		2,289
Baguari		-		-		2,462		7,294
Uirapuru		-		-		2,288		2,295
EAPSA		-		-		2,181		1,124
TSBE		-		-		-		2,660
Transudeste		-		-		1,033		1,033
Santa Vitória		-		-		-		1,163
Transirape		-		-		678		-
ETAU		-		-		257		39
Others		18,325		8,954		27,985		9,215

		255,468		677,544		309,360		289,574

LOGO

As established by the Extraordinary Meeting of Eletronorte on October 30, 2015, there was a payment of the portion corresponding to 25% of the dividends declared by the subsidiary, which updated value, as to the date of this payment, was R$ 502,141,000.

NOTE 11 - RECOVERABLE TAXES AND INCOME TAX AND SOCIAL CONTRIBUTIONS - ASSETS

11.1. Tax credits


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Current Assets
Income tax - withheld		373,962		577,720		574,083		735,463
PIS/PASEP/COFINS payable		-		13,497		58,349		99,304
ICMS recoverable		-		-		40,538		31,084
Others		-		-		43,681		34,580

		373,962		591,217		716,651		900,431


Non-Current Assets
ICMS credits (a)		-		-		1,724,692		1,924,057
PIS/COFINS credits (a)		-		-		877,386		601,968
Prepaid taxes / Negative Balance of IRPJ and CSLL		-		-		-		-
Others		-		-		21,108		12,106

		-		-		2,623,186		2,538,131

(a) ICMS, PIS/PASEP and COFINS credits

The Company has recorded under non-current assets the sum of R$ 2,602,078 (R$ 2,526,025 as of December 31, 2014) for PIS, COFINS and ICMS credits. Of this sum, R$ 2,150,827 (R$ 1,924,3547 as of December 31, 2014) refer to taxes and contributions on the purchase of fuel from the subsidiary Amazonas.

According to Paragraph 8 of Law 12,111/2009, those taxes and contributions should be reimbursed to the CCC when paid, this maintains a liability in the same amount under the item Reimbursement Obligations (see Note 12).

(b) Unconstitutionality of the PIS/PASEP and COFINS taxes

The Supreme Court (STF) declared that paragraph 1 of Article 3 of Law No. 9,718/98 is unconstitutional, which had expanded the taxable base for the PIS/PASEP and COFINS, and repurposed that tax collection at the time. Those taxes had been changed to include all revenue earned by a legal entity, regardless of the type of activity performed and the accounting classification used. There was no constitutional support for that device, and a constitutional amendment was later approved.

Based on the National Tax Code (CTN, for the acronym in Portuguese), companies in the Eletrobras System are seeking recognition of their right to credit and reimbursement of the sums overpaid due the unconstitutionality of expanding the taxable base for those contributions. When these Financial Statements were concluded, there had been no final decision on the matter.

LOGO

Therefore, the Eletrobras System companies have potential tax credits from the PIS/PASEP and COFINS, which is being determined, and therefore is not recognized in these Financial Statements, since the mentioned declaration of unconstitutionality only benefits the claimant companies in the extraordinary appeals judged.

11.2. Income tax and social contributions


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Current Assets:

Prepaid taxes / Negative Balance of IRPJ and CSLL		928,743		374,504		1,475,598		762,726

Non-current assets:
Negative Balance IRPJ and CSLL		1,645,382		1,464,148		1,645,382		1,464,148
Deferred IRPJ/CSLL		-		-		1,422,209		1,003,483

		1,645,382		1,464,148		3,067,591		2,467,631

Non-current liabilities:

Deferred IRPJ/CSLL		733,289		291,878		1,003,796		569,380

11.3. Composition of deferred income tax and social contributions


	12/31/2015						12/31/2014
	Asset		Liabilities		Net effect assets (liabilities)		Asset		Liabilities		Net effect assets (liabilities)
Eletronorte		1,529,640		(219,692)		1,309,948		1,204,951		(201,468)		1,003,483

		1,529,640		(219,692)		1,309,948		1,204,951		(201,468)		1,003,483
Eletrobras		-		(733,289)		(733,289)		63,051		(354,929)		(291,878)
Eletrosul		457,629		(345,368)		112,261		271,534		(300,598)		(29,064)
Furnas		258,709		(453,084)		(194,375)		373,272		(373,272)		-
Chesf		-		(65,070)		(65,070)		-		(199,523)		(199,523)
Eletropar		-		(11,062)		(11,062)		-		(11,428)		(11,428)
Celg-D		-		-		-		152,668		(190,155)		(37,487)

		716,338		(1,607,873)		(891,535)		860,525		(1,429,905)		(569,380)

LOGO


	PARENT COMPANY				CONSOLIDATED

	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Deferred asset taxes:
Liabilities Exchange Variation		-		1,322		-		1,322
Provision for interest on equity		-		-		-		-
Provision for contingencies		-		36,186		68,066		131,022
Allowance for doubtful accounts		-		3,967		56,047		196,971
Provision for adjustments on market value		-		4,500		-		4,500
Operational provisions		-		-		407,319		212,505
Expenses Studies and Projects / AVP		-		7,774		-		214,470
Provision for unreceived tax credits		-		-		74,700		-
Tax credit without fiscal loss and negative base		-		9,302		1,532,766		1,233,312
Others		-		-		107,080		71,374

Total assets		-		63,051		2,245,978		2,065,475

Deferred liability taxes:
Asset Exchange Variations		416,810		-		416,810		-
Financial instruments available for sale		316,479		354,929		316,479		354,929
Accelerated depreciation		-		-		81,255		53,187
Income from renegotiated updated energy credits		-		-		221,871		184,890
Expenses Studies and Projects / AVP		-		-		488,425		553,659
Provision for unreceived tax credits		-		-		-		-
Tax debt		-		-		258,709		373,272
Others		-		-		44,016		111,436

Total Liabilities		733,289		354,929		1,827,565		1,631,373

In 2015, the parent company has offset the amount of R$ 63,051 referring to Deferred Tax Assets due to the lack of expectations for the realization of these values.

11.4. Income tax and social contributions recognized in other comprehensive income


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Deferred Taxes
Originated from income and expenses recognized in other comprehensive income
Adjustment for actuarial gains and losses		-		-		-		(404,332)
Remeasurement of the fair value of hedge instruments employed for hedging cash flow		-		-		-		309
Remeasurement of the fair value of financial instruments available for sale		38,502		(26,482)		37,228		(24,855)
Remeasurement of defined benefit plans
Participation in the comprehensive income of subsidiaries		-		-		1,274		402,396

Total income tax and social contributions recognized in other comprehensive income		38,502		(26,482)		38,502		(26,482)

LOGO

NOTE 12 – REIMBURSEMENT RIGHTS AND OBLIGATIONS


	CONSOLIDATED
Compensation rights	12/31/2015		12/31/2014

CURRENT ASSETS
CCC of isolated systems (a)		2,118,184		3,052,898
Nuclear energy		-		238,381
CDE reimbursement (b)		147,058		382,360

		2,265,242		3,673,639


NON-CURRENT ASSETS
CCC of isolated systems (a)		8,238,140		6,109,507
Nuclear energy		-		19,916

		8,238,140		6,129,423


Compensation obligations

CURRENT LIABILITIES
CCC of isolated systems (a)		19,423		11,238
PROINFA		299,632		655,158
CDE reimbursement (b)		77,153		36,332

		396,208		702,728

NON-CURRENT LIABILITIES
CCC of Isolated Systems (a)		2,483,378		2,529,893

		2,483,378		2,529,893

a) Fuel consumption account (CCC) of isolated systems

With the advent of the Law 12,111/2009 and of Decree 7,246/2010, the method of subsidy for power generation in isolated systems was changed. The subsidy for the CCC which until then only subsidized fuel costs, shall reimburse the difference between the total cost of generation of electricity and the value of the corresponding quantity of electric power for the average cost of power and energy sold in the Regulated Contracting Environment - ACR, of the National Interconnected System – NIS, for the acronym in Portuguese.

In the total cost of electric power generation in isolated systems are included the costs relating to:

●

energy and associated power contracting;

●

generation itself for the distribution of electricity;

●

charges and taxes;

●

investments made; and

●

purchase of fuel.

This includes, also, in the total cost of generating the remaining costs associated with the provision of the service of electric energy in remote regions of isolated systems, characterized by a great dispersion of consumers and the absence of economies of scale.

LOGO

The fuel consumption account of isolated systems refers to amounts receivable and received of the CCC in the respective periods. The Company has a receivable of R$ 10,356,324 (R$ 9,162,405 as of December 31, 2014) and a liability of R$ 2,502,801 (R$ 2,541,131 as of December 31, 2014) for compensation obligations.

After the enactment of Law No. 12,783, Eletrobras no longer has the obligation to make contributions to the CCC Account. Despite this, the CCC Account has not been eliminated. Available balances will continue to be distributed to generation and distribution companies which incurred additional expenses as a result of the use of thermoelectric plants in case of unfavorable hydroelectric conditions. In order to ensure the continued viability of the CCC Account, Law No. 12,783 permits transfers to be made between the Energy Development Account (CDE) and the CCC Account.

b) CDE Reimbursement

Law No. 12,783/13, Decree No. 7,945/13 as amended by Decree No. 8,203/14 and the subsequent Decree No. 8,221/14, promoted some amendments on the contracting of energy and the objectives under the sector responsibility of the Energy Development Account – CDE, and also instituted (i) the transfer of resources from the CDE to concessionaires for the distribution costs of hydroelectric risks, involuntary exhibit, ESS - Energy Security and CVA ESS and Energy for the period 2013 to January 2014 and (ii) the transfer through the Electric Energy Trading Chamber (CCEE) to concession holders of the distribution of costs related to involuntary exposure and the order of thermoelectric plants from February, 2014.

The effects of these items were recorded as a cost reduction in relation to electric power purchased for resale (note 41) offsetting the compensation rights - CDE/CCEE reimbursement, in accordance with CPC 07/IAS 20 - Subsidy and Government Assistance.

NOTE 13 - NUCLEAR FUEL INVENTORY

The composition of the inventory of long-term nuclear fuel intended for the operation of UTN Angra I and UTN Angra II is presented bellow:


	CONSOLIDATED
	12/31/2015		12/31/2014
CURRENT
Finished elements		402,453		340,319

		402,453		340,319
NON-CURRENT
Finished elements		441,223		296,269
Uranium concentrate		7,723		130,396
In progress - nuclear fuel		129,479		234,824

		578,425		661,489

		980,878		1,001,808

LOGO

Inventories are stated at cost or net realizable value, whichever is less, broken down as follows:

a)	Uranium concentrate and ongoing services (for the transformation of the uranium concentrate into nuclear fuel elements) are recorded by their cost of acquisition;

b)	Nuclear fuel elements – are available in the core of the reactor and the Used Fuel Pool inventory - PCU, being allocated to income or loss for the financial year on the basis of their use in the electric power generation process.

NOTE 14 - ADVANCES FOR FUTURE CAPITAL INCREASE

The Company and its subsidiaries present in non-current assets, values corresponding to advances for future capital increase in the following investments:


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Subsidiaries
Furnas		43,649		38,530		44,099		18,075
Chesf		-		-		348,887		590,015
Eletrosul		-		63,976		781,467		503,987
Eletronorte		-		12,984		37,079		24,556
CGTEE		120,505		18,391		-		-
Ceal		8,307		8,307		-		-
Cepisa		-		16,416		-		-
Eletroacre		12,787		12,787		-		-

		185,248		171,391		1,211,532		1,136,633


Other Investments		4,245		4,245		4,000		4,000

Total:		189,493		175,636		1,215,532		1,140,633

The figures presented in the consolidated statement refer to advances for future capital increase made by the subsidiaries into the SPEs, notably the AFACs into Transmissora Sul Litorânea de Energia S.A.), for R$ 84,847; into Chuí Holding S.A. for R$ 431,913; and into Livramento Holding S.A., for R$ 173,860; and Into TDG – Transmissora Delmiro Gouveia S.A., for R$ 101,000. These AFACs were made to enable the ventures.

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NOTE 15 – HYDROLOGICAL RISK

In 2014 and 2015, the country has faced adverse hydrological conditions, which has given rise to a series of consequences to the electrical sector. Specifically, for generators that are part of the Mechanism to Reallocate Power – MRE, the low level of power generation at hydraulic plants at levels lower than the MRE Physical Guarantee has caused a reduction to the adjustment factor of MRE or the Generation Scaling Factor – GSF.

This reduction has direct effects on the delivery of power for compliance with supply agreements, due to the lack of power, generation companies have been exposed to the Difference Liquidation Price – PLD in the Short Term Market to be able to comply with their contracts, with negative financial and economic effects.

Law No. 13,203, dated December 8, 2015, sets forth, among other terms, the conditions to adjust the hydrological risk of power generation to the agents that are part of the Mechanism to Reallocate Power – MRE. According to the terms in Article 1 of this law, the hydrological risk may be adjusted, provided that upon agreement by ANEEL, and with retroactive effects starting on January 1, 2015, upon counterpart by the energy generation players.

Under the terms of the Law, by means of Normative Resolution No. 684, dated December 11, 2015, ANEEL established the criteria and other conditions applicable to such adjustment.

According to criteria and terms defined in the rule, the SFF (Office of Financial Supervision of ANEEL) understands that companies interested in the adjustment are fully able to qualify the eligible energy amounts, for ACR as well as ACL. Note that not only information of amounts is known by the companies, and as the decision for the adjustment is made by its managers, the Regulating Entity is responsible solely for approving the amounts. Once information submitted by adhering companies is consistent with assumptions set forth by the legislation, the regulating entity would not determine approval of the adjustment at its sole discretion. The GSF corresponding to 2015 was recalculated, resulting in an amount that will be compensated with risk premiums calculated by subsidiaries that choose to adhere to the adjustment – Eletronorte, Eletrosul, Furnas and Amazonas GT.

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Law No. 13,203/2015 expressly sets forth that the effects of such adjustment should be applied starting on January 1, 2015 and, as such, financial statements for 2015, in order to reflect the reality of facts that occurred in that year should reflect the effects of the adjustment. The elements are: a) the amounts are submitted to ANEEL by the company; ii) the rule defining the criteria is known and was approved in 2015, producing effects starting in January 1, 2015; iii) the decision for the adjustment is made by the company management, and the regulating entity is not approving it at its own discretion; and iv) upon compliance with criteria defined by the rule, ANEEL shall be responsible solely for confirming data submitted by the companies, and the consequent approval.

The composition of amounts accounted in 2015 due to the adjustment of the hydrological risk, refers to contracts executed under the Regulated Contracting Scenario – ACR, is as follows:


	CONSOLIDATED
	12/31/2015
UHE Tucuruí		312,414
UHE Serra da Mesa		189,367
UHE Mascarenhas de Moraes		79,076
UHE Itumbiara		67,487
UHE Simplício		54,371
UHE Batalha		25,939
UHE Balbina		24,928
UHE Mauá		14,968
UHE Manso		13,813
UHE Passo São João		5,918
UHE São Domingos		5,708

		793,990

Total Current Assets		195,830
Total Non-current Assets		598,160

TOTAL		793,991

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NOTE 16 – INVESTMENTS


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Evaluated by the Equity Method
a) Subsidiaries
Eletronorte		11,912,412		13,158,185		-		-
Furnas		10,171,122		10,327,900		-		-
Chesf		8,811,169		9,483,869		-		-
Eletrosul		4,385,308		5,262,369		-		-
Eletronuclear		-		4,792,158		-		-
Eletropar		120,338		117,951		-		-
Distribuidora Acre		-		53,100		-		-
Distribuidora Rondônia		-		104,066		-		-
Celg-D		-		108,872		-		-

		35,400,349		43,408,470		-		-
b) Affiliates

CEEE-GT		448,274		449,336		448,274		449,336
EMAE		296,828		265,552		307,195		275,214
CTEEP		924,185		927,814		942,732		946,187
CEMAR		653,419		554,817		653,419		554,817
Lajeado Energia		219,173		206,282		219,173		206,282
CEB Lajeado		80,353		71,723		80,353		71,723
CEEE-D		-		7,476		-		7,476
Paulista Lajeado		23,507		18,119		23,507		18,119
Energisa MT		385,318		376,031		385,318		376,031
Energética Águas da Pedra S.A.		-		-		208,795		184,632

		3,031,057		2,877,150		3,268,766		3,089,817

c) Jointly-controlled subsidiary

Inambari		115		164		115		164
Mangue Seco II		16,889		16,726		16,889		16,726
CHC		98,514		79,081		98,514		79,081
Norte Energia		1,039,632		802,964		3,469,789		2,676,578
Rouar		111,775		70,044		111,775		70,044
ESBR Participações S.A.		-		-		2,807,626		2,907,364
Madeira Energia S.A.		-		-		2,896,068		2,724,068
Norte Brasil Transmissora de Energia S.A.		-		-		887,528		842,103
Interligação Elétrica do Madeira S.A.		-		-		912,098		822,342
Enerpeixe S.A.		-		-		561,282		555,860
Empresa de Energia São Manoel Total		-		-		103,314		(594)
Manaus Transmissora de Energia S.A.		-		-		621,873		547,784
Teles Pires Participações		-		-		662,564		496,425
Belo Monte Transmissora de Energia Total		-		-		391,058		12,081
Chapecoense Generation S.A.		-		-		415,501		364,522
Transmissora Sul Brasileira de Energia S.A.		-		-		270,252		275,960
Interligação Elétrica Garanhuns S.A.		-		-		318,972		181,526
Companhia Energética SINOP S.A.		-		-		179,052		177,772
Integração Transmissora de Energia S.A.		-		-		175,572		169,450
STN - Sistema de Transmissão Nordeste S.A.		-		-		176,941		163,434
Santa Vitória do Palmar Holding S.A.		-		-		50,223		157,627
Transmissora Sul Litorânea de Energia S.A.		-		-		134,739		139,719
Goiás Transmissão S.A.		-		-		190,245		138,436
MGE Transmissão S.A.		-		-		136,755		118,953
Brasnorte Transmissora de Energia S.A.		-		-		120,873		115,568
Retiro Baixo Energia S.A.		-		-		121,774		111,906
Paranaíba Transmissora de Energia S.A. Total		-		-		100,726		67,383
Transenergia Renovável S.A.		-		-		128,418		96,813
Vamcruz Participações S.A.		-		-		73,368		-
Baguari Energia S.A.		-		-		82,721		85,815
Transmissora Matogrossense de Energia S.A.		-		-		97,154		85,368
Transenergia São Paulo S.A.		-		-		91,141		83,116
Transnorte Energia S.A. Total		-		-		148,373		51,656
Others		195,241		132,810		1,445,077		1,275,443

		1,462,166		1,101,789		17,998,370		15,610,493

SUBTOTAL		39,893,572		47,387,409		21,267,136		18,700,310

Provision for investment losses		(98,628)		(164)		(489,866)		(164)

TOTAL		39,794,944		47,387,245		20,777,270		18,700,146

(*) Subsidiaries with unsecured loans as of 12/31/2015

(**) Subsidiaries classified as non-current asset held for sale as of December 31, 2015 (See Note 43)

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	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Investments held at fair value
AES Tietê		437,532		547,862		437,532		547,862
Coelce		196,429		200,868		196,429		200,868
Energisa		124,104		85,353		124,104		85,353
Cesp		87,023		168,789		87,023		168,789
Celpa		42,379		26,782		42,379		26,782
Celesc		41,513		61,897		41,513		61,897
CELPE		28,859		15,407		28,859		15,407
COPEL		24,492		38,116		24,492		38,116
CGEEP		17,662		27,199		17,662		27,199
CEB		6,130		6,021		6,130		6,021
Tangara		-		21,738		-		21,738
AES Eletropaulo		-		-		17,603		18,148
Energias do Brasil		-		-		17,888		13,327
CPFL Energia		-		-		25,861		31,500
Others		12,020		12,110		109,785		107,364

		1,018,143		1,212,142		1,177,260		1,370,371

16.1 – Provisions for impairment losses on investments


	PARENT COMPANY					CONSOLIDATED

		12/31/2015		12/31/2014		12/31/2015		12/31/2014
INAMBARI			115		164		115		164
CHC			98,513		-		98,513		-
ESBR Participações S.A.			-		-		15,500		-
Madeira Energia S.A.			-		-		97,010		-
Teles Pires Participações			-		-		230,823		-
Empresa de Energia São Manoel			-		-		47,905		-

			98,628		164		489,866		164

On December 31, 2015, the provision for impairment losses on investments was recognized in the amount of R$ 489,751,000 and the counterpart in the operating provisions account (Note 43), arising out of impairment losses in equity held at CHC, ESBR Participações, Madeira Energia S.A., Teles Pires Participações, and Empresa de Energia São Manoel.

16.2 - Adjustments in the accounting policy in affiliates


	CONSOLIDATED
	12/31/2015		12/31/2014
CTEEP		962,995		898,827
CEEE-GT		34,695		21,184
CEEE-D		-		21,206

		997,690		941,217

The Company has made adjustments to the results of investee companies, in order to standardize the accounting policies these companies adopted for the Company for the preparation of their consolidated financial statements. The adjustments relate primarily to accounting policy for recognition of allowance for doubtful accounts and recognition of obligations related to post-employment benefits.

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16.3 Change of investments

The movement of the most relevant investments of the company is indicated below:


Subsidiaries and affiliates	Balance on 12/31/2014		Capital investment/Write off		Other comprehensive income		AFAC Capitalization		Capital Gain / Loss		Dividends and interest on equity		Others		Equity method		Balance on 12/31/2015


CHANGE OF INVESTMENTS - PARENT COMPANY

FURNAS		10,327,900		-		(86,799)		-		-		-		-		(69,979)		10,171,122
CHESF		9,483,869		-		(198,786)		-		-		-		-		(473,914)		8,811,169
ELETROSUL		5,262,369		-		(3,080)		63,976		-77		(25,592)		-		(912,287)		4,385,308
ELETRONORTE		13,158,185		-		13,391		12,984		-68		(1,373,222)		-		101,142		11,912,412
ELETRONUCLEAR		4,792,158		-		-		-		-		-		(358)		(4,791,800)		-
ELETROPAR		117,951		-		(969)		-		-		(1,046)		-		4,401		120,338
ED ACRE		53,100		-		-		-		-		-		-		(53,100)		-
ED RONDONIA		104,066		-		-		-		-		-		-		(104,066)		-
CELG-D		108,872		-		-		-		-		-		-		(108,872)		-
ED PIAUI		-		-		-		-		-		-		-		-		-
ITAIPU BINACIONAL		-		-		-		-		-		-		-		-		-
EÓLICA MANGUE SECO		16,726		-		-		-		-		-		-		163		16,889
CHC		79,081		-		33,187		-		-		-		-		(13,753)		98,514
NORTE ENERGIA (BELO MONTE)		802,964		-		-		245,249		-		-		-		(8,581)		1,039,632
INAMBARI		164		-		1		-		-		-		-		(50)		115
CEEE-GT		449,336		-		(16,795)		-		-		-		1,560		14,173		448,274
EMAE		265,552		-		9,362		-		-		(1,416)		-		23,330		296,828
CTEEP		927,814		-		-		-		-		(118,442)		-		114,813		924,185
CEMAR		554,817		-		-		-		-		(23,176)		-		121,778		653,419
REDE LAJEADO		206,282		-		39		-		-		(24,162)		-		37,014		219,173
CEB LAJEADO		71,723		-		11		-		-		(8,966)		-		17,586		80,353
CEEE-D		7,476		-		2,956		-		-		-		-		(10,432)		-
PAULISTA LAJEADO		18,119		-		-		-		-		925		-		4,463		23,507
ROUAR		70,044		-		34,202		-		-		-		-		7,529		111,775
ENERGISA MT		376,031		-		587		-		-		(4,218)		-		12,918		385,318
Others		132,810		-		62,431		-		-		-		-		-		195,241

TOTAL INVESTMENTS		47,387,409		-		(150,262)		322,209		(144)		(1,579,316)		1,202		(6,087,523)		39,893,572


CHANGE OF OUTSTANDING LIABILITIES - PARENT COMPANY

ED PIAUI		(141,056)		-		(13,521)		16,416		-		-		-		(562,987)		(701,148)
ED RORAIMA		(69,726)		-		2,199		-		-		-		-		(270,116)		(337,643)
AMAZONAS		(2,019,381)		-		(168)		-		-		-		-		(2,344,048)		(4,363,597)
ED ACRE		-		-		177		-		-		-		-		(125,593)		(125,416)
ED RONDONIA		-		-		213		-		-		-		-		(456,771)		(456,558)
CGTEE		(552,998)		-		(9,208)		-		-		-		-		(648,302)		(1,210,508)
ELETRONUCLEAR		-		-		(29,620)		-		-		-		-		(321,651)		(351,271)
ED ALAGOAS		(11,075)		-		16,004		-		-		-		-		(252,585)		(247,656)

TOTAL OUTSTANDING LIABILITIES		(2,794,236)		-		(33,924)		16,416		-		-		-		(4,982,053)		(7,793,798)



NET		44,593,173		-		(184,186)		338,625		-144		-1,579,316		1,202		(11,069,577)		32,099,774


Subsidiaries and affiliates	Balance on 12/31/2013		Capital investment/Write off		Other comprehensive income		Capital Gain / Loss		Dividends and interest on equity		Equity method		Balance on 12/31/2014

CHANGE OF INVESTMENTS - PARENT COMPANY

FURNAS		11,128,126		-		(396,357)		-		-		(403,869)		10,327,900
CHESF		11,258,430		-		(661,368)		-		-		(1,113,193)		9,483,869
ELETROSUL		5,486,343		-		(62,928)		-		(196,964)		35,918		5,262,369
ELETRONORTE		11,872,900		-		20,263		-		(757,868)		2,022,890		13,158,185
ELETRONUCLEAR		5,829,246		-		(37,386)		-		-		(999,702)		4,792,158
ELETROPAR		118,790		-		3,636		-		(2,010)		(2,465)		117,951
ED RORAIMA		8,294		-		(2,129)		-		-		(6,165)		-
ED ACRE		-		33,107		(408)		(12,722)		-		33,123		53,100
ED RONDONIA		-		-		-		-		-		104,066		104,066
CELG-D		-		49,808		-		-		-		59,064		108,872
ITAIPU BINACIONAL		117,130		-		15,680		-		-		-		132,810
EÓLICA MANGUE SECO		17,058		-		-		-		-		(332)		16,726
CHC		29,119		49,613		5,866		-		-		(5,517)		79,081
NORTE ENERGIA (BELO MONTE)		631,123		204,750		-		-		-		(32,909)		802,964
INAMBARI		9,148		-		-		-		-		(8,984)		164
CEEE-GT		544,711		-		(4,067)		-		-		(91,308)		449,336
EMAE		148,553		-		(27,447)		-		(1,666)		146,112		265,552
CTEEP		913,440		81,590		-		(29,326)		(90,515)		52,625		927,814
CEMAR		463,394		-		-		-		(20,865)		112,288		554,817
REDE LAJEADO		232,907		-		50		-		(40,305)		13,630		206,282
CEB LAJEADO		83,644		-		14		-		(19,354)		7,419		71,723
CEEE-D		146,649		-		5,945		-		-		(145,118)		7,476
PAULISTA LAJEADO		27,669		-		-		-		(6,454)		(3,096)		18,119
ROUAR		18,427		34,392		9,985		-		-		7,240		70,044
CEMAT		334,294		-		2,255		18,852		(4,861)		25,491.00		376,031

TOTAL INVESTMENTS		49,419,395		453,260		(1,128,396)		(23,196)		(1,140,862)		(192,792)		47,387,409


CHANGE OF OUTSTANDING LIABILITIES - PARENT COMPANY

ED PIAUI		(219,476)		-		40,484		-		-		37,936		(141,056)
ED RORAIMA		-		-		-		-		-		(69,726)		(69,726)
ED RONDONIA		(188,655)		-		-		-		-		188,655		-
AMAZONAS		(2,492,500)		-		156		-		-		472,963		(2,019,381)
ED ACRE		(197,524)		197,524		-		-		-		-		-
CGTEE		(97,718)		-		24,786		-		-		(480,066)		(552,998)
ED ALAGOAS		(21,400)		-		105,679		-		-		(95,354)		(11,075)

TOTAL OUTSTANDING LIABILITIES		(3,217,273)		197,524		171,105		-		-		54,408		(2,794,236)


NET		46,202,122		650,784		(957,291)		(23,196)		(1,140,862)		(138,384)		44,593,173

LOGO

The value of the unsecured liabilities is recorded under the item Provision for unsecured liabilities.


Subsidiaries and affiliates	Balance on 12/31/2014		Capital investment/Write off		Other comprehensive income		AFAC Capitalization		Capital Gain / Loss		Capital Decrease		Dividends and interest on equity		Others		Equity method		Balance on 12/31/2015


CHANGE OF INVESTMENTS - CONSOLIDATED

ITAIPU BINACIONAL		-		-		-		-		-				-				-		-
EÓLICA MANGUE SECO		16,726		-		-		-		-		-		-		-		163		16,889
CHC		79,081		-		33,187		-		-		-		-		-		(13,753)		98,514
NORTE ENERGIA (BELO MONTE)		2,676,578		245,249		-		245,249		326,671		-		-		-		(23,958)		3,469,789
INAMBARI		164		-		1		-		-		-		-		-		(50)		115
CEEE-GT		449,336		-		(16,795)		-		-		-		-		1,560		14,173		448,274
EMAE		275,214		-		9,271		-		-		-		(1,416)		-		24,126		307,195
CTEEP		946,187		-		(949)		-		-		-		(120,648)		-		118,142		942,732
CEMAR		554,817		-		-		-		-		-		(23,176)		-		121,778		653,419
Amazonas Energia G&T		-		-		-		-		-				-		-		0		-
REDE LAJEADO		206,282		-		39		-		-		-		(24,162)		-		37,014		219,173
CEB LAJEADO		71,723		-		11		-		-		-		(8,966)		-		17,586		80,353
CEEE-D		7,476		-		2,956		-		-		-		-		-		(10,432)		-
PAULISTA LAJEADO		18,119		-		-		-		-		-		925		-		4,463		23,507
ROUAR		70,044		-		34,202		-		-		-		-		-		7,529		111,775
ENERGISA MT		376,031		-		587		-		-		-		(4,218)		-		12,918		385,318
ESBR Participações S.A.		2,907,364		180,000		-		-		-		-		-		-		(279,738)		2,807,626
Empresa de Energia São Manoel		(594)		105,667		-		-		-		-		-		-		(1,759)		103,314
Madeira Energia S.A.		2,724,068		164,970		-		-		-		-		-		-		7,030		2,896,068
Norte Brasil Transmissora de Energia S.A.		842,103		-		-		-		-		-		-		-		45,425		887,528
Interligação Elétrica do Madeira S.A.		822,342		-		-		-		-		-		(27,991)		-		117,747		912,098
Enerpeixe S.A.		555,860		-		-		-		-		-		(62,685)		-		68,107		561,282
Belo Monte Transmissora de Energia		12,081		194,040		-		-		194,040				-		-		(9,103)		391,058
Paranaíba Transmissora de Energia S.A.		67,383		29,400		-		-		-				-		-		3,943		100,726
Transnorte Energia S.A.		51,656		-		-		-		106,330				-		-		(9,613)		148,373
Manaus Transmissora de Energia S.A.		547,784		17,420		-		-		26,800		-		(50)		-		29,919		621,873
Teles Pires Participações		496,425		252,278		-		-		-		-		-		-		(86,139)		662,564
Chapecoense Generation S.A.		364,522		-		-		-		-		-		(22,288)		-		73,267		415,501
Transmissora Sul Brasileira de Energia S.A.		275,960		16,000		-		-		-		-		2,660		-		(24,368)		270,252
Energética Águas da Pedra S.A.		184,632		2,450		-		-		2,450		-		(3,455)		-		22,718		208,795
Interligação Elétrica Garanhuns S.A.		181,526		116,865		-		-		-		-		(5,780)		-		26,361		318,972
Companhia Energética SINOP S.A.		177,772		-		-		-		-		-		-		-		1,280		179,052
Integração Transmissora de Energia S.A.		169,450		-		-		-		-		-		(19,575)		-		25,697		175,572
STN - Sistema de Transmissão Nordeste S.A.		163,434		-		-		-		-		-		(31,968)		-		45,475		176,941
Santa Vitória do Palmar Holding S.A.		157,627		-		-		-		-		-		1,163		-		(108,567)		50,223
Transmissora Sul Litorânea de Energia S.A.		139,719		-		-		-		-		-		0		-		(4,980)		134,739
GOIÁS TRANSMISSÃO S.A.		138,436		-		-		-		-		-		(14,757)		-		66,566		190,245
MGE TRANSMISSÃO S.A.		118,953		-		-		1,960		-		-		(4,634)		-		20,476		136,755
Brasnorte Transmissora de Energia S.A.		115,568		-		-		-		-		-		(4,067)		-		9,372		120,873
Retiro Baixo Energia S.A.		111,906		-		-		2,695		-		-		-		-		7,173		121,774
Transenergia Renovável S.A.		96,813		-		-		-		-		-		(7,172)		-		38,777		128,418
VAMCRUZ PARTICIPAÇÕES S.A.		-		392		72,995		-		-		-		(523)		-		504		73,368
BAGUARI ENERGIA S.A.		85,815		-		-		-		-		-		(9,320)		-		6,226		82,721
Transmissora Matogrossense de Energia S.A.		85,368		-		-		-		-		-		(1,531)		-		13,317		97,154
Transenergia São Paulo S.A.		83,116		-		-		1,960		-		-		-		-		6,065		91,141
Others		1,275,443		257,946		62,431		60,391		106,470		-		(40,229)		-151,824		(125,551)		1,445,077

TOTAL INVESTMENTS		18,700,310		1,582,677		197,936		312,255		762,761		-		-433,864		-150,264		295,326		21,267,136


Subsidiaries and affiliates	Balance on 12/31/2013		Capital investment/Write off		Other comprehensive income		Capital Gain / Loss		Capital Decrease		Dividends and interest on equity		Equity method		Balance on 12/31/2014


CHANGE OF INVESTMENTS - CONSOLIDATED

ITAIPU BINACIONAL		117,130		-		15,680		-		-		-		-		132,810
EÓLICA MANGUE SECO		17,058		-		-		-		-		-		(332)		16,726
CHC		29,119		49,613		5,866		-		-		-		(5,517)		79,081
NORTE ENERGIA (BELO MONTE)		2,104,536		682,227		-		-		-		-		(110,185)		2,676,578
INAMBARI		9,148		-		-		-		-		-		(8,984)		164
CEEE-GT		544,711		-		(4,067)		-		-		-		(91,308)		449,336
EMAE		153,960		-		(28,446)		-		-		(1,730)		151,430		275,214
CTEEP		931,580		83,106		-		(30,005)		-		(91,996)		53,502		946,187
CEMAR		463,394		-		-		-		-		(20,865)		112,288		554,817
REDE LAJEADO		232,907		-		50		-		-		(40,305)		13,630		206,282
CEB LAJEADO		83,644		-		14		-		-		(19,354)		7,419		71,723
CEEE-D		146,649		-		5,945		-		-		-		(145,118)		7,476
PAULISTA LAJEADO		27,669		-		-		-		-		(6,454)		(3,096)		18,119
ROUAR		18,427		34,392		9,985		-		-		-		7,240		70,044
CEMAT		334,294		-		2,255		18,852		-		(4,861)		25,491		376,031
ESBR PARTICIPAÇÕES S.A.		2,752,140		618,000		(1,200)		-		-		-		(461,576)		2,907,364
MADEIRA ENERGIA S.A.		2,506,082		1,079,130		-		-		-		-		(861,144)		2,724,068
NORTE BRASIL TRANSMISSORA DE ENERGIA S.A.		462,170		386,245		-		-		-		-		(5,857)		842,558
INTERLIGAÇÃO ELÉTRICA DO MADEIRA S.A.		685,927		80,850		-		-		-		(7,362)		62,927		822,342
ENERPEIXE S.A.		525,379		-		-		-		-		(26,058)		56,539		555,860
MANAUS TRANSMISSORA DE ENERGIA S.A.		525,558		-		-		-		-		-		22,226		547,784
TELES PIRES PARTICIPAÇÕES S.A.		525,582		-		-		-		-		-		(29,157)		496,425
CHAPECOENSE GENERATION S.A.		345,388		-		-		-		-		(9,512)		28,646		364,522
TRANSMISSORA SUL BRASILEIRA DE ENERGIA S.A.		167,403		98,400		-		-		-		(1,220)		11,377		275,960
ENERGÉTICA ÁGUAS DA PEDRA S.A.		189,062		-		-		-		-		(12,838)		8,408		184,632
INTERLIGAÇÃO ELÉTRICA GARANHUNS S.A.		98,659		66,150		-		-		-		-		16,717		181,526
COMPANHIA ENERGÉTICA SINOP S.A.		-		182,591		-		-		-		-		(4,819)		177,772
INTEGRAÇÃO TRANSMISSORA DE ENERGIA S.A.		160,151		-		-		-		-		(13,091)		22,390		169,450
STN - SISTEMA DE TRANSMISSÃO NORDESTE S.A.		195,154		-		-		-		-		(77,734)		46,014		163,434
SANTA VITÓRIA DO PALMAR HOLDING S.A.		185,970		(29,400)		-		-		-		(1,163)		2,220		157,627
TRANSMISSORA SUL LITORÂNEA DE ENERGIA S.A.		16,901		125,455		-		-		-		-		(2,637)		139,719
GOIÁS TRANSMISSÃO S.A.		131,579		-		7,350		-		-		-		(493)		138,436
MGE TRANSMISSÃO S.A.		106,371		-		28,616		-		-		(6,812)		(9,222)		118,953
BRASNORTE TRANSMISSORA DE ENERGIA S.A.		105,921		-		-		-		-		-		9,647		115,568
RETIRO BAIXO ENERGIA S.A.		113,181		-		-		-		-		-		(1,275)		111,906
TRANSENERGIA RENOVÁVEL S.A.		78,241		-		-		-		-		(5,744)		24,316		96,813
PARANAÍBA TRANSMISSORA DE ENERGIA S.A.		17,801		47,285		-		-		-		-		2,297		67,383
BAGUARI ENERGIA S.A.		92,437		-		(315)		-		-		(5,457)		(850)		85,815
TRANSMISSORA MATOGROSSENSE DE ENERGIA S.A.		75,656		-		-		-		-		(1,470)		11,182		85,368
TRANSENERGIA SÃO PAULO S.A.		49,632		-		-		-		-		(10,493)		43,977		83,116
OTHERS		989,998		621,071		(7,697)		8		-		(38,877)		(359,182)		1,205,321

TOTAL INVESTMENTS		16,316,569		4,125,115		34,036		(11,145)		-		(403,396)		(1,360,869)		18,700,310

LOGO

16.4 Information of the market value of invested companies


			*Market Value ()**
Public companies	Evaluation Method	Share	12/31/2015		12/31/2014

CTEEP	Equity Method	35.37%		2,589,826		2,395,593
CEMAR	Equity Method	33.55%		989,887		910,593
AES Tiete	Market Value	7.94%		437,532		547,862
ENERGISA MT	Equity Method	27.52%		335,109		293,887
COELCE	Market Value	7.06%		196,429		200,868
ENERGISA S.A	Market Value	2.99%		116,497		85,353
CESP	Market Value	2.05%		87,023		168,789
CEEE-GT	Equity Method	32.59%		76,904		143,783
CEEE-D	Equity Method	32.59%		65,302		102,492
EMAE	Equity Method	39.02%		60,404		54,061
CELPA	Market Value	1.15%		42,379		26,782
CELESC	Market Value	10.75%		41,513		61,897
AES Eletropaulo	Market Value	1.25%		32,098		32,098
CELPE	Market Value	1.56%		28,859		15,407
COPEL	Market Value	0.56%		24,492		38,116
Energias do Brasil	Market Value	0.31%		20,357		20,357
CGEEP - DUKE	Market Value	0.47%		17,662		27,199
CEB	Market Value	3.29%		6,130		6,021
CELGPAR	Market Value	0.07%		92		184

(*) Based on share prices from database

LOGO


Closed-capital companies	Evaluation Method	Share	12/31/2015		12/31/2014

Angical 2 Energia S.A.	Equity Method	99.96%		-		12,727
Arapapá Energia S.A.	Equity Method	99.90%		-		5,128
Carcará Energia S.A.	Equity Method	99.96%		-		12,000
Ceb Lajeado	Equity Method	40.07%		351,756		330,218
Lajeado Energia	Equity Method	40.07%		998,348		966,177
Paulista Lajeado	Equity Method	40.07%		108,639		95,192
Acauã Energia S.A.	Equity Method	99.93%		-		7,679
Amapari Energia S.A.	Equity Method	49.00%		-		(1,542)
Amazônia Eletronorte Transmissora de Energia S.A.	Equity Method	49.00%		84,316		81,219
Baguari Energia S.A.	Equity Method	30.61%		270,222		280,329
Banda de Couro Energética S.A.	Equity Method	49.00%		1,893		1,962
Baraúnas I Energética S/A.	Equity Method	49.00%		35,420		(54)
Baraúnas II Energética S/A.	Equity Method	49.00%		1,193		1,257
Bom Jesus Eólica	Equity Method	49.00%		2,553		14,470
Brasnorte Transmissora de Energia S.A.	Equity Method	49.71%		243,156		227,478
Brasventos Eolo Geradora de Energia S.A.	Equity Method	49.00%		83,257		84,553
Brasventos Miassaba 3 Geradora de Energia S.A.	Equity Method	49.00%		135,793		136,610
Cachoeira Eólica	Equity Method	49.00%		1,565		9,559
Caititu 2 Energia S.A.	Equity Method	99.96%		-		12,728
Caititu 3 Energia S.A.	Equity Method	99.96%		-		12,727
Caldas Novas	Equity Method	49.90%		27,175		25,744
Carnaúba I Eólica	Equity Method	49.00%		17,724		17,013
Carnaúba II Eólica	Equity Method	49.00%		14,094		13,763
Carnaúba III Eólica	Equity Method	49.00%		12,521		12,262
Carnaúba V Eólica	Equity Method	49.00%		18,515		18,277
Central Eólica Famosa I S.A.	Equity Method	49.00%		15,262		14,310
Central Eólica Pau Brasil S.A.	Equity Method	49.00%		9,946		9,518
Central Eólica Rosada S.A.	Equity Method	49.00%		18,645		17,700
Central Eólica São Paulo S.A.	Equity Method	49.00%		11,430		10,772
Cervantes I Eólica	Equity Method	49.00%		11,228		12,336
Cervantes II Eólica	Equity Method	49.00%		9,315		9,216
Chapecoense Generation S.A.	Equity Method	40.00%		1,038,751		911,306
Chuí Holding S.A	Equity Method	49.00%		(15,708)		76,521
Chuí IX	Equity Method	99.99%		-		(55)
Companhia de Transmissão Centroeste de Minas S.A.	Equity Method	49.00%		-		42,500
Companhia Energética Sinop S.A.	Equity Method	49.00%		500,411		355,294
Construtora Integração Ltda	Equity Method	49.00%		92,026		91,908
Corrupião 3 Energia S.A.	Equity Method	99.95%		-		12,727
Costa Oeste Transmissora de Energia S.A.	Equity Method	49.00%		63,984		43,899
Coxilha Seca	Equity Method	99.99%		-		87
Coqueirinho 2 Energia S.A.	Equity Method	99.98%		-		21,419
Energética Águas da Pedra S.A.	Equity Method	49.00%		430,564		365,634
Energia dos Ventos I S.A. *	Equity Method	0.00%		-		14,803
Energia dos Ventos II S.A. *	Equity Method	0.00%		-		8,992
Energia dos Ventos III S.A. *	Equity Method	0.00%		-		13,337
Energia dos Ventos IV S.A. *	Equity Method	0.00%		-		19,458
Energia dos Ventos V S.A. **	Equity Method	99.99%		-		1,897
Energia dos Ventos VI S.A. **	Equity Method	99.99%		-		2,596
Energia dos Ventos VII S.A. **	Equity Method	99.99%		-		2,816
Energia dos Ventos VIII S.A. **	Equity Method	99.99%		-		1,856
Energia dos Ventos IX S.A. **	Equity Method	99.99%		-		1,990
Energia dos Ventos X S.A. *	Equity Method	0.00%		-		11,851

(*) The companies were sold during the first quarter

(**)The Alupar share purchase operation was concluded on December 31, 2015.

LOGO


Closed-capital companies	Evaluation Method	Share	12/31/2015		12/31/2014

Enerpeixe S.A.	Equity Method	40.00%		1,403,204		1,389,649
ESBR Participações S.A.	Equity Method	40.00%		7,019,063		7,268,412
Etau - Empresa de Transmissão Alto Uruguai	Equity Method	27.42%		89,859		92,190
Extremoz Transmissora do Nordeste - ETN S.A. ***	Equity Method	100.00%		-		14,652
Fronteira Oeste Transmissora de Energia	Equity Method	51.00%		49,873		23,183
Goiás Transmissão S.A.	Equity Method	49.00%		388,255		282,522
Eólica Hermenegildo I	Equity Method	99.99%		-		(374)
Eólica Hermenegildo II	Equity Method	99.99%		-		(146)
Eólica Hermenegildo III	Equity Method	99.99%		-		(113)
Inambari Generation de Energia S.A.	Equity Method	29.40%		405		559
Integração Transmissora de Energia S.A.	Equity Method	49.00%		391,140		342,198
Interligação Elétrica do Madeira S.A.	Equity Method	49.00%		1,996,044		1,543,620
Interligação Elétrica Garanhuns S.A.	Equity Method	49.00%		650,964		370,460
Linha Verde Transmissora de Energia S.A.	Equity Method	100.00%		-		(67,518)
Livramento Holding S.A.	Equity Method	52.53%		(306,324)		(176,657)
Luziânia - Niquelândia Transmissora S.A.	Equity Method	49.00%		43,227		32,699
Madeira Energia S.A.	Equity Method	39.00%		6,755,683		6,994,900
Manaus Construtora Ltda.	Equity Method	49.50%		38,289		24,221
Manaus Transmissora de Energia S.A.	Equity Method	49.50%		1,167,072		1,106,631
Marumbi Transmissora de Energia S.A.	Equity Method	20.00%		94,893		45,214
MGE Transmissão S.A.	Equity Method	49.00%		279,092		242,762
Morro Branco I Energética S.A.	Equity Method	49.00%		34,733		31,734
Mussambê Energética S.A.	Equity Method	49.00%		44,334		40,726
Norte Brasil Transmissora de Energia S.A.	Equity Method	49.00%		1,809,867		1,715,791
Norte Energia S.A.	Equity Method	49.98%		6,947,265		5,353,094
Papagaio Energia S.A.	Equity Method	99.96%		-		13,380
Paranaíba	Equity Method	24.50%		411,127		275,032
Pedra Branca S.A.	Equity Method	49.00%		35,902		29,094
Pitimbu Eólica	Equity Method	49.00%		2,117		14,265
Punaú I Eólica	Equity Method	49.00%		18,362		18,187
Rei dos Ventos 3 Geradora de Energia S.A.	Equity Method	49.00%		81,365		87,106
Retiro Baixo Energética S.A.	Equity Method	49.00%		229,872		231,880
Santa Vitória do Palmar Holding S.A.	Equity Method	49.00%		102,495		321,687
São Caetano Eólica	Equity Method	49.00%		2,831		20,160
São Caetano I Eólica	Equity Method	49.00%		2,320		14,395
São Galvão Eólica	Equity Method	49.00%		2,740		19,000
São Pedro do Lago S.A.	Equity Method	49.00%		33,516		33,198
Eólica Serra das Vacas Holding S.A.	Equity Method	49.00%		183,076		102,467
Eólica Serra das Vacas I S.A.	Equity Method	49.00%		-		26,546
Eólica Serra das Vacas II S.A.	Equity Method	49.00%		-		25,486
Eólica Serra das Vacas III S.A.	Equity Method	49.00%		-		24,706
Eólica Serra das Vacas IV S.A.	Equity Method	49.00%		-		25,729
Serra do Facão Energia S.A.	Equity Method	49.47%		91,022		3,314
Sete Gameleiras S.A.	Equity Method	49.00%		46,711		42,447
STN - Sistema de Transmissão Nordeste S.A.	Equity Method	49.00%		361,105		333,540
Tamanduá Mirim 2 Energia S.A. ***	Equity Method	83.01%		-		21,295
TDG - Transmissora Delmiro Gouveia S.A.	Equity Method	49.00%		59,569		114,169
Teles Pires Participações S.A.	Equity Method	49.40%		1,393,056		998,870
Transenergia Goiás S.A.	Equity Method	49.00%		62,239		32,455
Transenergia Renovável S.A.	Equity Method	49.00%		262,077		197,578
Transenergia São Paulo S.A.	Equity Method	49.00%		186,001		173,623
Cia. Transirapé de Transmissão S.A.	Equity Method	24.50%		77,798		65,853
Cia. Transleste de Transmissão S.A.	Equity Method	24.00%		73,226		65,066
Transmissora Matogrossense de Energia S.A.	Equity Method	49.00%		192,049		164,875
Transnorte Energia S.A.	Equity Method	49.00%		345,706		105,417
Cia. Transudeste de Transmissão S.A.	Equity Method	25.00%		71,599		59,905
Triângulo Mineiro	Equity Method	49.00%		168,480		79,753
Teiú 2 Energia S.A.	Equity Method	99.90%		-		10,190
Transmissora Sul Brasileira de Energia S.A. - TSBE	Equity Method	80.00%		337,815		344,950
Transmissora Sul Litorânea de Energia S.A. - TSLE	Equity Method	51.00%		264,197		273,959

(***) On December 31, 2015, Chesf acquired the shareholding control over the SPE


Closed-capital companies	Evaluation Method	Share		12/31/2015		12/31/2014

Complexo Eólico Vamcruz	Equity Method		49.00%		252,689		148,971
Vale do São Bartolomeu	Equity Method		39.00%		144,792		41,354
Complexo Eólico Chapada do Piauí II	Equity Method		49.00%		249,030		179,310
Complexo Eólico Chapada do Piauí I	Equity Method		49.00%		205,386		196,237
Mata de Santa Genebra	Equity Method		49.90%		60,793		52,459
Belo Monte Transmissora	Equity Method		49.00%		748,076		24,336
Lago Azul Transmissão	Equity Method		49.90%		14,050		3,948
Ventos de São Rafael	Equity Method		0.00%		-		(6)
Ventos de São Cirilo	Equity Method		0.00%		-		(4)
Ventos de São Bento	Equity Method		0.00%		-		(6)
Ventos de Santo Antônio	Equity Method		0.00%		-		(4)
Ventos de Santa Vera	Equity Method		0.00%		-		(4)
Ventos de Santa Marcella	Equity Method		0.00%		-		(5)
Itaguaçu da Bahia	Equity Method		49.00%		24,078		(6)
Ventos de Santa Luzia	Equity Method		0.00%		-		(5)
Ventos de Santa Madalena	Equity Method		0.00%		-		(6)
Ventos de São João	Equity Method		0.00%		-		(5)
CSE Centro de Soluções Estratégicas	Equity Method		49.90%		2,299		3,400
Tijoa Participações e Investimentos	Equity Method		49.90%		11,355		1,635
Energia Olímpica S.A.	Equity Method		49.90%		4,984		(426)
Empresa de Energia São Manoel	Equity Method		33.33%		213,945		(1,782)

LOGO

16.5 Summary of information jointly controlled and affiliated projects


I - Assets and Liabilities
12/31/2015
			ASSET												LIABILITIES
			CURRENT				NON-CURRENT								CURRENT				NON-CURRENT
Projects under joint control and affiliates	Share		Cash and cash equivalent		Other assets		Financial, intangible, and fixed assets			Other assets			Total Assets		Loans and financing		Other liabilities		Loans and financing		Other liabilities		Shareholders’ equity		Total Liabilities
Belo Monte Transmissora de Energia		49.00%		332,604		4,199		920,165	-		-	-		1,256,968		453,882		46,277		-		8,733		748,076		1,256,968
Brasnorte Transmissora de Energia S.A.		49.71%		16,467		24,149		279,599	-		-	-		320,215		11,280		13,838		-		51,941		243,156		320,215
Chapecoense Generation S.A.		40.00%		176,308		180,185		3,075,967	-		162,724	-		3,595,184		136,322		311,290		1,404,553		704,268		1,038,751		3,595,184
Companhia Energética Sinop		49.00%		53,385		3,445		844,733	-		2,491	-		904,054		328,022		56,012		-		19,609		500,411		904,054
Energética Águas da Pedra S.A.		49.00%		61,765		39,300		753,115	-		17,353	-		871,533		34,917		54,031		339,843		12,178		430,564		871,533
Enerpeixe S.A.		40.00%		82,946		76,736		1,596,186	-		50,194	-		1,806,062		-		172,744		-		230,114		1,403,204		1,806,062
ESBR Participações		40.00%		-		908,570		21,685,558	-		1,655,056	-		24,249,184		-		1,422,013		11,299,857		4,508,251		7,019,063		24,249,184
Interligação Elétrica do Madeira S.A.		49.00%		41,833		646,081		4,149,365	-		-	-		4,837,279		197,250		151,399		2,215,079		546,746		1,726,805		4,837,279
Interligação Elétrica Garanhuns S.A.		49.00%		-		33,485		1,114,685	-		16,723	-		1,164,893		-		-		339,848		174,081		650,964		1,164,893
Intesa - Integração Transmissora de Energia S.A.		49.00%		36,235		112,742		496,085	-		-	-		645,062		31,182		9,001		120,166		93,573		391,140		645,062
Madeira Energia S.A.		39.00%		299,963		1,308,256		22,180,387	-		1,182,376	-		24,970,982		450,779		1,700,678		14,061,238		1,507,190		7,251,097		24,970,982
Manaus Transmissora de Energia S.A.		49.50%		32,198		188,813		2,376,236	-		9,351	-		2,606,598		69,707		272,606		786,943		310,270		1,167,072		2,606,598
Norte Brasil Transmissora de Energia S.A.		49.00%		51,937		265,098		3,425,883	-		-	-		3,742,918		78,941		263,100		1,171,337		426,938		1,802,602		3,742,918
Norte Energia S.A		49.98%		489,804		442,450		29,964,727	-		271,620	-		31,168,601		-		719,033		23,280,595		229,708		6,939,265		31,168,601
Santa Vitória do Palmar		49.00%		-		31,227		1,004,762	-		22,957	-		1,058,946		-		182,126		749,633		24,692		102,495		1,058,946
Serra do Facão Energia S.A.		49.47%		31		52,441		2,044,386	-		99,362	-		2,196,220		41,126		163,051		401,137		1,499,884		91,022		2,196,220
STN – Sistema de Transmissão Nordeste S.A.		49.00%		-		60,313		699,181	-		3,866	-		763,360		-		-		162,093		240,162		361,105		763,360
Teles Pires Participações		49.40%		130,877		98,058		4,886,124	-		236,137	-		5,351,196		191,893		293,229		3,392,921		80,097		1,393,056		5,351,196
TSBE		80.00%		-		46,675		659,575	-		-	-		706,250		-		30,639		337,796		-		337,815		706,250
TSLE		51.00%		-		49,433		914,407	-		-	-		963,840		-		91,522		495,271		112,850		264,197		963,840
Chapada do Piauí I Holding S.A.		49.00%		-		51,418		809,359			132			860,909		-		-		523,242		160,933		176,734		860,909
Chapada do Piauí II Holding S.A.		49.00%		-		85,298		864,913			-			950,211		-		-		512,068		189,113		249,030		950,211
Chuí Holding S.A.		49.00%		-		65,150		609,778			12,747			687,675		-		57,429		373,979		413,628		-157,361		687,675
Companhia Energética do Maranhão (CEMAR)		33.55%		310,893		1,963,260		2,573,627			271,559			5,119,339		253,910		711,799		1,997,641		207,715		1,948,274		5,119,339
Lajeado Energia		40.07%		161,062		92,153		48			1,445,794			1,699,057		6,483		243,394		448,216		2,616		998,348		1,699,057
CTEEP		35.37%		3,120		580,539		45,812			6,217,757			6,847,228		213,312		155,268		665,649		476,794		5,336,205		6,847,228
CEEE-GT		32.59%		38,171		454,210		555,108			1,871,335			2,918,824		29,247		298,881		282,253		826,489		1,481,954		2,918,824
Energisa MT		27.52%		192,754		1,198,769		1,909,436			1,365,792			4,666,751		170,545		918,080		1,297,616		930,884		1,349,626		4,666,751
CEEE-D		32.59%		73,961		801,912		2,165,618			274,473			3,315,964		4,954		1,346,254		474,965		1,973,387		-483,596		3,315,964
Others				1,137,504		994,618		10,606,468			1,661,908			14,400,498		1,128,125		1,838,403		3,176,337		1,836,613		6,421,018		14,400,498

LOGO


I - Assets and liabilities
12/31/2014
Projects under joint control and affiliates	Share		Financial, intangible, and fixed assets			Other assets			Loans and financing		Other liabilities		Shareholders’ equity
Brasnorte Transmissora de Energia S.A.		49.71%		277,484			13,734			16,277		51,884		223,057
CEEE-D		32.59%		1,850,160			1,112,005			386,406		2,487,750		88,009
CEEE-GT		32.59%		731,744			2,286,349			434,369		1,139,970		1,443,754
Chapecoense Generation S.A.		40.00%		3,134,622			335,294			1,665,317		893,293		911,306
Cia Hidrelétrica Teles Pires		49.44%		4,459,508			134,736			3,363,629		231,745		998,870
CTEEP		35.23%		1,856,289			5,285,850			572,630		1,404,464		5,165,045
Energética Águas da Pedra S.A		49.00%		773,415			66,340			408,164		43,622		387,969
Enerpeixe S.A.		40.00%		1,644,956			203,243			123,840		334,710		1,389,649
ESBR Participações S.A.		40.00%		20,338,744			1,886,608			11,324,749		3,632,191		7,268,412
Inambari Generation de Energia		19.61%		57			530			-		28		559
Integração Trasmissora de Energia S.A		49.00%		611,931			13,331			181,519		101,545		342,198
Interligação Elétrica do Madeira S.A		49.00%		4,382,731			163,607			2,435,751		566,967		1,543,620
Itaipu		50.00%		37,866,871			4,330,771			33,681,427		8,250,655		265,560
Madeira Energia S.A		39.00%		20,998,021			1,745,534			13,049,395		2,699,260		6,994,900
Manaus Transmissora de Energia S.A.		49.50%		2,368,082			154,180			874,167		541,464		1,106,631
Norte Brasil Transmissora de Energia S.A.		49.00%		3,456,889			69,655			1,276,121		534,632		1,715,791
Norte Energia S.A		34.98%		21,536,053			1,527,473			16,759,221		951,211		5,353,094
Serra do Facão Energia S.A		49.47%		1,979,783			88,407			529,311		1,535,565		3,314
Sistema de Transmissão Nordeste S.A		49.00%		684,561			52,348			180,408		222,961		333,540
Others				1 7.618.999			7,097,495			7 .658.275		6,354,105		1 0.704.114

12/31/2015
Projects under joint control and affiliates	Net operating income		Financial income			Financial expenses			Tax on earnings		Net profit (loss)		Depreciation and amortization
Belo Monte Transmissora de Energia		881,398		55,344	-		(53,783)	-		(8,599)		(18,260)		(52)
Brasnorte Transmissora de Energia S.A.		36,641		1,623	-		(2,473)	-		(9,035)		20,099		-
Chapecoense Generation S.A.		738,792		32,149	-		(143,821)	-		(119,721)		183,166		(34,867)
Companhia Energética Sinop		-		3,362	-		15,052	-		2,491		10,119		(179)
Energética Águas da Pedra S.A.		188,908		5,194	-		(30,325)	-		(7,187)		37,489		(20,430)
Enerpeixe S.A.		435,627		8,389	-		(46,278)	-		(8,150)		170,269		(49,385)
ESBR Participações S.A.		2,412,946		13,446	-		(686,016)	-		348,386		(699,349)		(433,313)
Interligação Elétrica Garanhuns S.A.		279,257		3,105	-		(25,245)	-		(27,667)		53,798		(26)
Interligação Elétrica do Madeira S.A.		610,279		25,100	-		(249,207)	-		(102,072)		240,216		(103)
Intesa - Integração Transmissora de Energia S.A.		92,484		3,701	-		(13,744)	-		(13,408)		51,267		-
Madeira Energia S.A.		2,604,869		161,751	-		(1,128,693)	-		614,983		18,026		(480,611)
Manaus Transmissora de Energia S.A.		174,519		5,064	-		(79,158)	-		(29,656)		52,446		-
Norte Brasil Transmissora de Energia S.A.		340,080		4,357	-		(138,058)	-		(63,807)		113,850		-
Norte Energia S.A		120,653		93,444	-		(86,679)	-		23,886		(40,819)		(6,195)
Santa Vitória do Palmar Holding S.A.		94,618		2,061	-		(88,409)	-		(3,499)		(227,750)		(46,109)
Serra do Facão Energia S.A.		280,164		3,318	-		(272,574)	-		62,402		(135,032)		(43,587)
STN – Sistema de Transmissão Nordeste S.A.		159,741		3,805	-		(28,589)	-		(23,234)		92,806		(111)
Teles Pires Participações		354,316		14,978	-		(184,328)	-		57,671		(188,695)		(57,283)
Transmissora Sul Brasileira de Energia S.A.		73,863		4,407	-		(35,495)	-		(3,442)		(31,964)		(10)
Transmissora Sul Litorânea de Energia S.A.		150,922		2,077			(63,619)			495		(19,026)		-
Chapada do Piauí I Holding S.A.		44,733		265			(44,205)			(1,455)		(19,511)		(12,104)
Chapada do Piauí II Holding S.A.		-		-			(4,590)			0		(4,813)		-
Chuí Holding S.A.		73,031		271			(23,104)			(2,348)		(233,111)		(18,222)
Companhia Energética do Maranhão (CEMAR)		2,738,793		388,912			(368,729)			(79,311)		363,803		(127,052)
Lajeado Energia		489,975		23,351			(67,944)			(26,879)		92,373		(28,767)
CTEEP		1,089,287		121,244			(125,566)			(85,270)		504,430		(7,776)
CEEE-GT		671,279		247,884			(195,384)			66,419		84,947		(26,445)
Energisa MT		3,483,404		255,036			(378,233)			(24,433)		45,246		(118,601)
CEEE-D		3,376,936		460,746			(532,921)			40,766		(514,244)		(58,633)
Others		2,086,060		155,620			(308,281)			(126,743)		331,230		(87,497)

LOGO


II - Income
12/31/2014
Projects under joint control and affiliates	Net operating income		Financial income		Financial expenses		Tax on earnings		Net profit (loss)		Depreciation and amortization
Amapari Energia S.A.		30,527		1,285		(6,764)		(3,509)		(106,867)		(5,175)
Amazônia Eletronorte Transm. de Energia S.A.		33,051		859		(2,390)		(1,600)		23,217		(244)
Belo Monte Transmissora de Energia S.A.		20,330		1,289		(19)		(134)		(665)		(11)
Brasnorte Transmissora de Energia S.A.		34,847		751		(2,803)		(7,524)		19,435		-
Brasventos Eolo Geradora de Energia S.A.		29,394		1,749		(9,449)		(2,603)		(5,316)		(9,632)
Brasventos Miassaba 3 Geradora de Energia S.A.		46,316		2,556		(9,854)		(3,620)		8,268		(10,879)
CEEE-D		3,700,400		96,043		(96,948)		(56,437)		(445,282)		(61,961)
CEEE-GT		670,957		129,303		(30,738)		95,241		(280,763)		(31,772)
CEMAR		2,484,218		384,315		(477,821)		(65,821)		334,684		(121,769)
Chapecoense Generation S.A.		714,808		33,059		(136,412)		(51,751)		71,617		(62,773)
Cia Hidrelétrica Teles Pires		-		23		(605)		(22,588)		(39,469)		-
Companhia Energética Sinop		-		3,659		(61)		-		(2,333)		-
Construtora Integração Ltda		105,200		358		(1,414)		(12,390)		5,844		-
CTEEP		1,102,788		154,225		(142,334)		(80,475)		379,732		(8,860)
Energética Aguas da Pedra S.A.		196,394		6,371		(33,988)		(4,039)		20,608		(21,066)
Enerpeixe S.A.		433,025		8,784		(36,825)		(11,464)		141,349		(45,279)
ESBR Participações S.A.		754,272		6,294		(183,578)		674,872		(1,153,942)		(123,066)
Inambari Generation de Energia		-		23		-		-		(373)		(15)
Integração Trasmissora de Energia S.A		84,827		4,828		(17,109)		(10,048)		46,983		(3)
Interligação Elétrica do Madeira S.A		532,206		12,827		(163,410)		(62,614)		121,617		-
Itaipu		9,773,571		166,378		(2,209,854)		-		2,931,297		-
Linha Verde Transmissora de Energia S.A.		233,844		6,067		(36,352)		1,887		(112,426)		-
Livramento Holding S.A.		29,910		-		(4,276)		(10,966)		(283,386)		-
Madeira Energia S.A		2,343,960		64,533		(797,759)		6,424		(2,208,060)		(375,533)
Manaus Construtora Ltda		25,964		302		(19)		(8,441)		16,442		-
Manaus Transmissora de Energia S.A.		211,311		4,422		(70,893)		(40,212)		61,142		(4,677)
Norte Brasil Transmissora de Energia S.A.		686,770		1,504		(116,087)		1,135		(3,655)		-
Norte Energia S.A		-		116,122		(115,154)		110,092		(219,394)		(1,394)
Rei dos Ventos 3 Geradora de Energia S.A.		36,108		1,644		(9,987)		(2,423)		213		(9,854)
Serra do Facão Energia S.A		159,838		3,888		(37,674)		15,433		(119,463)		(23,876)
Sistema de Transmissão Nordeste S.A		147,533		3,274		(19,247)		(21,088)		93,908		(122)
Transmissora Matogrossense de Energia S.A.		50,271		2,546		(14,210)		(2,635)		28,870		(85)
Transnorte Energia S.A.		210,839		-		(17)		(8,533)		16,546		(33)
Others		2,672,401		1,130,516		(886,730)		(135,308)		41,993		(60,186)

16.5.1. - Distribution Companies:

a) Distribuição Alagoas - holds concession for distribution of electricity in all municipalities of the State of Alagoas, under Concession Agreement 07/2001-ANEEL, its main purpose is to plan, build, and explore public service electricity distribution to end consumers. This subsidiary holds negative net current capital of R$ 269,740 (December 31, 2014 - R$ 147,841), accrued losses of R$ 931,925 (December 31, 2014 - R$ 678,710) and unsecured liabilities of R$ 247,656 (R$ 11,075 on December 31, 2014), and it depends on the financial support of the Company.

b) Distribuição Rondônia - holds concession for distribution of electricity in all municipalities of the State of Rondônia under Concession Agreement 05/2001-ANEEL,. Its main purpose is to plan, build, and explore public service electricity distribution to end consumers. This subsidiary holds negative net current capital of R$ 1,010,468 (December 31, 2014 - R$ 512,717), accrued losses of R$ 1,787,895 (December 31, 2014 - R$ 1,221,058) and unsecured liabilities of R$ 456,558 (on December 31, 2014 - R$ 104,066), and it depends on the financial support of the Company.

c) Distribuição Piauí - holds concession for distribution of electricity in all municipalities of the State of Piauí under Concession Agreement 04/2001, dated February 12, 2001, executed with ANEEL. Its main activity is electricity distribution. This subsidiary holds negative net current capital of R$ 754,935 (December 31, 2014 - R$ 118,864), accrued losses of R$ 1,966,531 (December 31, 2014 - R$ 1, 403,544) and unsecured liabilities of R$ 701,150 (December 31, 2014 - R$ 141,058), and it depends on the financial support of the Company.

LOGO

d) Amazonas D. – its main activities are generation, distribution, and commercialization of electricity in the State of Amazonas. Amazonas Energia generates (2,203.9 MW*) and supplements its needs to serve consumers by buying energy from independent producers. This subsidiary holds net current capital of R$ 2,447,607 (December 31, 2014 - R$ 442,063), accrued losses of R$ 8,971,348 (December 31, 2014 - R$ 7,570,404) and unsecured liabilities of R$ 4,363,598 (December 31, 2014 - R$ 2,962,486). On July 1, 2015, this subsidiary has started in the unbundling process, where electricity generation and transmission activities wree separated from its distribution activities (see Note 1).

e) Distribuição Roraima - Holds concession under Contract 21/2001 – ANEEL, dated March 21, 2001 and Addendum dated October 14, 2005, for electricity distribution in the municipality of Boa Vista - RR, valid through the end, 2015. This subsidiary holds negative net current capital of R$ 432,232 (December 31, 2014 - R$ 73,865), accrued losses of R$ 1,020,541 (December 31, 2014 - R$ 750,425) and unsecured liabilities of R$ 337,643 (R$ 69,726 on December 31, 2014), and it depends on the financial support of the Company.

f) Distribuição Acre – holds concession for distribution and commercialization of electricity for the entire State of Acre, under concession agreement 06/2001, signed with the National Electricity Agency (ANEEL) on February 12, 2001, with effective term through July 7, 2015. Supply of electricity for the capital city, Rio Branco, and for the six towns connected to the Rio Branco System, is provided by Eletronorte. The interior of the State, since 1999, under a lease agreement, has been supplied by GUASCOR do Brasil Ltda., as an Independent Energy Producer (PIE), through Isolated Generation Systems. Here it bears mention that electricity supply for the whole State is provided through Thermoelectric to Diesel (100%). This subsidiary holds net current capital of R$ 139,542 (December 31, 2014 - R$ 21,021), accrued losses of R$ 605,232 (December 31, 2014 - R$ 420,461) and unsecured liabilities of R$ 129,683 (R$ 54,906 on December 31, 2014).

g) Celg-Distribuição – Celg-D - On September 26, 2014, the Company acquired 51% of the ordinary stock of Celg-D, becoming the parent company of Celg-D (see Note 42). Celg-D is a privately held corporation, and holds concession for delivery of electricity; it was established on March 23, 2007. Eletrobras holds 51% of the capital stock, and CELGPAR holds 49%. On December 31, 2015, the Company classified this subsidiary as an asset held for sale, because it met the accounting criteria applicable to such classification (See Note 43).

Celg-D holds concessions for electricity distribution in 237 municipalities, 391 districts and towns in the State of Goiás, with 2,688,902 consumers, covering an area of 336,871 km²*, governed by Concession Agreement No. 63 of August 25, 2000, entered into by and between ANEEL, Celg-D, and the then majority shareholder.

LOGO

The concession of Celg-D was extended according to the terms of the fifth amendment to the concession contract No. 63/2000 – ANEEL, executed on December 29, 2015, see Note 2.2.

(*) information not audited by independent auditors

16.5.2 - Generation and Transmission Companies:

a) Eletrobras Termonuclear S.A. - wholly owned subsidiary, its main activity being construction and operation of nuclear power plants, and provision of related engineering services, such activities which are regulated and monitored by the ANEEL. The Company has essentially been performing exploration activities for the Angra 1 and Angra 2 plants, with rated power of 1,990 MW*, as well as construction of the Angra 3 plant. Beginning on January 1, 2013, electricity generated by the subsidiary was rated between all concessionaires, permit-holders, or other entities authorized for public utility distribution in the National Interconnected System (SIN), according to the methodology established Regulatory Resolution No. 530, published on December 21, 2012 by ANEEL, for calculation of the annual quotas/portions corresponding to the energy from the Angra 1 and Angra 2 power plants and the conditions for sale of that energy, as per Article 11 of Law No. 12.111/2009. The subsidiary has a negative net current capital of R$ 241,869 (December 31, 2014 –R$ 1,127,268), accrued losses of R$ 6,877,187 (as of December 31, 2014 – R$ 1,759,129); and unsecured liabilities of R$ 351,588 (shareholders’ equity as of December 31, 2014 – R$ 4,796,475), and depends upon the financial support granted by the Company.

b) Eletrosul Centrais Elétricas S.A. - its main purpose is transmission and generation of electricity directly or through holdings in Specific Purpose Companies. The Company performs studies, projects, construction, operation, and maintenance of facilities for electricity transmission and generation systems, such activities which are regulated.

c) Companhia Hidro Elétrica do São Francisco - CHESF - electricity utility concessionaire whose purpose is to generate, transmit, and commercialize electricity. Its generation and hydrothermal system predominantly uses hydroelectric plants, which account for 97% of total production. CHESF operations in electricity generation include 14 hydroelectric plants and 1 thermoelectric plant, for a total installed power of 10,615 MW*, and in the transmission activity the system is comprised of 115 substations and 19,669 Km* of high tension lines.

On December 31, 2015, procedures required for effective removal of CTEEP as shareholder of SPE Extremoz Transmissora do Nordeste - ETN S.A. were concluded before the regulating agency – ANEEL. Thus, the subsidiary Chesf now holds 100.0% of shares of Extremoz.

LOGO

In the end of 2015, Chesf acquired shareholding control of SPE Tamanduá Mirim 2 Energia S.A., part of the Complexo Eólico Pindaí III, upon final dilution of the shareholding position of Sequoia Capital Ltda. in this enterprise.

Thus, the Subsidiary Chesf now holds 83.01% of the shares of this enterprise.

d) Centrais Elétricas do Norte do Brasil S.A. - Eletronorte - public utility electricity concessionaire, controlled by the Company, with operations primarily in the State of Acre, Amapá, Amazonas, Maranhão, Mato Grosso, Pará, Rondônia, Roraima, and Tocantins. The operations of the Company with electricity generation include 4 hydroelectric plants, with installed capacity of 8,860.05 MW* and 6 thermoelectric plants, with capacity of 479.97 MW*, giving an installed capacity of 9,340.02 MW*. Electricity transmission is made using a system comprised of 9,287.13 Km* of transmission lines, 45 substations in the National Interconnected System (SIN), 695.89 Km* of transmission lines, 10 substations in the isolated system, totaling 9,983.02 Km* of transmission lines and 55 substations.

e) Furnas Centrais Elétricas S.A. (FURNAS) - this Company subsidiary acts in generation, transmission, and commercialization, predominantly in the region covered by the Federal District and the States of São Paulo, Minas Gerais, Rio de Janeiro, Paraná, Espírito Santo, Goiás, Mato Grosso, Pará, Tocantins, Rondônia, Rio Grande do Sul, Santa Catarina, Rio Grande do Norte, Ceará, and Bahia, in addition to holding stakes in Specific Purpose Companies. The electricity production system operated by Furnas is comprised of 10 wholly owned hydroelectric plants, 2 hydroelectric plants in partnership with private enterprise, with an installed capacity of 8,327 MW*, and 2 thermoelectric plants with 962 MW* of capacity, totaling 9,289 MW*.

f) Companhia de Geração Térmica de Energia Elétrica – CGTEE – its main company purpose is to conduct studies, plans, construction, and operation of facilities for electricity transmission and generation systems, such activities which are regulated. The Company holds generation concessions for the following thermoelectric plants: Presidente Médici Plant, Phases A and B, located in the municipality of Candiota; São Jerônimo Plant, located in the municipality of São Jerônimo; and the NUTEPA Plant, located in the municipality of Porto Alegre, all in the State of Rio Grande do Sul. This subsidiary has negative net current capital of R$ 599,918 (December 31, 2014 – R$ 392,282).

On December 31, 2014, CGTEE showed accrued losses of R$ 2,017,708, this after accrued losses of R$ 1,369,341 reported on December 31, 2014. The statement of earnings established unsecured liabilities of R$ 1,210,628 (unsecured liabilities of R$ 553,052 on December 31, 2014).

Given the current scenario, CGTEE is in negotiations with Eletrobras to determine actions in order to allow technical and financial recovery, and depends on the financial support by Eletrobras for operational maintenance, as well as for any future investments which are necessary.

(g) Amazonas GT. – its main activities are power generation and transmission in the State of Amazonas. The subsidiary has negative net current capital of R$ 517,988, shareholders’ equity of R$ 192,667 and accrued loss of R$ 243,206 and depends on the financial support of the Company. On July 1, 2015, the subsidiary was incorporated as subsidiary of Amazonas D, due to unbundling process of Amazonas Energia (see Note 1).

LOGO

(*) information not audited by independent auditors

16.5.3 - Other Companies

a) Companhia Energética do Maranhão - CEMAR - electricity utility concessionaire, which plans, constructs, and explores electricity sub-transmission, transformation, distribution, and commercialization systems.

The Company holds concessions for electricity distribution in 217 municipalities in the State of Maranhão, under Concession Agreement No. 60 of August 28, 2000, executed with ANEEL, which remains effective through August 2030, and can be extended for another 30-year period.

b) Eletrobras Participações S.A. – Eletropar - Company subsidiary with company purpose of investment in other companies. On December 15, 2015, the General Meeting of Creditors of Eletronet S.A., where Eletropar is shareholder, deliberated for the settlement of Eletronet obligations, requesting a judicial statement of extinction of obligations and end of bankruptcy, with resumption of the regular course of activities and production of other applicable effects.

c) Companhia Estadual de Geração e Transmissão de Energia Elétrica – CEEE-GT – a publicly traded company whose majority shareholder is the State of Rio Grande do Sul, through the Companhia Estadual de Energia Elétrica Participações - CEEE-Par, which holds 65.92% of the total capital stock. The Concessionaire has as its purpose to explore electricity production and transmission systems.

d) Companhia Estadual de Distribuição de Energia Elétrica – CEEE-D – a publicly traded company whose majority shareholder is the State of Rio Grande do Sul, through the Companhia Estadual de Energia Elétrica Participações - CEEE-Par, which holds 65.92% of the total capital stock. The Concessionaire has as its purpose the distribution of electricity in 72 municipalities of Rio Grande do Sul, serving some 4 million consumer units.

e) Companhia Transmissão de Energia Elétrica Paulista - CTEEP - a publicly traded company authorized to operate as electricity utility concessionaire, having as its main activities the planning, construction, and operation of electricity transmission systems.

f) Centrais Elétricas do Pará S.A. - CELPA – publicly traded company, under equity control of Equatorial Energia S.A. (Equatorial), which operates in the distribution and generation of electricity in the State of Pará, serving consumers in 143 municipalities, pursuant to Concession Agreement 182/1998, signed on July 28, 1998, with period of concessions of 30 years, and expiration on July 28, 2028. In addition to the distribution agreement, CELPA holds Generation Concession Agreement 181/98 for 34 Thermoelectric Plants, 11 which it owns and 23 which belong to third parties, for exploration of electricity generation for a period of 30 years, with expiration on July 28, 2028, renewable for an additional 30-year period. As of December 31, 2015, this subsidiary had net current capital of R$ 350,275 (December 31, 2014 – negative net current capital of R$ 175,224), the result determined a net equity of R$ 1,844,970 (as of December 31, 2014 – R$ 728,437) and accrued profit of R$ 392,340 (as of December 31, 2014 – accrued losses – R$ 392,340).

LOGO

All debts owed by the subsidiary through the date of resolution on its petition for judicial recovery, even those not yet due, with all legal exceptions, must be paid according to the judicial recovery plan approved on September 1, 2012 during a general meetings of creditors.

g) Empresa Metropolitana de Águas e Energia S.A. – EMAE - the concessionaire of a hydroenergy complex located in Alto Tietê, centered on the Henry Borden Hydroelectric Plant. EMAE also has the UHE Rasgão and the UHE Porto Góes, both on the Tietê River. In the Paraíba Valley, municipality of Pindamonhangaba, UHE Isabel is installed, which is currently not operating. On December 31, 2015, this subsidiary had net current capital of R$ 112,812 (December 31, 2014 – R$ 116,473).

h) Centrais Elétricas Matogrossenses S.A.- CEMAT - a publicly traded company under the equity control of Energisa, S.A., acting in the electricity distribution area, in addition to generation using thermal plants to serve isolated systems in its concession area, which covers the State of Mato Grosso, serving consumers in 141 municipalities. Pursuant to Concession Agreement 03/1997, signed on December 11, 1997, the concession term is for 30 years, with expiration on December 11, 2027, renewable for an additional 30-year period. In addition to the distribution agreement, the Company has Generation Concession Agreement 04/1997, for 2 Thermoelectric Plants with their respective associated substations, with expiration on December 10, 2027.

i) Norte Energia S.A. – a specific purpose company, privately held, with the purpose of conducting all activities necessary for installation, operation, maintenance, and exploration of the Belo Monte Hydroelectric Plant (UHE Belo Monte) on the River Xingu, located in the State of Pará, and of the facilities for transmission with interest restricted to the generating plant. The Company holds 49.98% of the capital stock of Norte Energia. This subsidiary has spent significant sums on costs for organization, development and pre-operation, which, according to estimates and projections, should be absorbed by revenue from future operations. The subsidiary will need financial resources from its shareholders and from third parties in significant amounts in order to complete its Hydroelectric Plant. On December 31, 2015, the subsidiary had negative net current capital of R$ 359,526 (December 31, 2014- net current capital of R$ 175,280).

j) Madeira Energia S.A. – a privately held company, incorporated on August 27, 2007, with the purpose of construction and exploration of the Santo Antonio Hydroelectric Plant located along the River Madeira, municipality of Porto Velho, State of Rondônia, and of its Associated Transmission System. The Company holds 39% of the capital stock of Madeira Energia. The subsidiary is incurring expenses for development of the project for construction of the Santo Antonio Hydroelectric Plant, which, according to financial projections prepared by its administration, should be absorbed by future revenue from operations.

LOGO

On December 31, 2015, the subsidiary Madeira Energia S.A. (MESA), in which Furnas holds a 39% stake, had net current liabilities totaling R$ 543,238,000. In order to correct its negative current capital, the subsidiary enjoys financial support from its shareholders. Part of the financial status of MESA is affected by recognition of a provision for losses on the part of the expected value of revenue from reimbursable expenditures with the Consórcio Construtor Santo Antônio (CCSA).

This receivable originated from the signing of the 2nd addendum to the Concession Agreement with the ANEEL, based on submission of a timeline for commercial operations by the CCSA, anticipating, for the second time, the launch of operations of the generating units, such commitment being signed then, as part of the Contract for Installation of the Santo Antonio UHE and the “Terms and Conditions”. However, this timeline was not fully met, meaning that the net result of this calculation generates for MESA a right to compensation with the CCSA.

In order to calculate this reimbursable expenditure, the CCSA requested application of Clause 31.1.2.1.1 of the EPC Contract, which presents a contractual limit of R$ 122.00/MWh for transfer of the cost for purchase of energy. In light of this consideration, the MESA Administration conducted, during the fiscal year ending on December 31, 2014, additional review, including various legal aspects, changing its estimate as to the realizable value of the asset (the above-mentioned right to be refunded by CCSA). As such, for the total value of the reimbursable expenditure of R$ 1,509,441, a provision was recorded for losses updated by December 31, 2015 as R$ 678,551 (R$ 678,551 on December 31, 2014), reflecting the expected value to be received of R$ 830,890 (R$ 756,227 on December 31, 2014).

In order to solve questions regarding the use of the contractual limit considered in the calculation of part of the net results of anticipation of the go-live schedule of the plant, provided for in the second Amendment to the Concession Contract executed with the National Agency of Energy (“ANEEL”), which gave rise to the impairment, the Subsidiary has requested, before the International Chamber of Commerce (“ICC”), the filing of an arbitral procedure against CCSA, and such procedure is subject to confidentiality terms, under the terms in the Rules of Arbitration of the ICC. On December 31, 2015, the procedure waits for the creation of the arbitral tribunal.

MESA and CCSA are in talks to formalize an agreement regarding the method and term for settlement of the dispute.

The Board of Directors, during meeting No. 002/452, recommended that Furnas take the necessary actions in the appropriate government spheres, in order to preserve the debts owed by CCSA to SAESA, so as to review the damages to SPE, and as such, the effects for Furnas, given its equity stake in SPE.

LOGO

k) ESBR Participações S.A. (ESBRP) – ESBR Participações S.A. (“ESBRP”), a privately held company, has its sole company purpose investment in the Specific Purpose Company (SPE) called Energia Sustentável do Brasil S.A. (“ESBR”), which holds the concessions for use of public good for exploration of the Jirau Hydroelectric Plant, currently being constructed on the Madeira River in the State of Rondônia. The Company holds 40% of ESBRP capital. On December 31, 2015, the subsidiary had negative net current capital of R$ 513,443 (December 31, 2014 – R$ 212,793), accrued losses of R$ 2,112,648 (December 31, 2014 – R$ 1,413,299) and shareholders’ equity of R$ 7,019,063 (December 31, 2014 – R$ 7,268,412).

l) Interligação Elétrica do Madeira S.A. (IEMadeira) - IEMadeira was incorporated on December 18, 2008 with the purpose of exploring the concession for public utility electricity transmission, particularly the transmission lines and substations connected to Lots D and F from Tender No. 007/2008 of ANEEL:

The Porto Velho - Araraquara transmission line entered into commercial operation on August 1, 2013. The Inverting and Correcting stations entered into commercial operation on May 12, 2014. The company holds 49% of IE Madeira capital.

m) Manaus Transmissora de Energia S.A. - Manaus Transmissora de Energia S.A. is a privately held company, incorporated on April 22, 2008, with the specific purpose of exploring public utility concessions for electricity transmission, provided by way of installation, operation, maintenance, and construction of transmission installations for the Brazilian interconnected electrical system, according to the standards established in legislation and regulations in effect.

The SPE holds concession for construction, operation, and maintenance of transmission installations for 500 kV* Oriximiná/Cariri CD, SE Itacoatiara 500/138 kV*, and SE Cariri 500/230kV* Transmission Line.

The concession agreement was signed on October 16, 2008 for a period of thirty years; operating activities began in 2013.

The Company holds 49.50% of the capital from Manaus Transmissora de Energia S.A.

(*) information not audited by independent auditors.

16.5.4.– Companies under Management

a) Companhia de Eletricidade do Amapá - CEA - on November 12, 2012, the Company signed a memorandum of understanding, seeking to participate in the financial restructuring process of the company Companhia de Eletricidade do Amapá - CEA.

The Company and the Government of the State of Amapá entered into a Shareholders Agreement and a Management Agreement on September 12, 2013, seeking to achieve economic/financial recovery of CEA which, after implementation in full, offers the option for purchase by the Company of equity control of the recovered company. To this end, the Company assumes executive management of CEA, through its majority representation on the Board of Directors, and through indication of two members of the Executive Board of CEA, which will subsequently be replaced by professionals contracted from the market.

LOGO

In this process, the Government of the State of Amapá obtained financing from the Federal Government, in order to settle debts of CEA with the Eletrobras System and other providers, in addition to preparing a Contingency Plan that will be forwarded for approval by ANEEL.

b) Companhia Energética de Roraima - CERR - on November 26, 2012, the Company signed a memorandum of understanding, seeking to participate in the financial restructuring process of the company Companhia Energética de Roraima - CERR. This process establishes that the Company may assume control of CERR through acquisition of equity control of the company.

The Company and the Government of the State of Roraima initially entered into a Shareholders Agreement and a Management Agreement, respecting the necessary authorizations, seeking to achieve economic/financial recovery of CERR which, after implementation in full, offers the option for purchase by the Company of equity control of the recovered company. To this end, the Company assumes executive management of CERR, through its majority representation on the Board of Directors, and through indication of two members of the Executive Board of CERR, which will subsequently be replaced by professionals contracted from the market.

In this process, the Government of the State of Roraima obtained financing, in order to settle debts of CERR with the Eletrobras System and other providers, in addition to preparing a Contingency Plan that will be forwarded for approval by ANEEL.

16.5.5. - Specific Purpose Entities

During recent years, the Eletrobras System Companies have formalized investments in partners for projects with private business, where the Company serves as a minority shareholder, while retaining preferential shares. These projects seek to involve the Company in the electricity generation and transmission sector, and their values are reflected under Assets - Investments.

LOGO

In this same regard, considering the need to expand investment in the Electricity Sector, the companies controlled by the Company hold stakes, also as minority shareholders, with ordinary shares, in various companies with concession to provide electricity services, classified under Assets - Investments. The most significant investments whereby the Company and its subsidiaries hold stakes in specific purpose companies are the following:

Investments on Subsidiaries under Joint Control

Name

Purpose

Company

% Share

Other
shareholders

% share

Status

Office

Sistema de Transmissão Nordeste - STN

Transmission

Chesf

49%

Alusa

51%

In operation

Brazil

Construction

Manaus Construtora Ltda.

Chesf

19.5%

Abengoa Holding

50.5%

In operation

Brazil

Transmission

Eletronorte

30%

GDF Suez Energy

Energia Sustentável do Brasil - ESBR

Chesf

20%

Latin America

40%

In operation

Brazil

Generation -

Ltda.

UHE Jirau

Eletrosul

20%

Mizha

Participações S.A

20%

Intesa- Integração Transmissora de Energia

Transmission

Chesf
Eletronorte

12%
37%

FIP

51%

In operation

Brazil

Interligação Elétrica do Madeira S.A

Transmission

Chesf
Furnas

24.5%
25%

CTEEP

51%

In operation

Brazil

TDG - Transmissora Delmiro Gouveia S.A

Transmission

Chesf

49%

ATP Engenharia
Ltda

51%

Pre-operation

Brazil

Norte Energia S.A

Generation -
UHE Belo
Monte

Chesf
Eletronorte
Eletrobras

15%
19.98%
15%

Petros

Outros

10%
39.77%

Pre-operation

Brazil

Empresa Transmissora do Alto Uruguai - ETAU

Transmission

Eletrosul

27.4%

TAESA

DME Energetica
CGTEE -GT

52.6%
10%
10%

In operation

Brazil

Enerpeixe S.A.

Generation -
UHE Peixei
Angical

Furnas

40%

EDP

60%

In operation

Brazil

Norte Brasil Transmissora de Energia S.A

Transmission

Eletronorte

49%

Abengoa
Concessions
Brasil Holding S.A

51%

In operation

Brazil

LOGO

Investments on Subsidiaries under Joint Control

Name

Purpose

Company

% Share

Other
shareholders

% share

Status

Office

Fronteira Oeste Trasnmissora de Energia S.A

Transmission

Eletrosul

51%

CEEE-GT

49%

In operation

Brazil

Amazônia Eletronorte Transmissora de Energia

Transmission

Eletronorte

49%

Bimetal

26.99%

In operation

Brazil

Alubar

10.76%

Linear

13.25%

Amapari Energia S.A

Generation -
UTE Serra do
Navio

Eletronorte

49%

MPX Energia S.A

51%

In operation

Brazil

Brasnorte Transmissora de Energia S.A.

Transmission

Eletronorte

49.71%

Taesa

38.7%

In operation

Brazil

Companhia Transudeste de Transmissão

Transmission

Furnas

25%

Alusa

41%

In operation

Brazil

Cemig

24%

EATE

10%

Companhia Transirapé de Transmissão

Transmission

Furnas

24.5%

Alusa

41%

In operation

Brazil

Cemig

24%

EATE

10%

Chapecoense

Generation -
UHE Foz do
Chapecó

Furnas

40%

CPFL

51%

In operation

Uruguay

CEEE-GT

Serra do Facão Energia

Generation -
UHE Serra do
Facão

Furnas

49.47%

Alcoa Alumínio

34.97%

In operation

Brazil

DME Energética

10.08%

Camargo Corrêa

5.48%

Retiro Baixo

Generation -
Retiro Baixo

Furnas

49%

Orteng

25.5%

In operation

Brazil

Arcadis Logos

25.5%

Baguari Energia

Generation -
UHE Baguari

Furnas

30.62%

Cemig

69.38%

In operation

Brazil

Companhia de Transmissão Centroeste de Minas

Transmission

Furnas

49%

Cemig

51%

In operation

Brazil

Transenergia Renovável S.A.

Transmission

Furnas

49%

Malucelli

51%

In operation

Brazil

Eólicas Junco I, Junco II, Caiçara I e Caiçara II

Transmission

Chesf

49%

Empresa
Francesa Votalia

51%

Pre-operation

Brazil

Complexo Sento Sé I

Generation -
EOL Pedra
Branca, EOL
São Pedro do
Lago, EOL
Sete
Gameleiras

Chesf

49%

Brennand Energia

51%

In operation

Brazil

Iterligação Elétrica Garanhuns S.A

Transmission

Chesf

49%

CTEEP

51%

Pre-operation

Brazil

Chuí Holding

Generation -
Parque Eólico

Eletrosul

49%

Rio Bravo

51%

In operation

Brazil

Livramento

Generation -
Cerro Chato
IV, V, VI,
Ibirapuitã

Eletrosul

52.5%

Rio Bravo

41%

In operation

Brazil

Elos

6.5%

Santa Vitória do Palmar

Generation -
Verace I ao X

Eletrosul

49%

Rio Bravo

51%

In operation

Brazil

TSBE - Transmissora Sul Brasileira de Energia S/A

Transmission

Eletrosul

80%

Copel

20%

In operation

Brazil

TSLE - Transmissora Sul Litorânia de Energia S.A

Transmission

Eletrosul

51%

CEEE

49%

In operation

Brazil

Marumbi Transmissora de Energia S.A

Transmission

Eletrosul

20%

Copel

80%

In operation

Brazil

Costa Oeste Transmissora de Energia

Transmission

Eletrosul

49%

Copel - 51%

51%

In operation

Brazil

Teles Pires Participações S.A

Generation -
UHE Teles
Pires

Eletrosul

24.7%

Neoenergia

50.6%

In operation

Brazil

Furnas

24.7%

LOGO

Investments on Subsidiaries under Joint Control

Name

Purpose

Company

% Share

Other

shareholders

% share

Status

Office

Transmissora Matogrossense de Energia S.A.

Transmission

Eletronorte

49%

Alupar

46%

In operation

Brazil

Mavi

Construtora Integração

Transmission

Eletronorte

49%

Abengoa

51%

In operation

Brazil

Transnorte Energia S.A.

Transmission

Eletronorte

49%

Alupar

51%

Pre-operation

Brazil

Brasvento Eolo Geradora Energia

Generation -
EOL Rei dos
Ventos

Eletronorte

24.5%

J.Malucelli

51%

In operation

Brazil

Furnas

24.50%

Brasventos Miassaba 3 Geradora

Generation -
EOL Miassaba
3

Eletronorte

24.5%

J.Malucelli

51%

Pre-operation

Brazil

Furnas

24.5%

Rei dos Ventos 3 Geradora

Generation -
EOL Rei dos
Ventos 3

Eletronorte

24.5%

J.Malucelli

51%

Pre-operation

Brazil

Furnas

24.5%

Luziânia – Niquelândia Transmissora S.A.

Transmission

Furnas

49%

State Grid
Corporation of China

51%

Pre-operation

Brazil

Caldas Novas Transmissão

Transmission

Furnas

49.9%

Desenvix

22.5%

Brazil

Santa Rita

12.5%

CEL

12.52%

Goiás Trasnmissão S.A

Transmission

Furnas

49%

Bogotá

51%

In operation

Brazil

Madeira Energia S.A

Generation -
UHE Santo
Antônio

Furnas

39%

Odebrecht Energia

18.6%

In operation

Brazil

Andrade Gutierrez

12.4%

Cemig

10%

FIP

20%

MGE - Transmissão

Transmission

Furnas

49%

Desenvix

20%

In operation

Brazil

J.Malucelli Energia

31%

Triângulo Mineiro Transmissora S.A.

Transmission

Furnas

49%

FIP - 51%

51%

Brazil

Paranaíba Transmissora de Energia S.A.

Transmission

Furnas

24.5%

Copel

24.5%

In operation

Brazil

State Grid

51%

Central Eólica Famosa I

Generation -
Parque Eólico
Famosa I

Furnas

49%

PF Participações
Ltda

51%

Pre-operation

Brazil

Central Eólica Pau Brasil

Generation -
Parque Eólico
Pau Brasil

Furnas

49%

PF Participações
Ltda

51%

Pre-operation

Brazil

Central Eólica Rosada

Generation -
Parque EOL
Rosada

Furnas

49%

PF Participações
Ltda

51%

Pre-operation

Brazil

Central Eólica de São Paulo

Generation -
Parque EOL
Rosada

Furnas

49%

PF Participações
Ltda

51%

Pre-operation

Brazil

Vale do São Bartolomeu

Transmission

Furnas

39%

FIP

51%

Pre-operation

Brazil

CELG GT

10%

Punaú I

Generation -
EOL Punaú I

Furnas

49%

FIP

50.99%

Pre-operation

Brazil

CGE Punaú I

0.01%

Carnaúba I

Generation -
EOL Carnaúba
I

Furnas

49%

FIP

50.99%

Pre-operation

Brazil

CGE Carnaúba I

0.01%

Carnaúba II

Generation -
EOL Carnaúba
II

Furnas

49%

FIP

50.99%

Pre-operation

Brazil

CGE Carnaúba II

0.01%

LOGO

Investments on Subsidiaries under Joint Control

Name

Purpose

Company

% Share

Other

shareholders

% share

Status

Office

Carnaúba III

Generation -
EOL Carnaúba
III

Furnas

49%

FIP

50.99%

Pre-operation

Brazil

CGE Carnaúba III

0.01%

Carnaúba V

Generation -
EOL Carnaúba
V

Furnas

49%

FIP

50.99%

Pre-operation

Brazil

CGE Carnaúba V

0.01%

Cervantes I

Generation -
EOL
Cervantes I

Furnas

49%

FIP

50.99%

Pre-operation

Brazil

CGE Cervantes I

0.01%

Cervantes II

Generation -
EOL
Cervantes II

Furnas

49%

FIP

50.99%

Pre-operation

Brazil

CGE Cervantes II

0.01%

Bom Jesus

Generation -
EOL Bom
Jesus

Furnas

49%

FIP

51%

Pre-operation

Brazil

Cachoeira

Generation -
EOL
Cachoeira

Furnas

49%

FIP

51%

Pre-operation

Brazil

Pitimbu

Generation -
EOL Pitimbu

Furnas

49%

FIP

51%

Pre-operation

Brazil

São Caetano I

Generation -
EOL São
Caetano I

Furnas

49%

FIP

51%

Pre-operation

Brazil

São Caetano

Generation -
EOL São
Caetano

Furnas

49%

FIP

51%

Pre-operation

Brazil

São Galvão

Generation -
EOL São
Galvão

Furnas

49%

FIP

51%

Pre-operation

Brazil

Companhia Energética Sinop S.A

Generation -
UHE Sinop

Eletronorte

24.5%

FIP

51%

Pre-operation

Brazil

Furnas

25%

Belo Monte Transmissora de Energia S.A

Transmission

Eletronorte

24.5%

State Grid Brazil
Holding (SGBH)

51%

Pre-operation

Brazil

Furnas

24.5%

Três Irmãos

Generation -
UHE Três

Irmãos

Furnas

49.9%

Fundo de
Investimento em
Participações
Constantinopla

50.1%

Pre-operation

Brazil

São Manoel

Generation -
UHE São

Manoel

Furnas

33.3%

CWEI (Brasil)
Participações

33.3%

Pre-operation

Brazil

EDP Brasil

33.4%

Itaguaçu da Bahia

Generation -
EOL Itaguaçu
da Bahia

Furnas

49%

Salus Fundo de
Investimento

49%

Pre-operation

Brazil

Casa dos Ventos
Energia Renovável

Complexo Sento Sé II

Generation -
EOL Baraúnas
I; Morro
Branco I e
Mussambê

Chesf

49%

Brennand Energia
S.A

50.9%

In operation

Brazil

Brennand Energia
Eólica

0.1%

Complexo Sento Sé III

Generation -
EOL Baraúnas
II e Banda de
Couro

Chesf

49%

Brennand Energia
S.A

50.9%

In operation

Brazil

Brennand Energia
Eólica

0.1%

LOGO

Investments on Subsidiaries under Joint Control

Name

Purpose

Company

% Share

Other
shareholders

% share

Status

Office

Complexo Chapada do Piauí I

Generation -
EOL Ventos de
Santa Joana IX
ao XIII; XV e
XVI

Chesf

49%

ContourGlobal do
Brasil Holding

36%

In operation

Brazil

Salus - Fundo de
Investimento em
Participações

14.9%

Ventos Santa
Joana Energias

0.1%

Complexo Chapada do Piauí II

Generation -
EOL Ventos de
Santa Joana I,
III ao V, VI e
Ventos Santo
Augusto IV

Chesf

49%

ContourGlobal do
Brasil Holding

46%

In operation

Brazil

Salus - Fundo de
Investimento em
Participações

4.9%

Ventos Santa
Joana Energias

0.1%

Complexo Serra das Vacas

Generation -
EOL Serra das
Vacas I - IV

Chesf

49%

PEC Energia

51%

In operation

Brazil

Transenergia São Paulo

Transmission

Furnas

49%

J.Malucelli

51%

In operation

Brazil

Lago Azul Transmissora

Transmission

Furnas

49.9%

Celg Generation e
Transmissão

50.1%

In operation

Brazil

Mata de Sta. Genebra Transmissora

Transmission

Furnas

49.9%

Copel Generation e
Transmissão

50.1%

In operation

Brazil

Energia Olímpica

Transmission

Furnas

49.9%

Light S.A

50.1%

Pre-operation

Brazil

Manaus Transmissora de Energia S.A

Transmission

Eletronorte

30%

Abengoa
Concessions Brasil
Holding

50.5%

In operation

Brazil

Chesf

19.5%

Inambari

UHE Inambari

Furnas

19.6%

OAS

51%

Suspended

Brazil/Peru

Eletrobras

29.4%

Companhia Transleste de Transmissão

Transmission

Furnas

25%

Alusa

41%

In operation

Brazil

Cemig

24%

EATE

10%

(*) Information not reviewed by independent auditors.

LOGO

16.6 – Stocks in guarantee

Taking into consideration the fact that the Company has several pending judicial proceedings in which it stands as defendant (See Note 31), stocks are offered in guarantee, in the appeals of these judicial proceedings, which represent 8.60% (7.25% on December 31, 2014) of the total investment portfolio, as follows:


PARENT COMPANY
12/31/2015
EQUITY	INVESTMENT VALUE		BLOCKING PERCENTAGE		BLOCKED INVESTMENT

CTEEP		924,185		99.55%		920,026
EMAE		296,828		100.00%		296,828
CESP		87,023		98.32%		85,561
AES TIETE		437,532		100.00%		437,532
COELCE		196,429		51.36%		100,886
CGEEP		17,662		100.00%		17,662
ENERGISA MT		385,318		89.06%		343,164
CELPA		42,379		100.00%		42,379
CELPE		28,859		100.00%		28,859
CEEE - GT		448,274		100.00%		448,274
CELESC		41,513		96.26%		39,960
ENERGISA		124,104		90.29%		112,054
CEMAR		653,419		97.62%		637,868

SUBTOTAL		3,683,525		8.60%		3,511,053

NOTE 17 - PP&E

The items under PP&E relate primarily to infrastructure for electricity generation under non-extended concession, pursuant to the terms of Law No. 12,783/13.

The property that comprises the PP&E of the Company, listed and identified as public utility concession assets, cannot be sold or given in guarantee to third parties.

Special Obligations (obligations relating to concessions) correspond to funds received from consumers with the purpose of contributing to the execution of the expansion projects necessary to meet electricity supply requests and are allocated to the corresponding projects. The assets acquired with the corresponding funds are recorded under the PP&E of the Company, pursuant to the provisions established by ANEEL. By virtue of the nature of these contributions, they do not represent effective financial obligations, as they will not be returned to the consumers.

LOGO


	CONSOLIDATED

	12/31/2015

	Gross value		Accumulated depreciation	Obligations linked to the Concession	Impairment (a)		Net Value
In service
Generation		46,003,180	(21,740,065)	(633,602)		(8,684,088)		14,945,425
Management		2,444,828	(1,445,137)	(25,518)		-		974,173
Distribution		1,398,468	(441,647)	-		-		956,821

		49,846,476	(23,626,849)	(659,120)		(8,684,088)		16,876,419
Underway
Generation		11,870,318	-	-		-		11,870,318
Management		799,908	-	-		-		799,908

		12,670,226	-	-		-		12,670,226

		62,516,702	(23,626,849)	(659,120)		(8,684,088)		29,546,645

	CONSOLIDATED

	12/31/2014

	Gross value		Accumulated depreciation	Obligations linked to the Concession	Impairment (a)		Net Value
In service
Generation		43,466,067	(19,292,806)	(455,808)		(3,087,676)		20,629,777
Management		2,396,287	(1,302,019)	(26,927)		-		1,067,341
Distribution		1,398,468	(383,950)	-		-		1,014,518

		47,260,822	(20,978,775)	(482,735)		(3,087,676)		22,711,636

Underway
Generation		7,742,886	-	-		-		7,742,886
Management		713,710	-	-		-		713,710

		8,456,596	-	-		-		8,456,596

		55,717,418	(20,978,775)	(482,735)		(3,087,676)		31,168,232

LOGO

Adjustments in PP&E


	CONSOLIDATED
	Balance on 12/31/2014		Additions		Transfers		Deductions		Reclassification of Financial Asset (Unbundling)		Reclassification of Intangible (Unbundling)		Balance on 12/31/2015
Generation / Trade

In service		43,466,067		886		776,531		(304,835)		1,349,221		715,310		46,003,180

Accrued depreciation		(19,292,806)		(1,226,683)		(10,486)		57,138		(914,576)		(352,652)		(21,740,065)

Underway		7,742,886		3,908,372		(804,186)		(54,567)		1,022,207		55,606		11,870,318
Provision for recovery of assets (impairment) (a)		(3,087,676)		(5,729,304)		-		167,261		-		(34,369)		(8,684,088)

Special Obligations Linked to the Concession		(455,808)		-		(86,113)		4,084		(87,157)		(8,608)		(633,602)

		28,372,663		(3,046,729)		(124,254)		(130,919)		1,369,695		375,287		26,815,743

Distribution
Lease		1,398,468		-		-		-		-		-		1,398,468

Accrued depreciation		(383,950)		(57,697)		-		-		-		-		(441,647)

		1,014,518		(57,697)		-		-		-		-		956,821
Management
In service		2,396,288		24,358		34,701		(10,519)		-		-		2,444,828

Accrued depreciation		(1,302,020)		(132,790)		(22,854)		12,527		-		-		(1,445,137)

Underway		713,710		206,275		(84,236)		(35,841)		-		-		799,908

Special Obligations Linked to the Concession		(26,927)		-		-		1,409		-		-		(25,518)


		1,781,051		97,843		(72,389)		(32,424)		-		-		1,774,081


TOTAL		31,168,232		(3,006,583)		(196,643)		(163,343)		1,369,695		375,287		29,546,645


	CONSOLIDATED
	Balance on 12/31/2013 Resubmitted		Additions		Transfers		Deductions		Acquisition of subsidiary		Balance on 12/31/2014
Generation / Trade

In service		41,832,824		2,694		1,549,753		80,796		-		43,466,067

Accrued depreciation		(18,140,950)		(1,190,061)		(5,887)		44,092		-		(19,292,806)

Underway		7,059,539		2,594,000		(1,798,121)		(112,532)		-		7,742,886
Provision for recovery of assets (impairment) (a)		(2,699,425)		(731,552)		22,273		321,028		-		(3,087,676)

Special Obligations Linked to the Concession		(460,289)		-		-		4,481		-		(455,808)


		27,591,699		675,081		(231,982)		337,865		-		28,372,663

Distribution

Lease		1,398,468		-		-		-		-		1,398,468

Accrued depreciation		(326,310)		(57,640)		-		-		-		(383,950)


		1,072,158		(57,640)		-		-		-		1,014,518
Management

In service		2,112,331		111,902		87,572		(31,768)		116,251		2,396,288

Accrued depreciation		(1,179,851)		(148,973)		(20,889)		47,693		-		(1,302,020)

Underway		679,380		93,262		(78,532)		(12,601)		32,201		713,710

Special Obligations Linked to the Concession		(28,212)		-		-		2,927		(1,642)		(26,927)


		1,583,648		56,191		(11,849)		6,251		146,810		1,781,051


TOTAL		30,247,505		673,632		(243,831)		344,116		146,810		31,168,232

^{(a) See note 20 –Recoverable Value of Long-Term Assets and Note
42 – Operating Provisions (reversions)}

LOGO

Average rate of depreciation and accumulated depreciation:


	CONSOLIDATED
	12/31/2015				12/31/2014
	Average depreciation rate		Accrued depreciation		Average depreciation rate		Accrued depreciation
Generation
Hydraulic		2.30%		15,191,209		2.46%		13,156,910
Nuclear		3.33%		4,048,041		3.33%		3,701,375
Thermal		3.80%		2,418,294		2.43%		2,350,124
Wind		6.88%		81,935		4.00%		62,051
Trade		3.16%		586		3.15%		22,346

				21,740,065				19,292,806
Distribution		3.00%		441,647		3.33%		383,950

				441,647				383,950
Management		6.73%		1,445,137		7.28%		1,302,020

				1,445,137				1,302,020

Total				23,626,849				20,850,430

LOGO

NOTE 18 - FINANCIAL ASSET - CONCESSIONS AND ITAIPU


	CONSOLIDATED
	12/31/2015		12/31/2014
Transmission Concessions
Financial Assets Annual Permitted Revenue		10,807,585		8,769,660
Financial Assets - Indemnifiable Concessions (*)		8,365,177		8,253,130

		19,172,762		17,022,790
Distribution Concessions
Financial Assets - Indemnifiable Concessions		4,119,004		7,495,755
Receivables Tranche A and other financial assets		86,102		740,257

		4,205,106		8,236,012
Generation Concessions
Financial Assets - Indemnifiable Concessions		2,554,211		1,811,630

		2,554,211		1,811,630

		25,932,079		27,070,432


Financial Asset Itaipu		3,449,566		5,336,351

		3,449,566		5,336,351



Total financial assets		29,381,645		32,406,783


Financial Assets - Current		965,212		3,437,521
Financial Assets - Non-current		28,416,433		28,969,262


Total financial assets		29,381,645		32,406,783

(*) The amounts referring to the concession assets renewed according to Law 12,783/2013 and not yet ratified by the Grantor are presented in note 2.1.

LOGO

18.1. - Financial Assets of Itaipu


	PARENT COMPANY
	12/31/2015		12/31/2014

Accounts receivable		4,797,458		1,997,498
Compensation rights		1,513,373		1,184,475
Energy Suppliers - Itaipu		(2,368,925)		(2,648,864)
Compensation obligations		(3,570,899)		1,854,513

Total current assets		371,007		2,387,622

Accounts receivable		1,043,873		1,007,361
Compensation rights		5,975,584		5,468,642
Compensation obligations		(3,940,898)		(3,527,274)

Total non-current assets		3,078,559		2,948,729



Total assets		3,449,566		5,336,351

The effects of establishing the Itaipu financial assets are shown above and are detailed as follows:

18.1.1. - Values Resulting from Commercialization of Binational Itaipu Electricity

a) - Adjustment factor

Under Law 11.480/2007, the adjustment factor was withdrawn from the financing agreements formalized with Itaipu Binational, and of the debt assignment agreements signed with the National Treasury, since 2007, guaranteeing for the Company complete maintenance of its flow or receipts.

As a result, Decree No. 6,265 of November 22, 2007 was published, regulating the commercialization of electricity from Itaipu Binational, defining the differential to be applied in the rate of transfer, creating an asset relating to the part of the calculated annual differential, equal to the annual adjustment factor withdrawn from the financing, to be included annually in the rate of transfer, beginning in 2008, used by the Company, preserving the flow of resources, originally established.

In this manner, it came to be included in the rate of transfer of power from Itaipu Binational, beginning in 2008, the differential resulting from the removal of the annual adjustment factor, whose values are defined annually through joint ministerial directive of the Ministries of Treasury and Mines and Energy. In the rate of transfer in effect in 2015, the amount equal to US$ 386,085 is included, which was received by the Company through collection of distribution companies, authorized under directive MME/MF 598/2014.

LOGO

The balance resulting from the adjustment factor of Itaipu Binational, included under Financial Assets, presented in Noncurrent Assets, totals R$ 5,975,584 on December 31, 2015, equal to US$ 1,530,318 (December 31, 2014 – R$ 5,468,642, equal to US$ 2,058,822, of which R$ 3,940,898, equal to US$ 1,009,244, will be transferred to the National Treasury through 2023, as a result of the debt assignment operation performed between the Company and the National Treasury, in 1999.

These values will realized by their inclusion in the rate of transfer to be used through 2023.

b) Commercialization of electricity

Law 10,438 of April 26, 2002, attributed to the Company the responsibility for acquisition of all of the electricity produced by Itaipu Binational to be consumed in Brazil, becoming seller of that electricity.

In this manner, the equivalent of 131,218 GWh* (132,506 GWh in 2014) was sold during 2015, while the power supply rate (purchase) used by Itaipu Binational is US$ 22.60/kW*, and the rate of transfer (sale) is US$ 38.07/KkW* (US$ 22.60/kW* - supply; US$ 26.05/kM* = rate of transfer in 2014).

The result of commercialization of the Itaipu Binational electricity, pursuant to the terms of Decree No. 4,550 of December 27, 2002, observing the amendments introduced under Decree No. 6,265 of November 22, 2007, is allocated as follows:

1) if positive, it must be allocated, by proportional rating, to the individual consumer, as a credit applied to the energy bills of consumers in the National Interconnected Electrical System under residential and rural categories, with monthly consumption less than 350 kWh*.

2) if negative, it is incorporated by ANEEL in calculating the rate of transfer of power contracted in the year after the result.

This commercialization operation does not impact the Company’s earnings, while pursuant to current regulations, a negative result represents an unconditional right to receipt, and if negative, an effective obligation.

In 2015, there was a surplus in this activity of R$ 5,048,840 (R$ 3,242,451 deficit on December 31, 2014), the resulting obligation having been included under financial assets.

(*) Information not examined by independent auditors

18.2. - Financial Assets - Public utility electricity concession

The financial assets - concession header, in the amount of R$ 25,845,977 (December 31, 2014 - R$ 27,070,432) relates to the realizable financial assets held by the companies from the Eletrobras System, in the distribution concessions, calculated by applying the mixed model, and in generation and transmission concessions, by application of the financial model, both as established in ICPC 01 (IFRIC 12).

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18.3 - Amounts receivable from Parcel A and other financial items

On November 25, 2014, ANEEL decided to add the concession and permit agreements of the Brazilian electricity distribution companies, incorporating the balances of the receivables from Parcel A and other financial items in calculation of indemnity, when the concession expires. The aforementioned event requires that the balance be recorded of any differences from Parcel A and other financial components not yet recovered or liquidated.

18.3.1. Parcel A Item Values Variation Compensation Account - CVA

Joint Ministerial Directive of the Ministers of Treasury and Mines and Energy No. 25 of January 24, 2002, established the “Parcel A” Item Values Variation Compensation Account - CVA, with the purpose of recording the variations in cost, negative and positive, occurred in the period between annual rate adjustments, with respect to the items established in the electricity distribution concession agreements.

These variations are calculated based on the difference between the expenses effectively incurred and the expenses estimated at the time the rate is established in the annual rate adjustment. The values considered in the CVA undergo monetary adjustment based on the SELIC rate.

The totals recorded under current assets and liabilities relate to values already approved by ANEEL upon completion of the rate adjustment in 2015, and the totals recorded under noncurrent assets and liabilities represent an estimate of the CVA to be approved at the next rate adjustment in 2016.

LOGO


	CONSOLIDATED
	12/31/2015		12/31/2014
Tranche “A”
CVA
CCC		1,219		1,161
CDE		208,466		16,934
Basic Grid		7,537		29,969
Cost of Acquisition of Electricity		169,591		542,755
Transportation Itaipu		-		157
Transfer Itaipu		-		546
PROINFA		(2,907)		35,683
ESS and EER		(55,683)		(152,751)
Neutral Sector Fees		(658)		(17,288)
Overcontract		(169,615)		156,916
Fee Flags		-		-
Other Financial Items		(71,848)		126,175

Total values of Tranche A and other financial items		86,102		740,257


Current Assets		578,654		606,984
Non-current assets		38,252		235,809

Current liabilities		(514,424)		(96,863)
Non-current liabilities		(16,380)		(5,673)


Total		86,102		740,257

18.3.2. Other financial items

●

CUSD financial adjustment - in adherence with the provisions from Article 7 of the Joint Ministerial Directive No. 25/2002;

●

Neutrality of Sector Charges - this refers to calculation of the monthly differences between the values of each item from sector charges in the period of reference and the respective amounts included in the previous process;

●

Exposure to Price Differences between Sub-markets - this refers to the rating of financial risks resulting from price differences between sub-markets, pursuant to Article 28 of Decree No. 5,163/2004.

●

Energy Overcontracting Transfer/Short-term Market Exposure - pursuant to REN No. 255/2007, as amended by REN No. 305/2008 and 609/2014, and in accordance with the criteria established in Dispatch No. 4,225/2013;

●

Eletronuclear Differential - corresponds to the difference between the rate used and the rate of reference between Furnas and Eletronuclear, as established by Law No. 12,111/2009.

●

Other - corresponds to the sum of all other values recorded by ANEEL as Financial Guarantees in regulated energy contracting (CCEAR), DIC/FIC compensation transfer, and others.

18.4 – Fee Adjustment

Concession contracts executed between power distribution companies and the Federal Government, with intermediation of ANEEL, set forth that annually there should be adjustment of the power value paid by the consumer. This adjustment, due to the method established by ANEEL, may be positive or negative and occurs annually, on the anniversary date of the distribution company.

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According to the concession contract, the concessionaire income is split into two portions: A and B. The A portion, responsible for approximately 70% of the fee, includes costs deemed as non-manageable by the distribution company, that is, costs that do not depend on the direct control of the Company, as power purchased to be resold to consumers and fees and taxes that are legally determined.

The B portion, representing approximately 30% of the fee, include costs deemed as manageable. These are the costs that are subject to direct control of the concessionaire, which is fully able to manage them, including personnel costs, material costs and other activities directly related to operation and maintenance of distribution services, depreciation costs and compensation of investments made by the Company for the service.

Annual fee adjustments made in 2015, the value of the Power Development Account – CDE was subject to a significant increase compared to the fee adjustment in 2014, mainly due to the inclusion of the share set forth for the Concessionaire related to the ACR Account, that was not included in the calculation of the Extraordinary Fee Review that occurred in February 2015.

Note that this share is aimed to the beginning of the settlement of credit operations contracted by the Chamber of Trade of Power – CCEE in the management of the ACR Account, in compliance with the terms in Decree No. 8,221, from 2014, and Normative Resolution - REN No. 612, from 2014.

18.5 – Rate Flags

Starting in 2015, power accounts shall apply the Rate Flag System. Green, yellow, and red flags will be used to inform whether energy will cost more or less, based on power generation conditions.

In Brazil, electric power is mainly generated by hydroelectric power plants. In order to work, these power plants depend on rainfall and water levels of reservoirs. When not enough water is stored, thermoelectric power plants can be connected in order to save water from the reservoirs of the hydroelectric power plants. In this manner, generation costs increase, since such thermoelectric power plants use fuels such as natural gas, coal, fuel oil, and diesel. Additionally, when a lot of water is stored, it is not necessary to connect thermoelectric plants and generation costs will decrease.

Resolution number 1826, dated November 25, 2014, which ratified this and was published by ANEEL, determined the rates of the Company with already established prices for the rate structure. The application of these flags became a requirement starting in January, 2015.

Flags will be green, yellow, and red and will be applied according to load service conditions, which shall be the sum of Difference Settlement Price (PLD), Operative Marginal Costs (CMO) with charges for the Power Security System Services (ESS_SE)

Flags were adopted considering the following criteria: green flag is to be activated whenever power costs less than R$ 200/MWh (note: not audited), which means favorable conditions for power generation and there will be no addition to the fee. Yellow flag will be

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activated whenever the system operation cost is between R$ 200/MWh and R$ 350/MWh: less favorable generation conditions, and there will be an addition to the fee of R$ 2.50 for each 100kW/h consumed. Now, red flag will be activated whenever the operation cost is higher than R$ 350/MWh: more costly generation conditions, and fee will be added with R$ 4.50 for each 100kW/h consumed.

In short, the flag system, that started to be applied in January 2015, reflects the generation conditions and indicates to consumers the option to reduce consumption and influence the final cost of power generation. The system does not represent a proper increase in the fee, this is just a different way to present a cost that would be included in the fee, although with no visibility to the consumer, and that would be equally supported at the time of the annual fee adjustment.

(*) Information not audited by the independent auditors

NOTE 19 - INTANGIBLE ASSETS



	CONSOLIDATED
	Balance on 12/31/2014		ADDITIONS		DEDUCTIONS		COST / SERVICE TRANSFERS		RECLASSIFICATION AS FIXED (UNBUNDLING)		Balance on 12/31/2015
Related to Concession - Generation		500,285		37,336		(8,826)		(7,335)		(375,287)		146,173

In service		424,526		(5,897)		(8,826)		7,022		(326,105)		90,720

Intangible asset		902,720		9,507		(15,506)		7,022		(715,310)		188,433
Accrued amortization		(434,599)		(15,340)		-		-		352,652		(97,287)
Special obligations		(15,033)		-		6,744		-		7,991		(298)
Impairment		(28,562)		(64)		(64)		-		28,562		(128)
GSF		-		-		-		-		-		-
Underway		75,759		43,233		-		(14,357)		(49,182)		55,453

Intangible asset		96,261		43,304		-		(14,357)		(55,606)		69,602
Special obligations		(14,695)		(71)		-		-		5,807		(8,959)
Impairment		(5,807)		-		-		-		617		(5,190)

Related to Concession - Distribution		357,791		(93,029)		(7,459)		(8,785)		-		248,518

In service		210,979		(122,113)		(8,683)		56,299		-		136,482

Intangible asset		1,764,919		150,278		(144,414)		88,865		-		1,859,648
Accrued amortization		(1,469,338)		(246,100)		54,792		-		-		(1,660,646)
Special obligations		(83,592)		(26,291)		80,939		(33,576)		-		(62,520)
Onerous concession contract		-		-		-		-		-		-
Impairment		(1,010)		-		-		1,010		-		-
Underway		146,812		29,084		1,224		(65,084)		-		112,036

Intangible asset		165,156		32,425		452		(66,324)		-		131,709
Special obligations		(19,354)		(3,341)		772		2,250		-		(19,673)
Impairment		1,010		-		-		(1,010)		-		-

Related to Concession - Transmission		4,558		83,735		-		99		-		88,392

In service		3,233		83,734		-		124		-		87,091

Intangible asset		3,565		87,462		-		124		-		91,151
Accrued amortization		(332)		(3,728)		-		-		-		(4,060)
Underway		1,325		1		-		(25)		-		1,301

Intangible asset		1,325		1		-		(25)		-!		1,301

Unrelated to Concession (Other intangible assets)		502,737		5,036		(16,692)		(39,013)		-		452,068

Management
In service		765,557		1,605		(2,698)		66,851		-		831,315
Accrued amortization		(420,336)		(56,295)		146		(1,999)		-		(478,484)
Impairment		(42,595)		-		1,852		-		-		(40,743)
Underway		141,483		59,726		(6,278)		(34,781)		-		160,150
Others		58,628		-		(9,714)		(69,084)		-		(20,170)

Total		1,365,371		33,078		(32,977)		(55,034)		(375,287)		935,151

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	CONSOLIDATED
	Balance on 12/31/2013		ADDITIONS		DEDUCTIONS		COST / SERVICE TRANSFERS		RECLASSIFICATION AS FIXED (UNBUNDLING)		Balance on 12/31/2014
Related to Concession - Generation		172,777		(52,569)		14,884		365,193		-		500,285

In service		69,386		(72,144)		16,652		410,632		-		424,526

Intangible asset		503,573		-		(5,193)		404,340		-		902,720
Accrued amortization		(405,854)		(72,144)		-		43,399		-		(434,599)
Special obligations		(28,333)		-		-		13,300		-		(15,033)
Impairment		-		-		21,845		(50,407)		-		(28,562)

Underway		103,391		19,575		(1,768)		(45,439)		-		75,759

Intangible asset		118,086		19,575		(1,768)		(39,632)		-		96,261
Special obligations		(14,695)		-		-		-		-		(14,695)
Impairment		-		-		-		(5,807)		-		(5,807)

Related to Concession - Distribution		220,077		(213,998)		65,730		182,822		103,160		357,791


In service		90,884		(237,636)		(8,594)		274,666		91,659		210,979

Intangible asset		1,478,117		1,729		(54,245)		214,153		125,165		1,764,919
Accrued amortization		(1,061,958)		(252,262)		7,260		(162,378)		-		(1,469,338)
Special obligations		(280,405)		-		22,922		207,397		(33,506)		(83,592)
Onerous concession contract		-		-		-		-		-		-
Impairment		(44,870)		12,897		15,469		15,494		-		(1,010)

Underway		129,193		23,638		74,324		(91,844)		11,501		146,812

Intangible asset		154,296		20,218		1,790		(22,649)		11,501		165,156
Special obligations		(22,693)		-		(156)		3,495		-		(19,354)
Impairment		(2,410)		3,420		72,690		(72,690)		-		1,010

Related to Concession - Transmission		7,359		(3,825)		-		1,024		-		4,558

In service		2,252		(32)		-		1,013		-		3,233

Intangible asset		2,552		-		-		1,013		-		3,565
Accrued amortization		(300)		(32)		-		-		-		(332)
Underway		5,107		(3,793)		-		11		-		1,325

Intangible asset		5,107		(3,793)		-		11		-		1,325

												-

Unrelated to Concession (Other intangible assets)		388,369		116,461		(1,871)		(222)		-		502,737

Management
In service		637,973		149		-		127,435		-		765,557
Accrued amortization		(342,318)		(58,970)		(2,005)		(17,043)		-		(420,336)
Impairment		-		2,733		-		(45,328)		-		(42,595)
Underway		126,550		75,375		153		(60,595)		-		141,483
Others (1)		(33,836)		97,174		(19)		(4,691)		-		58,628

Total		788,582		(153,931)		78,743		548,817		103,160		1,365,371

Intangible assets are primarily amortized during the concession period.

The final term for concessions of distribution companies of Eletrobras ended on July 7, 2015. As mentioned in Note 2, ANEEL clarified that even with termination of contractual terms “Concessions shall remain in effect for the period needed to prepare evaluations and calculations required to organize bidding processes that will grant the replacing concessions, which term shall not be less than twenty-four months.” In view of this definition, distribution companies of the Eletrobras Group proceeded to reclassify the financial asset for the intangible asset proportionally, corresponding to the twenty-month period.

NOTE 20 - IMPAIRMENT OF LONG-TERM ASSETS

The Company estimated the recoverable value of its long-term assets based on the value in use, considering that there is no active market for the infrastructure related to the concession. The value in use is appraised based on the present value of the estimated future cash flow.

The assumptions used consider the best estimate by the Company Administration regarding future trends in the electricity sector and are based both on external sources of information and historic data of the cash generating units. The case flow was projected based on the operating results and projections of the Company until the end of the concession. When the need is identified to establish an impairment provision of long-term assets, this provision is recorded in the period results under Operating Provisions.

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The following assumptions were considered:

●

Growth compatible with historic data and growth perspectives on the Brazilian economy;

●

Discount rate (after tax) specific for each segment: 7.50% for generation, 7.00% for transmission, and 7.01% for distribution (6.69% for generation, 6.57% for transmission, and 6.14% for distribution in 2014) obtained using the methodology generally applied by the market, taking into consideration the average weighted cost of capital;

●

The Company treated all of its projects as independent cash-generating units.

In the year ending on December 31, 2015, the subsidiary Eletronuclear recognized an impairment provision in the amount of R$ 4,973,111, related to the Usina Angra 3 power plant, causing a corresponding reduction in power, plant and equipments (see note 17), which counterpart is in the operating provisions account. On December 31, 2015, the accrued impairment value of Usina Angra 3 in PP&E was R$ 6,063,454 (R$ 1,090,343 in December 2014).

The Company defines the Angra 3 power plant as a cash generating unit for purposes of impairment test and uses the value in use to determine the recoverable value.

Due to notifications received and negotiations in progress with enterprise suppliers, there has been a schedule change in the expectation for conclusion, due to temporary suspension of contracts for 90 days extendable to up to 120 days. With this rescheduling, the new conclusion date is in December 2020, with synchronization estimated to occur on December 31, 2018. These facts have also given rise to new risk evaluations imputable to the context of execution of the enterprise. The Company has evaluated that such events comprised, as of September 30, 2015, evidences sufficiently relevant for the impairment test of the period.

The method applied for the impairment test of the plant consider as recoverable asset the costs realized by the date of these Financial Statement, comparing with discounted cash flow extended by the termination of the economic use life of the Plant, which corresponds to 40 years, starting at the new go-live date, May 1, 2019, considering as economic use life the period of operation license compatible with Usina Angra as similar project.

The discount rate was calculated using the WACC (Weighted Average Cost of Capital) method, considering traditionally and usually accepted parameters.

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Due to the impairment test in the period, the discount rate was increased, by 0.96%, from 4.51% (December 31, 2014) to 5.47% (September 30, 2015). This rate was maintained for the impairment test again on December 31, 2015. The main factors collaborating for such increase were:

1. Beta update: to calculate beta, beta weight of comparable companies used in Technical Note ANEEL 381/2012 was used, updated to December 31, 2015 and leveraged by the project capital structure. The adoption of this calculation for beta is due to the fact that no power generation company with open capital in Brazil holds nuclear power generation assets, contrary to the sample of companies used in the calculation of beta by ANEEL, that includes American companies with at least two nuclear power generation plants.

2. Consideration of an additional risk (alpha) related to project execution;

Another significant assumption used to calculate the impairment of the Angra 3 power plant is the synergy between the plants. Usinas Angra 2 and Angra 3 are result of similar projects and for this reason use the cost parameters of Angra 2 in Angra 3. There will be a gain in cost/productivity at Angra 3, because of the lack of need to duplicate all the cost generating activities, because common areas will be used by both plants.

The synergy for the project, considering internal studies based on the use of labor from the subsidiary Eletronuclear, pointed to a level of approximately 24.5% for the estimate of operating cost PMSO of Usina Angra 3 in the impairment test.

The total budget of the project was updated for December 2015, in order to reflect the impact of significant variations in inflation and exchange rates, as well as the rescheduling of activities due to the new work schedule.

It is important to note that on January 14, 2016, Law No. 13,255 was enacted, estimating the income and setting the expenses of the Federal Government for the fiscal year 2016, including the Investment Budget of the companies where the Federal Government, directly or indirectly, holds the majority of shares with voting rights, and including approval of the determination and execution for the Investment in the project “Deployment of Usina Termonuclear de Angra 3”, that is held by Eletronuclear. It is understood that upon evaluation by the Mixed Commission of Plans, Public Budgets, and Supervision by the National Congress, as well as the plenary session of the National Congress, the work “Deployment of Usina Termonuclear de Angra 3” is ready to maintain its physical, budget, and financial execution.

An audit procedure is ongoing at the Federal Court of Accounts, according to the electromechanic assembly contract of Usina de Angra 3. In February 2016, Eletronuclear was notified about the request of financial and economic information regarding the power plant. According to said notification, the process is to be sent to the National Congress to be examined and evaluated regarding the proceeding or suspension of the physical, budget, and financial execution of the work. Eletronuclear has responded to the notification and is waiting for TCU’s analysis.

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Despite chronological changes to the project, the Company has assured preservation and integrity of the services that have been performed, additionally, it shall adopt measures to attempt to recover possible impacts in the schedule of the works of Usina Angra 3 (December 2020). The company believes also that the net residual value calculated after the impairment test may be recovered during commercial operation of this enterprise Angra 3.

The Company continues to monitor estimates and risks associated to determine the recoverable value of this enterprise and, to the extent that new negotiations, new studies, or new information appear and require changes in the business plan of the enterprise, they will be updated to reflect such changes.

Analysis determined the need to establish/(reverse) provision for losses in the following projects in 2015:


Transmission
Cash Unit Generation	12/31/2014		Additions		Reversals		12/31/2015
CC 061-2001		-		174,389		-		174,389
Estação Retificadora / Inversora		43,909		-		(43,909)		-
CC 005-2012 Jardim NSra Socorro		46,788		43,042		-		89,830
CC 018-2012 Mossoró Ceará Mirim		61,681		38,816		-		100,497
CC 019-2012 Igaporã Pindaí		59,678		-		(38,172)		21,506
LT Ribeiro Gonçalves - Balsas		73,317		-		(37,743)		35,574
Linha Verde Transmissora de Energia S/A		100,494		-		(35,788)		64,706
SE Coletora Porto Velho		-		34,123		-		34,123
CC 010-2011 Paraíso Lagoa Nova		12,246		32,554		-		44,800
CC 020-2010 Igaporâ BJLapa		37,669		31,599		-		69,268
CC 018-2009 Eunáp TFreitas C2		7,784		22,448		-		30,232
CC 015-2012 Camaçari IV Pirajá		-		18,060		-		18,060
CC 006-2009 Suape II e III		105,933		-		(17,832)		88,101
CC 017-2012 Mirueira Jaboatão		20,290		10,894		-		31,184
CC 014-2008 Eunápolis TFreitas		53,962		10,811		-		64,773
CC 017-2009 Natal III Sta Rita		48,837		10,680		-		59,517
LT Campos Novos - Nova Santa Rita		22,089		8,733		-		30,822
SE Miranda II		-		7,079		-		7,079
Others		275,043		66,978		-		342,021

Total		969,720		510,206		(173,444)		1,306,482

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Generation


Cash Unit Generation	12/31/2014		Additions		Reversals		12/31/2015
UTN Angra 3		1,090,343		4,973,111		-		6,063,454
Candiota II Fase B		35,412		84,527		-		119,939
Eólica Coxilha Seca		-		81,142		-		81,142
UHE Samuel		340,888		76,744		-		417,632
Eólica Hermenegildo III		-		75,598		-		75,598
Eólica Hermenegildo II		-		65,815		-		65,815
UHE Simplício		442,920		-		(60,056)		382,864
Eólica Hermenegildo I		-		56,301		-		56,301
UTE Mauá III		-		102,191		-		102,191
UTE Aparecida		-		50,508		-		50,508
UTE Camaçari		365,709		-		(21,944)		343,765
UTE Batalha		553,622		5,723		-		559,345
UHE Passo São João		151,311		-		(33,179)		118,132
Casa Nova		111,515		51,981				163,496
Others		230,853		-		(26,742)		204,111

Total		3,322,573		5,623,641		(141,921)		8,804,293

Distribution


Concession	12/31/2014		Additions		Reversals		12/31/2015
Amazonas D		119,041		-		(119,041)		-
Cepisa		232,442		98,383		(40,578)		290,247
Eletroacre		60,026		54,924		(24,142)		90,808
Ceron		84,503		23,914		(48,532)		59,885
Boa Vista		-		77,400		-		77,400

Total		496,012		254,621		(232,293)		518,340

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The impairment amount recognized in the balance sheet, by operational segment, is demonstrated below:


	12/31/2015
	Generation		Transmission		Distribution		Total
Fixed		8,787,001		-		-		8,787,001
Intangible		17,292		-		-		17,292
Financial Asset		-		1,306,482		518,340		1,824,822

Total		8,804,293		1,306,482		518,340		10,629,115

	12/31/2014
	Generation		Transmission		Distribution		Total
Fixed		3,297,746		-		-		3,297,746
Intangible		24,827		-		-		24,827
Financial Asset		-		969,720		496,012		1,465,732

Total		3,322,573		969,720		496,012		4,788,305

NOTE 21 - SUPPLIERS


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
CURRENT
Goods, Materials, and Services		58,252		37,229		8,369,303		5,027,213
Energy Purchased for Resale		357,874		511,360		1,514,499		1,958,150
CCEE - Short-term energy		-		-		244,705		503,771

		416,126		548,589		10,128,507		7,489,134

NON - CURRENT
Goods, Materials, and Services		-		-		134,436		128,541
Energy Purchased for Resale		-		-		9,314,985		9,918,826

		-		-		9,449,421		10,047,367


		416,126		548,589		19,577,928		17,536,501

The balance of suppliers refers mainly to three Private Debt Acknowledgment Instruments and respective payment plan signed with Petrobras Distribuidora S/A by the subsidiary Amazonas Energia, for the supply of petroleum derivatives, signed on 12/31/2014, in the sums of i) R$ 3,257,366; ii) R$ 2,925,921; and iii) R$ 1,018,441. The instruments will be amortized in 120 (one hundred twenty) successive monthly payments, at the daily prorated variation, considered from the date of signing of the contract until the date of its maturation, where the first payment was due on 02/20/2015, and the last will be due on 01/30/2025.

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NOTE 22 - CUSTOMER ADVANCES


	PARENT COMPANY				CONSOLIDATED

	12/31/2015		12/31/2014		12/31/2015		12/31/2014

CURRENT
Advance sale of energy - ALBRAS				-		54,832		52,813
Customer advances - PROINFA		593,404		448,759		593,404		448,759

		593,404		448,759		648,236		501,572
NON-CURRENT
Advance sale of energy - ALBRAS		-		-		659,082		718,451

		-		-		659,082		718,451


TOTAL		593,404		448,759		1,307,318		1,220,023

22.1. – ALBRÁS

The subsidiary Eletronorte sold electricity to ALBRÁS in 2004 for supply during a 20-year period, at an average 750 MW/month, through December 2006, and an average 800 MW/month from January 2007 to December 2024, using the UHE Tucuruí balance rate as a parameter, plus an added premium, calculated based on the price of aluminum on the London Metal Exchange (LME) in England. This price establishment became an embedded derivative (See Note 43).

Based on these conditions, Albras made advance purchase of electricity credits, with advance payment of R$ 1,200,000, which was established as a credit, in MW, of an average 43 MW/month from June 2004 to December 2006 and average 46 MW/month from January 2007 to December 2024, to be amortized during the period of supply, in monthly portions expressed in those average MW, according to the rate current in the billing month, as detailed below:


	Contract Date
CLIENT	Start	End	Volume in Average Megawatts (MW)
Albrás	01/07/2004	12/31/2024	750 through 12/31/2006 and 800 beginning 01/01/2007
BHP	01/07/2004	12/31/2024	from 353,08 to 492

The position and movement of this liability are demonstrated as follows:


YEAR	AMOUNTS RELEASED	AMORTIZATIONS MADE	GAINS	BALANCE	CURRENT		NON- CURRENT
12/31/2015	1,200,000	(462,305)	(23,781)	713,914		54,832	659,082
12/31/2014	1,200,000	(408,237)	(20,499)	771,264		52,813	718,451

22.2. - PROINFA

PROINFA, established by Law 10.438/2002 and amendments thereto, has the purpose of diversifying the Brazilian energy matrix with the use of renewable energy sources, through economic leveraging of available resources and applicable technologies.

LOGO

The Company ensures the purchase of the electricity produced during the 20-year period, beginning in 2006, and transfers this energy to the distribution concessionaires, free consumers, and independent producers, excluding low-income consumers, in the proportion of their consumption.

The distribution and transmission concessionaires pay to the Company the value of energy in shares, equal to the cost corresponding to the interest held by captive consumers, free consumers, and independent producers connected to their installations, in twelfths, in the month prior to that of the energy consumption.

The operations relating to the purchase and sale of energy in the context of PROINFA do not affect the results of the Company.

(*) information not audited by independent auditors

NOTE 23 - FINANCING AND LOANS

23.1. Global Reversion Reserve (RGR)

The Company is authorized to withdraw resources from the RGR, applying them in the granting of funding earmarked for expansion of the Brazilian electric sector, improvement of the service and in the realization of the programs of the Federal Government.

In this manner, the company takes resources from the RGR, acknowledging a debt to this Fund, and applies specific investment projects, financed by it, which have as their objective:

a)	expansion of electricity distribution services;

b)	incentive for alternative sources of electric energy;

c)	studies of inventory and feasibility of utilization of hydraulic potentials;

d)	deployment of power generating plants up to 5,000 kW, intended solely for public service in populated communities served by an isolated electrical system;

e)	efficient public lighting;

f)	electrical energy conservation by improving the quality of products and services;

g)	universalization of access to electricity.

Eletrobras will pay back the resources withdrawn from the RGR and used in granting loans to companies of the Brazilian electric sector, with interest of 5% per annum. On December 31, 2015, the balance of resources taken from the Fund totaled R$ 6,439,374 (December 31, 2014 - R$ 7,421,796), included under the item Financing and loans, liabilities.

LOGO

The resources that make up the RGR Fund are not part of these statements, constituting a separate entity in relation to the Company.

23.2. Composition of loans and financing:



	12/31/2015

		PARENT COMPANY						CONSOLIDATED
		CURRENT		PRINCIPAL				CURRENT			PRINCIPAL
		FEES				NON		FEES					NON

	Avg. Rate	Value		CURRENT		CURRENT		Avg. Rate	Value		CURRENT		CURRENT

Financial Institutions
Foreign currency

Banco Interamericano de Desenvolvimento - BID	4.54%		1,943		72,653		108,979	4.40%		2,197		102,130		551,140
Corporación Andino de Fomento - CAF	2.73%		6,462		562,372		994,374	2.73%		6,462		562,372		994,374
Kreditanstalt fur Wiederaufbau - KFW	2.73%		19		-		251,800	2.73%		19		-		251,801
Eximbank	2.00%		839		71,186		106,769	2.00%		839		71,187		106,769
BNP Paribas	1.57%		396		136,192		685,780	1.57%		396		136,192		685,780
Others			4,243		126,161		742,451			4,243		126,161		757,302

			13,902		968,564		2,890,153			14,156		998,042		3,347,166

Bonus
Expiration 07/30/2019	6.88%		114,839		-		3,904,800	6.87%		114,839		-		3,904,800
Expiration 10/27/2021	5.75%		70,944		-		6,833,400	5.75%		70,944		-		6,833,400

			185,783		-		10,738,200			185,783		-		10,738,200


			199,685		968,564		13,628,353			199,939		998,042		14,085,366

National Currency
Global Reverse Reserve			-		-		6,439,374			-		-		6,439,373
Banco do Brasil			9,925		140,935		3,859,065			76,226		402,598		5,861,368
Caixa Econômica Federal			6,203		88,085		2,411,915			97,404		196,538		6,759,638
BNDES			534,348		625,000		1,125,000			564,986		1,230,372		7,332,179
Promissory Notes			-		-		-			9,135		200,000		-
Other Financial Institutions			-		-		-			9,227		258,435		1,695,888

			550,476		854,020		13,835,354			738,524		2,287,943		28,088,446


			750,161		1,822,584		27,463,707			938,463		3,285,985		42,173,812



	12/31/2014

		PARENT COMPANY						CONSOLIDATED
		CURRENT		PRINCIPAL				CURRENT			PRINCIPAL
		FEES				NON		FEES					NON

	Avg. Rate	Value		CURRENT		CURRENT		Avg. Rate	Value		CURRENT		CURRENT

Financial Institutions
Foreign currency

Banco Interamericano de Desenvolvimento - BID	4.54%		1,850		49,421		123,554	4.40%		2,011		59,447		444,382
Corporación Andino de Fomento - CAF	2.25%		7,802		764,924		1,058,960	2.25%		7,802		764,924		1,058,960
Kreditanstalt fur Wiederaufbau - KFW	2.73%		15		-		191,172	2.73%		15		-		191,173
Eximbank	2.00%		805		48,797		121,985	2.00%		805		48,797		121,985
BNP Paribas	1.17%		196		91,988		590,238	1.17%		196		91,988		590,238
Others			1,397		3,232		198,257			1,709		18,693		222,912

			12,065		958,362		2,284,166			12,538		983,849		2,629,650

Bonus
Expiration 11/30/2015	7.75%		6,077		796,860		-	7.75%		6,077		796,860		-
Expiration 07/30/2019	6.88%		89,281		-		2,656,200	6.87%		89,281		-		2,656,200
Expiration 10/27/2021	5.75%		55,153		-		4,648,350	5.75%		55,153		-		4,648,350

			150,511		796,860		7,304,550			150,511		796,860		7,304,550


			162,576		1,755,222		9,588,716			163,049		1,780,709		9,934,200

National Currency
Global Reverse Reserve			-		-		7,421,796			-		-		7,421,796
Banco do Brasil			11,407		-		2,769,231			68,748		208,513		5,031,220
Caixa Econômica Federal			-		-		1,730,769			61,696		1,087,851		3,930,663
BNDES			330,309		500,000		1,750,000			351,669		846,501		6,419,772
Other Financial Institutions			-		-		-			42,933		319,862		1,869,943

			341,716		500,000		13,671,796			525,046		2,462,727		24,673,394


			504,292		2,255,222		23,260,512			688,095		4,243,436		34,607,594

Subsidiary Eletrosul, on September 8, 2015, issued commercial promissory notes, in a single series, with 200 (two hundred) commercial promissory notes, with par value of R$ 1.000, in a total of R$ 200,000, due in 180 days upon issuance, compensated at 111.5% CDI. On August 4, 2015, the amount of R$ 200,000 was acquired with Caixa Econômica Federal as loan to be used in the deployment of aeolic enterprises at the parks Coxilha Seca, Galpões and Capão do Inglês.

LOGO

On June 28, 2013, a contract was executed between Subsidiary Eletronuclear and Caixa Econômica Federal (CEF) for the amount of R$ 3,800,000, to fund part of the enterprises in Angra 3. The contract term is for 25 tears, from the execution date, with interest rate at 6.5% p.a. On July 27, 2015, the first request of disbursement was submitted to CEF, in the amount of R$ 1,983,570.

Eletrobras signed a contract to open a credit in the gross amount of R$ 6,500,000, with the Caixa Econômica Federal and Banco do Brasil, with remuneration of 119.5% of the accumulated variation of the DI Rate, to meet its needs for working capital and its investment plan. As of December 31, 2014 the company had made the first two installments of disbursement totaling R$ 4,500,000, with R$ 2,769,231 being disbursed by the Banco do Brasil and R$ 1,730,769 by the Caixa Econômica Federal. The first and the second installment of the disbursement will have a grace period for payment of the principal values until August 24, 2016 and November 25, 2016, respectively. The third installment of the disbursement, taken out on January 30, 2015 in the amount of R$ 2,000,000, with R$ 1,230,769 disbursed by the Banco do Brasil and R$ 769,231 by the Caixa Econômica Federal, has a grace period for payment of the principal values until February 25, 2016.

Debts are guaranteed by the Federal Government and/or Eletrobras, subject to fees, which average rate in 2015 is 9.40% p.a. (5.20% p.a. in 2014), and with the following profile:


	PARENT COMPANY								CONSOLIDATED
	12/31/2015				12/31/2014				12/31/2015				12/31/2014
	Balance thousand reais		%		Balance thousand reais		%		Balance thousand reais		%		Balance thousand reais		%
Foreign currency
Unindexed USD		11,108,635		37%		8,251,920		32%		11,121,630		24%		8,260,761		21%
USD with LIBOR		3,257,353		11%		2,891,820		11%		3,729,245		8%		3,222,835		8%
EURO		251,820		1%		191,187		1%		251,820		1%		221,513		1%
YEN		178,794		1%		171,586		1%		178,794		0%		171,586		-
Others		-		-		-		-		1,858		-		1,262		-

Subtotal		14,796,602		49%		11,506,514		44%		15,283,347		33%		11,877,958		30%

National Currency
CDI		6,516,128		22%		4,511,407		17%		11,410,983		25%		9,598,423		24%
IPCA		-		-		-		-		532,754		1%		-		-
TJLP		-		-		-		-		6,594,316		14%		5,826,925		15%
SELIC		2,284,348		8%		2,580,309		10%		2,636,254		6%		2,829,818		7%
Others		-		-		-		-		3,287,732		7%		1,793,468		5%

Subtotal		8,800,476		29%		7,091,716		27%		24,462,039		53%		20,048,634		51%

Unindexed		6,439,374		21%		7,421,796		29%		6,652,874		14%		7,612,533		19%


Total		30,036,452		100%		26,020,026		100%		46,398,260		100%		39,539,125		100%

LOGO

The long-term portion of loans and financing is scheduled to mature as follows:


	2017		2018		2019		2020		2021		After 2021		Total

Parent Company		3,550,959		2,491,939		5,658,569		1,741,551		8,378,436		5,642,253		27,463,707
Consolidated		5,174,201		4,853,454		6,984,856		2,845,230		9,242,886		13,073,185		42,173,812

23.3. – Operation of financial leasing:

The nominal value used in the calculation of assets and liabilities arising from these contracts was determined by reference to the value set for contracting monthly power, multiplied by the installed capacity (60 to 65 MW) and by the number of months of the contract.

The reconciliation of the total of future minimum payments on financial leases of the Company and its current value is demonstrated in the table below:


	CONSOLIDATED
	12/31/2015		12/31/2014

Less than one year		209,226		209,226
More than one year and less than five years		836,902		836,902
More than five years		924,081		1,133,305
Future financing costs on the financial leases		(718,054)		(852,772)

Total financial lease minimum payments		1,252,155		1,326,661

Less than one year		132,972		74,507
More than one year and less than five years		431,363		388,860
More than five years		687,820		863,294


Present value of payments		1,252,155		1,326,661

LOGO

23.4. – GUARANTEES

The Company participates in the capacity of an intervening guarantor for several companies whose secured amounts, projections and amounts already paid are shown in the following tables:


Company	Project	Financing Bank	Model	Subsidiary Share	Financed value		Outstanding Balance on 12/31/2015		Guarantee Balance Eletrobras		Guarantee End
Eletrobras	Norte Energia	BNDES	SPE	15.00%		2,025,000		2,095,590		20,956	1/15/2042
Eletrobras	Norte Energia	CEF	SPE	15.00%		1,050,000		1,105,927		11,059	1/15/2042
Eletrobras	Norte Energia	BTG Pactual	SPE	15.00%		300,000		315,979		3,160	1/15/2042
Eletrobras	Norte Energia	Contract Compliance Guarantee	SPE	15.00%		156,889		94,140		941	4/30/2019
Eletrobras	Rouar	CAF	SPE	50.00%		38,805		38,805		388	9/30/2017
Eletrobras	Mangue Seco 2	BNB	SPE	49.00%		40,951		37,846		378	10/14/2031
Eletrosul	ESBR	BNDES	SPE	20.00%		727,000		896,664		8,967	8/15/2034
Eletrosul	ESBR	BNDES	SPE	20.00%		232,500		236,520		2,365	1/15/2035
Eletrosul	ESBR	BNDES REPASSE	SPE	20.00%		717,000		905,294		9,053	8/15/2034
Eletrosul	ESBR	BNDES REPASSE	SPE	20.00%		232,500		238,070		2,381	1/15/2035
Eletrosul	Cerro Chato I, II e III	Banco do Brasil	SPE	100.00%		223,419		128,308		1,283	7/15/2020
Eletrosul	RS Energia	BNDES	SPE	100.00%		126,221		65,321		653	6/15/2021
Eletrosul	Artemis Transmissora de Energia	BNDES	SPE	100.00%		170,029		45,416		454	10/15/2018
Eletrosul	Porto Velho Transmissora de Energia	BNDES	SPE	100.00%		283,411		258,645		2,586	8/15/2028
Eletrosul	UHE Mauá	BNDES	SPE	49.00%		182,417		148,872		1,489	1/15/2028
Eletrosul	UHE Mauá	BNDES/Banco do Brasil	SPE	49.00%		182,417		148,892		1,489	1/15/2028
Eletrosul	UHE Passo de São João	BNDES	Corporate	100.00%		183,330		139,178		1,392	7/15/2026
Eletrosul	SC Energia	BNDES/Banco do Brasil	Corporate	100.00%		50,000		17,297		173	5/15/2019
Eletrosul	SC Energia	BNDES/BDRE	Corporate	100.00%		50,000		17,247		172	5/15/2019
Eletrosul	SC Energia	BNDES	Corporate	100.00%		103,180		34,555		346	5/15/2019
Eletrosul	SC Energia	BNDES	Corporate	100.00%		67,017		29,946		299	3/15/2021
Eletrosul	UHE São Domingos	BNDES	Corporate	100.00%		207,000		185,737		1,857	6/15/2028
Eletrosul	RS Energia	BNDES	SPE	100.00%		41,898		31,249		312	3/15/2027
Eletrosul	RS Energia	BNDES	SPE	100.00%		9,413		8,270		83	8/15/2027
Eletrosul	RS Energia	BNDES	SPE	100.00%		12,000		6,799		68	8/15/2027
Eletrosul	UHE Passo de São João	BNDES	Corporate	100.00%		14,750		11,502		115	7/15/2026
Eletrosul	Corporate Projects Eletrosul	Banco do Brasil	Corporate	100.00%		250,000		223,702		2,237	11/15/2023
Eletrosul	Teles Pires	BNDES	SPE	24.50%		296,940		339,515		3,395	2/15/2036
Eletrosul	Teles Pires	BNDES/Banco do Brasil	SPE	24.50%		294,000		338,346		3,383	2/15/2036
Eletrosul	Teles Pires	Emissão de Debêntures	SPE	24.50%		160,680		211,162		2,112	5/30/2032
Eletrosul	Livramento Holding	BNDES	SPE	49.00%		91,943		75,244		752	6/15/2030
Eletrosul	Chuí Holding	BNDES	SPE	49.00%		186,082		188,903		1,889	12/15/2031
Eletrosul	[ILLEGIBLE]	BNDES	SPE	80.00%		209,974		194,085		1,941	7/15/2028
Eletrosul	nsmissora Sul Brasileira de Energia [ILLEGIBLE]	Emissão de Debêntures	SPE	80.00%		62,040		76,152		762	9/15/2026
Eletrosul	Costa Oeste Transmissora de Energia S.A.	BNDES	SPE	49.00%		17,846		16,198		162	11/1/2022
Eletrosul	Santa Vitória do Palmar Holding S.A.	BNDES	SPE	49.00%		197,950		211,335		2,113	6/16/2031
Eletrosul	Santa Vitória do Palmar Holding S.A.	BRDE	SPE	49.00%		98,000		107,021		1,070	6/16/2031
Eletrosul	Transmissora Sul Litorânea do Brasil	BNDES	SPE	51.00%		252,108		247,485		2,475	2/15/2029
Eletrosul	Complexo São Bernardo	KfW	Corporate	100.00%		29,854		56,503		565	12/30/2038
Eletrosul	Complexo São Bernardo	KfW	Corporate	100.00%		136,064		195,298		1,953	12/30/2042
Eletrosul	Eólica Hermenegildo I S/A	Emissão de Debêntures	SPE	99.99%		79,100		81,751		818	1/18/2016
Eletrosul	Eólica Hermenegildo I S/A	Emissão de Debêntures	SPE	99.99%		32,000		33,073		331	1/18/2016
Eletrosul	Eólica Hermenegildo II S/A	Emissão de Debêntures	SPE	99.99%		79,100		81,751		818	1/18/2016
Eletrosul	Eólica Hermenegildo II S/A	Emissão de Debêntures	SPE	99.99%		17,100		17,673		177	1/18/2016
Eletrosul	Eólica Hermenegildo III S/A	Emissão de Debêntures	SPE	99.99%		66,800		69,039		690	1/18/2016
Eletrosul	Eólica Hermenegildo III S/A	Emissão de Debêntures	SPE	99.99%		21,500		22,221		222	1/18/2016
Eletrosul	Eólica Chuí IX S/A	Emissão de Debêntures	SPE	99.99%		25,000		25,793		258	1/18/2016
Eletrosul	Eólica Chuí IX S/A	Emissão de Debêntures	SPE	99.99%		11,000		11,369		114	1/18/2016
Eletrosul	Complexo Eólico Livramento - Entorno II	CEF	Corporate	100.00%		200,000		213,130		2,131	8/7/2017
Eletrosul	Corporate Projects Eletrosul 2	BTG Pactual	Corporate	100.00%		200,000		209,135		2,091	3/6/2016
Eletronorte	São Luis II e III	BNDES	Corporate	100.00%		13,653		8,727		87	11/15/2024
Eletronorte	Miranda II	BNDES	Corporate	100.00%		47,531		23,596		236	11/15/2024
Eletronorte	Ribeiro Gonç./Balsas	BNB	Corporate	100.00%		70,000		60,278		603	6/3/2031
Eletronorte	Lechuga/J. Teixeira	BASA	Corporate	100.00%		25,720		21,179		212	1/10/2029
Eletronorte	UHE Tucuruí	BNDES	Corporate	100.00%		931,000		76,580		766	9/15/2016
Eletronorte	Substation Nobres	BNDES	Corporate	100.00%		10,000		7,256		73	3/15/2028
Eletronorte	Substation Miramar/Tucuruí	BNDES	Corporate	100.00%		31,000		23,760		238	8/15/2028

LOGO


Company	Project	Financing Bank	Model	Subsidiary Share	Financed value		Outstanding Balance on 12/31/2015		Guarantee Balance Eletrobras		Guarantee End
Eletronorte	Expansion Substation Lechuga	BNDES	Corporate	100.00%		35,011		27,061		271	10/15/2028
Eletronorte	Norte Brasil Transmissora	BNDES	SPE	49.00%		514,500		486,790		4,868	12/15/2029
Eletronorte	Norte Brasil Transmissora	Emissão de Debêntures	SPE	49.00%		98,000		128,811		1,288	9/15/2026
Eletronorte	Linha Verde Transmissora	BASA	SPE	100.00%		185,000		196,577		1,966	11/10/2032
Eletronorte	Manaus Transmissora	BNDES	SPE	30.00%		120,300		104,315		1,043	12/15/2026
Eletronorte	Power Transmission Station	BNDES	Corporate	100.00%		505,477		440,302		4,403	11/15/2028
Eletronorte	Power Transmission Station	BASA	Corporate	100.00%		221,789		225,225		2,252	7/10/2031
Eletronorte	Power Transmission Station	BASA	Corporate	100.00%		221,789		219,803		2,198	10/15/2030
Eletronorte	Rio Branco Transmissora	BNDES	Corporate	100.00%		138,000		118,355		1,184	3/15/2027
Eletronorte	Transmissora Matogrossense Energia	BASA	SPE	49.00%		39,200		39,819		398	2/1/2029
Eletronorte	Transmissora Matogrossense Energia	BNDES	SPE	49.00%		42,777		32,073		321	5/15/2026
Eletronorte	Rei dos Ventos 1 Eolo	BNDES	SPE	24.50%		30,851		30,851		309	12/31/2016
Eletronorte	Brasventos Miassaba 3	BNDES	SPE	24.50%		30,984		30,984		310	12/31/2016
Eletronorte	Rei dos Ventos 3	BNDES	SPE	24.50%		32,533		32,533		325	12/31/2016
Eletronorte	Belo Monte Transmissora de Energia S. A.	Itau BBA	SPE	24.50%		49,735		57,237		572	6/18/2016
Eletronorte	Belo Monte Transmissora de Energia S. A.	Santander	SPE	24.50%		49,000		55,674		557	6/18/2016
Eletronorte	Norte Energia	BNDES	SPE	19.98%		2,697,300		2,791,326		27,913	1/15/2042
Eletronorte	Norte Energia	CEF	SPE	19.98%		1,398,600		1,473,095		14,731	1/15/2042
Eletronorte	Norte Energia	BTG Pactual	SPE	19.98%		399,600		420,884		4,209	1/15/2042
Eletronorte	Belo Monte Transmissora de Energia S. A.	State Grid Brazil S.A.	Corporate	100.00%		294,700		135,828		1,358	7/28/2029
Eletronorte	Deployment PAR and PMIS	BNDES	Corporate	100.00%		743,382		357,912		3,579	12/15/2023
Eletronuclear	Angra III	BNDES	Corporate	100.00%		6,146,256		3,203,974		32,040	6/15/2036
Chesf	ESBR	BNDES	SPE	20.00%		727,000		896,664		8,967	8/15/2034
Chesf	ESBR	BNDES	SPE	20.00%		232,500		236,520		2,365	1/15/2035
Chesf	ESBR	BNDES REPASSE	SPE	20.00%		717,000		905,294		9,053	8/15/2034
Chesf	ESBR	BNDES REPASSE	SPE	20.00%		232,500		238,070		2,381	1/15/2035
Chesf	Manaus Transmissora	BNDES	SPE	19.50%		78,195		67,540		675	12/15/2026
Chesf	Norte Energia	BNDES	SPE	15.00%		2,025,000		2,095,590		20,956	1/15/2042
Chesf	Norte Energia	CEF	SPE	15.00%		1,050,000		1,105,927		11,059	1/15/2042
Chesf	Norte Energia	BTG Pactual	SPE	15.00%		300,000		315,979		3,160	1/15/2042
Chesf	IE Madeira	BASA	SPE	24.50%		65,415		76,321		763	7/10/2032
Chesf	IE Madeira	BNDES	SPE	24.50%		455,504		404,196		4,042	2/15/2030
Chesf	IE Madeira	Emissão de Debêntures	SPE	24.50%		85,750		115,626		1,156	3/18/2025
Chesf	Corporate Projects Chesf 1	Banco do Brasil	Corporate	100.00%		500,000		385,092		3,851	9/28/2018
Chesf	Corporate Projects Chesf 2	CEF	Corporate	100.00%		400,000		354,678		3,547	2/27/2019
Chesf	IE Garanhuns s/a	BNDES	SPE	49.00%		175,146		168,030		1,680	12/15/2028
Chesf	Corporate Projects Chesf 3	BNDES	Corporate	100.00%		727,560		282,223		2,822	11/15/2023
Chesf	Corporate Projects Chesf 4	BNDES	Corporate	100.00%		475,454		194,825		1,948	11/15/2023
Furnas	UHE Batalha	BNDES	Corporate	100.00%		224,000		165,314		1,653	12/15/2025
Furnas	UHE Simplício	BNDES	Corporate	100.00%		1,034,410		705,108		7,051	7/15/2026
Furnas	UHE Baguari	BNDES	Corporate	100.00%		60,153		39,726		397	7/15/2026
Furnas	SEVERAL	Banco do Brasil	Corporate	100.00%		750,000		758,922		7,589	10/31/2018
Furnas	Rolagem BASA 2008	Banco do Brasil	Corporate	100.00%		208,312		211,777		2,118	2/7/2018
Furnas	Innovation project	FINEP	Corporate	100.00%		268,503		163,880		1,639	11/15/2023
Furnas	Corporate fionancing	Banco do Brasil	Corporate	100.00%		400,000		430,918		4,309	12/6/2023

LOGO


Company	Project	Financing Bank	Model	Subsidiary Share	Financed value		Outstanding Balance on 12/31/2015		Guarantee Balance Eletrobras		Guarantee End
Furnas	UHE Santo Antônio	BNDES	SPE	39.00%		1,594,159		1,968,315		19,683	3/15/2034
Furnas	UHE Santo Antônio	BNDES	SPE	39.00%		1,574,659		2,033,066		20,331	3/15/2034
Furnas	UHE Santo Antônio	BASA	SPE	39.00%		196,334		247,102		2,471	12/15/2030
Furnas	UHE Santo Antônio	Emissão de Debêntures	SPE	39.00%		163,800		204,398		2,044	1/24/2023
Furnas	UHE Santo Antônio	Emissão de Debêntures	SPE	39.00%		273,000		318,042		3,180	3/1/2024
Furnas	UHE Foz do Chapecó	BNDES	SPE	40.00%		435,508		405,692		4,057	9/15/2027
Furnas	UHE Foz do Chapecó	BNDES	SPE	40.00%		217,754		205,308		2,053	9/15/2027
Furnas	UHE Foz do Chapecó	BNDES	SPE	40.00%		4,009		3,083		31	9/15/2027
Furnas	Centroeste de Minas	BNDES	SPE	49.00%		13,827		10,924		109	4/15/2023
Furnas	Serra do Facão	BNDES	SPE	49.47%		257,263		218,804		2,188	6/15/2027
Furnas	Goiás Transmissão	BNDES	SPE	49.00%		49,000		49,372		494	12/1/2031
Furnas	Goiás Transmissão	BNDES	SPE	49.00%		64,435		58,977		590	1/15/2027
Furnas	MGE	BNDES	SPE	49.00%		58,359		49,163		492	1/15/2027
Furnas	Transenergia São Paulo	BNDES	SPE	49.00%		9,212		8,641		86	12/15/2028
Furnas	Rei dos Ventos 1 Eolo	BNDES	SPE	24.50%		30,851		28,235		282	10/15/2029
Furnas	Brasventos Miassaba 3	BNDES	SPE	24.50%		30,984		28,425		284	10/15/2029
Furnas	Rei dos Ventos 3	BNDES	SPE	24.50%		32,533		29,757		298	10/15/2029
Furnas	IE Madeira	BASA	SPE	24.50%		65,415		76,321		763	7/10/2032
Furnas	IE Madeira	BNDES	SPE	24.50%		455,504		404,196		4,042	2/15/2030
Furnas	IE Madeira	Emissão de Debêntures	SPE	24.50%		85,750		115,626		1,156	3/18/2025
Furnas	Teles Pires	BNDES	SPE	24.50%		296,940		339,515		3,395	2/15/2036
Furnas	Teles Pires	BNDES	SPE	24.50%		294,000		338,346		3,383	2/15/2036
Furnas	Teles Pires	Emissão de Debêntures	SPE	24.50%		160,680		211,162		2,112	5/31/2032
Furnas	Caldas Novas Transmissão	BNDES	SPE	49.90%		2,418		2,033		20	5/15/2023
Furnas	Caldas Novas Transmissão	BNDES	SPE	49.90%		5,536		4,997		50	3/15/2028
Furnas	Belo Monte Transmissora de Energia S. A.	State Grid Brazil S.A.	Corporate	100.00%		294,700		139,274		1,393	7/28/2029
Furnas	Mata de Santa Genebra	Emissão de Debêntures	SPE	49.90%		234,031		234,031		2,340	3/12/2016
Amazonas	Amazonas	Confissão de Dívida - Petrobras/BR	Corporate	100.00%		2,405,979		2,297,400		22,974	1/30/2025
Eletroacre	Eletroacre	Confissão de Dívida - Petrobras/BR	Corporate	100.00%		91,774		87,568		876	1/30/2025
Boa Vista	Boa Vista	Confissão de Dívida - Petrobras/BR	Corporate	100.00%		19,320		17,665		177	12/31/2024
Cepisa	Corporate Project	CEF	Corporate	100.00%		94,906		50,146		501	8/30/2016
Total						46,270,960		41,822,565		418,226

The Company recorded under the heading of operational provisions for noncurrent liabilities the fair value of the amounts guaranteed by the Company over resources already released by the financing banks. The provision is made based on the fair value of the guarantee of Eletrobras, as shown below:

a)	UHE Simplício - project of the subsidiary Furnas, with an installed generating capacity of 333.7 MW*. The project has 100% Furnas participation. Therefore, the guarantee of the Company is 100% of the financing.

b)	UHE Mauá - project with an installed capacity of 361 MW, in partnership with the subsidiary Eletrosul (49%) and Copel (51%). In this hydroelectric power plant, there are two contracts with BNDES, direct and indirect, and the Company intervenes as the grantor of 49% of the two contracts.

UHE Jirau - SPE Energia Sustentável do Brasil, formed by the subsidiaries Eletrosul, CHESF and GDF Suez Energy, with installed capacity of 3,750 MW. For the project two loans were taken out with BNDES, one direct and the other indirect, via intermediary banks, to be paid in 240 months. The company is guaranteeing the participation of each of its subsidiaries-Eletrosul (20%) and CHESF (20 percent).

LOGO

UHE Santo Antônio - SPE Santo Antônio Energia, formed by Furnas, CEMIG, Fundo de Investimentos em Participação Amazônica Energia – FIP, Construtora Norberto Odebrecht S/A, Odebrecht Investimentos em Infraestrutura Ltda. and Andrade Gutierrez Participações S/A, with an installed capacity of 3,568.80 MW*. The Company is a consenting intervening party in financing with the BNDES and with the Banco da Amazônia, with its intervention limited to the participation of Furnas (39%).

e)	UHE Foz do Chapecó - SPE Foz do Chapecó Energia, whose power plant has an installed capacity of 855MW, has the Company as guarantor of the contractual instruments with the BNDES, totaling, in substitution of Bank Financing previously contracted, limited to the percentage of Furnas in SPE (40%).

f)	UHE Baguari - Corporate Project of Furnas, with 140MW of installed capacity. The Company is the guarantor of 15% of the financing contract with the BNDES.

UHE Serra do Facão - SPE Serra do Facão, formed by Furnas (49.47%), Alcoa Alumínio S.A. (34.97%), DME Energética (10.09%) and Camargo Corrêa Energia S.A. (5.47%) with an installed capacity of 212.58 MW*. The guarantee by the Company in relation to the financing with the BNDES relates to the participation of Furnas in the project.

h)	Norte Brasil Transmissora -SPE, with participation of Eletronorte (49%)and has as its objective the implementation, operation and maintenance of the Porto Velho/Araraquara transmission line, with an extension of 2,375 km.

Manaus Transmissora de Energia -SPE, which has the participation of Eletronorte (30%) and Chesf (19.5%) has as its objective to implement and operate 4 substations and a 585 km* transmission line (LT Oriximiná/Itacoatiara/Cariri). The company provides guarantees on two loans in this project (BASA and BNDES).

Mangue Seco 2 – SPE with a 49% participation of the Company and 51% of Petrobras for the construction and operation of three wind farms in Guararé, in Rio Grande do Norte. In this project the Company provided a guarantee, proportional to its participation in the long-term financing agreement with the BNB.

k)	UHE Batalha – Corporate project of Furnas with capacity to generate 52.5 MW, with financing with the BNDES. The Company acts as a guarantor of this contract.

IE Madeira - SPE Interligação Elétrica, with participation of Furnas (24.5%) and Chesf (24.5%). In this project, there is a counter guarantee of the Company in the Bank Financing Contracts, in guarantee of the short-term loan from the BNDES, limited to the participation of its subsidiaries. There is also a short-term loan from BNDES, in which the company acts as an intervening party in proportion to its subsidiaries.

LOGO

UHE Belo Monte -SPE Norte Energia, with an installed capacity of 11,233 MW*, of Chesf (15%), Eletronorte (19.98%) and Eletrobras (15%) in addition to other partners. The provision of the guarantee of the Company in favor of the SPE for the obligations by the insurer JMALUCELLI, under the guarantee insurance contract. The Company is also involved in a short term loan agreement with the BNDES.

n)	Angra III – the company is the guarantor for the financing of Eletronuclear with the BNDES, to build the corporate project of the UTN Angra III.

o)	Norte Energia S.A. – specific purpose closed-capital company, which object is the engagement in every activity required for deployment, operation, maintenance, and exploration of Usina Hidrelétrica de Belo Monte (UHE Belo Monte). The Company holds 49.98% of the capital stock of Norte Energia.

(*) information not audited by independent auditors

NOTE 24 – DEBENTURES

CONSOLIDATED

Subsidiary

Issuer

Date of Issue

Principal characteristics

Interest rate

Expiration

Balance on
12/31/2015

Balance on
12/31/2014

Eletronorte

Issued by ETE (incorporated by Eletronor

June/2011

Private subscription of the first issuance by the Subsidiary, subscribed in favor of Fundo de Desenvolvimento da Amazônia - FDA, and maintained under custody of the operating agent of the Contract, Banco da Amazônia S.A., with guarantee under collateral, in four series, all convertible into shares of the SPE, with and without voting rights.

TJLP + 1.65% p .a.

10/7/2031

219,803

219,418

CELG-D

1st Issue

3/4/2014

Simple debenture, in single series, with additional guarantee, non-convertible into shares, subject to public distribution with limited distribution efforts.

100%CDI + 7.44% p.a.

3/4/2019

285,346

Eletrosul

SPE Chuí IX - 1st Issue

10/20/2014

Simple debenture, non-convertible into shares, in single series, chirographic, with additional guarantee subject to public distribution with limited distribution efforts.

100% CDI + spread 1.90% p.a.

01/18/2016

25,807

25,516

Eletrosul

SPE Chuí IX - 2nd Issue

05/20/2015

Simple debenture, non-convertible into shares, in single series, chirographic, with additional guarantee subject to public distribution with limited distribution efforts.

100% CDI + spread 3.45% p.a.

01/18/2016

11,355

Eletrosul

SPE Hermenegildo I - 1st Issue

10/20/2014

Simple debenture, non-convertible into shares, in single series, chirographic, with additional guarantee subject to public distribution with limited distribution efforts.

100% CDI + spread 1.90% p.a.

01/18/2016

81,751

80,732

Eletrosul

SPE Hermenegildo I - 2nd Issue

05/20/2015

Simple debenture, non-convertible into shares, in single series, chirographic, with additional guarantee subject to public distribution with limited distribution efforts.

100% CDI + spread 3.45% p.a.

01/18/2016

33,073

Eletrosul

SPE Hermenegildo II - 1st Issue

10/20/2014

Simple debenture, non-convertible into shares, in single series, chirographic, with additional guarantee subject to public distribution with limited distribution efforts.

100% CDI + spread 1.90% p.a.

01/18/2016

81,751

80,732

Eletrosul

SPE Hermenegildo II - 2nd Issue

05/20/2015

Simple debenture, non-convertible into shares, in single series, chirographic, with additional guarantee subject to public distribution with limited distribution efforts.

100% CDI + spread 3.45% p.a.

01/18/2016

17,673

Eletrosul

SPE Hermenegildo III - 1st Issue

10/20/2014

Simple debenture, non-convertible into shares, in single series, chirographic, with additional guarantee subject to public distribution with limited distribution efforts.

100% CDI + spread de 1.90% p.a.

01/18/2016

69,039

68,179

Eletrosul

SPE Hermenegildo III - 2nd Issue

05/20/2015

Simple debenture, non-convertible into shares, in single series, chirographic, with additional guarantee subject to public distribution with limited distribution efforts.

100% CDI + spread 3.45% p.a.

01/18/2016

22,222

562,474

759,923

LOGO

On October 19, 2015, SPEs Eólica Hermenegildo I, Eólica Hermenegildo II, Eólica Hermenegildo III and Eólica Chuí IX made the first amendment of Debentures of 1st and 2nd issuance, in the total amount of R$ 331,600, changing the due date from October 20, 2015 to January 16, 2016 and changing the compensation fee to CDI + 3.45% p.a. Two dates were set for the payment of interest, on October 20, 2015, where R$ 44,169 were paid, and another one for the new due date.

NOTE 25 - COMPULSORY LOAN

The Compulsory Loan on the consumption of electric energy, established by Law No. 4,156/1962 in order to generate resources for expansion of the Brazilian electric sector, was eliminated by Law No. 7,181 of December 20, 1983, which set the date of December 31, 1993 as the deadline for the collection.

In the first phase of this compulsory loan, which ended with the advent of Decree-Law No. 1,512/1976, the collection of the tax reached many classes of energy consumers, and taxpayer credits were represented by bearer bonds issued by the Company.

The second time, which began with the provisions in the aforementioned Decree-Law, the Compulsory Loan in question began to be charged only from industries with a monthly energy consumption higher than 2,000 kwh*, and taxpayer credits were no longer represented by bonds, but simply carried by the Company.

The remaining Compulsory Loan balance, after the fourth conversion into shares, on April 30 of 2008, related to credits created from 1988 to 2004, is registered under current and non-current liabilities, maturing starting in 2008, and are remunerated at the rate of 6% a year, plus monetary update based on the variation of the IPCA-E, and as of December 31, 2015, correspond to R$ 523,635 (December 31, 2014 – R$ 519,674), of which R$ 466,005 are non-current (December 31, 2014 – R$ 469,459).

The Bearer Bonds issued due to the Compulsory Loan are not securities, are not tradable on the stock market, are not priced and are not payable. In this way, the Company’s administration clarifies that the Company has no debentures in circulation.

The emission of these securities derived from a legal imposition, and not a corporate decision by the Company. Likewise, its taking by bondholders was not an act of their will, but a legal duty, by force of Law No. 4,156/1962.

The CVM (Brazilian securities commission), in a decision by its collegiate issued in administrative process CVM RJ 2005/7230, lodged by holders of the mentioned securities, affirmed in a document that “the obligations issued by the Company due to Law No. 4,156/1962 cannot be considered market securities.”

LOGO

The CVM also understood that there is no irregularity in the procedures adopted by the Company in its Financial Statements, with regards to the aforementioned obligations, neither in the publishing of the existence of legal action.

The unenforceability of those Bearer Obligations was reinforced by decisions of the Supreme Court, which corroborated the understanding that those securities have prescribed and are not valid for guaranteeing tax enforcement.

Therefore, the Bearer Obligations issued in the first phase of this compulsory loan, as decided by the CVM, are not to be confused with debentures. In addition, by force of the provisions of Article 4, § 11 of Law No. 4,156/1962, and Article 1 of Decree No. 20,910/1932, they are unenforceable, a condition confirmed in Informational 344 of the Supreme Court (STJ), which states that these Obligations cannot be used as guarantees for tax enforcement action, since they are not liquid and are not debentures.

As such, the liabilities related to the Compulsory Loan refer to residual credits, created from 1988 to 1994, from industrial consumers with consumption greater than 2,000 kWh*, in the second phase of this Compulsory Loan, as well as to interest on those credits not claimed, as shown:


	PARENT COMPANY AND CONSOLIDATED
	12/31/2015		12/31/2014
CURRENT
Interest payable		57,630		50,215

NON- CURRENT
Credits received		466,005		469,459


TOTAL		523,635		519,674

NOTE 26 – FUEL CONSUMPTION ACCOUNT – CCC

The Fuel Consumption Account (CCC), created by Decree No. 73,102, of November 7, 1973, is intended to combine the prorating of fuel consumption costs in the generation of thermoelectric energy, especially in the Northern region of the country.

According to Law No. 8,631, of March 04, 1993, the Company manages the sums collected by the concessionaire of the public service of electrical energy, and credits them to the Fuel Consumption Account (CCC), for the annual fees destined to expenditures with fuel for the generation of electrical energy. The sums recorded under current assets, in counterpart to current liabilities, are funds available, kept in a restricted account, and the amounts not paid by concessionaires.

LOGO


	PARENT COMPANY AND CONSOLIDATED
	12/31/2015	12/31/2014

Current Assets	195,966	521,964
Non-Current Assets	13,331	3,944


Total	209,297	525,908


Current Liabilities	-	301,471
Non-Current Liabilities	452,948	474,770


Total	452,948	751,722

The enactment of Law No. 12,783/2013 extinguished the mandatory nature of contributing to this charge, for concessionaires of the public service of electrical energy.

NOTE 27 – TAXES PAYABLE AND INCOME TAX AND SOCIAL CONTRIBUTIONS - LIABILITY

27.1. Taxes payable


	PARENT COMPANY				CONSOLIDATED
Current Liabilities:		12/31/2015		12/31/2014		12/31/2015		12/31/2014
Taxes withheld at source (IRRF)		30,364		36,076		239,721		177,357
PASEP and COFINS		250,273		22,660		577,998		196,440
ICMS		-		-		211,659		286,142
PAES / REFIS		-		-		185,441		243,349
INSS/FGTS		-		-		139,792		120,135
Others		-		-		201,967		144,745

Total		280,637		58,736		1,556,578		1,168,168


	PARENT COMPANY				CONSOLIDATED
Non- Current Liabilities:	12/31/2015		12/31/2014		12/31/2015		12/31/2014
PASEP and COFINS		-		-		75,323		39,548
Deferred PASEP and COFINS		181,991		-		181,991		-
PAES / REFIS		-		-		595,691		756,478
INSS/FGTS		-		-		31,884		22,809
Others		-		-		15,420		18,716

Total		181,991		-		900,309		837,551

LOGO

27.2. Income taxes and social contributions


	PARENT COMPANY			CONSOLIDATED
		12/31/2015	12/31/2014		12/31/2015	12/31/2014
Current Liabilities:
Current Income Tax		150,749	-		431,712	13,938
Current Social Contribution		45,251	-		149,632	4,200

		196,000	-		581,344	18,138


Non-Current Liabilities:

Deferred IRPJ/CSLL		733,289	291,878		1,003,796	569,380

27.3. Conciliation of expenses with income tax and social contributions


	PARENT COMPANY
		12/31/2015				12/31/2014
		IRPJ		CSLL			IRPJ		CSLL
Loss before IRPJ and CSLL			(13,792,291)		(13,792,291)			(2,794,990)		(2,794,990)


Total IRPJ and CSLL calculated at the rates of 25% and 9%, respectively			3,448,073		1,241,306			698,748		251,549

Effect of additions and exclusions
Dividend revenue			15,511		5,584			24,619		8,863
Equity Method			(1,469,836)		(529,141)			(64,808)		(23,331)
Fiscal Loss Compensation			53,870		19,393			-		-
Deferred taxes not recognized/cancelled			(2,436,744)		(877,228)			(741,246)		(266,847)
Donations			(41,301)		(14,868)			(48,777)		(17,560)
Other additions and exclusions			(47,011)		(16,924)			(42,114)		(15,161)



Total income (expense) IRPJ and CSLL			(477,438)		(171,878)			(173,578)		(62,487)

Effective rate			3.46%		1.25%			6.21%		2.24%


	CONSOLIDATED
		12/31/2015				12/31/2014
		IRPJ		CSLL			IRPJ		CSLL
Loss before IRPJ and CSLL			(14,243,546)		(14,243,546)			(1,261,984)		(1,261,984)


Total IRPJ and CSLL calculated at the rates of 25% and 9%, respectively			3,560,887		1,281,919			315,496		113,579

Effect of additions and exclusions
Dividend revenue			15,563		20,350			25,555		9,198
Equity Method			132,862		47,830			(304,210)		(109,516)
Operational Provision			207,389		61,529			-		-
Deferred taxes not recognized/cancelled			(4,208,992)		(1,463,822)			(1,222,047)		(514,886)
Fiscal incentives			18,088		-			111,197		2,075
Other additions and exclusions			(308,812)		(74,903)			(94,020)		(32,940)



Total income (expense) IRPJ and CSLL			(583,015)		(127,097)			(1,168,029)		(532,490)


Effective rate			4.09%		0.89%			92.55%		42.19%

LOGO

27.4. Tax Incentives - SUDENE

Provisional Measure 2.199-14, of August 24, 2001, amended by Law 11.196, of November 21, 2005, allowed companies located in the Northeast Region with ventures in the infrastructure sector considered by act of the Executive branch to be a priority for regional development, to reduce the income tax amount owed for the purpose of investing in projects of installation, expansion, modernization or diversification.

Regarding concession contracts nos. 006/2004 of generation, and no. 061/2001 of transmission (both signed by the CHESF), the right to the incentive reducing 75% of income tax covers the years of 2008 to 2017. For transmission contracts numbers 008/2005 and 007/2005, the right to the reduction incentive was granted for the period, 2011 to 2020. For contracts with a tax incentive, the income tax rate of 25% becomes 6.25%.

27.5. Special payment plan - PAES

The subsidiaries Furnas, Eletrosul, Eletroacre and Distribuição Alagoas chose to refinance tax debts. The refinanced term is limited to 180 months, and the balance owed is corrected by the long-term interest rate (TJLP) and SELIC rate.

27.6. Tax Recovery Program (REFIS) – Law 12.865/2013

On December 30, 2013, Furnas chose the REFIS, for processes related to the PASEP, COFINS and PASEP/COFINS taxes.

The financing term is limited to 180 months and the outstanding balance is adjusted according to SELIC.

27.7- Deferred PASEP and COFINS on Active Foreign Exchange Variation

On April 1, 2015, Decree No. 8,426 was enacted, reestablishing to 0.65% and 4%, respectively, the PIS/PASEP and COFINS rates incurring on financial income from corporations subject to the non-accrual regime, in effect on July 1, 2015.

However, with Decree No. 8,451, published on May 19, 2015, the Federal Government reestablished to zero the PIS/PASEP and COFINS rates incurring on financial income arising out of monetary adjustments, due to the foreign exchange rate, for (I) exporting of goods and services abroad; and (ii) obligations undertook by the corporation, including loans and financing.

Considering that Decree No. 8,451 established the maintenance of the zero rate only for the above-mentioned operations, the Controller started paying, at the settlement of the corresponding transaction, the PIS/PASEP and COFINS contributions incurring on monetary changes arising out of foreign currency variations in loan agreements granted by the Company.

LOGO

In this context, due to the deferred taxation of exchange variation for the time of settlement of the operation, the Controller recognized in non-current liabilities differed PIS/PASEP and COFINS in the amounts of R$ 25,440 and R$ 156,551, respectively.

NOTE 28 – REGULATORY FEES


	CONSOLIDATED
	12/31/2015		12/31/2014
CURRENT LIABILITIES
RGR share		154,753		229,178
CDE share		38,979		8,827
PROINFA share		45,819		28,466
Compensation for the use of hydric resources		56,932		66,006
Rate for Energy Services Supervision		5,223		4,072
Research and Development R&D		356,920		371,367
Energy Efficiency Program - PEE		24,397		167,446
Others		12,377		54,935

		695,400		930,297
NON-CURRENT LIABILITIES
RGR share		8,184		32,975
Research and Development R&D		404,623		348,308
Energy Efficiency Program - PEE		49,388		48,844
Others		-		179,594

		462,195		609,721

TOTAL		1,157,595		1,540,018

28.1. Global Reversal Reserve - RGR

Concessionaires of the Public Service of Electrical Energy are responsible for contributing to the formation of the RGR, by paying a share named Reversal and Takeover of Electrical Energy Services, of up to 2.5% of the value of investments made by concessionaires and permit-holders, limited to 3% of annual revenue. The value of the share is calculated as a component of the cost of concessionaire’s service.

Concessionaires pay their annual share into the Fund, which is not controlled by the Company, in an attached bank account managed by the Company, which manages the account within the limits established by Law No. 5,655/1971 and later amendments, also not reflected in the Company’s Financial Statements, since it is an entity independent of the Company.

According to Art. 20 of Law No. 12,431, 2011, this fee was extended until 2035, whereas it had originally been established to expire at the end, 2010. With the publishing of Law No. 12,783/2013, starting on January 1, 2013, the following were no longer required to pay into the RGR annually:

a) Concessionaires and permit-holders of the public service of electrical energy distribution;

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b) Concessionaires of the public service of electrical energy transmission tendered after September 12, 2012; and

c) Concessionaires of the public service of transmission and generation of electrical energy renewed in accordance with Law No. 12,783/2013.

28.2. Energy Development Account (CDE)

The Energy Development Account (CDE) is intended to promote the development of energy in the states, projects to universalize electrical energy services, the program to subsidize low-income consumers, and expansion of the natural gas grid to serve states that do not yet have pipelines.

The CDE was created on April 26, 2002 and is managed by the Company, fulfilling a program set out by the Ministry of Mines and Energy, and does not affect the Company’s results.

The CDE is also used to guarantee the competitiveness of energy produced from alternative sources (eolic, small hydroelectric plants and biomass) and from national mineral coal.

Starting in 2013, as one of the instruments to enable a reduction in light bills, this contribution was reduced to 25% of the current rate.

28.3. PROINFA

The Federal government program for the development of projects to diversify Brazil’s energy grid and foster alternative sources of electrical energy, created by Law 10.438, of April 2002, is managed by the Company and seeks regional solutions for the use of renewable energy sources.

The PROINFA establishes the operation of 144 plants, totaling 3,299.40 MW* of installed capacity. The plants in the program account for the generation of approximately 12,000 gWh/year—an amount capable of supplying about 6.9 million residences and equivalent to 3.2% o the total annual consumption in the country. The 3,299.40 MW contracted are divided into 1,191.24 MW* from 63 Small Hydroelectric Plants (PCHs), 1,422.92 MW from 54 eolic plants, and 685.24 MW* from 27 plants based on biomass. This energy is guaranteed contracting for 20 years by the Company. Operations performed under PROINFA do not affect the Company’s results (which is responsible for payment).

(*) information not audited by independent auditors

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28.4. Financial compensation for the use of water resources

Financial compensation for the use of water resources for the purposes of generating electrical energy was instituted by the Federal Constitution of 1988, and are a percentage that concessionaires of hydroelectric generation pay for the use of water resources. ANEEL manages the collection and distribution of resources among beneficiaries: States, cities and entities directly managed by the Union.

As established by Law No. 8,001, of March 13, 1990, with the amendments given by Laws No. 9,433/1997, 9,984/2000 and 9,993/2000, 45% of the resources are destined for cities affected by the UHE reservoirs, while states are entitled to another 45%. The Union gets the remaining 10%. Generators characterized as Small Hydroelectric Plants (PCHs) are exempt from payment of this financial compensation.

The concessionaires pay 6.75% of the value of energy produced as Financial Compensation.

28.5. Fee for Oversight of Electrical Energy Services

The Fee for Oversight of Electrical Energy Services (TFSEE) was created by Law No. 9,427, of December 26, 1996, and regulated by Decree No. 2,410, of November 28, 1997, to create revenue for the National Electrical Energy Agency, to cover its administrative and operating expenses.

The TFSEE is equivalent to 0.5% of the economic value added by a concessionaire, permit-holder or authorization holder, including in cases of independent production and self-production, the exploration of services and electrical energy facilities.

The TFSEE is owed since January 1, 1997, and is set annually by ANEEL and paid in twelve monthly payments.

28.6 – Research and Development– R&D

Electricity concessionaires must, annually, apply the minimum amount equal to 1% of its net adjusted operating revenue on research and development for the electric sector, under the terms in Law No. 9,991, dated July 24, 2000.

The R&D funds aim to pay for studies and researches in planning the expansion of the energy system, as well as the inventory and feasibility needed to enjoy the hydro-electric potential.

Compliant with the terms in said regulations, as counterpart to amounts recorded in the liabilities, concessionaires account for in the result, in research and development, as operating income deduction.

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NOTE 29 –SHAREHOLDERS COMPENSATION


	PARENT COMPANY
	12/31/2015		12/31/2014
CURRENT
Unclaimed dividends		40,518		58,091
Withheld dividends from previous years		1,960		3,904

		42,478		61,995

29.1. - Dividends Withheld from Previous Fiscal Years

In January, 2010, the Company’s board of directors ordered payment of the balance of the Special Undistributed Dividend Reserve, in four annual payments starting in fiscal year 2010, inclusive.

29.2. – Unclaimed Dividends

The balance of the remuneration to shareholders, demonstrated in current liabilities, contain the sum of R$ 40,518 (R$ 58,091 on December 31, 2014), which was unclaimed remuneration from the fiscal years, 2012 2013, and 2014. The remuneration for 2011 and earlier has prescribed, according to the Company’s bylaws.

NOTE 30 – POST-EMPLOYMENT BENEFITS

The companies in the Eletrobras System sponsor pension plans for their employees, as well as post-employment medical assistance plans and life insurance in certain cases. Those benefits are classified as defined benefits (BD) and defined contributions (CD).

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Due to the decentralized structure of the Eletrobras system, each segment sponsors its own package of employee benefits. In general, the Group offers its current and future retirees and its dependents pension benefits, and post-employment medical assistance and life insurance, as presented in the following chart:


Types of post-employment benefits sponsored by Eletrobras System companies
Company	Pension benefit plans			Other post-employment benefits
Company	BD Plan	Paid Plan	CD Plan	Life Insurance	Health Insurance
Eletrobras	X		X	X
Amazonas	X		X
Boa Vista	X		X		X
Ceal	X		X		X
Celg-D	X		X		X
Cepisa	X		X
Ceron			X
CGTEE	X
Chesf	X	X	X	X
Eletroacre			X
Eletronorte	X		X	X	X
Eletronuclear	X				X
Eletrosul	X		X		X
Furnas	X		X	X	X

The pension benefit plan normally exposes the Group to actuarial risks, such as the risk of investment, interest rate risk, longevity risk and salary risk.

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The charts below present a conciliation of the present value of the defined benefit obligations and the fair value of assets whose values are recorded on the balance sheets for pension benefits and for all other post-employment benefits. Next we will present the consolidated results of the Eletrobras group. The most recent actuarial valuation of plan assets and of the present value of the defined benefits obligation was conducted on December 31, 2015.

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The balance of post-employment benefit obligations is presented below:


Post-employment benefit obligations - values recognized in balance sheet	Parent Company				Consolidated
	2015		2014		2015		2014

Defined pension benefit plans		265,590		447,081		1,693,130		1,885,914
Health and life insurance plans		9,933		12,182		272,296		374,252
Other post-employment benefit obligations		-		-		8,259		-

Total post-employment benefit obligations		275,523		459,263		1,973,685		2,260,166

CURRENT		22,557		10,856		114,861		258,898

NON-CURRENT		252,966		448,407		1,858,824		2,001,268

a)	Conciliation of the liability of pension plans and other benefits


Post-employment benefit obligations - values recognized in balance sheet and financial statements	PARENT COMPANY									Consolidated
	2015			2014			2013			2015			2014

Present value of actuarial obligations, covered as a whole or in part		1,650,165			1,856,603			1,748,898			17,867,309			18,494,073
Fair value of plan assets (-)		(1,474,504	)		(1,483,624	)		(1,787,681	)		(18,905,009	)		(19,300,597	)
Net Liabilities / (Assets)		175,661			372,979			(38,783	)		(1,037,700	)		(806,524	)

Effect of restriction on asset		-			-			38,783			1,890,266			1,916,652
Actuarial debt contracted between sponsor and plan		90,229			67,850			78,476			842,672			1,271,936
Financial debt contracted between sponsor and plan		89,929			74,102			-			157,757			191,664
Value of post-employment benefits liability/(assets)		180,158			141,952			78,476			1,000,429			1,463,600

Current service cost		(965	)		(706	)		3,867			(53,494	)		(47,310	)
Cost of net interest		44,388			-			52,525			125,220			70,338
Actuarial Expenses /(Income) recognized in the fiscal year		43,423			(706	)		56,392			71,727			23,028


Post-employment benefit obligations - values recognized in balance sheet and financial statements	Parent Company				Consolidated
	2015		2014		2015		2014

Present value of actuarial obligations, covered as a whole or in part		9,933		12,182		272,296		374,252
Fair value of plan assets (-)		-		-		-		-
Net Liabilities / (Assets)		9,933		12,182		272,296		374,252

Liabilities / (Asset) of other post-employment benefits		9,933		2,156		374,252		360,173

Current cost of service		1,383		237		14,147		19,238
Cost of net interest		1,487		259		43,639		42,626
Actuarial expense / (income) recognized in the year		2,870		496		57,786		61,864

b) Disclosure of Defined Benefit Pensions

Consolidated results of defined pension benefits - conciliation of the present value of defined benefit obligations:


Chart b.1 – Defined benefit pension plans – Activity of present value of actuarial obligations	PARENT COMPANY						Consolidated
	2015			2014			2015			2014

Value of actuarial obligations in the beginning of the year		1,856,603			1,748,898			18,494,073			17,196,047
(Sale)/ Acquisition of subsidiary (*)		-			-			(68,269	)		65,303
Current cost of service		3,628			3,640			86,483			84,100
Interest on actuarial obligation		216,116			199,789			2,167,943			2,009,652
Benefits paid in the year (-)		(182,569	)		(172,282	)		(1,455,594	)		(1,302,903	)
(Gain)/Loss on actuarial obligations arising out of remeasurement		(243,614	)		76,558			(1,357,326	)		441,874
Actuarial (gains) losses due to changes in demographic assumptions		-			(2,938	)		25,321			(74,348	)
Actuarial (gains) losses due to changes in financial assumptions		(130,252	)		35,742			(1,309,909	)		455,898
Actuarial (gains) losses due to adjustments by experience		(113,363	)		43,754			(72,738	)		60,324
Present value of actuarial obligations in the end of the year		1,650,165			1,856,603			17,867,309			18,494,073

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Consolidated results of defined benefit pensions - conciliation of the fair value of assets of plans:


Chart b.2 - Defined pension benefits plans - Changes and composition of fair value of assets	PARENT COMPANY						CONSOLIDATED
	2015			2014			2015			2014

Fair value of adssets at the beginning of year		1,483,624			1,787,681			19,300,597			17,830,733
Acquisition of subsidiary (*)		-			-			(63,327	)		52,699
Benefits paid during the year (-)		(182,569	)		(172,282	)		(1,455,594	)		(1,302,903	)
Participant’s contribution during the year		4,594			4,345			139,977			134,426
Employer’s contributions during the year		15,451			12,385			211,355			238,939
Assets expected return during the year		171,729			205,461			2,291,003			2,103,348
Gain/(Loss) on assets of the plan (excluding interest income)		(18,324	)		(353,966	)		(1,519,001	)		243,355
Fair value of assets at the end of the year		1,474,504			1,483,624			18,905,009			19,300,597

Effective income of assets in the year		153,404			(148,505	)		772,002			2,346,703

* Acquisition of subsidiary (See Note 43)

Consolidated results of pension benefits - Amounts recognized in other comprehensive income:


	PARENT COMPANY					CONSOLIDATED
	2015		2014			2015			2014
Other comprehensive income(ORA) accrued Pension Program		81,783		330,543			2,321,962			1,945,074

	PARENT COMPANY					CONSOLIDATED
	2014		2013			2014			2013
Actuarial gains (losses) recognized in ORA in the year for deferred taxes - Pension Program		248,760		(392,065	)		(376,887	)		(1,298,178	)

c) Disclosure of Other Post-employment Benefits

Consolidated results of other post-employment benefits – conciliation of present value of defined benefit obligations:


Table c.1 - Other post-employment benefits – Activity of present value of actuarial obligations	PARENT COMPANY					Consolidated
	2015			2014		2015			2014

Value of actuarial obligations at the start of the year		12,182			2,156		364,821			360,173
Current cost of service		1,383			259		14,147			19,260
Interest on actuarial obligations		1,487			237		43,639			42,604
Benefits paid in the year		-			-		(11,249	)		(14,977	)
(Gain)/loss on actuarial obligations arising from remeasurement		(5,119	)		9,530		(139,062	)		(32,808	)
Actuarial (gains) losses derived from changes in demographic premises		-			-		(29,682	)		29,384
Actuarial (gains) losses derived from changes in financial premises		(560	)		124		(49,624	)		119,803
Actuarial (gains) losses derived from adjustments for experience		(4,559	)		9,406		(59,756	)		(181,995	)
Present value of actuarial obligations at year end		9,933			12,182		272,296			374,252

Consolidated results of other post-employment benefits – Sums recognized in Other Comprehensive Income:


	PARENT COMPANY						CONSOLIDATED
	2015			2014			2015		2014
Other accrued comprehensive income (ORA) - Other post-employment benefits		(23,731	)		(18,612	)		46,326		185,388

	PARENT COMPANY						CONSOLIDATED
	2015			2014			2015		2014
Actuarial gains (losses) recognized in ORA at exercise Other post-employment benefits		5,119			(9,530	)		139,062		32,808

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d) Actuarial and economic assumptions

The actuarial assumptions presented below are used to determine the defined benefit obligation and expenses for the year.


Economic Hypothesis
	2015	2014
Annual actuarial discount rate (i)	13,16% to 13,27%	12,19% to 12,27%
Annual actual actuarial discount rate	7,26% to 7,36%	6,12% to 6,20%
Projected average increase in wages	5,50% to 9,57%	6,78% to 9,80%
Projected average increase in benefits	5.50%	5.72%
Actual annual rate of change in medical costs	0% to 6,18%	1,00% ato5,64%
Average annual inflation rate	5.50%	5.72%
Expected return on plan assets (ii)	13,16% to 13,27%	12,19% to 12,27%

Demographic Hypothesis
	2015	2014
Turnover rate	0%;2,80%;80% T1 Service Table	0%;(2/participant age)- 0,04;80% T1 Service Table
Mortality table, active and inactive	AT-2000;AT-2000 BASIC;AT-83 BASIC F;AT-2000 (D10);AT-2000 (suavizada 10%);AT-83 BASIC M	AT-2000;AT-83 BASIC F;AT- 2000 (D10);AT-2000 (softened 10%) M&F;AT-83 BASIC M;AT- 83 M&F;AT- 83 BASIC F
Disability mortality table	AT- 83;AT-83 (D10);AT-49 DES 2 anos;MI-85;AT-49 M;AT- 49 M&F;AT-49 (M&F) AGR 100%;RP - 2000 Disable;AT - 83M (atoned by 5%);RP 2000 Disable M&F;RRB - 1983	AT- 83;AT-83 (D10);AT-49 DES 2 anos;MI-85;AT-49 M;AT- 49 M&F;AT-49 (M&F) AGR 100%;RP - 2000 Disable;AT - 83M (atoned by 5%);RP 2000 Disable M&F;RRB - 1983
Disability table	Light Weak, Medium, and Strong; Muller; Alvaro Vindas;TASA-1927 (Suavizada 30%)	Light Weak, Medium, and Stron; Alvaro Vindas;TASA- 1927 (Suavizada 30%)
% of married at retirement date	95%	95%
Age difference between men and women	4 years	4 years

(i) Long-term interest rate

(ii) Represents the maximum and minimum return rates of asset plans.

The definition of this rate took into account the market practice of Federal government bonds, according to the criteria recommended by national and international standards, for terms similar to those of the flow of obligations of the benefits program, for the duration.

The global expected return rate is the weighted average of expected returns from the various categories of plan assets. The Management’s valuation of expected return is based on historical return trends and market analysts’ forecasts for the assets during the life of the respective obligation. The current return of BD plan assets on December 31, 2015 was R$ 153,404 (R$ 148,505 in 2014) at the Controller, and R$ 772,002 (R$ 2,346,703 in 2014) in the Consolidated group.

e) Employer contributions

On December 31, 2015, the contributions made by the Controller to the creation of mathematical provisions for benefits under the CD Plan reached R$ 16,983 (R$ 14,772 in 2014) and R$ 213,626 (R$ 183,145 in 2014) in the Consolidated group.

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On December 31, 2015, the contributions made by the Controller to the creation of mathematical provisions for benefits under the BD Plan reached R$ 15,451 (R$ 12,385 in 2014) and R$ 211,355 (R$ 238,713 in 2014) in the Consolidated group.

The Controller expects to contribute R$ 29,696 to the defined benefit plan in the next year, and R$ 216,015 in the Consolidated.

The average weighted duration of the defined benefit obligation of the Controller is 8.16 years, and the average in the Consolidated group is 10.15 years.

An analysis of the expected maturation of non-discounted benefits of post-employment defined benefit plans:

Parent Company


Parent Company on December 31, 2015	Up to 1 year		From 1 to 2 years		From 2 to 5 years		Over 5 years		Total

Pension Program		165,316		163,146		474,294		2,428,478		3,231,234
Consolidated

Consolidated on December 31, 2015	Up to 1 year		From 1 to 2 years		From 2 to 5 years		Over 5 years		Total

Pension Program		1,547,230		1,553,554		4,639,378		31,212,694		38,952,856

f) The actuarial assumptions relevant to determining the defined obligation are: discount rate, medical cost, expected salary increase, and mortality. The following sensitivity analyses were determined based on reasonably possible changes to the respective assumptions which occurred at the end of the reporting period, all other assumptions remaining constant.

Parent Company

●

If the discount rate were 0.25% higher (lower), the defined benefit obligation would be reduced by R$ 30,940 (increased by R$ 32,057).

●

If life expectancy increased (decreased) in a year for men and women, the defined benefit obligation would increase by R$ 34,693 (decrease by R$ 35,550).

Consolidated group

●

If the discount rate were 0.25% higher (lower), the defined benefit obligation would be reduced by R$ 380,518 (increased by R$ 396,007).

●

If medical costs were 0.25% higher (lower), the defined benefit obligation would increase by R$ 10,672 (decrease by R$ 9,863).

●

If life expectancy increased (decreased) in a year for men and women, the defined benefit obligation would increase by R$ 289,720 (decrease by R$ 299,407).

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The sensitivity analysis presented may not be representative of the real change in the defined benefit obligation, since it is not likely that the change would occur in isolated assumptions, considering that some assumptions may be correlated.

Additionally, when presenting the sensitivity analysis, the present value of the defined benefit obligation was calculated by the projected unit credit method at the end of the reporting period, which is equal to that used to calculate the liability of the defined benefit obligation recognized on the balance sheet.

There was no change in relation to previous years in the methods and assumptions used to prepare the sensitivity analysis.

g) Sums included in the fair value of plan assets


		PARENT COMPANY				CONSOLIDATED
	Asset Category	2015		2014		2015		2014
1	Immediately available values		8		10		1,508		4,826
2	Payable		123,083		79,534		888,620		862,037
4	Credit on Private Deposits		198,122		189,288		394,430		397,668
3	Fixed income investments		716,942		683,227		13,720,841		12,779,880
7	Variable income investments		134,653		142,535		2,126,328		2,718,104
8	Investment funds		194,643		239,191		1,160,367		1,905,109
9	Estate investments		134,367		142,249		841,652		861,319
10	Structured investments		-		-		385,643		275,595
11	Loans and financing		77,585		70,972		526,007		593,423
13	Others		2,099		1,997		89,360		140,856
12	(-) Funds receivable from sponsor		(42,995)		(13,256)		(408,644)		(454,484)
14	(-) Operationable receivables		(7,671)		(5,406)		(97,585)		(62,453)
15	(-) Contingence receivables		(7,085)		(2,397)		(437,104)		(456,687)
16	(-) Investment funds		(4,316)		(4,076)		(91,827)		(84,577)
17	(-) Administrative funds		(44,931)		(40,244)		(167,243)		(163,708)
18	(-) Pension funds		-		-		(27,344)		(16,310)

	Total assets		1,474,504		1,483,624		18,905,009		19,300,597

The fair value of capital and debt instruments is determined based on market prices quoted in active markets, while the fair value of securities investments are not based on market prices quoted in active markets.

NOTE 31 - PROVISION FOR CONTINGENCIES

The Company and its subsidiaries are partly involved in various lawsuits underway in the courts, especially in the labor and civil courts, and which are in various stages.

The Company Management adopts the procedure of classifying causes filed against the Company according to loss risk and the occurrence of the present obligation due to past event, based on the opinion of its legal advisors, as follows:

●

for causes where a negative outcome for the Company is considered likely, as well as meeting the condition of this obligation related to a past event, provisions are created;

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●

for causes where a negative outcome for the Company is considered possible, no provision is made, and the information is disclosed in explanatory notes, when relevant; and

●

for causes where a negative outcome for the Company is considered remote, no provision is made, and the explanatory notes disclose only information which is deemed relevant to fully understanding the Financial Statements, at management’s discretion.

Therefore, contingency provisions are created in order to cover any losses, deemed by the Company and its subsidiaries’ management, with the help of legal advisors, as sufficient to cover any losses in court cases.

On the closing date of these Financial Statements, the Company has the following provisions for legal obligations related to legal proceedings considered by Company Management, due to their nature, as being a likely risk of future disbursement:

a)Probable contingencies:


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
CURRENT
Labor		492		-		21,100		12,589
Tax		-		-		-		-
Civil		542,853		-		569,625		19,493

		543,345		-		590,725		32,082

NON-CURRENT
Labor		165,712		119,429		984,066		930,375
Tax		-		-		644,466		236,593
Civil		8,736,188		4,709,952		11,927,597		7,783,396

		8,901,900		4,829,381		13,556,129		8,950,364

		9,445,245		4,829,381		14,146,854		8,982,446

On December 31, 2015, the Company has classified the amount of R$ 543,345 as current liabilities based on the history of payments of judicial causes made in the last three years.

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These provisions evolved in the following way this year:


	PARENT COMPANY		CONSOLIDATED

Balance on 12/31/2014		4,829,381		8,982,446


Provisions		5,993,331		8,217,630
Reversal of Provisions		(294,541)		(1,096,853)
Monetary Adjustment		-		76,351
Write Off		(419,855)		(1,128,215)
Payments		(663,071)		(904,505)

Balance on 12/31/2015		9,445,245		14,146,854

a) Main legal proceedings against the Company and its subsidiaries with the likelihood of probable loss:

a.1) Civil lawsuits

In the Parent Company

There is an expressive judicial litigation involving the controller. The largest number of claims in this universe refers to claims aimed at getting monetary correction criteria to be applied to accounting credits of the Compulsory Loan on consumption of electricity.

These lawsuits challenge the monetary correction system determined by legislation governing the Compulsory Loan, and applied by the Company.

Credits of the compulsory loan were paid by the Company by means of conversions made in 1988, 1990, and 2005.

The difference has been presented to the Superior Court of Justice (STJ), and the merit has been decided by that Court. The matter, however, is currently subject to appeals to the Federal Supreme Court (STF), which are pending judgment.

Despite the fact that the matter had been submitted to the STF, due to the precedent of the STJ, decided under the terms in article 543-C in the Code of Civil Procedure of 1973, claims filed, have been following the regular course and, consequently, there have been several convictions for the payment of monetary adjustment differences related to this period, and as result of these, Eletrobras have been subject to many executions, and there is no agreement between Eletrobras and the plaintiffs as for the calculation of the due amount.

However, in the third quarter of 2015, the STJ issued decisions defining the parameters for the method to calculate such executions, accepting some of the claims made by

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Eletrobras, although not entirely, causing adjustments to the calculation methods adopted by Eletrobras and the risk classification of these claims and consequent difference in the provision for contingencies in the year ending on December 31, 2015.

There are currently approximately 3,868 lawsuits pursuing this same object, underway in various instances. The Company maintains a provision for these civil contingencies, at the Controller, worth R$ 9,279,041 (December 31, 2014 – R$ 4,306,609) for these processes.

These lawsuits are not to be confused with those filed to obtain a redemption of Bearer Obligations, which are currently unenforceable, issued as a result of the Compulsory Loan.

It is important to record the existence of processes filed against Amazonas Energia, where Eletrobras was included as defendant, as it appeared as guarantor and main debtor of Amazonas in several electricity supply contracts.

These processes arise out of payments, fines, and fees charged due to alleged delays and default by Amazonas in compliance with obligations related to such contracts.

Regarding processes related to this object, four of them have been judged to be inapplicable (decision favorable to Eletrobras) in lower courts, six have been judged as applicable (unfavorable to Eletrobras) in lower courts, and others are pending judgment. Processes judged to be applicable (unfavorable to Eletrobras) are currently pending judgment of appeals filed by Eletrobras.

Processes judged to be inapplicable or which decision has not been issued by the lower court are classified as possible risk. However, eight (8) processes which were judged to be applicable had their risk classification adjusted to probable, because this is a discussion related to the examination of facts and evidences, being hard to be reformed in higher courts. The amount of these processes sum R$ 617,002.

Lastly, it is important to note a process related to the execution of a contractual guarantee provided for in contract executed with Companhia Energética Manauara, which risk classification should also be amended to probable, to the extent that the obligation is expressly provided for in the contract, which makes Eletrobras’ defense much harder. The amount of this process sums R$ 11,739.

Specifically regarding these energy supply contracts where Eletrobras appears as guarantor, the Company maintains the provision of R$ 628,741 (R$ 419,855 on December 31, 2014) grounded on the asset with the same amount before the subsidiary Amazonas Energia.

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Chesf

i. Chesf is the claimant in a lawsuit which is petitioning for an addendum (Factor K in the analytical correction of prices) to the contract for civil construction of the Hydroelectric Plant Xingó to be declared partially invalid. The contract was signed with the consortium formed by Companhia Brasileira de Projetos e Obras – CBPO, CONSTRAN S.A. – Construções e Comércio e Mendes Júnior Engenharia S.A., and for the refunding of sums paid for Factor K, approximately R$ 350 million (value at that time, converted into reais), in double.

The Pernambuco State Courts dismissed the lawsuit filed by the Company, and accepted the counterclaim presented by the defendants.

Chesf and the Federal Union, which is assisting it in this process, submitted special and extraordinary appeals to the Supreme Court. In August, 2010, the Supreme Court granted one of those special appeals submitted by Chesf, reducing the value of the cause, which means a substantial reduction in the honorariums that may be paid in the main lawsuit. The same Supreme Court rejected the remaining special appeals submitted by Chesf and the Federal Union, and therefore maintained the decision of the Pernambuco Court, which dismissed the declaratory action filed by Chesf and granted the counterclaim submitted by the defendants, which resulted in Chesf submitting requests for clarification, which went to trial in December 2012, and were concluded in December 2013, and were all rejected.

At the same time, and since the conclusion of the processing of the fact in the ordinary instances, the defendants have been taking various initiatives before the ordinary Pernambuco State courts, to obtain enforcement of the sum requested in the counterclaim.

In August 2013, the defendants took the initiative before the 12^th Civil Court of Recife, PE, to obtain provisional enforcement of the sums which, by their own calculations, would be the correction of the sum granted them by the TJPE (Pernambuco State Court). In this case, CHESF was ordered to pay the sums in question, but submitted a “pre-enforcement challenge” (pointing out, supported by Supreme Court case law, various irregularities in the procedures that would immediately disallow this provisional enforcement, without prejudice to other specific topics challenged in the calculations of the defendants themselves due to the TJPE’s ruling): After a response from the defendants and a response from Chesf, on December 31, 2013 the process was awaiting court examination of this “challenge.” On August 22, 2014 the pre-enforcement challenge was dismissed, and the seizure via Bacenjud of R$ 948,670 was ordered. A surety bond was offered for R$ 1.3 billion in place of the online seizure, which was accepted on August 28, 2014 by the Judge of the 12^th Civil Court, who ordered the immediate release of the sum seized. An appeal filed by the Consortium caused the suspension on September 15, 2014 of the effects of the decision which ordered the release of the sum; however, on September 24, 2014, the court quashed the Requests for Clarification filed by Chesf regarding the provisional execution, for lacking the condition of admissibility, and therefore revoked the constriction measures ordered incidentally.

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The Consortium filed a Claim, assigned to the 6^th Civil Chamber of the TJE on November 6, 2014, which was awaiting trial on December 31, 2014.

Considering the development of all of the proceedings referred to above and all of the rulings on the appeals presented until then, the Management, based on the opinion of its legal advisors and on calculations that took into account the suspension of payments related to Factor K and their respective monetary correction, is keeping a provision record under Non-Current Liabilities, the sum of which, updated to December 31, 2015, is R$ 1,071,554 (December 31, 2014 – R$ 850,891), to cover any losses arising from this matter. There is no time forecast for the outcome of these proceedings.

ii. Lawsuit for compensation of 14,400 ha of land from the Aldeia farm, filed with the Sento Sé (BA) county on behalf of the estate of Anderson Moura de Souza and his wife. The sentence in the first instance granted the request and condemned Chesf to pay the sum of R$ 50,000 as principal, interest and monetary correction. Chesf filed an appeal to the Bahia state court and the process was transferred to the Federal Justice due to intervention by the Federal Union as assistant. Chesf’s Management, based on the opinion of its legal advisors, considers the likelihood of loss to be probable, and therefore has a provision for R$ 100,000 recorded under its non-current assets (December 31, 2014 – R$ 100,000). As of December 31, 2015, the lawsuit was still pending judgment.

iii. Lawsuit for compensation filed by Indústrias Reunidas Raimundo da Fonte S/A (Vitivinicola Santa Maria S.A), due to the flooding caused by the 1992 flood of the São Francisco river.

The sentence, which is final ordered a provisional settlement, and remitted to experts for definition of the consequential damages and lost profit. A single agricultural engineer was designated, who has the competence to determine the consequential damages but not the lost profit. The report was challenged by Chesf, who requested that the 1^st Civil Court order an accounting expert report to be made in order to obtain an amount, even if approximate, for lost profits, considering the activity developed by the petitioner. The request was rejected, and an interlocutory appeal was filed, which upheld the dismissal, special appeal (which the TJPE declined to accept) and the Grievance on a special appeal (AREsp 377.209-PE), which was not granted, and Bill of Review that was not granted either, resulting in the final decision of the process. The Company has made judicial deposits in the amount of R$ 61,004, that has been withdrawn by the party and waits for the issuance of the decision extinguishing the execution.

Eletronorte

i. Expropriations filed by the Company with the intention of compensating the owners of the areas affected by the formation of the Balbina Hydroelectric Power Plant (AM) reservoir. Most of the proceedings are in the fulfillment of sentence phase. There is a discussion regarding the legitimacy of the deeds presented by the expropriated parties, and in fact the Federal Public Prosecutor has filed a class action lawsuit contesting those deeds. The provision created for this cause as of December 31, 2015 is R$ 375,449 (December 31, 2014 – R$ 364,549).

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ii. Relates to the refund of values to Sul America Companhia Nacional de Seguros due to the payment made to Albrás Alumínio Brasileiro S.A. for the claim incurred because of interruption in the supply of electricity. The process value is R$ 236,731 (December 31, 2014 – R$ 229,835). The balance had significant increase mainly due to the change in the risk classification of the civil claim, from possible to probable.

a.2) Labor-related

Furnas:

i. Classification of process No. 010058-17.2012.5.18.0131, labor nature, as probable, in the amount of R$ 21,044, filed by the Union of Electric Workers of Furnas and DME, classified as possible risk by December 31, 2014, due to the presentation of calculation by the Plaintiff in Court.

ii. Inclusion of process No. 0171500-23.1995.5.01.0046, labor nature, in the amount of de R$ 5,957, related to supplement to retirement (equality). Process in the appeal phase due to the filing of a Bill of Review of Brief by Fundação Real Grandeza.

Ceal

The Alagoas State Union of Urban Industry Workers filed a labor claim on behalf of the Company’s employees, as procedural substitute, seeking to receive alleged wage differences not received by virtue of implementation of the so-called “Bresser Plan” (Decree-Law No. 2,335/87).

The claim was granted by the Honorable Second Board of Conciliation and Judgment of Maceió-AL, a decision which was confirmed by the Regional Labor Court of the 19^th Region, and the decision is final.

It so happens that, in execution of the sentence, the 2^nd Labor Court of Maceió understood at the time that there would be no limitation on the base date for the category, which make execution excessively burdensome.

Hence, the risk of loss was evaluated as probable as far as the loss being limited to the base date, since the judgment limiting the base date on the category will be issued with the continued execution.

Payment of the wage differences was limited to the base date through Abstract 322 of the Supreme Labor Court (TST), which established: salary adjustments derived from so-called “triggers” and URPs (price reference unit), established legally as an advance, are owed only until the base date for each category.

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We emphasize that among the applicable legal measures, stays of execution were filed, which would allow an examination of the limitation of calculations to the base date for the category, a procedure also adopted by the Attorney General of the Union.

Add to this the fact that the Union joined in the action, which reinforces the Company’s defense in the attempt to obtain a limitation on the base date. Also the decision dated March 15, 2011 by the Regional Labor Court of the 19^th Region, proc. 251900.68.5.19.1989.0002, for the Companhia de Abastecimento de Águas e Saneamento de Alagoas – CASAL, which limited their base date. CEAL has a contingency provision for this matter in the sum of R$ 5,281(December 31, 2014 – R$ 4,687).

a.3) Tax

Eletronorte

There are two relevant provisions for Acts of Infringement and Fiscal Notification in the amount of R$ 319,529, specified below and other less relevant provisions involving the Tax on the Circulation of Goods and Services (ICMS) and federal taxes before the Office of the Federal Revenue of Brazil.

The Acts of Infringement and Fiscal Notification refer to the Fee to Control, Accompany, and Supervise Exploration and Use of Hydric Resources Activities – TFRH, regulated by Decree No. 1,227/2015, aimed to pay for the supervision and use of hydric resources in the territory of the state of Pará. The first Act of Infringement was filed on August 27, 2015 in the amount of R$ 206,316 related to the non-payment of TFRH in the period from April to June 2015. The second Act of Infringement was filed on November 11, 2015 in the amount of R$113,212, related to the period between July and September 2015. In the administrative and judicial sphere, the appeal related to the first Act of Infringement of the Company was not granted, regarding the second Act of Infringement, the Company has filed Objection, but there is no expectation of results different from the first one. Therefore, the Company proceeded to establish a provision for both Acts of Infringement.

Furnas

Inclusion of process No. 0084092-14.2015.4.02.510, tax nature, being an annulment claim discussing tax credit arising out of the administrative process No. 16682.720330/2012 (collection of PIS/COFINS on RTE and Itaipu) in the amount of R$ 126,377, and this requirement was guaranteed by judicial deposit made in the attached procedure, no. 064673-08.2015.4.02.5101. On July 6, 2015 Furnas made a judicial deposit in the total amount required at the time, summing R$ 117,309.

b) Lawsuits filed against the Company and its subsidiaries where the likelihood of future disbursement is possible, and not provisioned.

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For all of the main lawsuits described below, the Managements of the Subsidiaries in question and of the Company, based on the opinion of their legal advisors, consider the probability of loss to be possible, with no need to record a provision.


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014

Labor		447,656		240,261		1,228,770		1,212,589
Tax		752,654		649,934		6,253,906		7,802,015
Civil		14,329,202		12,097,552		23,715,573		18,792,170

		15,529,512		12,987,747		31,198,249		27,806,774

b.1) Civil

Parent Company

i. The value of possible causes against the controller is substantially formed by those related to the Compulsory Loan, which claims are not contained in the court decision of August 2009. Note 25 contains a description of the nature of the Compulsory Loan. In December, 2015, the value of possible causes related to the Compulsory Loan was R$ 3,306,781 (December 31, 2014 – R$ 7,349,142).

ii. With regards to the lawsuits for which the risk assessment is possible, we point out the administrative lawsuit filed by the National Electrical Energy Agency (ANEEL) by means of Dispatch no. 63, of January 13, 2014, which ordered Eletrobras to reimburse to the RGR account the historical sums of R$ 1,924,188 and R$ 113,577, mainly from amortizations of the balance owed on financing not refunded to the RGR and the appropriation of financial fees from said fund in the period of 1998 to 2011.

The above-mentioned dispatch also orders the amounts in question to be corrected at the rate of the Banco do Brasil extra-market rate from the date in which they should have been refunded to the RGR until they are effectively returned to that fund. Eletrobras, in disagreement with this contradictory position by ANEEL, filed an administrative appeal on January 24, 2014, alleging the expiration of claims for reimbursement of those sums, the non-existence of an unlawful act by itself, and objective good faith in the management of the resources. On December 31, 2015, the value of the cause was R$ 8,031,500.

iii. With regards to lawsuits for which the risk assessment is possible, we point out the lawsuits from the Independent Energy Producers (PIEs). These lawsuits are filed against the subsidiary Amazonas Energia, and Eletrobras was included as co-defendant, since it is guarantor and main debtor of Amazonas in many energy supply contracts, and result in the sum of R$ 664,931 (December 31, 2014 – R$ 773,900)

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The lawsuits that were dismissed or in which a sentence was not yet handed down in the first instance are classified as a possible risk of loss.

Those lawsuits derive from payments, fines and fees or supposed delays and default by Amazonas in the fulfillment of obligations from those contracts.

iv. Between July 22 and August 15, 2015, two class actions related to securities have been filed against Eletrobras, some of its officers and one former officer of the District Court of the United States for the Southern District of New York (SDNY). On October 2, 2015, these actions were joined (consolidated) and the Court has appointed Dominique Lavoie and the city of Providence as Lead Plaintiffs. The plaintiffs have submitted an amended claim on December 8, 2015, supposedly on behalf of investors who acquired Eletrobras stocks traded on the New York Stock Exchange between August 17, 2010 and June 24, 2015 and, on February 26, 2016, they submitted a second consolidated amended claim. The second consolidated amended claim alleges, among other things, that Eletrobras and the individual defendants were aware or should have been aware of the alleged fraud committed against the Company by a cartel of construction companies, as well as of the bribery allegedly requested of and received by Eletrobras employees; that Eletrobras and the individual defendants have made materially relevant distorted representations and committed omissions regarding the alleged fraud; and that the price of the Company stocks dropped when the alleged fraud was disclosed. The plaintiffs did not specify the value of the damages claimed, although this value, when specified, may be relevant for the Company. Eletrobras has hired legal consultants and intends to defend itself against the allegations presented in this action.

Due to countless uncertainties related to all these issues that affect the reasonable determination of an amount for the claim, the Company fails to present an estimate value for the claim. The Company is unable to ascertain any reasonable estimate of the potential loss for this litigation. Should there be an unfavorable decision or a settlement, the Company may pay substantial amounts, which may have a substantial effect on its financial position, its cash flows and future results. Eletrobras has contracted North-American legal consultants and is defending itself against the allegations presented in the law suits.

v. On December 19, 2013, ANEEL published Resolution No. 1.674, establishing the fee to transfer power from Itaipu for 2014 in the amount equivalent to US$26.05 a month, not taking into account the negative balance of the Itaipu energy trading account in the amount of R$ 881,785, as informed by Eletrobras.

Understanding that the agency decision is mistaken, Eletrobras has filed a claim for reconsideration on January 2, 2014, claiming that the resolution violates the terms in Decree No. 4,550/2002 in different aspects, therefore, being absolutely illegal, infringing the principles of hierarchy of laws and the prohibition against illicit enrichment.

LOGO

Eletrobras’ claim was granted, recognizing that the amounts corresponding to the default of payments made by distribution companies to Eletrobras should be taken into account in the balance of the Itaipu energy trading account, determining that expenses incurred with the default and other debts held by shareholders could be offset, in an updated manner, upon defining the power transfer fee for 2015. On December 31, 2015, the value of the cause is R$ 1,109,973.

vi. This is an ordinary claim filed by Energimp aiming to obtain a judicial statement on the right to receive the full amount of energy generated, according to fees adopted under Proinfa, related to a specific period where it was not included in the program, due to the termination administrative procedure that aimed to determine irregularities in the qualification process.

The plaintiff obtained a preliminary decision determining that Eletrobras should transfer the due and payable payments and, later, the low court decision judged the claim as applicable.

Eletrobras has complied with the preliminary decision, transferring the fees from the Proinfa account, since the issuance of the preliminary order.

Notwithstanding compliance with the preliminary order, Eletrobras has filed an appeal claiming to reform the decision, and this appeal is pending judgment.

It is important to clarify that this claim refers to funds from the Proinfa account, which is managed by Eletrobras, but held by the Federal Government, not being related to ordinary funds of Eletrobras. On December 31, 2015, the value of the cause is R$ 316,353 (December 31, 2014 – R$ 263,004).

Chesf

The ordinary lawsuit filed by AES Sul Distribuidora Gaúcha de Energia, seeking the accounting and payment by ANEEL of market transactions related to the positive exposure (profit) obtained by not opting for the relief (insurance) in December of 2000. An interlocutory decision issued in the interlocutory appeal lodged by AES Sul against ANEEL resulted in a payment of approximately R$ 110,000. Based on the evaluation of its legal attorneys, management has classified the risk of loss in this lawsuit as “possible,” and estimated the sum at R$ 110,000.

Class action lawsuit filed by the Federal Public Prosecutor in the Judiciary Paulo Afonso – BA mid-lower region, which, in short, aims to obtain a court order declaring the non-existence of the Agreement Addendum of 1986, signed in 1991, between Chesf and representatives of the Union Hub of Rural Workers of the São Francisco mid-lower region. On March 26, 2014, the Appeal filed by AES Sul Distribuidora Gaúcha de Energia was judged and granted by the 1st Region TRF. Chesf filed a bill of review against the decision that granted the Appeal, and it was rejected. On December 31, 2015, the decision that rejected the bill of review was pending publication.

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ii. Indemnity claim filed by Hidroservice, process No. 0009364-44.2003.4.05.8300 before the 2nd Federal Court - PE, aiming to annul the securitization agreement electric sector with indemnity for impairment in the negotiation of securities received, bank interest. The value attributed to the cause was R$ 250,000 (historical), estimated at R$ 598,500. Appeals were not granted, maintaining the decision that judged the claim to be inappropriate. Request for Clarification judged on November 26, 2013 to correct the material error identified by Chesf and reject the appeals of the parties. Filing of Special Appeal and Extraordinary Appeal by Hidroservice. Eletrobras and the Federal Government have filed Special Appeal claiming increase of the attorneys’ fees. The Extraordinary Appeal filed by Hidroservice and the Special Appeals filed by Eletrobras and the Federal Government have been rejected and the Special Appeal filed by Hidroservice was remitted to the STJ, where judgment is pending. Hidroservice, Eletrobras and the Federal Government have filed bills of review in order to have their appeals admitted.

iii. Process No. 2014.01.1.193316-6, before the 23rd Civil Court of the Judicial Section of Brasília – DF. This is an ordinary claim filed by Energia Potiguar Geradora Eólica S.A., Torres De Pedra Geradora Eólica S.A., Ponta do Vento Leste Geradora Eólica S.A., Torres de São Miguel Geradora Eólica S.A., Morro dos Ventos Geradora Eólica S.A., Canto da Ilha Geradora Eólica S.A., Campina Potiguar Geradora Eólica S.A., Esquina dos Ventos Geradora Eólica S.A., Ilha dos Ventos Geradora Eólica S.A., Pontal do Nordeste Geradora Eólica S.A., and Ventos Potiguares Comercializadora de Energia S.A., claiming for indemnity for material damages (consequential damages and loss of profit), in the amount of R$ 243,067, and that arise out of alleged delay in the go-live of LT Extremoz II – João Câmara II and SE João Câmara II. On December 31, 2015, the process was under the recognition phase, with the filing of a response.

iv. Process No. 33328-13.2015.4.01.3400 – 15th Federal Court of the Judicial Section of the Federal District. This is a public civil action filed by ANEEL aimed to collect from Chesf alleged losses that end users of electricity incurred with delays in works related to the so-called Shared Generation Facilities - ICGs. This loss sums R$ 1,470,885. Chesf received the notification on October 23, 2015, and filed its response on December 4, 2015. At this time, it is impossible to estimate the end of this cause, because this is the first claim in the country to discuss this issue (there is no history in Brazil of the filing of collective claims with a similar object).

Eletrosul

Compensation lawsuit brought by Mineradora Tibagiana Ltda., and which Consórcio Energético Cruzeiro do Sul is a party to. Eletrosul has a 49% stake in R$ 386,396, so R$ 189,334.

Furnas

i. Process no. 0018333-44.2005.4.01.3400, civil nature, ANEEL – National Regulatory Agency of Electricity, in the amount of R$ 103,000 (December 31, 2014 - R$ 112,270), invalidate the ANEEL act that forces Furnas to sign CUST with Empresa Produtora de Energia Cuiabá – the provisioned value refers to the value that Furnas did not pay as fees because it has a favorable preliminary decision that suspends execution of CUST – the risk is possible considering that in the lower court the claim was judged to be inapplicable, but furnas obtained a preliminary decision by the panel that will judge the appeal to suspend the execution of the contract until final judgment of the claim.

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ii. Inclusion of process No. 0230268-26.2015.8.19.0001, civil nature, in the amount of R$ 123,476, relates to the statement of non-existence of fine and collection for material damages by Consórcio Fornecedor Batalha (CONBAT). The claim aims to suspend, primarily, and annul, by the end of the claim, the improper fine imposed by the Defendant Furnas to Plaintiff CONBAT, avoiding inclusion of the consortium in CADIN and reestablishing the financial and economic balance of the administrative contract, claiming delay by the Defendant Furnas in compliance with its obligations. The amount included in the report refers to the provision value and not the cause. The possible risk was classified considering that the purpose of the claim needs to go through the discovery phase, and after this phase, the risk of disbursement is to be evaluated again.

iii. Updating process No. 0027531-15.2007.8.19.0001, civil nature, by Inepar S.A Indústria e Construções, related to material damage, variation of R$ 94,137, with current value at R$ 138,105 (R$ 43,968 on December 31, 2014).

b.2) Tax-related

Parent Company

It is a Special Appeal of Disagreement, filed by the National Finance Attorney, based on Article 7, II, of the Internal Regulations of the Superior Chamber of Tax Resources, against the rightful Ruling No. 202-19.201, unanimous, of the Second Chamber of the First Taxpayer Council.

In the case, a Notice of Infraction was served on Eletrobras, with the requirement to pay COFINS for taxable events which occurred in the period of February 1999 to November 2002, specifically regarding financial income earned from financing, loan and financial assignment contracts, and exchange fluctuations, derived from contracts between Eletrobras and Itaipu Binacional.

Eletrobras defended itself from the challenge, alleging that it excluded the revenue in question from the COFINS taxable based supported by Clause XII, subsection “b” of the Brazil-Paraguay treaty, which was the object of Legislative Decree No. 23, of May 30, 1973.

Despite the challenge submitted, the tax requirement made by the Office of the Brazilian Federal Revenue Service in Brasilia was maintained, where Eletrobras filed a voluntary appeal, which was granted by the 2^nd Chamber of the Taxpayer Council.

LOGO

The Union (National Finance), filed a special appeal of disagreement, requesting annulment of the ruling, and that appeal is pending trial. In this manner, the last decision of the Taxpayer Council was favorable to Eletrobras, and we consider the decision to be fully consistent with Federal Supreme Court case law. The case value as of December 31, 2015: R$ 448,841 (December 31, 2014 – R$ 403,397).

Furnas

i. Process no. 16682.720.517/2011-98 in the administrative phase, regarding the notice of assessment from the Brazilian Federal Revenue Service (RFB) due to a fiscal procedure to verify the determination of corporate income tax (IRPJ) and CSLL for the calendar year of 2007, particularly with regards to amounts considered for: reduction of net income; depreciation expenses; and other operating expenses. Value on December 31, 2015: R$ 1,229,555 (December 31, 2014 - R$ 1,070,522).

ii. Process no. 16682.720.516/2011-43 in the administrative phase, regarding the notice of assessment from the Brazilian Federal Revenue Service (RFB) due to a fiscal procedure to verify a possible insufficiency in the collection or declaration of contributions to the PIS/Pasep and Cofins in the period of Oct/2006 to Dec/2009. Value as of December 31, 2015: R$ 1,160,978 (December 31, 2014 - R$ 1,010,814).

iii. Process no. 16682.720.878/2013-04 in the administrative phase, regarding the notice of assessment from the Brazilian Federal Revenue Service (RFB) due to a fiscal procedure to verify the use of an expense in 2000 (due to assuming a debt with the Real Grandeza Foundation) as a fiscal loss recorded in 2009, and consequently offset in the calendar years of 2009, 2010 and 2011. The tax authority states that the record was made incorrectly, since the expense should have been accounted for in its period of competence, in 2000. As such, it disallowed the expenses deducted in the calendar year, 2011. Value as of December 31, 2015: R$ 744,430 (December 31, 2014 - R$ 634,585).

iv. Process no. 16682.720.874/2013-18, a challenge filed against the notice of assessment from the Brazilian Federal Revenue Service (RFB) due to Furnas having treated the revenue from the use by Itaipu of the electrical network as exempt income. Default entry of difference in amounts owed for Pasep/Cofins and those declared by means in the DCTF (declaration of federal tax credits and debits). Value: R$ 107,303 (December 31, 2014 - R$ 182,114 ).

v. Inclusion of process No. 0085231-98.2015.4.02.5101, tax nature, in the amount of R$ 651,430, due to Tax Execution filed by the Federal Government to require tax credit arising out of administrative process No. 16682.720331/2012-10, that requires from Furnas differences found in IRPJ and CSLL due to compensations with no use of PER/DCOMP.

vi. Process No. 16682.722946/2015-23, tax nature, in the amount of R$ 558,631, by the Office of Federal Revenue of Brazil, collection of IRPJ and CSLL + interest and fine because: Furnas recorded, wrongly, in 2009, as fiscal loss, an expense incurred in 2000 because of a debt assumption contract with Fundação Real Grandeza, in order to improperly reduce the actual profit from the calculation base of CSLL in 2009, 2010, and 2011 and, consequently, tax paid; Furnas had

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improperly excluded, from the IRPJ base a fine collected due to the lack of recognition of monthly estimates of IRPJ and CSLL due to compensations and that were disregarded by the fiscal, and CSLL amounts as “reversion of balance of non-deductible provisions” and “other exclusions,” amounts related to payments made as interest over recognition of debt between Furnas and Real Grandeza. 3) Furnas has proceeded with the compensation of credits while calculating IRPJ and CSLL without per/dcomp, and the fiscal considered these compensation as non-existing, asking, additional to the amount that was not paid, for a fine for the non-payment of monthly payments.

vii. Process No. 16682.721.073/2014-51, tax nature, in the amount of R$ 245,543, by the Office of Federal Revenue of Brazil, collection of single fine related to CSLL because of compensation made by Furnas without per/dcomp – act of infraction – collection of CSLL, interest and proportional fine due to the portion determined by the fiscal because of the use of credits by Furnas for fiscal loss calculated in 2007 – collection of single fine related to IRPJ because of compensation made by Furnas without per/dcomp – collection of IRPJ, interest and proportional fine due to the portion determined by the fiscal because of the use of credits by Furnas for fiscal loss calculated in 2007.

c) Processes where the risk of disbursement is remote, not provisioned

Chesf

Collection lawsuit underway by the contractor Construtora Mendes Júnior S.A., hired to build the Itaparica hydroelectric plant, due to alleged financial losses resulting from a delay in the payment of invoices by the Company. The risk of loss in this lawsuit is considered by its managers, supported by legal advisors, as remote.

In this collection lawsuit, contractor Construtora Mendes Júnior S.A. obtained a sentence from the 4^th Civil Court, which was later annulled, which sentenced Chesf to pay a sum which, including attorney’s fees and monetary correction until August of 1996, calculated by the criteria determined by the court, would be approximately R$ 7,000,000, a sum which has not been updated since. The Federal Public Prosecutor submitted a statement requesting that the entire process be dismissed, and in the merits, requested that it be inadmissible. The contractor Construtora Mendes Júnior S.A. filed appeals to the Supreme Court (ARESP), and on December 31, 2012, in that instance, the Federal Public Prosecutor issued an opinion finding that the appeals should be rejected. The Federal Prosecution Office submitted an opinion for the rejection of the appeal, judged to be inapplicable on February 19, 2014. Mendes Junior has filed a Regulatory Appeal, converted into REsp and presented to be judged on December 4, 2014, with oral statements presented by the parties. Because Judge Benedito Gonçalves asked to see the files, the session was suspended, and resumed on December 18, 2014, when the First Panel, unanimously, decided upon rejecting the Special Appeal filed by Mendes Júnior. The decision was published on March 19, 2015. Mendes Júnior filed a request for clarification, and Chesf was granted the right to see the files. On December 31, 2015, the request of clarification was pending judgment by the STJ.

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NOTE 32 – ASSETS DECOMMISSION OBLIGATION

The Company recognizes decommissioning obligation in thermonuclear power plants, which consist of a program of activities required by the National Nuclear Energy Commission (CNEN), which allows dismantling these nuclear facilities safely and with a minimal impact on the environment, at the end of their operating cycle.

Given the specific characteristics of operating and maintaining thermonuclear power plants, whenever there are changes to the estimated cost of demobilization, due to new studies and new technological advancements, the decommissioning charges should be changed so as to adjust the balance of the obligation to the new reality.

The balance of the obligation recorded at current value, as of December 31, 2015, is R$ 1,201,186 (December 31, 2014 – R$ 1,314,480).


	CONSOLIDATED
Balance of Liabilities, at present value, on 12/31/2014		1,314,480

Adjustment to present value / exchange variation in the period		(113,294)

Balance of Liabilities, at present value, on 12/31/2015		1,201,186

NOTE 33 – ADVANCE FOR FUTURE CAPITAL INCREASE

The resources originated from the National Treasury, and are destined for the projects below:


	PARENT COMPANY AND CONSOLIDATED
	12/31/2015	12/31/2014
Acquisition of shares CEEE / CGTEE	196,544		173,521
Transmission line Banabuí - Fortaleza	3,318		2,929
UHE de Xingó	9,322		8,230
Transmission line in the State of Bahia	1,459		1,288
Fundo Federal de Eletrificação - Law 5,073/66	8,650		7,638

	219,294		193,606

LOGO

NOTE 34 – ONEROUS CONTRACTS


	CONSOLIDATED
	Balance on 12/31/2014		PROVISIONS		REVERSALS		Balance on 12/31/2015

Transmission
Contract 062/2001		608,488		120,990		-		729,478
LT Recife II - Suape II		7,657		43,367		-		51,024
LT Camaçari IV - Sapeaçu		2,917		96,163		-		99,080
Others		13,028		6,108		(2,669)		16,467

		632,090		266,628		(2,669)		896,049

Generation
Camaçari		91,122		-		(10,681)		80,441
Termonorte II		-		-		-		-
Funil		132,219		-		(48,431)		83,788
Mauá-Klabin		-		-		-		-
Complexo Paulo Afonso		-		-		-		-
Coaracy Nunes		30,361		197,730		-		228,091
São Domingos		-		-		-		-
Furnas		168,701		-		(168,701)		-
Marimbondo		25,989		53,935		-		79,924
Others		51,406		78,666		-		130,072

		499,798		330,331		(227,813)		602,316

		1,131,888		596,959		(230,482)		1,498,365


Total Current Liabilities (*)		1,687		7,386		-		9,073

Total Non-Current Liabilities		1,130,201		589,573		(230,482)		1,489,292


TOTAL		1,131,888		596,959		(230,482)		1,498,365


(*) Amount recorded in item Other current liabilities
	12/31/2015				12/31/2014
	BALANCE		DISCOUNT RATE		BALANCE		DISCOUNT RATE
Transmission		896,049		7.00%		632,090		6.57%
Generation		602,316		7.50%		499,798		6.69%

TOTAL		1,498,365				1,131,888

Of the provision for onerous contracts maintained on December 31, 2015, R$ 1,270,274 (R$ 1,101,527 on December 31, 2014) arise from concession contracts extended under Law No. 12,783/13, due to the tariff determined presenting an imbalance in regards to current operating and maintenance costs. Given this, the present obligation according to each contract was recognized and measured as a provision, and may be reversed due to adjustments in the cost reduction and/or tariff revision program.

Regarding transmission contracts, premises adopted to calculate the onerous contract included the transmission revenue from concession contracts authorized by Resolution No. 1,918, dated June 23, 2015, a discount rate of 7.00% and the effectiveness of the respective contracts.

The reversion in the provision due to onerous contract of UHE Furnas and Funil is due to two reasons: RAP increase, due to update for the 2015-2016 cycle, according to ANEEL Approving Resolution No. 1,918, dated June 23, 2015 (a 17.59% increase compared to the 2014 – 2015 cycle); and the reduction of costs in the item Services, that is affected when contracted employees leave, in 2018.

LOGO

The variation seen in the item UHE Camaçari was due to the recording of reversion of onerous contract arising out of premises for calculation, that included generation revenue from plants, defined under the terms in Resolution No. 1,924, dated July 28, 2015, added with PIS/PASEP, COFINS and Financial Compensation for the Use of Hydric Resources–CFURH.

In 2015, the subsidiary Eletronorte has found that the contract of UHE Coaçari Nunes presented significant evidences of onerous aspects.

NOTE 35 – LONG-TERM OPERATING COMMITMENTS

The Company’s long-term operating commitments, mainly related to purchase agreements for electrical energy and fuel, are:

35.1. Purchase of energy



Companies	2017		2018		2019		2020		2021		After 2021

Amazonas D		635,888		662,606		716,042		750,154		785,509		3,093,977
CGTEE		210,360		210,360		210,360		172,884		172,884		345,768
Chesf		312,502		299,559		314,542		329,594		4,321,655		-
Distribuidora Alagoas		719,541		815,969		882,501		857,696		890,258		-
Distribuidora Piauí		803,686		854,142		836,801		770,165		773,796		281,575,369
Distribuidora Rondônia		2,156,151		-		-		-		-		-
Eletrosul		275,685		254,399		264,407		254,484		264,407		3,225,297
Furnas		551,187		542,988		552,359		544,462		541,816		3,126,539

Total		5,665,000		3,640,023		3,777,012		3,679,439		7,750,325		291,366,950


35.2. Fuel suppliers

Companies	2017		2018		2019		2020		2021		After 2021

Amazonas D		2,703,545		2,703,545		2,703,545		2,703,545		2,703,545		26,805,832
CGTEE		136,189		136,189		136,189		136,189		136,189		408,567
Eletronuclear		77,164		104,241		193,483		-		-		-

Total		2,916,898		2,943,975		3,033,217		2,839,734		2,839,734		27,214,399

The main activity in the purchase of fuel is in the subsidiary Eletronuclear, which has contracts signed with Indústrias Nucleares Brasileiras - INB for the purchase of Nuclear Fuel for the production of electrical energy, to recharge the thermonuclear power plants (UTN) Angra I and Angra II, as well as to deploy UTN Angra III and recharge it in the future.

The subsidiary Amazonas has a long-term commitment for the purchase of natural gas to generate thermoelectrical energy with Companhia de Gás Natural do Amazonas – CIGÁS. The final term of the contract is 11/30/2030.

35.3. Purchase of Energy from Independent Producers - PROINFA

The Company supports the development of projects to diversify the Brazilian energy grid, through the alternative electrical energy sources incentive program implemented by Law 10.438, of April 2002, seeking regional solutions for the use of renewable energy sources and providing incentives for the growth of national industry.

LOGO

PROINFA establishes the operation of 144 power plants, totaling 3,299.40 MW of installed capacity. Power plants in the program will account for the generation of approximately 12,000GWh*/year, equivalent to 3.2% of the total annual consumption in the country. The 3,299.40 MW contracted are divided into 1,191.24 MW* from 63 Small Hydroelectric Power Plants (PCHs), 1,422,92 MW from 54 eolic power plants, and 685.24 MW from 27 biomass based power plants. In 2006, the Company agreed to purchase electrical energy produced by PROINFA for a period of 20 years, and to transfer this electrical energy to transmission and distribution concessionaires, which in turn will transfer the electrical energy to free and self-producing consumers, excluding low-income consumers, in the proportion of their consumption. Each transmission and distribution concessionaire pays the Company the annual cost of electrical energy provided to captive consumers, free consumers and self-producing consumers connected to their facilities, in twelve monthly payments, each of them made in advance in the month in which the energy is to be consumed.

*Information not audited by independent auditors

35.4. Sale of energy



Companies	2017		2018		2019		2020		2021		After 2021

CGTEE		557,520		557,520		557,520		557,520		557,520		1,672,560
Chesf		988,720		903,070		947,460		993,090		-		18,358,900
Distribuidora Rondônia		1,114,099		1,357,047		1,376,269		-		-		-
Eletrosul		594,084		587,877		482,746		448,757		447,736		7,097,965
Eletronuclear		2,246,260		2,246,260		2,246,260		2,246,260		2,246,260		-
Furnas		3,725,242		3,039,313		3,039,313		1,680,214		2,039,093		34,655,285

Total		9,225,925		8,691,087		8,649,568		5,925,841		5,290,609		61,784,710


35.5. Environmental Commitments

Companies	2017		2018		2019		2020		2021		After 2021

Eletronorte		20,000		20,000		20,000		20,000		20,000		36,000
Eletronuclear		77,164		104,241		193,483		-		-		-

Total		97,164		124,241		213,483		20,000		20,000		36,000

35.6. Angra III

Commitment agreements assumed with the cities of Angra dos Reis, Rio Claro and Paraty, in which Eletronuclear committed to sign specific agreements of an environmental nature linked to the UTN Angra III, to conduct programs and projects in accordance with the conditions established by IBAMA.

LOGO

Tucuruí

Due to legal requirements related to the expansion projects for the Hydroelectric Power Plant Tucuruí and raising its reservoir levels from 72 to 74 meters, there was a need to license this venture with the State Environmental Secretariat (Sema) for the state of Pará, and that agency set a condition for approval of the Installation Permit (LI) that Eletronorte implement various environmental mitigation and compensation programs.

Environmental Permits

The socio-environmental actions implemented for environmental risk contingency provisions in the business units of ELETROSUL ensure the commitment to obtain Environmental Permits, as well as authorization to cut vegetation, with the support of the Public Prosecutor, who will oversee the development of these investments.

35.6. Purchase of fixed and intangible assets



Companies	2017		2018		2019		2020

Chesf		27,223		-		-		-
Eletronuclear		3,018,398		3,654,154		1,193,289		18,848
Eletrosul		2,182,121		1,215,595		220,170		268,414

Total		5,227,742		4,869,749		1,413,459		287,262

Contracts signed with various suppliers to purchase replacement equipment in the permanent assets mainly of power plants Angra I, Angra II, and Angra III, necessary to the operational maintenance of those assets.

35.7. Acquisition of input materials



Companies	2017		2018		2019		2020

CGTEE		29,352		29,852		29,852		29,352

Total		29,352		29,852		29,852		29,352

The subsidiary GTEE acquires lime to control waste emissions in its plants.

35.8 Commitments – Jointly controlled ventures

The value of commitments to jointly controlled ventures are presented below at the proportion of participation by the companies.

LOGO

35.8.1. – Purchase of fixed assets

The Company has procurement contracts for fixed asset goods with suppliers, for an interest in Special Purpose Companies (SPE), as presented below:



Companies	2017	2018	2019	2020	2021

Norte Energia	357,276	92,936	6,692	2,390	10,243

Total	357,276	92,936	6,692	2,390	10,243

35.8.2. – Use of public goods



Companies	2017		2018		2019		2020		2021		After 2021

Norte Energia		3,871		3,568		3,288		3,031		3,031		32,207
Energética Águas da Pedra		370		370		370		370		370		1,424

Total		4,241		3,938		3,658		3,401		3,401		33,631

35.8.3. – Capital contribution

The Company has future commitments signed regarding an interest in Special Purpose Companies (SPEs) in the form of advances for future capital increases, as presented below:



Companies	2017		2018
Belo Monte Transmissora de Energia SPE S.A.		105,085	60,205
Complexo Fortim		445,000	-
Complexo Baleia		174,554	-
Complexo Famosa III		154,420	-
Complexo Serra Do Mel		62,408	-
Complexo Eólico Itaguaçú Da Bahia		37,766	-
Complexo Acaraú		50,966	-
Empresa de Energia São Manoels.A.		14,000	45,000
Complexo Eólico Pindaí I		45,100	-
Complexo Eólico Pindaí II		24,400	-
Complexo Eólico Pindaí III		5,550	-
ESBR Participações S.A.		638,600	-
Norte Energia S.A.		154,988	23,000
Complexo Eólico Sento Sé III		9,645	-
Complexo Eólico Serra das Vacas		1,176	-
Extremoz Transmissora do Nordeste - ETN S.A.		15,000	-
Companhia Energética SINOP S.A.		12,250	16,188

Total		1,950,907	144,393

35.8.4. – Cost of construction



Companies	2017		2018		2019		2020

Eletronorte		148,843
Eletrosul		1,931,991		1,123,693		120,542		181,891

Total		2,080,834		1,123,693		120,542		181,891

LOGO

NOTE 36 – SHAREHOLDERS’ EQUITY

36.1. – Capital Stock

The capital stock as of December 31, 2015 is R$ 31,305,331 (December 31, 2014 – R$ 31,305,331) and its shares have no face value. Preferred stocks have no voting rights and are not convertible into common stocks, however, they have priority in the reimbursement of capital and distribution of dividends at the annual rate of 8% for class “A” shares (subscribed to by June 23 of 1969) and 6% for class “B” shares (subscribed to by June 24 of 1969), calculated on the capital corresponding to each class of shares.

The capital stock is represented by 1,352,634,100 book-entry shares, and is distributed, by main shareholders and types of shares, on December 31, 2015, as follows:


12/31/2015 and 12/31/2014
	COMMON						PREFERRED						TOTAL CAPITAL
SHAREHOLDER	NUMBER		%		Series A		%		Series B		%		NUMBER		%

Federal		554,395,652		51.00		-		-		1,544		0.00		554,397,196		40.99
BNDESPAR		141,757,951		13.04		-		-		18,691,102		7.04		160,449,053		11.86
BNDES		74,545,264		6.86		-		-		18,262,671		6.88		92,807,935		6.86
FND		45,621,589		4.20		-		-		-		-		45,621,589		3.37
FGHAB		1,000,000		0.09		-		-		-		-		1,000,000		0.07
CEF		8,701,564		0.80		-		-		-		-		8,701,564		0.64
FGI		-		-		-		-		8,750,000		3.30		8,750,000		0.65
Other		261,028,277		24.01		146,920		100.00		219,731,566		82.78		480,906,763		35.55

		1,087,050,297		100.00		146,920		100.00		265,436,883		100.00		1,352,634,100		100.00

Of the total of 480,906,549 (after deducting the 214 common stocks for the Directors and Members of the Board of Directors of Eletrobras) shares in the possession of minority shareholders, 250,988,746, or 52.2%, are owned by non-resident investors, 134,601,197 of which are common, 28 are class “A” preferred stocks, and 116,387,521 are class “B” preferred stocks.

Of the total shareholders that reside abroad, 81,371,686 common shares and 21,262,873 class “B” preferred shares are custodied, and ballast the American Depositary Receipts (ADRs) program.

36.2. – Capital Reserves


	PARENT COMPANY AND CONSOLIDATED
	12/31/2015		12/31/2014
Compensation for insuficient compensation - CRC		18,961,102		18,961,102
Premium on issuance of shares		3,384,310		3,384,310
Special - Decree-Law 54,936/1964		387,418		387,418
Monetary adjustment of balance sheet at the opening 1978		309,655		309,655
Monetary adjustment Compulsory Loan - 1987		2,708,432		2,708,432
Donations and subventions - FINOR, FINAM and other		297,424		297,424

		26,048,342		26,048,342

LOGO

36.3. – Profit Reserves

The Company’s bylaws establish the allocation of 50% of net profit in a year to the creation of an Investment Reserve, and 1% for a Studies and Projects Reserve, whose creation is limited to 75% and 2% of company capital.


	PARENT COMPANY AND CONSOLIDATED
	12/31/2015		12/31/2014
Legal (Article 193 - Law 6,404/1976)		-		2,233,017
Statutory (Article 194 – Law 6,404/1976)		-		26,022

		-		2,259,039

At the 55th General Meeting held on April 30, 2015, the payment of the total value of the balance of the statutory profit reserve dated December 31, 2014 was approved, as Interest on Equity, to shareholders holding “A” and “B” Class preferred shares.

On December 31, 2015, part of the balance of accrued losses was absorbed by the remaining balance of the profit reserve in the amount of R$ 2,233,017.

NOTE 37 – LOSS PER SHARE

(a) Basic and diluted

Basic earnings per common share is calculated by dividing the earnings attributable to Company’s Common shareholders by the weighted average amount of common shares outsatanding during the year, wich excludes common shares bought by the Company and carried as treasury shares. The 12,018,738 dilutive potential common shares (Compulsory Loan – Note 25) were not included in the calculation of the weighted average number of common shares due to the anti-dilutive effect. Basic earnings (loss) per preferred share is calculated by dividing the earnings (loss) attributable to Company’s preferred shareholders by the weighted average amount of preferred shares outstanding during the year. The net losses attributable to the Company’s shareholders are allocated to each class of shares on a pro-rata basis in accordance with the Company’s by laws.


2/31/2015
Numerator	Common			Preferred A			Preferred B			Total
Loss attributable to share class		(11,606,060	)		(1,569	)		(2,833,978	)		(14,441,607	)

Denominator	Common			Preferred A			Preferred B			Total
Weighed average number of shares		1,087,050			147			265,437			1,352,634
% shares compared to total		80.37%			0.01%			19.62%			100.00%

Basic result per share (R$)		(10.68)			(10.68)			(10.68)

12/31/2014
Numerator	Common			Preferred A			Preferred B			Total
Loss attributable to share class		(2,435,921	)		(329	)		(594,804	)		(3,031,055	)

Denominator	Common			Preferred A			Preferred B			Total
Weighed average number of shares		1,087,050			147			265,437			1,352,634
% shares compared to total		80.37%			0.01%			19.62%			100.00%

Basic result per share (R$)		(2.24)			(2.24)			(2.24)

LOGO

NOTE 38 – NET OPERATING REVENUE


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
OPERATIONAL INCOME

Generation

Energy supply (sale)		2,749,068		2,806,271		12,310,243		12,175,362
Energy supply (sale)		-		-		3,571,809		3,317,103
Short term energy		-		37,607		1,811,552		3,817,976
Income from operation and maintenance renewed concessions		-		-		1,882,637		1,803,127
Income from plant construction		-		-		148,403		240,040
Financial effect Itaipu		234,425		(97,740)		234,425		(97,740)

		2,983,493		2,746,138		19,959,069		21,255,868

Transmission

Income from operation and maintenance renewed lines		-		-		2,504,239		1,207,090
Income from operation and maintenance		-		-		191,372		994,178
Income from construction of renewed lines		-		-		2,077,616		1,786,195
Financial Return on investment		-		-		838,087		714,409

		-		-		5,611,314		4,701,872

Distribution

Energy supply / provision		-		-		14,835,424		7,310,337
Income from construction		-		-		1,011,518		873,413
CA and other financial items		-		-		324,120		38,477

		-		-		16,171,062		8,222,227



Other income		19,567		53,940		1,484,431		1,339,294



		3,003,060		2,800,078		43,225,876		35,519,261


(-) Deductions from operational income

(-) ICMS		-		-		(3,877,677)		(1,683,781)
(-)PASEP and COFINS		(505,668)		(91,175)		(4,108,891)		(2,685,562)
(-) Sector fees		-		-		(2,313,660)		(1,005,014)
(-)Other deductions (including ISS)		-		-		(336,810)		(7,097)

		(505,668)		(91,175)		(10,637,038)		(5,381,454)


Net operational income		2,497,392		2,708,903		32,588,838		30,137,807

The revenue from electricity supply of the distribution sector increased R$ 7,525,087 from December 31, 2014 to December 31, 2015 due to the acquisition of Celg-D in September 2014, being the reason why the Company recognized only the results of the last quarter of the above-mentioned company. During the fiscal year 2015, Celg-D presented revenue from the supply of electricity in the amount of R$ 7,146,242, while in the fiscal year ended on December 31, 2014, the revenue recognized by the Company was R$ 1,626,908.

LOGO

NOTE 39 – RESULTS OF EQUITY METHOD INVESTMENTS


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Investment in subsidiaries
Equity Method		(6,437,858)		(267,636)		-		-


Investment in affiliates

Interest on equity		5,610		10,611		-		10,611

Equity Method		401,201		8,405		379,743		(1,426,804)

		406,811		19,016		379,743		(1,416,193)


Other investments
Interest on equity		2,010		20,008		2,010		20,008
Dividends		62,045		98,477		62,045		98,477
Compensation for investment in partnerships		10,402		24,429		10,402		24,429
Capital return - ITAIPU		77,246		56,439		77,246		56,439

		151,703		199,353		151,703		199,353

		(5,879,344)		(49,267)		531,446		(1,216,840)

NOTE 40 – PERSONNEL, MATERIAL AND SERVICES


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Personnel		398,830		383,818		6,004,845		5,609,320
Material		2,555		2,885		318,410		310,276
Services		119,120		110,120		3,172,162		2,565,777

		520,505		496,823		9,495,417		8,485,373

NOTE 41 – ENERGY PURCHASED FOR RESALE AND CHARGES UPON USE OF ELECTRIC NETWORK


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Energy purchased for resale
Supply				-		4,931,606		5,030,149
Trade at CCEE		48,335		487,362		2,998,109		2,864,480
Proinfa		2,803,812		2,502,382		2,818,660		2,502,382
Others		17,686		17,439		17,852		27,689

		2,869,832		3,007,183		10,766,227		10,424,700

LOGO

NOTE 42 – OPERATING PROVISIONS (REVERSALS)


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Guarantees		30,265		115,166		30,265		115,166
Contingencies¹		5,698,790		3,389,682		7,083,748		3,655,626
ADA – Consumers and Resellers		-		-		642,924		83,921
ADA – Financing and Loans²		15,755		(269,051)		15,755		(269,051)
Outstanding Liabilities in Subsidiaries		5,392,577		831,851		-		-
Onerous Contracts		-		-		366,477		(1,800,401)
Provision/(Reverssal) for Investment Losses (a)		(1,001,986)		(411,122)		(610,747)		(313,672)
Impairment³		(1,852)				5,991,110		509,994
Adjustment to Market Value		67,107		110,902		67,107		110,902
Reversal for Financial Asset Loss		-		-		-		(791,868)
Impairment BRR³		-		-		(148,637)		(360,648)
Provision for Losses on Fixed Assets		-		-		-		235,064
Provision for Environmental Compensations		-		-		-		104,904
Hydrological Risk(b)		-		-		451,340		-
Other		31,978		69,134		749,943		474,723

		10,232,634		3,836,562		14,639,285		1,754,660

¹ Information related to contingencies is described in Note 31.

² Information related to PCLD on financing and loans is described in Note 9.

³ Information related to impairment is described in Note 20

(a) Loss on Investments

In order to refund concessionaire companies of Electricity Public Service that use thermal generation and that act in the Isolated System, Law No. 10,833/2003, that amended Law No. 8,631/1993, set forth that the Fuel Consumption Account - CCC would bear this cost, entirely, in 2004 and partially during the period from 2005 to 2008.

By means of Normative Resolution No. 303/2008, ANEEL established the methodology and the procedures to calculate, demonstrate and validate the ICMS amount considered as cost arising out of the acquisition of fuels, as well as calculation, demonstration, supervision, and payment of the liabilities to be returned to CCC-ISOL by beneficiary agents who received ICMS refund in amount higher than the effective cost incurred with this tax.

By means of Order No. 4,722/2009 SFF/ANEEL, that deals with the end of the fiscal year 2009, ANEEL determined the accounting recognition of the amount of liabilities to be refunded to the Fuel Consumption Account CCC related to the period between January 2004 and December 2007.

The Management of the subsidiary Amazonas Energia, supported by legal consultants, required in courts the suspension of effects of this resolution issued by the regulatory entity.

Under the terms in the judicial award issued on September 29, 2009, the subsidiary Amazonas Distribuidora in the financial statements of December 2009 has reverted this obligation from its Liabilities, and the counterpart was an operating revenue. This obligation represents the adjusted amount of R$ 1,100,499 referring to the value refunded by CCC ISOL in the period between 2004 and 2008.

LOGO

However, considering the phase of the judicial lawsuit at the time, despite admissibility of the corresponding merit, there were some uncertainties regarding the end of the claim, reason why, the controller, during the fiscal years, have recognized a provision to cover for eventual losses related to these alleged debts with the CCC pertaining to ICMS.

In view of the judicial decision that conceded the merit to Amazonas Distribuidora, ANEEL has filed a Bill of Review. On 11/17/2015 this Bill of Review was denied by the Federal Regional Court of the 1st Region. Afterwards, the appeal has lost its object, due to the decision that judged the claim to be appropriate, granting the injunction claimed by Amazonas Distribuidora and ratifying the preliminary order issued before.

Therefore, Amazonas Distribuidora has obtained decisions that ensure the right not to return the ICMS value, thus, the company is not obliged to record these amounts as liabilities.

In view of the facts and the rejection of the Bill of Review judged on November 17, 2015, Eletrobras reverted the provision set to cover for these liabilities in the amount of R$ 1,100,499,000.

On December 31, 2015, the provision for investment loss was established in the amount of R$ 489,752, arising out of the impairment test applicable to equity held in the Companies CHC, ESBR Participações, Madeira Energia S.A, Teles Pires Participações and São Manoel (see Note 16).

(b) Hydrological Risk – GSF

The subsidiary Eletronorte adhered to the Adjustment of Hydrological Risk set forth in Provisional Measure No. 688/2015, dated August 18, 2015. The amount claimed by the subsidiary was R$ 451,340 and, upon adhering to the adjustment, the preliminary order lost the suspension effect for the payment of this amount, and the amount was provisioned by verifying invoices issued at the period.

NOTE 43 – BUSINESSES AQUISITION

43.1. Acquisition of shareholding control over CELG-D

On September 26, 2014, in an Extraordinary General Meeting, Eletrobras approved the acquisition of a controlling interest in CELG-Distribuição S.A.- CELG-D.

The Company concluded the process of purchasing Celg-Distribuição S.A. (“Celg-D”) by paying and transferring, on 01/27/2015, 76,761,267 common shares issued by CelgD, corresponding to 50.93% of the Distributor’s capital, for the sum of R$ 59,454.

On December 28, 2015, at an Extraordinary Meeting, Eletrobras approved the sale of the shareholding control of CELG-D at a privatization auction to be promoted by BM&FBOVESPA, according to the minimum price and conditions set forth in Resolution No. 11/2015 by the National Privatization Council – CND. The Management is committed with a sale plan of the subsidiary, and expects to have the sale concluded by December 31, 2016.

LOGO

This sale was not considered as discontinued operation, because the Company will continue to act in the distribution sector with six distribution companies of the Eletrobras Group.

Main assets and liabilities held by subsidiary CELG-D classified as held for sale are presented below:


	12/31/2015
Cash and cash equivalent		82,182
Clients		1,112,469
Taxes and social contributions		170,440
Judicial deposits		136,761
Financial Asset		199,497
Fixed assets		43,328
Intangible assets		1,908,127
Refundable assets - FUNAC		672,615
Other assets		298,366

Total assets subsidiary CELG D classified as held for sale		4,623,785


Suppliers		1,983,890
Loans and financing		1,304,503
Taxes and social contributions		360,553
Sector fees		428,332
Post-employment benefits		146,800
Provisions for contingencies		568,100
Other liabilities		782,831

Liabilities of subsidiary CELG D associated to assets classified as held for sale		5,575,009

LOGO

NOTE 44 – FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

44.1 – Management of Capital Risk

The Company’s objectives in managing its capital are safeguarding its continuity so as to offer a return to shareholders and benefits to other interested parties, in addition to pursuing an optimal capital structure so as to reduce this cost. The purchase or sale of financial assets are recognized on the date of negotiation.

In order to maintain or adjust capital structure, the Company may revise its dividend payment policy, return capital to shareholders, or issue new shares or sell assets in order to reduce, for example, the level of debt.

The Company, consistent with other companies in the sector, monitors capital based on the financial leveraging index. This index is the net debt divided by total capital. The net debt, in turn, is total loans (including short- and long-term loans, as demonstrated in the consolidated balance sheet), subtracted from cash and cash equivalents, and securities. Total capital is determined by adding net equity, as demonstrated in the consolidated balance sheet, to net debt.


	CONSOLIDATED
	12/31/2015		12/31/2014

Total Loans and Financing		46,398,260		39,539,125

(-) Cash and Cash Equivalents and Securities		8,431,737		5,366,511


Net Debt		37,966,523		34,172,614

(+) Total Shareholder’s Equity		41,739,222		56,848,500


Total Capital		79,705,745		91,021,114


Financial Leveraging Index		48%		38%

LOGO

44.2 – Classification by category of financial instruments

The book balances of financial assets and liabilities represent a reasonable approximation of their fair value. The Company uses hierarchy to measure the fair value of its financial instruments:


	PARENT COMPANY
		12/31/2015	12/31/2014
FINANCIAL ASSETS (CURRENT / NON-CURRENT)	Measurement	Book value / Fair value	Book value / Fair value

Cash and cash equivalents		691,719		88,194
Loans and receivables		41,052,908		38,466,689

Clients	Amortized Cost	504,597		573,457
Loans and financing	Amortized Cost	37,098,745		32,556,881
Financial Asset - Generation and Transmission	Amortized Cost	3,449,566		5,336,351

Maintained until Expiration		191,763		204,665

Securities	Amortized Cost	191,763		204,665

Measured by fair value by result		3,454,526		421,975

Securities	Fair value	3,454,526		421,817

Available for sale		1,018,143		1,212,142

Investments (equity)	Fair value	1,018,143		1,212,142

FINANCIAL LIABILITIES (CURRENT / NON-CURRENT)

Measured by amortized cost		30,752,210		27,223,773

Suppliers	Amortized Cost	416,126		548,589
Loans and financing	Amortized Cost	30,036,452		26,020,026
Refund obligations	Amortized Cost	299,632		655,158

Measured by fair value by result		18,860		24,706

Derivatives - Hedge	Fair value	18,860		24,706

LOGO


	CONSOLIDATED
	Measurement	12/31/2015		12/31/2014
FINANCIAL ASSETS (CURRENT / NON-CURRENT)

Cash and cash equivalents			1,393,973		1,407,078
Loans and receivables			59,238,499		58,567,412

Clients	Amortized Cost		5,970,958		6,170,720
Loans and financing	Amortized Cost		17,587,620		14,684,564
Refund rights	Amortized Cost		10,503,382		9,803,062
Financial Asset - Generation and Transmission	Amortized Cost		25,176,539		24,170,771
Indemnities - Law No. 12.783/2013	Amortized Cost		-		3,738,295

Maintained by Expiration			193,669		223,142

Securities	Amortized Cost		193,669		223,142

Measured by fair value by result			6,890,406		3,991,848

Securities	Fair value		6,844,095		3,731,937
Derivatives	Fair value		46,311		259,911

Available for sale			5,382,366		9,606,383

Investments (equity)	Fair value		1,177,260		1,370,371
Financial Asset - Distribution	Fair value		4,205,106		8,236,012

FINANCIAL LIABILITIES (CURRENT / NON-CURRENT)

Measured by amortized cost			70,733,967		62,458,291

Suppliers	Amortized Cost		19,577,928		17,536,501
Loans and financing	Amortized Cost		46,398,260		39,539,125
Debentures	Amortized Cost		562,474		759,923
Refund Obligations	Amortized Cost		2,879,586		3,232,621
Lease	Amortized Cost		1,252,155		1,326,661
Concessions Payable UBP	Amortized Cost		63,564		63,460

Measured by fair value by result			80,269		72,203

Derivatives	Fair value		80,269		72,203

Measured by fair value by result			18,860		24,706

Derivatives - Hedge	Fair value		18,860		24,706

LOGO

44.2.1 – Fair value estimate:

The financial assets and liabilities recorded at fair value were classified and disclosed according to the following levels:


	PARENT COMPANY
	12/31/2015
	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
FINANCIAL ASSETS (CURRENT / NON-CURRENT)


Available for sale		1,018,143		-		-		1,018,143

Investments (Equity Stake)		1,018,143		-		-		1,018,143



Measured at fair value by result		3,454,526		-		-		3,454,526

Securities		3,454,526		-		-		3,454,526

FINANCIAL LIABILITIES (CURRENT / NON-CURRENT)


Measured at fair value by result		-		18,860		-		18,860

Derivatives		-		18,860		-		18,860

	PARENT COMPANY
	12/31/2014
	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
FINANCIAL ASSETS (CURRENT / NON-CURRENT)


Available for sale		1,212,142		-		-		1,212,142

Investments (Equity Stake)		1,212,142		-		-		1,212,142



Measured at fair value by result		421,975		-		-		421,975

Securities		421,975		-		-		421,975

FINANCIAL LIABILITIES (CURRENT / NON-CURRENT)


Measured at fair value by result		-		24,706		-		24,706

Derivatives		-		24,706		-		24,706

LOGO


	CONSOLIDATED
	12/31/2015
	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
FINANCIAL ASSETS (CURRENT / NON-CURRENT)


Available for sale		1,177,260		4,205,106		-		5,382,366

Investments (Equity Stake)		1,177,260		-		-		1,177,260
Financial Asset - Distribution Concessions		-		4,205,106		-		4,205,106


Measured at fair value by result		6,844,095		46,311		-		6,890,406

Securities		6,844,095		-		-		6,844,095
Derivatives		-		46,311		-		46,311

FINANCIAL LIABILITIES (CURRENT / NON-CURRENT)


Measured at fair value by result		-		99,129		-		99,129

Derivatives		-		99,129		-		99,129

	CONSOLIDATED
	12/31/2014
	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
FINANCIAL ASSETS (CURRENT / NON-CURRENT)


Available for sale		1,370,371		8,236,012		-		9,606,383

Investments (Equity Stake)		1,370,371		-		-		1,370,371
Financial Asset - Distribution Concessions		-		8,236,012		-		8,236,012


Measured at fair value by result		3,731,937		259,911		-		3,991,848

Securities		3,731,937		-		-		3,731,937
Derivatives		-		259,911		-		259,911

FINANCIAL LIABILITIES (CURRENT / NON-CURRENT)


Measured at fair value by result		-		72,203		-		72,203

Derivatives		-		72,203		-		72,203

Level 1 – prices quoted (not adjusted) on active markets, liquid and visible for identical assets and liabilities accessible on the date of measurement;

Level 2 – prices quoted (adjusted or not) for similar assets and liabilities on active markets, other entries not observable in level 1, directly or indirectly, in terms of asset or liability, and

Level 3 – assets and liabilities not priced or where prices or valuation techniques are supported by a small or non-existent market, not observable or liquid. In this level, the estimated fair value becomes highly subjective.

The fair value of financial instruments traded in active markets (such as securities carried for trading and available for sale) is based on market prices quoted on the balance sheet date. A market is seen as active if quoted prices are promptly and regularly available from an exchange, distributor, broker, group of industries, pricing service, or regulatory agency, and the prices represent real market transactions which occur regularly on purely commercial bases.

LOGO

The quoted market price used for financial assets carried by the Company and its subsidiaries is the current competitive price. These instruments are in Level 1. The instruments in Level 1 include mainly equity investments of the FTSE 100 classified as securities for trade or available for sale.

The fair value of financial instruments not traded on active markets (such as over the counter derivatives) is determined using valuation techniques. These valuation techniques maximize the use of information adopted by the market where it is available, and rely as little as possible on the entity’s specific estimates. If all relevant information required for the fair value of an instrument is adopted by the market, the instrument will be included in Level 2. If one or more relevant pieces of information is not based on data adopted by the market, the instrument will be included in level 3.

Specific valuation techniques used to assess financial instruments include:

●

Quoted market prices or quotes from financial institutions or brokers for similar instruments.

●

The fair value of interest rate swaps is calculated by the present value of estimated future cash flows based on yield curves adopted by the market

●

The fair value of forward exchange rate contracts is determined based on future exchange rates on the balance sheet date, with the resulting value discounted from the present value.

Other techniques, such as discounted cash flow analysis, which are used to determine the fair value of remaining financial instruments, and counterparty credit risk in swap operations.

44.3 – Financial Risk Management:

In the exercise of its activities, the Company is affected by risk events that could compromise its strategic objectives. The main objective of risk management is to anticipate and minimize the adverse effects of such events on the Company’s business and economic and financial results.

The Company defined operating and financial policies and strategies to manage financial risks, approved by internal committees and by management, which aim to confer liquidity, safety and profitability to its assets, and maintain set debt levels and profile for financial and economic flows.

LOGO

The main financial risks identified in the process of risk management are:

44.3.1 – Exchange rate risk

This risk arises from the possibility of the Company having its economic and financial statements affected by exchange rate fluctuations. The Company is exposed to financial risks that cause volatility in its results and in its cash flow. The Company has significant exposure between assets and liabilities indexed in foreign currency, especially to the United States dollar, arising mainly from financing contracts with Itaipu Binacional.

In this context, the Company’s financial hedging policy was approved. The objective of the current policy is to monitor and mitigate the exposure to market variables that could impact the Company and its’ subsidiaries’ assets and liabilities, thus reducing the effects of undesirable fluctuations in these variables on their Financial Statements.

With this, said policy aims to get the Company’s results to accurately reflect its real operating performance, and its projected cash flow to be less volatile.

Along with the policy, the creation of a Financial hedge committee was formed within the scope of the Financial Office, whose main function is to define the strategies and hedge instruments to be submitted to the Company’s Executive Management.

Taking into account the various forms of hedging the Company’s unhedged items, the approved policy lists a scale of priorities. First a structural solution, and only in residual cases, the use of operations with derivative financial instruments.

When operations with financial derivatives are performed, the Company’s hedge policy is followed, and they may not constitute financial leveraging or the concession of credit to third parties.

a) – Composition of balances in foreign currency and sensitivity analysis:

In the following charts, scenarios were considered for indices and rates, with their respective effects on the Company’s profit and loss. For the sensitivity analysis, the probable scenario used for 2015 and 2016 was forecasts and/or estimates based fundamentally on macroeconomic assumptions obtained from the Focus report, published by the Central Bank, and Economic Outlook 86, published by the OECD (Organisation for Economic Co-operation and Development).

Sensitivity analyses were conducted on financial instruments, assets and liabilities, which present exposure to the exchange rate and which could bring material losses to the Company, in four different scenarios, based on the above-mentioned probable scenario: two considering currency valuation, and another two considering a devaluation of those currencies.

LOGO

The sensitivity analyses were created in accordance with CVM Guidance 475/2008, with the objective of measuring the impact of changes in market variables on each of the Company’s financial instruments. Therefore, these are projections based on assessments of macroeconomic scenarios, and do not mean that the transactions will have the values presented in the analysis period considered.

a1) Risk of exchange rate valuation:


		PARENT COMPANY
		Balance on 12/31/2015				Effect on result - income (expense)
		Foreign currency		Reais		Scenario I - Probable 2015 ¹		Scenario II (25%) ¹		Scenario III (50%) ¹

USD	Loans received		3,679,624		14,365,988		(1,272,414)		(5,182,014)		(9,091,615)
	Loans granted		3,937,493		15,375,123		1,359,223		5,542,809		9,726,395
	Financial Asset - ITAIPU		883,417		3,449,566		304,955		1,243,586		2,182,216

	Effect on result - USD						391,764		1,604,380		2,816,997


EURO	Loans received		59,277		251,820		(31,562)		(102,408)		(173,253)
EURO	Loans granted		28,294		120,259		15,003		48,818		82,634

	Effect on result - EURO						(16,559)		(53,589)		(90,620)


YEN	Loans received		5,516,631		178,794		(16,587)		(65,432)		(114,277)
YEN	Loans granted		11,360,536		368,422		33,930		134,518		235,106

	Effect on result - YEN						17,343		69,086		120,829



EFFECT ON RESULT IN CASE OF APPRECIATION OF EXCHANGE FEES							392,548		1,619,877		2,847,206


		CONSOLIDATED
		Balance on 12/31/2015				Effect on result - income (expense)
		Foreign Currency		Reais		Scenario I - Probable 2015 ¹		Scenario II (25%) ¹		Scenario III (50%) ¹

USD	Loans received		3,803,820		14,850,875		(1,315,361)		(5,356,920)		(9,398,479)
	Loans granted		3,790,753		14,802,134		1,308,568		5,336,244		9,363,919
	Financial Asset - ITAIPU		883,417		3,449,566		304,955		1,243,586		2,182,216

	Effect on result - USD						298,163		1,222,909		2,147,656


EURO	Loans received		59,277		251,820		(31,562)		(102,408)		(173,253)
EURO	Loans granted

	Effect on result - EURO						(31,562)		(102,408)		(173,253)


YEN	Loans received		5,516,631		178,794		(16,587)		(65,432)		(114,277)
YEN	Loans granted		-		-		-		-		-

	Effect on result - YEN						(16,587)		(65,432)		(114,277)



EFFECT ON RESULT IN CASE OF APPRECIATION OF EXCHANGE FEES							250,014		1,055,070		1,860,126


(¹) Assumptions adopted:						Provável		25%		50%
	USD						4.250		5.313		6.375
	EURO						4.781		5.976		7.172
	YEN						0.035		0.044		0.053

LOGO

a2) Risk of exchange rate depreciation:


		PARENT COMPANY
		Balance on 12/31/2015				Effect on result - income (expense)
		Foreign Currency		Reais		Scenario I - Probable 2015 ¹		Scenario II (25%) ¹		Scenario III (50%) ¹

USD	Loans received		3,679,624		14,365,988		(1,272,414)		2,637,187		6,546,787
	Loans granted		3,937,493		15,375,123		1,359,223		(2,824,364)		(7,007,950)
	Financial Asset - ITAIPU		883,417		3,449,566		304,955		(633,675)		(1,572,305)

	Effect on result - USD						391,764		(820,852)		(2,033,468)


EURO	Loans received		59,277		251,820		(31,562)		39,283		110,129
EURO	Loans granted		28,294		120,259		15,003		(18,813)		(52,628)

	Effect on result - EURO						(16,559)		20,471		57,501


YEN	Loans received		5,516,631		178,794		(16,587)		32,258		81,104
YEN	Loans granted		11,360,536		368,422		33,930		(66,658)		(167,246)

	Effect on result - YEN						17,343		(34,399)		(86,142)



EFFECT ON RESULT IN CASE OF DEPRECIATION OF EXCHANGE FEES							392,548		(834,781)		(2,062,110)


		CONSOLIDATED
		Balance on 12/31/2015				Effect on Result income (expense)
		Foreign Currency		Reais		Scenario I - Provável 2015 ¹		Scenario II (25%)¹		Scenario III (50%)¹

USD	Loans Received		3,803,820		14,850,875		(1,315,361)		2,726,198		6,767,757
	Loans Granted		3,790,753		14,802,134		1,308,568		(2,719,107)		(6,746,783)
	Financial Asset - ITAIPU		883,417		3,449,566		304,955		(633,675)		(1,572,305)

	Effect on Result - USD						298,163		(626,584)		(1,551,331)


EURO	Loans Received		59,277		251,820		(31,562)		39,283		110,129
EURO	Loans Granted		-				-		-

	Effect on Result - EURO						(31,562)		39,283		110,129


YEN	Loans Received		5,516,631		178,794		(16,587)		32,258		81,104

	Loans Granted

	Effect on Result - YEN						(16,587)		32,258		81,104



EFFECT ON RESULT IN CASE OF DEPRECIATION OF EXCHANGE FEES							250,014		(555,042)		(1,360,099)


(¹) Assumptions adopted:						Probable		-25%		-50%
	USD						4.250		3.188		2.125
	EURO						4.781		3.586		2.391
	YEN						0.035		0.027		0.018

44.3.2 – Interest rate risk

This risks associated to the possibility of the Company suffering accounting losses due to fluctuation in market interest rates, affecting its financial statements by raising financial expenses with foreign capital raising contracts, mainly, referenced by the Libor rate.

The Company monitors its exposure to the Libor rate and contracts derivative operations to minimize this exposure, as per its Financial Hedging Policy.

LOGO

a) – Composition of balances by indexer and sensitivity analysis

The composition of debt by indexer, either in national or foreign currency, is broken down in Note 23, item a.

In the following charts, scenarios were considered for indices and rates, with their respective impacts on the Company’s results. For the sensitivity analysis, the probable scenario used for 2016 was forecasts and/or estimates based fundamentally on macroeconomic assumptions obtained from the Focus report, published by the Central Bank, and Economic Outlook 86, published by the OECD (Organisation for Economic Co-operation and Development)

Sensitivity analyses were conducted on financial instruments, assets and liabilities, which could bring material losses to the Company, in four different scenarios, based on the above-mentioned probable scenario: two considering the appreciation of indices, and another two considering a depreciation of those indices.

All scenarios used a likely exchange rate for the dollar to convert into reais the effect on the results of risks linked to fluctuations of the LIBOR. In this sensitivity analysis, no exchange effect is being considered due to valuation or devaluation of the probable exchange rate scenario. The impact of valuation or devaluation of the dollar exchange rate in the probable scenario is presented in item (44.3.1.a) of this note.

LOGO

a1) – LIBOR

●

risk of appreciation of interest rates:


		PARENT COMPANY
		Debt balance / Notional value on 12/31/2015				Effect on result - income (expense)
		In USD		In reais		Scenario I - Probable 2015 ¹			Scenario II (+25%) ¹			Scenario III (+50%) ¹

LIBOR	Loans received		834,320		3,257,353		(30,003	)		(37,504	)		(45,005	)
LIBOR	Derivative		1,040,384		4,061,867		37,414			46,767			56,120
	Total						7,410			9,263			11,116

		CONSOLIDATED
		Debt balance / Notional value on 12/31/2015				Effect on result - income (expense)
		In USD		In reais		Scenario I - Probable 2015 ¹			Scenario II (+25%) ¹			Scenario III (+50%) ¹

LIBOR	Loans received		955,188		3,729,245		(34,350	)		(42,937	)		(51,525	)
LIBOR	Derivative		1,040,384		4,061,867		37,414			46,767			56,120
	Total						3,064			3,830			4,596

	(¹) Assumptions adopted			12/30/2015		Probable			25%			50%
	USD				3.9042		4.2500			5.31			6.38
	LIBOR				n/a		0.85%			1.06%			1.27%

a2) – National indexers

●

risk of appreciation of interest rates:


		PARENT COMPANY
				Effect on result - income (expense)
		Balance on 12/31/2015		Scenario I - Probable 2015 ¹			Scenario II (+25%) ¹			Scenario III (+50%) ¹

CDI	Loans received		6,516,128		(993,710	)		(1,242,137	)		(1,490,564	)
CDI	Loans granted		-		-			-			-
	Effect on result - CDI				(993,710	)		(1,242,137	)		(1,490,564	)

IPCA	Loans received		-		-			-			-
IPCA	Loans granted		6,816,041		472,352			590,440			708,527
	Effect on result - IPCA				472,352			590,440			708,527

IGPM	Lease		-		-			-			-
IGPM	Loans granted		238,976		15,725			19,656			23,587
	Effect on result - IGPM				15,725			19,656			23,587

SELIC	Loans received		2,284,348		(348,363	)		(435,454	)		(522,545	)
SELIC	Loans granted		-		-			-			-
	Effect on result - SELIC				(348,363	)		(435,454	)		(522,545	)

Effect on result - INDEX APPRECIATION					(853,996	)		(1,067,495	)		(1,280,994	)

LOGO


		CONSOLIDATED
				Effect on result - income (expense)
		Balance on 12/31/2015		Scenario I - Probable 2015 ¹			Scenario II (+25%) ¹			Scenario III (+50%) ¹

CDI	Loans received		11,410,983		(1,740,175	)		(2,175,219	)		(2,610,262	)
	Debentures issued		342,671		(52,257	)		(65,322	)		(78,386	)
	Loans granted		-		-			-			-
	Effect on result - CDI				(1,792,432	)		(2,240,540	)		(2,688,648	)

TJLP	Loans received		6,594,316		(461,602	)		(577,003	)		(692,403	)
	Debentures issued		219,803		(15,386	)		(19,233	)		(23,079	)
	Loans granted
	Effect on result - TJLP				(476,988	)		(596,235	)		(715,482	)

IGPM	Lease		1,252,155		(82,392	)		(102,990	)		(123,588	)
IGPM	Loans granted		237,361		15,618			19,523			23,428
	Effect on result - IGPM				(66,773	)		(83,467	)		(100,160	)

SELIC	Loans received		2,636,254		(402,029	)		(502,536	)		(603,043	)
SELIC	Loans granted
	Effect on result - SELIC				(402,029	)		(502,536	)		(603,043	)

IPCA	Loans received		532,754		36,920			46,150			55,380
	Effect on result - IPCA				36,920			46,150			55,380

Effect on result - INDEX APPRECIATION					(2,701,303	)		(3,376,629	)		(4,051,954	)



(¹) Assumptions adopted:		Probable	25%	50%
	CDI	15.25%	19.06%	22.88%
	IPCA	6.93%	8.66%	10.40%
	TJLP	7.00%	8.75%	10.50%
	IGPM	6.58%	8.23%	9.87%
	SELIC	15.25%	19.06%	22.88%
	LIBOR	0.85%	1.06%	1.27%

LOGO

●

risk of depreciation of interest rates:


		PARENT COMPANY
				Effect on result - income (expense)
		Balance on 12/31/2015		Scenario I - Probable 2015 ¹		Scenario II (-25%) ¹		Scenario III (-50%) ¹


CDI	Loans received		6,516,128		(993,710)		(745,282)		(496,855)

	Effect on result - CDI				(993,710)		(745,282)		(496,855)


IPCA	Loans granted		6,816,041		472,352		354,264		236,176

	Effect on result - IPCA				472,352		354,264		236,176


IGPM	Lease
IGPM	Loans granted		238,976		15,725		11,793		7,862

	Effect on result - IGPM				15,725		11,793		7,862


SELIC	Loans received		2,284,348		(348,363)		(261,272)		(174,182)

	Effect on result - SELIC				(348,363)		(261,272)		(174,182)



Effect on result - INDEX DEPRECIATION					(853,996)		(640,497)		(426,998)


		CONSOLIDATED
				Effect on result - income (expense)
		Balance on 12/31/2015		Scenario I - Probable 2015 ¹		Scenario II (-25%) ¹		Scenario III (-50%) ¹


CDI	Loans received		11,410,983		(1,740,175)		(1,305,131)		(870,087)
CDI	Debentures issued		342,671		(52,257)		(39,193)		(26,129)

	Effect on result - CDI				(1,792,432)		(1,344,324)		(896,216)


TJLP	Loans received		6,594,316		(461,602)		(346,202)		(230,801)
TJLP	Debentures issued		219,803		(15,386)		(11,540)		(7,693)

	Effect on result - TJLP				(476,988)		(357,741)		(238,494)


IGPM	Lease		1,252,155		(82,392)		(61,794)		(41,196)
IGPM	Loans granted		237,361		15,618		11,714		7,809

	Effect on result - IGPM				(66,773)		(50,080)		(33,387)


SELIC	Loans received		2,636,254		(402,029)		(301,522)		(201,014)

	Effect on result - SELIC				(402,029)		(301,522)		(201,014)


IPCA	Loans received		532,754		36,920		27,690		18,460

	Effect on result - IPCA				36,920		27,690		18,460



Effect on result - INDEX DEPRECIATION					(2,701,303)		(2,025,977)		(1,350,651)


(1) Assumptions adopted:		Probable	-25%	-50%
	CDI	15.25%	11.44%	7.63%
	IPCA	6.93%	5.20%	3.47%
	TJLP	7.00%	5.25%	3.50%
	IGPM	6.58%	4.94%	3.29%
	SELIC	15.25%	11.44%	7.63%
	LIBOR	0.85%	0.63%	0.42%

LOGO

According to interest rate swap contracts, the Company agrees to exchange the difference between fixed and floating interest rate values calculated from the notional value agreed to. Such contracts allow the Company to mitigate the risk of a change in interest rates on the fair value of debt issued at fixed interest rates, and in the exposure of cash flows to floating rate debt issued. The fair value of interest rate swaps at the end of the year and the inherent credit risk in this kind of contract, are shown next. The average interest rate is based on outstanding balances payable at the end of the year.

The following chart shows the value of principal and the remaining term for outstanding interest rate swap contracts at the end of the reporting period:



					Fair Values
Typo	Transaction	Contracted Amounts (notional)	Fees Used	Expiration		12/31/2015	12/31/2014

Libor X Pre-tax	01/2011	20,192	2.4400%	25/11/2015		-	(229)
Libor X Pre-tax	02/2011	20,192	2.4900%	25/11/2015		-	(235)
Libor X Pre-tax	03/2011	50,000	3.2780%	10/08/2020		(5,497)	(5,422)
Libor X Pre-tax	04/2011	100,000	3.3240%	10/08/2020		(11,266)	(11,109)
Libor X Pre-tax	05/2011	50,000	2.1490%	10/08/2015		-	(508)
Libor X Pre-tax	06/2011	100,000	2.2725%	10/08/2015		-	(1,087)
Libor X Pre-tax	07/2011	100,000	2.1790%	10/08/2015		-	(1,034)
Libor X Pre-tax	08/2011	100,000	2.1500%	10/08/2015		-	(1,017)
Libor X Pre-tax	09/2012	25,000	1.6795%	27/11/2020		(226)	(231)
Libor X Pre-tax	10/2012	25,000	1.6295%	27/11/2020		(133)	(135)
Libor X Pre-tax	11/2012	75,000	1.6285%	27/11/2020		(394)	(398)
Libor X Pre-tax	12/2012	75,000	1.2195%	29/11/2017		(307)	(715)
Libor X Pre-tax	13/2012	75,000	1.2090%	29/11/2017		(286)	(684)
Libor X Pre-tax	14/2012	50,000	1.2245%	29/11/2017		(211)	(486)
Libor X Pre-tax	15/2012	50,000	1.1670%	29/11/2017		(134)	(375)
Libor X Pre-tax	16/2012	50,000	1.1910%	29/11/2017		(166)	(421)
Libor X Pre-tax	17/2012	50,000	1.2105%	29/11/2017		(192)	(459)
Libor X Pre-tax	18/2012	25,000	1.1380%	29/11/2017		(47)	(160)

	TOTAL	1,040,384				(18,860)	(24,706)

Operations classified as cash flow hedges generated a comprehensive loss of R$ 468 in the year.

With the designation of swaps for hedge accounting, in the year ending on December 31, 2015, the Company recognized R$ 20,996 as financial expenses related to swaps.

44.3.3 – Price risk – commodities

In 2004, the subsidiary Eletronorte signed long-term contracts for the supply of electrical energy to three of its main clients. Part of the income from these long-term contracts is associated with the payment of a premium linked to the international aluminum price, quoted on the London Metal Exchange (LME) as a base asset in determining monthly premiums.

LOGO

The premium can be considered a component of a hybrid (combined) contract, which includes a non-derivative contract that harbors a derivative, so the cash flow of the combined instrument in certain circumstances varies as if it were an isolated derivative.

Following are the contract details:


Client	Contract date		Volume in Average Megawatts (MW)
Client	Start	End	Volume in Average Megawatts (MW)
Albrás	7/1/2004	12/31/2024	750 by 12/31/2006 and 800 starting on 01/01/2007
BHP	7/1/2004	12/31/2024	from 353,08 to 492

These contracts include the concept of a cap and floor band related to the price of aluminum as quoted on the LME. The maximum and minimum price limit on the LME are US$ 2,773.21/ton and US$ 1,450.00/ton, respectively.

In order to attribute a fair value to the hybrid part of a contract, it is necessary to identify the main components that quantify the amount billed monthly. The main contract variables are: the amount of energy sold (MWh), the price attributed to the LME and the exchange rate in the billing period.

Considering that the premium is associated to the price of the aluminum commodity on the LME, it is possible to attribute a fair value to these contracts. The LME price was quoted in December 2015 at US$ 1,495.35/ton, which represented a negative variance of 22.49% in relation to the price in December, 2014, which was US$ 1,929.2/ton.

In the same year of the analysis, the real lost value compared to the dollar, with the exchange rate going from R$ 2.66 to R$ 3.87. The decrease in aluminum price contributed to minimize the expected fair value of derivatives, compensating the devaluation of the dollar in the period.

The loss in the operation with derivatives in 2015 was R$ 213,599 (gains on 12/31/2014 R$ 139,522) and is shown in the income statement.

a) – Sensitivity analysis on embedded derivatives indexed to aluminum price

Sensitivity analyses were conducted on energy supply contracts for intensive consumers Albras and BHP, since they have a contractual clause linking the premium to the variance in aluminum price on the international market.

In this way, a sensitivity was obtained for such hybrid contracts to the variance in the price of the premium earned, as per the chart below. The volatility components in the premium are basically: price of primary aluminum on the LME, the exchange rate, and CDI (interbank deposit) rate. Below we see the impact of each scenario on the company’s results.

For scenario II (50% reduction) the expected price per ton of aluminum offered on the LME is below the minimum price for determination of the contract premium (US$ 1,450), hence the value goes to zero, affecting the marking to market of the embedded derivative.

LOGO

As to the variance obtained between scenarios III and IV (increase of 25% and 50%), the big variance seen is due to the application of those percentages to the exchange rate, aluminum price, and CDI.

Balance on

12/31/2015

Scenario I (+25%)

Indices and prices

Scenario II

(+50%) Indices

and prices

46,311

400,552

603,139

44.3.4 – Credit risk

This risk arises from the possibility of the Company and its subsidiaries suffering losses resulting from a difficulty to realize their receivables from clients, and from counterparty financial institutions in operations defaulting.

Through its subsidiaries, the Company operates in markets generating and transmitting electrical energy, supported by contracts signed in a regulated environment. The Company seeks to minimize its credit risk by means of guarantee mechanisms involving client receivables, and when applicable, through bank guarantees. In the distribution sector, the Company, through its subsidiaries, monitors default rates by analyzing specifics on its clients.

The credit risk related to client receivables (see note 7) is concentrated on distribution activities, in the sum of R$ 2,178,241 or 35% (R$ 2,561,241 or 42% on December 31, 2014) of the outstanding balance at the end of the year on December 31, 2015, and its main characteristic is the high level of diffusion since it considers a significant volume of sales to residential consumers.

Regarding loan receivables granted (see note 9), except for the financial operation with the joint subsidiary Itaipu, whose credit risk is low due to the inclusion of the cost of loans in the energy marketing fee of the joint subsidiary, as defined in the terms of the international treaty signed between the governments of Brazil and Paraguay, the concentration of credit risk with any other counterparty individually did not exceed 3% of the outstanding balance during the year.

The excess cash availability is invested in exclusive non-market funds, according to specific regulations from the Brazilian Central Bank. This fund is composed entirely of government bonds custodied by the Selic, with no exposure to counterparty risk.

LOGO

In any relationships with financial institutions, the Company has a practice of performing operations only with low risk institutions as deemed by rating agencies, and which fulfill preset and formalized equity requirements. In addition, credit limits are defined, which are periodically revised.

When derivative operations are conducted on the over-the-counter market, they contain counterparty risks which, given the problems presented by financial institutions in 2008 and 2009, are relevant. In order to mitigate this risk, the Company instituted an accreditation standard for financial institutions, in order to perform derivative operations. This standard defines criteria regarding size, rating and expertise in the derivatives market, in order to select institutions that may perform operations with the Company. The Company currently selects the 20 best financial institutions twice a year, based on the mentioned criteria, as accredited institutions to perform derivative operations with the Company. In addition, the company has developed a methodology to control exposure to accredited institutions, that sets limits on the volume of operations to be performed with each one.

The Company monitors the credit risk of its swap operations, according to CPC 46 (IFRS 13), but does not account for this risk of non-performance in the fair value balance of each derivative because, based on the net exposure to credit risk, the Company can record its swap portfolio on the books given a unforced transaction between the parties on the valuation date. The Company considers the risk of non-performance only in the backtesting analysis of each relationship designated for hedge accounting.

In addition, the Company is exposed to credit risk related to financial guarantees granted to banks by the Controller. The Company’s maximum exposure is the maximum amount the Company will have to pay if the guarantee is enforced.

44.3.5 – Liquidity risk

The liquidity needs of the Company and its subsidiaries are the responsibility of the treasury and fund-raising departments, which continually monitor short-, medium- and long-term cash flows, both estimated and realized, seeking to avoid possible discrepancies and resulting financial losses, and guarantee liquidity requirements for operating needs.

The chart below analyzes the non-derivative financial liabilities of the Eletrobras System by maturation range, for the period remaining on the balance sheet until the contractual maturation date. Contractual repayment/maturation is based on the most recent date the Eletrobras System must settle the respective obligations.

LOGO


	PARENT COMPANY 12/31/2015
	Payment flow
	Up to 1 year		From 1 to 2 years		From 2 to 5 years		Over 5 years		Total

FINANCIAL LIABILITIES (CURRENT / NON-CURRENT)

Measured at amortized cost		5,497,634		11,400,270		12,496,676		10,797,657		40,192,237

Suppliers		416,126		-		-		-		416,126
Loans and financing		4,781,876		11,400,270		12,496,676		10,797,657		39,476,479
Refund obligations		299,632		-		-		-		299,632

Measured at fair value by result		18,860		-		-		-		18,860

Derivatives		18,860		-		-		-		18,860

	PARENT COMPANY 12/31/2014
	Payment flow
	Up to 1 year		From 1 to 2 years		From 2 to 5 years		Over 5 years		Total

FINANCIAL LIABILITIES (CURRENT / NON-CURRENT)

Measured at amortized cost		3,963,261		2,680,935		5,110,527		15,469,050		27,223,773

Suppliers		548,589		-		-		-		548,589
Loans and financing		2,759,514		2,680,935		5,110,527		15,469,050		26,020,026
Refund obligations		655,158		-		-		-		655,158

Measured at fair value by result		24,706		-		-		-		24,706

Derivatives		24,706		-		-		-		24,706

	CONSOLIDATED 12/31/2015
	Payment flow
	Up to 1 year		From 1 to 2 years		From 2 to 5 years		Over 5 years		Total

FINANCIAL LIABILITIES (CURRENT / NON-CURRENT)

Measured at amortized cost		18,331,212		19,570,442		28,492,678		23,999,600		90,393,931

Suppliers		10,128,507		3,163,442		3,195,654		3,090,325		19,577,928
Loans and financing		7,312,379		16,138,249		24,723,419		17,884,178		66,058,224
Debentures		357,226		31,668		57,202		116,378		562,474
Refund obligations		396,208		145,399		137,252		2,200,727		2,879,586
Lease		132,972		91,684		339,679		687,820		1,252,155
Concessions payable UBP		3,920		-		39,472		20,172		63,564

Measured at fair value by result		20,608		78,521		-		-		99,129

Derivatives		20,608		78,521		-		-		99,129

	CONSOLIDATED 12/31/2014
	Payment flow
	Up to 1 year		From 1 to 2 years		From 2 to 5 years		Over 5 years		Total

FINANCIAL LIABILITIES (CURRENT / NON-CURRENT)

Measured at amortized cost		13,527,277		10,087,125		13,436,728		25,407,161		62,458,291

Suppliers		7,489,134		3,380,083		3,330,015		3,337,269		17,536,501
Loans and financing		4,931,531		4,069,641		9,561,687		20,976,266		39,539,125
Debentures		325,732		80,181		199,514		154,496		759,923
Refund obligations		702,728		2,472,684		-		57,209		3,232,621
Lease		74,507		82,650		306,210		863,294		1,326,661
Concessions payable UBP		3,645		1,886		39,302		18,627		63,460

Measured at fair value by result		26,573		70,336		-		-		96,909

Derivatives		26,573		70,336		-		-		96,909

LOGO

44.4 - Embedded derivatives related to debentures convertible into stock

The subsidiary Eletronorte entered into an agreement for the issuance of debentures, in June, 2011, and the release of resources starting in 2013, along with Banco da Amazônia S.A. (BASA), which manages the resources of Fundo de Desenvolvimento da Amazônia (Amazon Region Development Fund or FDA), to raise funds for project implementation.

Since that agreement had a clause regarding the option to convert such debentures into Company stock, with a limit of 50% of issued debentures, Sudam’s opinion is that it is possible assign a value to the amount that would be assigned to Sudam if such conversion is made.

To determine the value, a valuation was made of the previously invested company, by estimating the value of its stock and the current value of the agreement, by using parameters for determining the value of the derivative.

The financial position on December 31, 2015 determined in this operation with derivatives is R$ 80,269. The estimated gains determined for the fiscal year ending on December 31, 2015 is R$ 27,292, and is presented in the profit and loss statement for the year.

44.4.1 – Sensitivity Analyses

Sensitivity analyses of the debentures agreement were carried out, since there is a contractual clause that refers to the option of converting such debentures into stock of the controlled company Eletronorte.

In the following analysis, different scenarios for the TJLP (long-term interest rate) were taken into account, with the corresponding impacts on Company results. For the sensitivity analysis, for a potential scenario, estimates and/or expectations for 2015 and 2016 were used, which were basically based on macroeconomic assumptions obtained from the FOCUS Report, distributed by the Central Bank.

Sensitivity analyses were carried out for the curve of debt service payments of Fundo de Desenvolvimento da Amazônia (Amazon Region Development Fund or FDA), since it has a contractual clause regarding the option to convert 50 % of Company stock on the date of actual settlement of stock.

According to CPC 38, hybrid agreements with associated volatile elements, whether they are price indexes and/or commodities, must be marked to market. In this manner, Financial Statements will reflect the fair value of the operation on each date of evaluation.

Therefore, for the agreement, a variation on the expectation for the realization of the long-term interest rate was estimated.

It is possible to verify, below, the impact of each scenario on Company results.

Balance on

December 31

Scenario I (-25%)
Indices and prices

Scenario II (-50%)
Indices and prices

Scenario I (+25%)
Indices and prices

Scenario II (+50%)
Indices and prices

2015

80,269

59,963

70,981

87,874

94,045

LOGO

NOTE 45 - OPERATING SEGMENT INFORMATION

Operative segments are defined as business activities which incur expenses and from which income can be obtained, regarding which operative decisions are made. The main decision-maker with regards to operative decisions, which is in charge of the allocation of resources and of the evaluation of performance of such segments, is the Board of Directors. It is even in charge of strategic decisions of the Company. The Company has the following operative segments: Administration, Generation, Transmission, and Distribution, and segments cannot be aggregated.

The Board of Directors estimates the performance of operative segments based on the calculation of net profits.

The following data correspond to each business segment for December 31, 2015 and December 31, 2014:


	12/31/2015
			Generation				Transmission
	Management		Exploration System		O&M System		Exploration System		O&M System		Distribution		Exclusions		Total
Net operating income		348,022		16,493,690		1,747,836		1,839,339		3,826,056		10,351,737		(2,017,842)		32,588,838
Costs and Operational Expenses		(11,818,632)		(22,211,779)		(1,586,974)		(3,253,891)		(4,008,317)		(10,269,593)		7,484,381		(45,664,805)

Financing		(11,470,610)		(5,718,089)		160,862		(1,414,552)		(182,261)		82,144		5,466,539		(13,075,967)
Financial income		3,958,904		(2,361,203)		(656,829)		(573,184)		(240,949)		(1,751,802)		(73,962)		(1,699,025)
Income from equity		(6,091,974)		-		-		-		-		-		6,623,420		531,446
Income tax and social contribution		(870,858)		(126,772)		89		256,947		19,553		10,929		-		(710,112)

Net profit (loss) of the year		(14,474,538)		(8,206,064)		(495,878)		(1,730,789)		(403,657)		(1,658,729)		12,015,997		(14,953,658)


	12/31/2014

			Generation				Transmission
	Management		Exploration System		O&M System		Exploration System		O&M System		Distribution		Exclusions		Total
Net operating income		81,591		18,266,357		1,555,217		1,998,366		2,979,323		6,664,230		(1,407,277)		30,137,807
Costs and Operational Expenses		(6,074,659)		(14,030,553)		(1,755,679)		(1,911,569)		(2,791,777)		(6,456,606)		2,143,267		(30,877,576)

Financing		(5,993,068)		4,235,804		(200,462)		86,797		187,546		207,624		735,990		(739,769)
Financial income		2,463,318		(1,279,835)		420,005		(270,551)		(30,111)		(595,919)		(12,282)		694,625
Income from equity		(1,484,476)		-		-		-		-		-		267,636		(1,216,840)
Income tax and social contribution		(242,095)		(2,690,448)		(1,308,867)		3,422,263		(903,792)		22,421		-		(1,700,518)

Net profit (loss) of the year		(5,256,321)		265,521		(1,089,324)		3,238,509		(746,357)		(365,874)		991,344		(2,962,502)


	12/31/2015
Assets per segment	Management		Generation		Transmission		Distribution		Total

Non-current assets

Fixed		1,774,081		26,815,743		-		956,821		29,546,645
Intangible		452,068		146,173		88,392		248,518		935,151

	12/31/2014
	Management		Generation		Transmission		Distribution		Total

Non-current assets

Fixed		1,781,051		28,372,663		-		1,014,518		31,168,232
Intangible		502,737		500,285		4,558		357,791		1,365,371

LOGO


Non-cash items	12/31/2015
	Management		Generation		Transmission		Distribution		Total
Depreciation and amortization		189,085		1,242,709		3,728		407,078		1,842,600
Provision for asset impairment		(1,663)		5,469,310		316,762		(93,693)		5,690,716
Provision (reversal) of onerous contract		-		102,518		263,959		-		366,477

	12/31/2014
	Management		Generation		Transmission		Distribution		Total
Depreciation and amortization		207,943		1,252,565		32		316,756		1,777,296
Provision for asset impairment		13,935		384,788		454,387		(703,763)		149,347
Provision (reversal) of onerous contract		-		(1,577,072)		(243,182)		(295,259)		(2,115,513)

Income from external consumers per segment


			12/31/2015
	Generation		Transmission		Distribution		Total
Supply (sale) of energy		12,310,243		-		-		12,310,243
Supply of energy		3,571,809		-		14,835,424		18,407,233
Short term energy		1,811,552		-		-		1,811,552
CVA and other financial items		-		-		324,120		324,120
Itaipu financial effect		234,425		-		-		234,425
Income from operation and maintenance		1,882,637		2,695,611		-		4,578,248
Construction income		148,403		2,077,616		1,011,518		3,237,537
Financial - Investment return		-		838,087		-		838,087

Total gross income		19,959,069		5,611,314		16,171,062		41,741,445


	12/31/2014
	Generation		Transmission		Distribution		Total
Supply (sale) of energy		12,175,362		-		-		12,175,362
Supply of energy		3,317,103		-		7,310,337		10,627,440
Short term energy		3,817,976		-		-		3,817,976
CVA and other financial items		-		-		38,477		38,477
Itaipu financial effect		(97,740)		-		-	-	97,740
Income from operation and maintenance		1,803,127		2,201,268		-		4,004,395
Construction income		240,040		1,786,195		873,413		2,899,648
Financial - Investment return		-		714,409		-		714,409

Total gross income		21,255,868		4,701,872		8,222,227		34,179,967

NOTE 46 - TRANSACTIONS WITH RELATED PARTIES

The final controlling company of the Company is União (the Union) that holds 51% of common stock of the Company. (Please review Note 36.)

Company transactions with its subsidiaries, controlled companies and special purpose entities are carried out at prices and conditions that are defined by the parties, that take into consideration the terms that could be applied in the market with unrelated parties. Among the main operations that took place with related parties, we would like to point out loans and financing granted with the above-mentioned conditions and/or according to specific legislation on such matters. The rest of operations were based also taking into consideration conditions that could be usual in the market.

LOGO


		PARENT COMPANY
		12/31/2015						12/31/2014
COMPANIES	TYPE OF OPERATION	ASSETS		LIABILITIES		RESULT		ASSETS		LIABILITIES		RESULT


FURNAS	Financing and loans		4,047,720		-		-		4,009,120		-		-
	Advancement for future capital increase		43,649		-		-		38,530		-		-
	Other assets		153		-		-		-		-		-
	Income from equity		-		-		(69,978)		-		-		(403,869)
	Income from interest, commissions, fees, and		-		-		689,462		-		-		268,941

			4,091,522		-		619,484		4,047,650		-		(134,928)

CHESF	Financing and loans		30,964		-		-		43,684		-		-
	Other liabilities		78		-		-		-		1,355		-
	Income from interest, commissions, fees, and		-		-		2,564		-		-		3,542
	Income from equity		-		-		(473,914)		-		-		(1,113,194)

			31,042		-		(471,350)		43,684		1,355		(1,109,652)

ELETRONORTE	Financing and loans		3,020,041		-		-		3,168,677		-		-
	Advancement for future capital increase		-		-		-		12,984		-		-
	Dividends receivable		10,017		-		-		454,402		-		-
	Other assets		4,474		-		-		-		-		-
	Income from equity		-		-		101,142		-		-		2,022,891
	Income from interest, commissions, fees, and		-		-		636,611		-		-		233,157

			3,034,532		-		737,753		3,636,063		-		2,256,048

ELETROSUL	Financing and loans		2,141,510		-		-		1,925,505		-		-
	Dividends receivable		37,024		-		-		8,531		-		-
	Advancement for future capital increase		-		-		-		63,976		-		-
	Other assets		2,469		-		-		-		-		-
	Other liabilities		-		14,303		-		-		-		-
	Income from equity		-		-		(912,287)		-		-		35,919
	Income from interest, commissions, fees, and		-		-		349,461		-		-		132,765

			2,181,003		14,303		(562,826)		1,998,012		-		168,684

CGTEE	Financing and loans		2,417,810		-		-		2,065,667		-		-
	Advancement for future capital increase		120,505		-		-		18,391		-		-
	Dividends receivable		73,035		-		-		64,479		-		-
	Outstanding liabilities of subsidiaries		-		1,210,508		-		-		552,998		-
	Operational reversals (provisions)		-		-		(648,302)		-		-		480,065
	Income from equity		-		-		-		-		-		-
	Income from interest, commissions, fees, and		-		-		309,057		-		-		164,055

			2,611,350		1,210,508		(339,245)		2,148,537		552,998		644,120

	Financing and loans		1,600,265		-		-		1,483,513		-		-
	Other assets		46		-		-		-		-		-
	Other liabilities		-		523,984		-		-		342,971		-
ELETRONUCLEAR	Outstanding liabilities of subsidiaries		-		351,271		-		-		-		-
	Operational reversals (provisions)		-		-		(321,652)		-		-		-
	Income from equity		-		-		(4,791,800)		-		-		(999,701)
	Income from interest, commissions, fees, and		-		-		129,169		-		-		88,695

			1,600,311		875,255		(4,984,283)		1,483,513		342,971		(911,007)

ED ALAGOAS	Financing and loans		1,166,748		-		-		947,474		-		-
	Advancement for future capital increase		8,307		-		-		8,307		-		-
	Other assets		1,652		-		-		-		-		-
	Outstanding liabilities of subsidiaries		-		247,656		-		-		11,075		-
	Operational reversals (provisions)		-		-		(252,585)		-		-		95,354
	Income from equity		-		-		-		-		-		-
	Income from interest, commissions, fees, and		-		-		139,861		-		-		94,884

			1,176,707		247,656		(112,724)		955,781		11,075		190,238

ED PIAUÍ	Financing and loans		1,224,315		-		-		1,021,389		-		-
	Advancement for future capital increase		-		-		-		16,416		-		-
	Other assets		37		-		-		-		-		-
	Outstanding liabilities of subsidiaries		-		701,148		-		-		141,056		-
	Operational reversals (provisions)		-		-		(562,987)		-		-		(37,935)
	Income from interest, commissions, fees, and		-		-		158,746		-		-		109,032

			1,224,352		701,148		(404,241)		1,037,805		141,056		71,097

AMAZONAS ENERGIA - D	Financing and loans		1,327,167		-		-		2,164,460		-		-
	Other assets		138,713		-		-		419,855		-		-
	Outstanding liabilities of subsidiaries		-		4,363,597		-		-		2,019,381		-
	Operational reversals (provisions)		-		-		(2,344,048)		-		-		415,424
	Income from interest, commissions, fees, and		-		-		235,020		-		-		202,541

			1,465,880		4,363,597		(2,109,028)		2,584,315		2,019,381		617,965

AMAZONAS ENERGIA - GT	Financing and loans		1,469,087		-		-		-		-		-
	Advancement for future capital increase		-		-		-		-		-		-
	Other assets		493,511		-		-		-		-		-
	Income from interest, commissions, fees, and		-		-		76,473		-		-		-

			1,962,598		-		76,473		-		-		-

ED RONDÔNIA	Financing and loans		739,481		-		-		696,490		-		-
	Advancement for future capital increase		245		-		-		245		-		-
	Other assets		1,611		-		-		-		-		-
	Outstanding liabilities of subsidiaries		-		456,558		-		-		-		-
	Operational reversals (provisions)		-		-		(456,771)		-		-		(188,654)
	Income from equity		-		-		(104,066)		-		-		-
	Income from interest, commissions, fees, and		-		-		98,496		-		-		71,038

			741,337		456,558		(462,341)		696,735		-		(117,616)

LOGO


		PARENT COMPANY
		12/31/2015						12/31/2014
COMPANIES	TYPE OF OPERATION	ASSETS		LIABILITIES		RESULT		ASSETS		LIABILITIES		RESULT


ELETROPAR	Dividends receivable		1,046		-		-		-		-		-
	Other assets		380		-		-		-		-		-
	Income from equity		-		-		4,401		-		-		(2,464)

			1,426		-		4,401		-		-		(2,464)

ELETROACRE	Financing and loans		283,014		-		-		235,149		-		-
	Advancement for future capital increase		12,787		-		-		12,787		-		-
	Other assets		809		-		-		-		-		-
	Outstanding liabilities of subsidiaries		-		125,416		-		-		-		-
	Income from equity		-		-		(53,100)		-		-		-
	Operational reversals (provisions)		-		-		(125,592)		-		-		-
	Income from interest, commissions, fees, and		-		-		36,938		-		-		24,937

			296,610		125,416		(141,754)		247,936		-		24,937

ED RORAIMA	Financing and loans		54,419		-		-		44,536		-		-
	Other assets		7		-		-		-		-		-
	Outstanding liabilities of subsidiaries		-		337,643		-		-		69,726		-
	Operational reversals (provisions)		-		-		(270,116)		-		-		67,597
	Income from equity		-		-		-		-		-		(8,294)
	Income from interest, commissions, fees, and		-		-		7,291		-		-		4,827

			54,426		337,643		(262,825)		44,536		69,726		64,130

CELG-D	Equity stake		-		-		-		108,872		-		-
	Financing and loans		240,800		-		-		85,740		-		-
	Other assets		197		-		-		-		-		-
	Outstanding liabilities of subsidiaries		-		412,225		-		-		-		-
	Income from equity		-		-		(108,872)		-		-		-
	Operational reversals (provisions)		-		-		(410,523)		-		-		-
	Income from interest, commissions, fees, and		-		-		12,271		-		-		-

			240,997		412,225		(507,124)		194,612		-		-

ITAIPU	Financing and loans		14,802,134		-		-		11,656,696		-		-
	Dividends receivable		1,952		-		-		-		-		-
	Income from interest, commissions, fees, and		-		-		6,009,406		-		-		767,647

			14,804,087		-		6,009,406		11,656,696		-		767,647

TESOURO	Obligations		-		3,940,898		-		-		1,672,761		-

			-		3,940,898		-		-		1,672,761		-

ELETROS	Contributions payable - sponsor		-		23,555		-		-		10,652		-
	Provisions		-		244,685		-		-		448,407		-
	Sponsor contributions		-		-		(31,693)		-		-		(34,423)
	Fees		-		-		(2,410)		-		-		(2,462)

			-		268,240		(34,103)		-		459,059		(36,885)

CEEE-GT	Equity stake		448,274		-		-		449,336		-		-
	Financing and loans		4,883		-		-		13,254		-		-
	Income from equity		-		-		14,173		-		-		(91,308)
	Income from interest, commissions, fees, and		-		-		607		-		-		1,189

			453,157		-		14,780		462,590		-		(90,119)

ENERGISA MT	Equity stake		385,318		-		-		376,031		-		-
	Financing and loans		310,697		-		-		353,596		-		-
	Dividends receivable		4,403		-		-		-		-		-
	Income from equity		-		-		12,918		-		-		25,491
	Income from interest, commissions, fees, and		-		-		30,911		-		-		34,608

			700,417		-		43,829		729,627		-		60,099

EMAE	Dividends receivable		1,416		-		-		-		-		-
	Equity stake		296,828		-		-		265,552		-		-
	Income from equity		-		-		23,330		-		-		146,112

			298,244		-		23,330		265,552		-		146,112

CTEEP	Equity stake		924,185		-		-		927,814		-		-
	Financing and loans		196		-		-		-		-		-
	Dividends receivable		20		-		-		11,008		-		-
	Income from equity		-		-		114,813		-		-		52,625
	Income from interest, commissions, fees, and		-		-		17		-		-		21

			924,401		-		114,830		938,822		-		52,646

LOGO


		PARENT COMPANY
		12/31/2015						12/31/2014
COMPANIES	TYPE OF OPERATION	ASSETS		LIABILITIES		RESULT		ASSETS		LIABILITIES		RESULT


CEMAR	Equity stake		653,419		-		-		554,817		-		-
	Financing and loans		275,939		-		-		308,989		-		-
	Dividends receivable		22,910		-		-		20,754		-		-
	Income from equity		-		-		121,778		-		-		112,288
	Income from interest, commissions, fees, and		-		-		28,387		-		-		18,635

			952,268		-		150,165		884,560		-		130,923

LAJEADO ENERGIA	Equity stake		219,173		-		-		206,282		-		-
	Dividends receivable		86,589		-		-		94,810		-		-
	Income from equity		-		-		37,014		-		-		13,630

			305,762		-		37,014		301,092		-		13,630

CEB LAJEADO	Dividends receivable		13,980		-		-		14,606		-		-
	Equity stake		80,353		-		-		71,723		-		-
	Income from equity		-		-		17,586		-		-		7,419

			94,333		-		17,586		86,329		-		7,419

PAULISTA LAJEADO	Equity stake		23,507		-		-		18,119		-		-
	Dividends receivable		3,077		-		-		2,765		-		-
	Income from equity		-		-		4,463		-		-		(3,096)

			26,584		-		4,463		20,884		-		(3,096)

CEEE-D	Equity stake		-		-		-		7,476		-		-
	Financing and loans		28,520		-		-		31,258		-		-
	Income from equity		-		-		(10,432)		-		-		(145,118)
	Income from interest, commissions, fees, and		-		-		2,673		-		-		2,895

			28,520		-		(7,759)		38,734		-		(142,223)

INAMBARI	Equity stake		115		-		-		164		-		-
INAMBARI	Income from equity		-		-		(50)		-		-		(8,984)

			115		-		(50)		164		-		(8,984)

CHC AMÉ	Equity stake		98,514		-		-		79,081		-		-
CHC AMÉ	Income from equity		-		-		(13,753)		-		-		(5,517)

			98,514		-		(13,753)		79,081		-		(5,517)

EÓLICA MANGUE SECO	Equity stake		16,889		-		-		16,726		-		-
EÓLICA MANGUE SECO	Income from equity		-		-		163		-		-		(332)

			16,889		-		163		16,726		-		(332)

NORTE ENERGIA (BELO MONTE)	Equity stake		1,039,632		-		-		802,964		-		-
NORTE ENERGIA (BELO MONTE)	Income from equity		-		-		(8,581)		-		-		(32,909)

			1,039,632		-		(8,581)		802,964		-		(32,909)

ROUAR	Equity stake		111,775		-		-		70,044		-		-
ROUAR	Income from equity		-		-		7,529		-		-		7,240

			111,775		-		7,529		70,044		-		7,240

LOGO



		CONSOLIDATED
		12/31/2015						12/31/2014

COMPANIES	TYPE OF OPERATION	ASSET		LIABILITIES		RESULT		ASSET		LIABILITIES		RESULT


FEDERAL PUBLIC ENTITIES	Client		19,535		-		-		16,333		-		-
	Energy supply		-		-		-		-		-		43,716
	Other income		-		-		96,432		-		-		33,864

			19,535		-		96,432		16,333		-		77,580

REAL GRANDEZA	Other accounts receivable		911		-		-		-		-		-
	Other assets		-		-		-		3,127		-		-
	Pension contributions		-		2,872		-		-		4,312		-
	Suppliers		-		1,192		-		-		-		-
	Accounts payable		-		195,556		-		-		403,810		-
	Several obligations		-		6,265		-		-		5,466		-
	Actuarial debt contracts		-		2,528		-		-		15,542		-
	Other liabilities		-		55,426		-		-		38,120		-
	Financial income		-		-		9		-		-		-
	Other income		-		-		1,320		-		-		134,529
	Financial expenses		-		-	-	17,216		-		-	-	20,795
	Actuarial expenses		-		-	-	10,862		-		-		8,312
	Other expenses		-		-	-	93,514		-		-	-	11,594
	Actuarial provision		-		-		-		-		-		38,120

			911		263,839	-	120,263		3,127		467,250		148,572

	Pension contributions		-		3,122		-		-		3,230		-
CENTERS	Actuarial expenses		-		-	-	8,892		-		-	-	4,555
	Other expenses		-		-	-	914		-		-		-

			-		3,122	-	9,806		-		3,230	-	4,555

NORTE BRASIL	Equity permanent stake		887,528		-		-		421,052		-		-
	Suppliers		-		1,459		-		-		23		-
	Other liabilities		-		-		-		-		1,555		-
	Income (Expenses) Equity Method		-		-		4,218		-		-	-	3,517
	Income from equity		-		-		41,207		-		-		-
	Other expenses		-		-	-	14,636		-		-		-
	Fees with the use of electric grid		-		-		-		-		-	-	2,459

			887,528		1,459		30,789		421,052		1,578	-	5,976

ETAU	Accounts receivable		9		-		-		9		-		-
	JCP / Dividends receivable		257		-		-		39		-		-
	Equity permanent stake		24,109		-		-		23,235		-		-
	Suppliers		-		3		-		-		2		-
	Equity method income		-		-		4,947		-		-		6,713
	Income from service provision		-		-		350		-		-		453
	Other income		-		-		9		-		-
	Fees with the use of electric grid		-		-	-	38		-		-	-	34

			24,375		3		5,268		23,283		2		7,132

ESBR	Clients		4,526		-		-		2,295		-		-
	Equity permanent stake		2,799,875		-		-		2,907,364		-		-
	Advancement for future capital increase		141,400		-		-		-		-		-
	Suppliers		-		27,876		-		-		9,872		-
	Other liabilities		-		-		-		-		600		-
	Expense with purchased energy		-		-	-	219,637		-		-	-	31,200
	Equity Method Expenses		-		-	-	287,489		-		-	-	461,576

			2,945,801		27,876	-	507,126		2,909,659		10,472	-	492,776

TELES PIRES PARTICIPAÇÕES	Equity permanent stake		547,152		-		-		496,425		-		-
	Income (Expenses) Equity Method		-		-	-	86,139		-		-	-	29,157
	Other expenses		-		-	-	115,412		-		-		-

			547,152		-	-	201,551		496,425		-	-	29,157

INTEGRAÇÃO	Equity permanent stake		-		-		-		22,517		-		-
INTEGRAÇÃO	Equity method income		-		-		1,508		-		-		63

			-		-		1,508		22,517		-		63

COSTA OESTE	JCP / Dividends receivable		1,713		-		-		300		-		-
	Advancement for future capital increase		-		-		-		1,146		-		-
	Equity permanent stake		30,058		-		-		21,510		-		-
	Suppliers		-		1		-		-		1		-
	Income (Expenses) Equity Method		-		-		6,249		-		-	-	481
	Fees with the use of electric grid		-		-	-	10		-		-	-	3

			31,771		1		6,239		22,956		1	-	484

TSBE - Transmissora Sul Brasileira de Energia S.A.	Accounts receivable		11		-		-		12		-		-
	JCP / Dividends receivable		-		-		-		2,660		-		-
	Advancement for future capital increase		-		-		-		16,000		-		-
	Equity permanent stake		270,252		-		-		275,960		-		-
	Suppliers		-		7		-		-		2		-
	Accounts payable		-		-		-		-		10,733		-
	Income from service provision		-		-		12,557		-		-		374
	Other income		-		-		76		-		-		70
	Income (Expenses) Equity Method		-		-	-	24,368		-		-		11,377
	Fees with the use of electric grid		-		-	-	70		-		-	-	20

			270,263		7	-	11,805		294,632		10,735		11,801

LIVRAMENTO	Other accounts receivable		-		-		-		10		-		-
	Advancement for future capital increase		173,860		-		-		73,500		-		-
	Redeemable preferred shares		64,310		-		-		61,910		-		-
	Other income		-		-		179		-		-		126
	Income (Expenses) Equity Method		-		-	-	96,478		-		-	-	150,370
	Fees with the use of electric grid		-		-	-	2		-		-		-

			238,170		-	-	96,301		135,420		-	-	150,244

LOGO



		CONSOLIDATED
		12/31/2015						12/31/2014

COMPANIES	TYPE OF OPERATION	ASSET		LIABILITIES		RESULT		ASSET		LIABILITIES		RESULT


SANTA VITÓRIA	JCP / Dividends receivable		-		-		-		1,163		-		-
	Advancement for future capital increase		36,492		-		-		18,000		-		-
	Equity permanent stake		50,223		-		-		157,627		-		-
	Redeemable preferred shares		29,400		-		-		29,400		-		-
	Income (Expenses) Equity Method		-		-	-	108,567		-		-		2,220

			116,115		-	-	108,567		206,190		-		2,220

MARUMBI	Advancement for future capital increase		-		-		-		6,702		-		-
	JCP / Dividends receivable		775		-		-		553		-		-
	Equity permanent stake		18,418		-		-		9,043		-		-
	Suppliers		-		2		-		-		-		-
	Equity method income		-		-		2,894		-		-		1,930
	Other income		-		-		14		-		-		-
	Fees with the use of electric grid		-		-	-	8		-		-		-

			19,193		2		2,900		16,298		-		1,930

CHUÍ	Equity permanent stake		-		-		-		37,495		-		-
	Advancement for future capital increase		431,913		-		-		330,500		-		-
	Equity Method Expenses		-		-	-	114,602		-		-	-	37,715

			431,913		-	-	114,602		367,995		-	-	37,715

FACHESF	Suppliers		-		1,720		-		-		10,719		-
	Pension contributions (regular)		-		11,415		-		-		10,220		-
	Actuarial expenses		-		-	-	123,537		-		-	-	105,121
	Operational Expenses		-		-	-	20,411		-		-	-	17,401
	Financial expenses		-		-	-	133,698		-		-	-	55,871

			-		13,135	-	277,646		-		20,939	-	178,393

TDG	Accounts receivable		355		-		-		429		-		-
	Equity permanent stake		7,236		-		-		28,013		-		-
	Advancement for future capital increase		101,000		-		-		101,000		-		-
	Suppliers		-		169		-		-		181		-
	Income from service provision		-		-		4,217		-		-		4,187
	Equity Method Expenses		-		-	-	20,777		-		-		-
	Fees with the use of electric grid		-		-	-	1,580		-		-	-	1,787

			108,591		169	-	18,140		129,442		181		2,400

MANAUS TRANSMISSÃO	JCP / Dividends receivable		50		-		-		-		-		-
	Equity permanent stake		621,873		-		-		215,793		-		-
	Advancement for future capital increase		26,800		-		-		39,181		-		-
	Other assets		1,067		-		-		1,338		-		-
	Suppliers		-		1,810		-		-		-		-
	Other liabilities		-		8		-		-		1,307		-
	Equity method income		-		-		29,919		-		-		22,226
	Other income		-		-		2,573		-		-		2,938
	Equity Method Expenses		-		-		-		-		-	-	65,311
	Fees with the use of electric grid		-		-	-	20,825		-		-	-	7,902

			649,790		1,818		11,667		256,312		1,307	-	48,049

IE MADEIRA	JCP / Dividends receivable		27,589		-		-		7,257		-		-
	Equity permanent stake		912,098		-		-		822,342		-		-
	Suppliers		-		1,475		-		-		5,752		-
	Accounts payable		-		526		-		-		579		-
	Equity method income		-		-		117,747		-		-		62,927
	Income from service provision		-		-		602		-		-		-
	Other income (expenses)		-		-		495		-		-		-
	Fees with the use of electric grid		-		-	-	53,169		-		-	-	49,776

			939,687		2,001		65,675		829,599		6,331		13,151

MANAUS CONSTRUÇÃO	JCP / Dividends receivable		9,178		-		-		12,351		-		-
	Equity permanent stake		33,251		-		-		4,724		-		-
	Income (Expenses) Equity Method		-		-	-	592		-		-		10,570

			42,429		-	-	592		17,075		-		10,570

STN	Other accounts receivable		273		-		-		263		-		-
	Equity permanent stake		176,941		-		-		163,434		-		-
	Suppliers		-		1,042		-		-		1,250		-
	Equity method income		-		-		45,475		-		-		46,014
	Income from service provision		-		-		3,231		-		-		2,841
	Fees with the use of electric grid		-		-	-	10,362		-		-	-	12,427

			177,214		1,042		38,344		163,697		1,250		36,428

INTESA - Integração Transmissora de EnergiaS.A.	JCP / Dividends receivable		1,209		-		-		-		-		-
	Equity permanent stake		42,084		-		-		41,064		-		-
	Other assets		317		-		-		-		-		-
	Suppliers		-		1,482		-		-		971		-
	Equity method income		-		-		6,727		-		-		5,573
	Other income		-		-		3,673		-		-		-
	Fees with the use of electric grid		-		-	-	14,503		-		-	-	9,496

			43,610		1,482	-	4,103		41,064		971	-	3,923

EAPSA -Energética Águas da Pedra S.A.	Clients		352		-		-		159		-		-
	JCP / Dividends receivable		2,181		-		-		1,124		-		-
	Equity permanent stake		208,795		-		-		89,580		-		-
	Other assets		-		-		-		161		-		-
	Equity method income		-		-		22,718		-		-		8,409
	Income from the use of electric grid		-		-		-		-		-		1,267
	Other income		-		-		1,557		-		-		-

			211,328		-		24,275		91,024		-		9,676

SETE GAMELEIRAS	Clients		8		-		-		7		-		-
	JCP / Dividends receivable		437		-		-		-		-		-
	Equity permanent stake		22,888		-		-		20,799		-		-
	Equity method income		-		-		2,526		-		-		556

			23,333		-		2,526		20,806		-		556

LOGO



		CONSOLIDATED
		12/31/2015						12/31/2014

COMPANIES	TYPE OF OPERATION	ASSET		LIABILITIES		RESULT		ASSET		LIABILITIES		RESULT


S. PEDRO DO LAGO	Clients		36		-		-		7		-		-
	JCP / Dividends receivable		371		-		-		-		-		-
	Equity permanent stake		16,423		-		-		16,268		-		-
	Income (Expenses) Equity Method		-		-		268		-		-		1,407
	Income from service provision		-		-		335		-		-		81

			16,830		-		603		16,275		-		1,488

PEDRA BRANCA	Clients		8		-		-		7		-		-
	JCP / Dividends receivable		542		-		-		-		-		-
	Equity permanent stake		17,592		-		-		14,256		-		-
	Income from service provision		-		-		-		-		-		192
	Income (Expenses) Equity Method		-		-		3,878		-		-		-

			18,142		-		3,878		14,263		-		192

BRASVENTOS MIASSABA	Clients		152		-		-		70		-		-
	Equity permanent stake		66,539		-		-		33,469		-		-
	Other assets		1		-		-		1		-		-
	Equity method income		-		-	-	226		-		-		4,703
	Income from the use of electric grid		-		-		709		-		-		649
	Other income		-		-		604		-		-		-
	Equity Method Expenses		-		-	-	200		-		-		-

			66,692		-		887		33,540		-		5,352

BRASVENTOS EOLO	Clients		129		-		-		60		-		-
	Advancement for future capital increase		316		-		-		316		-		-
	Equity permanent stake		40,163		-		-		20,750		-		-
	Other assets		1		-		-		-		-		-
	Income from the use of electric grid		-		-		605		-		-		554
	Other income		-		-		517		-		-		-
	Equity Method Expenses		-		-	-	668		-		-	-	1,495
	Income from equity		-		-	-	634		-		-		-

			40,609		-	-	180		21,126		-	-	941

PREVINORTE	Other assets		7,174		-		-		63		-		-
PREVINORTE	Other liabilities		-		-		-		-		7,958		-

			7,174		-		-		63		7,958		-

ENERPEIXE	Clients		282		-		-		232		-		-
	JCP / Dividends receivable		34,686		-		-		26,059		-		-
	Equity permanent stake		561,282		-		-		555,860		-		-
	Equity method income		-		-		68,107		-		-		56,539
	Income from service provision		-		-		13		-		-		255
	Income from the use of electric grid		-		-		2,287		-		-		2,220

			596,250		-		70,407		582,151		-		59,014

	Equity permanent stake		17,574		-		-		15,616		-		-
	Suppliers		-		164		-		-		166		-
TRANSLESTE	Equity method income		-		-		4,719		-		-		5,040
	Fees with the use of electric grid		-		-	-	1,515		-		-	-	1,539

			17,574		164		3,204		15,616		166		3,501

TRANSUDESTE	Clients		14		-		-		-		-		-
	Other accounts receivable		13		-		-		-		-		-
	JCP / Dividends receivable		1,033		-		-		1,033		-		-
	Equity permanent stake		17,900		-		-		14,978		-		-
	Other assets		-		-		-		25		-		-
	Suppliers		-		102		-		-		156		-
	Other income		-		-		165		-		-		159
	Income from service provision		-		-		157		-		-		148
	Equity method income		-		-		3,459		-		-		3,294
	Financial income		-		-		-		-		-		1,034
	Fees with the use of electric grid		-		-	-	947		-		-	-	968

			18,960		102		2,834		16,036		156		3,667

TRANSIRAPE	JCP / Dividends receivable		678		-		-		-		-		-
	Equity permanent stake		19,061		-		-		16,134		-		-
	Suppliers		-		90		-		-		107		-
	Equity method income		-		-		3,605		-		-		2,864
	Fees with the use of electric grid		-		-	-	739		-		-	-	666

			19,739		90		2,866		16,134		107		2,198

CENTROESTE	Clients		63		-		-		-		-		-
	JCP / Dividends receivable		59		-		-		894		-		-
	Equity permanent stake		18,709		-		-		20,825		-		-
	Other assets		-		-		-		10		-		-
	Suppliers		-		54		-		-		71		-
	Equity method income		-		-		4,361		-		-		4,089
	Income from service provision		-		-		1,068		-		-		900
	Other income		-		-		89		-		-		431
	Fees with the use of electric grid		-		-	-	645		-		-	-	666

			18,831		54		4,873		21,729		71		4,754

BAGUARI	Clients		22		-		-		15		-		-
	JCP / Dividends receivable		2,462		-		-		7,294		-		-
	Advancement for future capital increase		315		-		-		315		-		-
	Equity permanent stake		82,721		-		-		85,815		-		-
	Income (Expenses) Equity Method		-		-		6,226		-		-	-	850
	Income from the use of electric grid		-		-		193		-		-		181

			85,520		-		6,419		93,439		-	-	669

RETIRO BAIXO	Advancement for future capital increase		1,225		-		-		2,695		-		-
	Equity permanent stake		121,774		-		-		111,906		-		-
	Equity Method Expenses		-		-		-		-		-	-	1,275
	Financial income (expenses)		-		-		7,173		-		-		-
	Financial income		-		-		-		-		-		111

			122,999		-		7,173		114,601		-	-	1,164

LOGO



		CONSOLIDATED
		12/31/2015						12/31/2014

COMPANIES	TYPE OF OPERATION	ASSET		LIABILITIES		RESULT		ASSET		LIABILITIES		RESULT


SERRA FACÃO ENERGIA	JCP / Dividends receivable		9,154		-		-		2,289		-		-
	Equity permanent stake		45,032		-		-		1,640		-		-
	Income (Expenses) Equity Method		-		-		23,047		-		-	-	59,102
	Income from service provision		-		-		154		-		-		80

			54,186		-		23,201		3,929		-	-	59,022

Chapecoense	Clients		740		-		-		740		-		-
	JCP / Dividends receivable		22,288		-		-		9,512		-		-
	Equity permanent stake		415,501		-		-		364,522		-		-
	Equity method income		-		-		73,267		-		-		28,646

			438,529		-		73,267		374,774		-		28,646

MADEIRA ENERGIA	Equity permanent stake		2,799,058		-		-		2,724,068		-		-
	Income (Expenses) Equity Method		-		-		7,030		-		-	-	861,144
	Other expenses		-		-	-	97,010		-		-		-

			2,799,058		-	-	89,980		2,724,068		-	-	861,144

INAMBARI	Equity permanent stake		194		-		-		164		-		-
	Other income		-		-		30		-		-		6,017
	Income (Expenses) Equity Method		-		-	-	31		-		-	-	6,024
	Income from equity		-		-	-	50		-		-		-

			194		-	-	51		164		-	-	7

TRANSENERGIA RENOVÁVEL	JCP / Dividends receivable		13,979		-		-		15,648		-		-
	Equity permanent stake		128,418		-		-		96,813		-		-
	Suppliers		-		57		-		-		80		-
	Equity method income		-		-		38,777		-		-		24,316
	Other income		-		-		-		-		-		8
	Fees with the use of electric grid		-		-	-	706		-		-	-	754

			142,397		57		38,071		112,461		80		23,570

MGE TRANSMISSÃO	Clients		15		-		-		-		-		-
	Other accounts receivable		148		-		-		149		-		-
	JCP / Dividends receivable		11,447		-		-		6,812		-		-
	Equity permanent stake		136,755		-		-		118,953		-		-
	Suppliers		-		119		-		-		100		-
	Income (Expenses) Equity Method		-		-		20,476		-		-	-	9,222
	Income from service provision		-		-		1,685		-		-		2,974
	Other income		-		-		167		-		-		67
	Fees with the use of electric grid		-		-	-	1,389		-		-	-	477

			148,365		119		20,939		125,914		100	-	6,658

GOIÁS TRANSMISSÃO	Other accounts receivable		229		-		-		203		-		-
	JCP / Dividends receivable		23,857		-		-		20,051		-		-
	Equity permanent stake		190,245		-		-		138,436		-		-
	Suppliers		-		204		-		-		225		-
	Income (Expenses) Equity Method		-		-		66,566		-		-	-	493
	Income from service provision		-		-		2,331		-		-		2,293
	Fees with the use of electric grid		-		-	-	2,327		-		-	-	1,911

			214,331		204		66,570		158,690		225	-	111

TRANS. SÃO PAULO	Clients		18		-		-		-		-		-
	Other accounts receivable		83		-		-		75		-		-
	JCP / Dividends receivable		4,275		-		-		15,934		-		-
	Advancement for future capital increase		-		-		-		1,960		-		-
	Equity permanent stake		91,141		-		-		83,116		-		-
	Suppliers		-		13		-		-		28		-
	Equity method income		-		-		6,065		-		-		43,977
	Income from service provision		-		-		976		-		-		890
	Other income		-		-		78		-		-		509
	Fees with the use of electric grid		-		-	-	297		-		-	-	276

			95,517		13		6,822		101,085		28		45,100

CALDAS NOVAS	Other accounts receivable		73		-		-		72		-		-
	JCP / Dividends receivable		452		-		-		-		-		-
	Equity permanent stake		13,560		-		-		12,846		-		-
	Suppliers		-		3		-		-		9		-
	Income (Expenses) Equity Method		-		-		1,166		-		-		3,084
	Income from service provision		-		-		724		-		-		720
	Other income		-		-		160		-		-		149
	Fees with the use of electric grid		-		-		-		-		-	-	61

			14,085		3		2,050		12,918		9		3,892

IE GARANHUNS	JCP / Dividends receivable		5,780		-		-		-		-		-
	Equity permanent stake		318,972		-		-		181,526		-		-
	Equity method income		-		-		26,361		-		-		16,717

			324,752		-		26,361		181,526		-		16,717

LUZIÂNIA NIQUELÂNDIA TRANSMISSORA	Clients		6		-		-		-		-		-
	Equity permanent stake		21,181		-		-		16,863		-		-
	Suppliers		-		-		-		-		845		-
	Equity method income		-		-		4,318		-		-		4,594
	Income from service provision		-		-		110		-		-		115
	Other income		-		-		30		-		-		188
	Fees with the use of electric grid		-		-	-	105		-		-	-	41

			21,187		-		4,353		16,863		845		4,856

TSLE - Transmissora Sul Litorânea de Energia S.A.	Other accounts receivable		18		-		-		5		-		-
	Advancement for future capital increase		84,847		-		-		54,499		-		-
	Equity permanent stake		144,615		-		-		139,719		-		-
	Accounts payable		-		11		-		-		-		-
	Income from service provision		-		-		570		-		-		3,457
	Other income		-		-		51		-		-		39
	Equity Method Expenses		-		-	-	4,980		-		-	-	2,637
	Fees with the use of electric grid		-		-	-	81		-		-		-

			229,480		11	-	4,440		194,223		-		859

LOGO



		CONSOLIDATED
		12/31/2015						12/31/2014

COMPANIES	TYPE OF OPERATION	ASSET		LIABILITIES		RESULT		ASSET		LIABILITIES		RESULT


Energia dos Ventos I	Equity permanent stake		-		-		-		7,254		-		-
	Income (Expenses) Equity Method		-		-	-	1		-		-	-	39

			-		-	-	1		7,254		-	-	39

Energia dos Ventos II	Equity permanent stake		-		-		-		4,406		-		-
	Income (Expenses) Equity Method		-		-		-		-		-	-	30

			-		-		-		4,406		-	-	30

Energia dos Ventos III	Equity permanent stake		-		-		-		6,535		-		-
	Income (Expenses) Equity Method		-		-		-		-		-	-	36

			-		-		-		6,535		-	-	36

Energia dos Ventos IV	Equity permanent stake		-		-		-		9,535		-		-
	Income (Expenses) Equity Method		-		-		-		-		-	-	43

			-		-		-		9,535		-	-	43

Energia dos Ventos X	Equity permanent stake		-		-		-		5,807		-		-
	Income (Expenses) Equity Method		-		-	-	1		-		-	-	34

			-		-	-	1		5,807		-	-	34

NORTE ENERGIA (Belo Monte)	Clients		390		-		-		-		-		-
	Other assets		54		-		-		78		-		-
	Advancement for future capital increase		326,671		-		-		-		-		-
	Equity permanent stake		3,469,785		-		-		3,479,087		-		-
	Income from equity		-		-	-	7,993		-		-	-	32,909
	Equity Method Expenses		-		-	-	7,225		-		-	-	110,640
	Income from the use of electric grid		-		-		39,258		-		-		-
	Other income		-		-		423		-		-		-

			3,796,900		-		24,463		3,479,165		-	-	143,549

AETE	Other assets		24		-		-		-		-		-
	Other liabilities		-		-		-		-		234		-
	Suppliers		-		160		-		-		-		-
	Equity method income		-		-		-		-		-		8,915
	Other income		-		-		2,251		-		-		-
	Fees with the use of electric grid		-		-	-	2,126		-		-	-	2,457

			24		160		125		-		234		6,458

BRASNORTE	Other assets		106		-		-		2,506		-		-
	Equity permanent stake		120,873		-		-		-		-		-
	Other liabilities		-		-		-		-		127		-
	Suppliers		-		88		-		-		-		-
	Equity method income		-		-		9,372		-		-		9,647
	Income from service provision		-		-		-		-		-		1,808
	Other income		-		-		3,523		-		-		-
	Fees with the use of electric grid		-		-	-	1,176		-		-	-	1,289

			120,979		88		11,719		2,506		127		10,166

ESTAÇÃO	Fees with the use of electric grid		-		-		-		-		-	-	3,735

			-		-		-		-		-	-	3,735

INTEGRAÇÃO TRANS.	Other assets		-		-		-		290		-		-
	Suppliers		-		-		-		-		-		-
	Equity permanent stake		133,488		-		-		-		-		-
	Other liabilities		-		-		-		-		709		-
	Equity method income		-		-		18,970		-		-		16,817
	Other income		-		-		-		-		-		3,838
	Fees with the use of electric grid		-		-		-		-		-	-	7,132

			133,488		-		18,970		290		709		13,523

CONSTRUTORA INTEG	Equity permanent stake		49,461		-		-		-		-		-
	Equity method income		-		-		1,507		-		-		63
	Income from equity		-		-	-	1,793		-		-		-

			49,461		-	-	286		-		-		63

TME - TRANSMISSORA MATOGROSSENSE DE ENERGIA	Equity permanent stake		97,154		-		-		-		-		-
	Other liabilities		-		214		-		-		234		-
	Income from equity		-		-		13,317		-		-		-
	Income from the use of electric grid		-		-		-		-		-		-
	Equity method income		-		-		-		-		-		11,182
	Fees with the use of electric grid		-		-	-	2,221		-		-	-	2,545

			97,154		214		11,096		-		234		8,637

TRANSNORTE	Equity permanent stake		148,373		-		-		-		-		-
	Suppliers		-		36		-		-		-		-
	Income from equity		-		-	-	9,613		-		-		-
	Equity method income		-		-		-		-		-		9,072
	Fees with the use of electric grid		-		-	-	186		-		-		-

			148,373		36	-	9,799		-		-		9,072

CTEEP	Financing and loans		196		-		-		-		-		-
	Equity permanent stake		942,732		-		-		946,187		-		-
	Dividends receivable		2,187		-		-		9,749		-		-
	Income from interest, commissions, fees, and [ILLEGIBLE]		-		-		17		-		-		-
	Equity method income		-		-		2,380		-		-		53,503
	Income from JCP / Dividends		-		-		2,206		-		-		1,480
	Income from equity		-		-		114,813		-		-		-
	Loss in subscription		-		-		-		-		-	-	679

			945,115		-		119,416		955,936		-		54,304

LOGO



		CONSOLIDATED
		12/31/2015						12/31/2014

COMPANIES	TYPE OF OPERATION	ASSET		LIABILITIES		RESULT		ASSET		LIABILITIES		RESULT


EMAE	Equity permanent stake		307,195		-		-		275,214		-		-
	JCP / Dividends receivable		1,416		-		-	-	54		-		-
	Equity method income		-		-		793		-		-		-
	Income from JCP / Dividends		-		-		-		-		-		64
	Income from equity		-		-		23,330		-		-		151,429
	Other expenses		-		-	-	89		-		-		-

			308,611		-		24,034		275,160		-		151,493

Triângulo Mineiro Trans. S.A.	Other accounts receivable		11		-		-		-		-		-
	Other assets		-		-		-		724		-		-
	Advancement for future capital increase		-		-		-		6,223		-		-
	Equity permanent stake		82,555		-		-		36,246		-		-
	Income (Expenses) Equity Method		-		-		2,957		-		-		830
	Income from service provision		-		-		578		-		-		724
	Other income		-		-		25		-		-		38

			82,566		-		3,560		43,193		-		1,592

CEPEL	Operational Expenses		-		-	-	11,525		-		-	-	10,925

			-		-	-	11,525		-		-	-	10,925

Paranaíba Transmissora de Energia S.A.	Other accounts receivable		70		-		-		142		-		-
	Equity permanent stake		100,726		-		-		67,383		-		-
	Equity method income		-		-		3,943		-		-		2,297
	Income from service provision		-		-		792		-		-		849

			100,796		-		4,735		67,525		-		3,146

Centrais Eolica Famosa I S.A.	Advancement for future capital increase		-		-		-		1,059		-		-
	Equity permanent stake		1,305		-		-		838		-		-
	Income (Expenses) Equity Method		-		-	-	592		-		-	-	6,425

			1,305		-	-	592		1,897		-	-	6,425

Centrais Eolica Pau Brasil S.A.	Advancement for future capital increase		-		-		-		706		-		-
	Equity permanent stake		758		-		-		548		-		-
	Income (Expenses) Equity Method		-		-	-	496		-		-	-	4,292

			758		-	-	496		1,254		-	-	4,292

Centrais Eolica São Paulo S.A.	Advancement for future capital increase		-		-		-		823		-		-
	Equity permanent stake		971		-		-		648		-		-
	Income (Expenses) Equity Method		-		-	-	500		-		-	-	4,803

			971		-	-	500		1,471		-	-	4,803

Centrais Eolica Rosada S.A.	Advancement for future capital increase		-		-		-		1,333		-		-
	Equity permanent stake		1,418		-		-		955		-		-
	Income (Expenses) Equity Method		-		-	-	870		-		-	-	8,132

			1,418		-	-	870		2,288		-	-	8,132

FRONTEIRA OESTE	Other accounts receivable		1,042		-		-		-		-		-
	Advancement for future capital increase		14,155		-		-		3,641		-		-
	Equity permanent stake		12,091		-		-		11,824		-		-
	Equity method income		-		-		267		-		-		-
	Income from service provision		-		-		1,042		-		-		-
	Equity Method Expenses		-		-		-		-		-	-	16

			27,288		-		1,309		15,465		-	-	16

Vale do São Bartolomeu Transmissora de Energia S.A.	Other accounts receivable		220		-		-		229		-		-
	Advancement for future capital increase		7,943		-		-		-		-		-
	Equity permanent stake		56,469		-		-		16,128		-		-
	Income (Expenses) Equity Method		-		-		1,512		-		-		645
	Income from service provision		-		-		373		-		-		226
	Other income		-		-		1,704		-		-		7,950

			64,632		-		3,589		16,357		-		8,821

PUNAÚ I EÓLICA S.A	Equity permanent stake		10,829		-		-		1,880		-		-
	Income (Expenses) Equity Method		-		-		8,816		-		-	-	7,313

			10,829		-		8,816		1,880		-	-	7,313

CARNAÚBA I EÓLICA S.A.	Equity permanent stake		10,261		-		-		1,238		-		-
	Income (Expenses) Equity Method		-		-		8,906		-		-	-	7,186

			10,261		-		8,906		1,238		-	-	7,186

CARNAÚBA II EÓLICA S.A.	Equity permanent stake		8,293		-		-		936		-		-
	Income (Expenses) Equity Method		-		-		7,254		-		-	-	5,959

			8,293		-		7,254		936		-	-	5,959

CARNAÚBA III EÓLICA S.A.	Equity permanent stake		7,290		-		-		845		-		-
	Income (Expenses) Equity Method		-		-		6,358		-		-	-	5,284

			7,290		-		6,358		845		-	-	5,284

CARNAÚBA V EÓLICA S.A.	Equity permanent stake		10,777		-		-		1,212		-		-
	Income (Expenses) Equity Method		-		-		9,433		-		-	-	7,981

			10,777		-		9,433		1,212		-	-	7,981

CERVANTES I EÓLICA S.A.	Equity permanent stake		7,355		-		-		1,357		-		-
	Income (Expenses) Equity Method		-		-		5,910		-		-	-	4,772

			7,355		-		5,910		1,357		-	-	4,772

CERVANTES II EÓLICA S.A.	Equity permanent stake		5,474		-		-		644		-		-
	Income (Expenses) Equity Method		-		-		4,755		-		-	-	3,958

			5,474		-		4,755		644		-	-	3,958

BOM JESUS EÓLICA S.A.	Equity permanent stake		1,251		-		-		1,370		-		-
	Income (Expenses) Equity Method		-		-	-	236		-		-	-	5,794

			1,251		-	-	236		1,370		-	-	5,794

LOGO



		CONSOLIDATED
		12/31/2015						12/31/2014

COMPANIES	TYPE OF OPERATION	ASSET		LIABILITIES		RESULT		ASSET		LIABILITIES		RESULT


CACHOEIRA EÓLICA S.A	Equity permanent stake		767		-		-		871		-		-
	Income (Expenses) Equity Method		-		-	-	191		-		-	-	3,907

			767		-	-	191		871		-	-	3,907

PITIMBU EÓLICA S.A	Equity permanent stake		1,037		-		-		1,270		-		-
	Income (Expenses) Equity Method		-		-	-	351		-		-	-	5,894

			1,037		-	-	351		1,270		-	-	5,894

SÃO CAETANO EÓLICA S.A	Equity permanent stake		1,387		-		-		2,387		-		-
	Income (Expenses) Equity Method		-		-	-	1,177		-		-	-	7,952

			1,387		-	-	1,177		2,387		-	-	7,952

SÃO CAETANO I EÓLICA S.A	Equity permanent stake		1,137		-		-		1,867		-		-
	Income (Expenses) Equity Method		-		-	-	847		-		-	-	5,297

			1,137		-	-	847		1,867		-	-	5,297

SÃO GALVÃO EÓLICA S.A.	Equity permanent stake		1,342		-		-		1,684		-		-
	Income (Expenses) Equity Method		-		-	-	505		-		-	-	7,862

			1,342		-	-	505		1,684		-	-	7,862

Baraúnas I	Equity permanent stake		17,356		-		-		27		-		-
	Equity Method Expenses		-		-	-	213		-		-	-	27

			17,356		-	-	213		27		-	-	27

Mussambê	Equity permanent stake		21,724		-		-		19,955		-		-
	Equity Method Expenses		-		-	-	25		-		-	-	32

			21,724		-	-	25		19,955		-	-	32

Morro Branco I	Equity permanent stake		17,019		-		-		15,549		-		-
	Equity Method Expenses		-		-	-	204		-		-	-	22

			17,019		-	-	204		15,549		-	-	22

SINOP	Equity permanent stake		179,052		-		-		87,047		-		-
	Advancement for future capital increase		73,500		-		-		-		-		-
	Equity method income		-		-		2,479		-		-		-
	Equity Method Expenses		-		-		-		-		-		-
	Income from equity		-		-	-	1,199		-		-	-	4,249

			252,552		-		1,280		87,047		-	-	4,249

MATA DE SANTA GENEBRA	Other accounts receivable		2		-		-		1		-		-
	Equity permanent stake		30,336		-		-		26,177		-		-
	Income (Expenses) Equity Method		-		-		1,415		-		-	-	1,019
	Other income		-		-		292		-		-		894
	Other expenses		-		-		4		-		-		-

			30,338		-		1,711		26,178		-	-	125

LAGOA AZUL TRANSMISSORA	Clients		396		-		-		-		-		-
	Other assets		-		-		-		1		-		-
	Equity permanent stake		8,632		-		-		1,970		-		-
	Income (Expenses) Equity Method		-		-		99		-		-	-	151
	Other income		-		-		-		-		-		12
	Other expenses		-		-		395		-		-		-

			9,028		-		494		1,971		-	-	139

EÓLICA ITAGUAÇU DA BAHIA SPE S.A.	Other assets		-		-		-		1		-		-
	Equity permanent stake		11,798		-		-		1,062		-		-
	Income (Expenses) Equity Method		-		-		102		-		-	-	101
	Other expenses		-		-	-	1		-		-		-

			11,798		-		101		1,063		-	-	101

ITAGUAÇU DA BAHIA ENERGIAS RENOVÁVEIS	Advancement for future capital increase		34,300		-		-		-		-		-
	Equity permanent stake		11,798		-		-		-		-		-
	Income (Expenses) Equity Method		-		-	-	4,396		-		-		-

			46,098		-	-	4,396		-		-		-

EÓLICA VENTOS DE SANTA LUIZA SPE S.A.	Other assets		-		-		-		1		-		-
	Advancement for future capital increase		-		-		-		1,063		-		-
	Income (Expenses) Equity Method		-		-		101		-		-	-	100
	Other expenses		-		-	-	1		-		-		-

			-		-		100		1,064		-	-	100

EÓLICA VENTOS DE SANTA MADALENA SPE S.A.	Other assets		-		-		-		1		-		-
	Equity permanent stake		-		-		-		1,062		-		-
	Income (Expenses) Equity Method		-		-		102		-		-	-	101
	Other expenses		-		-	-	1		-		-		-

			-		-		101		1,063		-	-	101

EÓLICA VENTOS DE SANTA MARCELLA SPE S.A.	Other assets		-		-		-		1		-		-
	Equity permanent stake		-		-		-		1,063		-		-
	Income (Expenses) Equity Method		-		-		101		-		-	-	101
	Other expenses		-		-	-	1		-		-		-

			-		-		100		1,064		-	-	101

EÓLICA VENTOS DE SANTA VERA SPE S.A.	Other assets		-		-		-		1		-		-
	Equity permanent stake		-		-		-		1,063		-		-
	Income (Expenses) Equity Method		-		-		101		-		-	-	100
	Other expenses		-		-	-	1		-		-		-

			-		-		100		1,064		-	-	100

LOGO



		CONSOLIDATED
		12/31/2015						12/31/2014

COMPANIES	TYPE OF OPERATION	ASSET		LIABILITIES		RESULT		ASSET		LIABILITIES		RESULT


EÓLICA VENTOS DE SANTO ANTONIO SPE S.A.	Other assets		-		-		-		1		-		-
	Equity permanent stake		-		-		-		1,063		-		-
	Income (Expenses) Equity Method		-		-		102		-		-	-	100
	Other expenses		-		-	-	1		-		-		-

			-		-		101		1,064		-	-	100

EÓLICA VENTOS DE SÃO BENTO SPE S.A.	Other assets		-		-		-		1		-		-
	Equity permanent stake		-		-		-		1,063		-		-
	Income (Expenses) Equity Method		-		-		102		-		-	-	101
	Other expenses		-		-	-	1		-		-		-

			-		-		101		1,064		-	-	101

EÓLICA VENTOS DE SÃO CIRILO SPE S.A.	Other assets		-		-		-		1		-		-
	Equity permanent stake		-		-		-		1,063		-		-
	Income (Expenses) Equity Method		-		-		101		-		-	-	100
	Other expenses		-		-	-	1		-		-		-

			-		-		100		1,064		-	-	100

EÓLICA VENTOS DE SÃO JOÃO SPE S.A.	Other assets		-		-		-		1		-		-
	Equity permanent stake		-		-		-		1,063		-		-
	Income (Expenses) Equity Method		-		-		101		-		-	-	100
	Other expenses		-		-	-	1		-		-		-

			-		-		100		1,064		-	-	100

EÓLICA VENTOS DE SÃO RAFAEL SPE S.A.	Other assets		-		-		-		1		-		-
	Equity permanent stake		-		-		-		1,063		-		-
	Income (Expenses) Equity Method		-		-		101		-		-	-	101
	Other expenses		-		-	-	1		-		-		-

			-		-		100		1,064		-	-	101

BARAÚNAS II	Equity permanent stake		585		-		-		615		-		-
	Equity Method Expenses		-		-	-	30		-		-	-	7

			585		-	-	30		615		-	-	7

BANDA DE COURO	Equity permanent stake		928		-		-		961		-		-
	Equity Method Expenses		-		-	-	33		-		-	-	7
	Other expenses		-		-		-		-		-		-

			928		-	-	33		961		-	-	7

BELO MONTE TRANSMISSORA SPE S.A.	Equity permanent stake		391,058		-		-		6,119		-		-
	Advancement for future capital increase		194,040		-		-		-		-		-
	Other assets		-		-		-		1		-		-
	Income (Expenses) Equity Method		-		-	-	4,630		-		-	-	5
	Income from equity		-		-	-	4,473		-		-		-
	Other expenses		-		-	-	1		-		-		-
	Other income		-		-		-		-		-		424

			585,098		-	-	9,104		6,120		-		419

ITAIPU	Financing and loans		14,802,134		-		-		11,656,696		-		-
	Dividends receivable		1,952				-		-		-		-
	Income from interest, commissions, fees, and [ILLEGIBLE]		-		-		6,009,406		-		-		767,647

			14,804,087		-		6,009,406		11,656,696		-		767,647

SANTO ANTONIO ENERGIA	Clients		9,501		-		-		4,174		-		-
	Other accounts receivable		130,253		-		-		-		-		-
	Other assets		-		-		-		311		-		-
	Income from service provision		-		-		3,005		-		-		3,481
	Income from the use of electric grid		-		-		43,352		-		-		40,602
	Income from the sale of energy		-		-		64,924		-		-		-
	Other income								-		-		268

			139,754		-		111,281		4,485		-		44,351

ELETROS	Contributions payable - sponsor		-		23,555		-		-		10,652		-
	Provisions		-		244,685		-		-		448,407		-
	Sponsor contributions		-		-		-31,693		-		-	-	34,423
	Fees		-		-	-	2,410		-		-	-	2,462

			-		268,240	-	34,103		-		459,059	-	36,885

CEEE-GT	Equity stake		448,274		-		-		449,336		-		-
	Financing and loans		4,883		-		-		13,254		-		-
	Income from equity		-		-		14,173		-		-	-	91,308
	Income from interest, commissions, and fees		-		-		607		-		-		1,189

			453,157		-		14,780		462,590		-	-	90,119

ENERGISA MT	Equity stake		385,318		-		-		376,031		-		-
	Financing and loans		310,697		-		-		353,596		-		-
	Dividends receivable		4,403		-		-		-		-		-
	Income from equity		-		-		12,918		-		-		25,491
	Income from interest, commissions, and fees		-		-		30,911		-		-		34,608

			700,417		-		43,829		729,627		-		60,099

CEMAR	Equity stake		653,419		-		-		554,817		-		-
	Dividends receivable		-		-		-		20,754		-		-
	Financing and loans		275,939		-		-		308,989		-		-
	Income from equity		-		-		121,778		-		-		112,288
	Income from interest, commissions, and fees		-		-		28,387		-		-		18,635

			929,358		-		150,165		884,560		-		130,923

Lajeado Energia	Equity stake		219,173		-		-		206,282		-		-
	Dividends receivable		86,589		-		-		94,810		-		-
	Income from equity		-		-		37,014		-		-		13,630

			305,762		-		37,014		301,092		-		13,630

CEB Lajeado	Equity stake		80,353		-		-		71,723		-		-
	Dividends receivable		13,980		-		-		14,606		-		-
	Income from equity		-		-		17,586		-		-		7,419

			94,333		-		17,586		86,329		-		7,419

LOGO



		CONSOLIDATED
		12/31/2015						12/31/2014

COMPANIES	TYPE OF OPERATION	ASSET		LIABILITIES		RESULT		ASSET		LIABILITIES		RESULT


Paulista Lajeado	Equity stake		23,507		-		-		18,119		-		-
	Dividends receivable		3,077		-		-		2,765		-		-
	Income from equity		-		-		4,463		-		-	-	3,096

			26,584		-		4,463		20,884		-	-	3,096

CEEE-D	Equity stake		-		-		-		7,476		-		-
	Financing and loans		28,520		-		-		31,258		-		-
	Income from equity		-		-		-		-		-	-	145,118
	Income from interest, commissions, and fees		-		-		2,673		-		-		2,895

			28,520		-		2,673		38,734		-	-	142,223

CHC Amé	Equity stake		98,514		-		-		79,081		-		-
	Income from equity		-		-	-	13,753		-		-	-	5,517

			98,514		-	-	13,753		79,081		-	-	5,517

EÓLICA MANGUE SECO	Equity stake		16,889		-		-		16,726		-		-
	Income from equity		-		-		163		-		-	-	332

			16,889		-		163		16,726		-	-	332

ROUAR	Equity stake		111,775		-		-		70,044		-		-
	Income from equity		-		-		7,529		-		-		7,240

			111,775		-		7,529		70,044		-		7,240

Companhia Celg de Participações -	Other liabilities - Loans		-		117,080		-		-		109,537		-
	Financial expenses		-		-		7,543		-		-		-

			-		117,080		7,543		-		109,537		-

CELG Generation e Transmissão - CELG GT	Suppliers		-		1,779		-		-		1,082		-
	Other liabilities		-		50,355		-		-		-		-
	Fees with the use of electric grid		-		-		13,493		-		-		2,577
	Actuarial expenses		-		-		484		-		-		-
	Financial expenses		-		-		129		-		-		-

			-		52,134		14,106		-		1,082		2,577

FOZ DO CHAPECÓ	Clients		434		-		-		458		-		-
	Income from service provision		-		-		134		-		-		137
	Income from the use of electric grid		-		-		4,672		-		-		4,257

			434		-		4,806		458		-		4,394

TIJOA PARTICIPAÇÕES E INVESTIMENTOS S.A.	Clients		352		-		-		362		-		-
	Advancement for future capital increase		-		-		-		649		-		-
	Equity permanent stake		5,666		-		-		167		-		-
	Income (Expenses) Equity Method		-		-		7,345		-		-		167
	Income from the use of electric grid		-		-		3,739		-		-		825

			6,018		-		11,084		1,178		-		992

CSE CENTRO DE SOLUÇÕES ESTRATÉGICAS S.A.	Advancement for future capital increase		-		-		-		1,996		-		-
	Equity permanent stake		1,147		-		-	-	299		-		-
	Income from service provision		-		-		167		-		-		-
	Income (Expenses) Equity Method		-		-	-	1,049		-		-	-	299

			1,147		-	-	882		1,697		-	-	299

EMPRESA DE ENERGIA SÃO MANOEL S.A.	Equity permanent stake		55,409		-		-	-	594		-		-
	Other income		-		-		-		-		-		1,029
	Income (Expenses) Equity Method		-		-	-	1,759		-		-	-	594
	Other expenses		-		-	-	47,905		-		-		-

			55,409		-	-	49,664	-	594		-		435

ENERGIA OLÍMPICA S.A.	Equity permanent stake		2,487		-		-	-	213		-		-
	Income (Expenses) Equity Method		-		-		2,700		-		-	-	213
	Other income		-		-		1		-		-		-
	Other expenses		-		-		-		-		-	-	1

			2,487		-		2,701	-	213		-	-	214

CIA HIDREL TELES PIRES	Clients		1,954		-		-		-		-		-
	Accounts payable		-		2,218		-		-		-		-
	Income from service provision		-		-		3,253		-		-		5,759
	Other income		-		-		-		-		-		2,093
	Income from the use of electric grid		-		-		9,926		-		-		-
	Purchase of electricity		-		-	-	18,614		-		-		-

			1,954		2,218	-	5,435		-		-		7,852

PARAÍSO	Advancement for future capital increase		4,000		-		-		-		-		-
	Income (Expenses) Equity Method		-		-	-	70		-		-		-

			4,000		-	-	70		-		-		-

VAMCRUZ PARTICIPAÇÕES S.A.	Accounts receivable		-		-		-		-		-		-
	Dividends		523		-		-		-		-		-
	Equity permanent stake		73,368		-		-		72,993		-		-
	Advancement for future capital increase		66,892		-		-		-		-		-
	Income (Expenses) Equity Method		-		-		506		-		-	-	42

			140,783		-		506		72,993		-	-	42

Rei dos Ventos 3 Geradora de Energia S.A.	Accounts receivable		75		-		-		61		-		-
	Equity permanent stake		39,868		-		-		21,356		-		-
	Income from equity		-		-	-	1,406		-		-		-
	Income from the use of electric grid		-		-		622		-		-		570
	Equity method income		-		-	-	1,422		-		-		1,801

			39,943		-	-	2,206		21,417		-		2,371

LOGO



		CONSOLIDATED
		12/31/2015						12/31/2014

COMPANIES	TYPE OF OPERATION	ASSET		LIABILITIES		RESULT		ASSET		LIABILITIES		RESULT


CHAPADA DO PIAUÍ I S.A.	Equity permanent stake		109,497		-		-		119,057		-		-
	Advancement for future capital increase		14,040		-		-		-		-		-
	Income (Expenses) Equity Method		-		-	-	9,560		-		-	-	1

			123,537		-	-	9,560		119,057		-	-	1

Chapada do Piauí II Holding S.A	Equity permanent stake		142,187		-		-		108,022		-		-
	Income (Expenses) Equity Method		-		-	-	2,358		-		-		-

			142,187		-	-	2,358		108,022		-		-

Eólica Serra das Vacas Holding S.A.	Equity permanent stake		97,374		-		-		57,877		-		-
	Advancement for future capital increase		25,005		-		-		-		-		-
	Income (Expenses) Equity Method		-		-	-	592		-		-	-	486

			122,379		-	-	592		57,877		-	-	486

NOTE 47 - SALARIES OF KEY PERSONNEL

Salaries of key personnel of the Company (directors and advisors) are the following:


	PARENT COMPANY				CONSOLIDATED
	12/31/2015		12/31/2014		12/31/2015		12/31/2014
Compensation of Executive Officers and Board Members		5,853		5,605		33,625		28,021
Salaries and social fees		1,611		1,344		6,511		5,934
Profit sharing		-		-		-		-
Others		426		411		2,700		1,938

		7,890		7,360		42,836		35,893

NOTE 48 - SUBSEQUENT EVENTS

48.1 Agreement for the Readjustment of Debt of the debt of the subsidiary CELG-D with Itaipu

Provisional Measure No. 677 that sets forth about concession contracts in the electric sector, converted into Law No. 13,182/2015, allows companies included in the National Privatization Program – PND starting in 2015, to adjust debt in foreign currency within 120 months, considering grace periods and amortization.

Should the debt adjustment related to the Itaipu transfer have occurred in 2015, under the terms in Order ANEEL No. 310/2016 and the terms in Law No. 13,182/2015, CELG-D would not have registered exchange variation in the total amount of R$ 418 million in the result, and, consequently, the liabilities would be reduced at the same amount.

48.2 –Contract for the purchase and sale of electricity

The subsidiary Furnas on March 3, 2016 exercised the option in the contract for the purchase and sale of electricity in the free environment with company Santo Antônio Energia S/A, which supply would occur in the period between January 1, 2017 and January 31, 2020, with the payment of the amount of R$ 156,747, related to the original value of the negotiation (R$ 130,000) for the future delivery of this power and corresponding adjustment (R$ 26,747).

48.3 – Credit facility acquired from Caixa Econômica Federal

The subsidiary Eletronorte, with the management, approved on January 19, 2016, the acquisition of a Bank Credit Note of R$ 400,000 with Caixa Econômica Federal, to be used as financial reinforcement to the Company cash flow. The credit facility will be made available when capital is needed.

LOGO

48.4 – Issuing Promissory Notes

On March 7, 2016, the subsidiary Eletrosul held the 2nd issuance of commercial promissory notes, in a single series, comprised by 500 commercial promissory notes, with unit par value of R$ 500,000, in a total of R$ 250,000,000, with maturity date on March 2, 2017, compensated 100% with accrued variation of average daily rates of DI + spread at 3.5% p.a. Issuing costs paid to Banco BTG related to the structuring commission, placement, and guarantee were R$ 6,917.

48.5 –Angramon Consortium – Usina Angra 3

Claim filed by the Angramon Consortium aiming to terminate the electromechanic assembly contract grounded on the lack of payment by Eletronuclear for more than 90 days, as well as non-application also by Eletronuclear of penalties or execution of contractual guarantee.

Eletronuclear has responded to the claim by its attorneys and the Angramon Consortium filed its reply. The advanced effects have not been granted by the judge. In the same decision, the notification of the Federal Government has been determined in order to manifest any interest in the litigation, and the notification was issued on March 22, 2016.

It is important to note that on January 14, 2016, Law No. 13,255 was enacted, estimating the income and setting the expenses of the Federal Government for the fiscal year 2016, including the Investment Budget of the companies where the Federal Government, directly or indirectly, holds the majority of shares with voting rights, and including approval of the determination and execution for the Investment in the project “Deployment of Angra 3 Thermonuclear Power Plant”, that is held by Eletronuclear. It is understood that upon evaluation by the Mixed Commission of Plans, Public Budgets, and Supervision by the National Congress, as well as the plenary session of the National Congress, the work “Deployment of Angra 3 Thermonuclear Power Plant” is ready to maintain its physical, budget, and financial execution.

48.6 – Capital investment Norte Energia S.A.

In February 2016, the Management of the subsidiary Eletronorte approved the investment of R$ 119,880 in subsidiary Norte Energia S.A. to be made on March 4, 2016. This amount refers to 19.98% of the equity held by Eletronorte in the subsidiary, which capital stock increased to R$ 9,000,000. After the investment, the Subsidiary now holds the balance of R$ 1,798,200 of the invested capital.

LOGO

48.7 – Incorporation of AFAC into capital

On January 14, 2016, subsidiaries Eletrosul listed below made a capital increase upon the transfer of funds received by AFAC, as seen below:


Date	Company	Total
01/14/2016	Chuí IX	49,892
01/14/2016	Hermenegildo I	173,220
01/14/2016	Hermenegildo II	173,244
01/14/2016	Hermenegildo III	147,598

		543,954

48.8 – Judicial Recovery Abengoa

The Company learned about the request of judicial recovery filed on January 29, 2016, by Abengoa Concessões Brasil S.A. (“Abengoa Concessões”) and Abengoa Greenfield Brasil Holding S.A. (“Abengoa Greenfield”), under the terms in Law No. 11,101/05. The request was distributed to the 6^th Corporate Court of Justice of Rio de Janeiro and is waiting to be approved.

Abengoa Concessões is shareholder of companies where the Subsidiary Eletronorte holds equity. This fact does not imply the judicial recovery of companies where the Company holds equity and Abengoa Concessões Brasil Holding S.A., because these companies are in operation and continue to perform their activities, as well as complying with their obligations regularly.

To date, this judicial recovery proceeding has had no impact on the Company operations, or the preparation and filing of the financial statements corresponding to the fiscal year ending on December 31, 2015. The Management will continue to monitor the development of this matter, as well as eventual direct and indirect consequences for the Company, if any.

48.9 – Renegotiation of debt on financing contracts

On February 24, 2016, the Board of Directors of Eletrobras has approved the renegotiation of the debt on financing contracts of the Subsidiary Eletrosul before Eletrobras, suspending the enforceability of principal and incorporation of interest from November 2015 to June 2016, in the amount of R$ 1,826,402.

Resumption of the payments of principal and interest on these contracts shall occur in July 2016.

LOGO


José da Costa Carvalho Neto
President
Armando Casado de Araújo		Renato Soares Sacramento
Financial and Investor Relations		Generation Officer - Deputy
Officer

Josias Matos de Araujo		Alexandre Vaghi de Arruda Aniz
Regulation Officer		Management Officer

Marcos Aurelio Madureira da Silva		José Antônio Muniz Lopes
Distribution Officer		Transmission Officer
Rodrigo Vilella Ruiz
Accountant
CRC-DF 088488/9 O

SIGNATURE

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: April 26, 2016


CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRAS

By:		/s/ Armando Casado de Araujo
		Armando Casado de Araujo Chief Financial and Investor Relation Officer

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 offuture 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.