UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

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

SECURITIES EXCHANGE ACT OF 1934

For the month of August, 2014

Commission File Number 32297

CPFL Energy Incorporated

(Translation of Registrant's name into English)

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

(Address of principal executive office)

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

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

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

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

Yes _______ No ___X____

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

.

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

Summary

Registration data

General information 02

Address 04

Marketable securities 05

Auditor information 06

Share register 07

Investor Relations Officer 08

Shareholders’ Department 09

Registration Form – 2014 – CPFL ENERGIA S.A.

Version: 3


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

2

Registration Form – 2014 – CPFL ENERGIA S.A.

Version: 3


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

3

Registration Form – 2014 – CPFL ENERGIA S.A.

Version: 3

2 - ADDRESS

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

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

4

Registration Form – 2014 – CPFL ENERGIA S.A.

Version: 3


3 - MARKETABLE SECURITIES
Shares		Trading			Listing
Trading mkt	Managing body	Start date	End	Segment	Start date	End
Bolsa	BM&FBOVESPA	09/29/2004		Novo Mercado 9/29/2004
Debentures		Trading			Listing
Trading mkt	Managing body	Start date	End	Segment	Start date	End
Organized
Market	CETIP	05/18/2000		Traditional	05/19/2000

5

Registration Form – 2014 – CPFL ENERGIA S.A.

Version: 3


4 - AUDITOR INFORMATION
Is there an auditor?	Yes

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

6

Registration Form – 2014 – CPFL ENERGIA S.A.

Version: 3


5 – SHARE REGISTRER
Do you have service provider:	Yes
Corporate Name:	Banco do Brasil

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

7

Registration Form – 2014 – CPFL ENERGIA S.A.

Version: 3


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

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

8

Registration Form – 2014 – CPFL ENERGIA S.A.

Version: 3


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

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

9

(Free Translation of the original in Portuguese)

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


Table of Contents

Identification of Company
Capital Stock	11
Cash dividend	11
Parent Company Interim Financial Statements
Balance Sheet Assets	12
Balance Sheet Liabilities	13
Income Statement	14
Statement of Comprehensive Income	15
Cash Flow Statements	16
Statement of Changes in Shareholders´ Equity
01/01/2014 to 06/30/2014	17
01/01/2013 to 06/30/2013	18
Statements of Added Value	19
Consolidated Interim Financial Statements
Balance Sheet Assets	20
Balance Sheet Liabilities	21
Income Statement	22
Statement of Comprehensive Income	23
Cash Flow Statements	24
Statement of Changes in Shareholders’ Equity
01/01/2014 to 06/30/2014	25
01/01/2013 to 06/30/2013	26
Statements of Added Value	27
Comments on Performance	28
Notes to the Interim Financial Statements	37
Other relevant information	105
Reports
Report on review of Interim Financial Information	109

Identification of Company / Capital Stock

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

Identification of Company/ Cash dividend

Event

Approval

Type

Beginning of Payment

Type of Share

Class of share

Amount per Share (Reais/share)

AGM

04/29/2014

Dividend

05/08/2014

ON

(Common shares)

0.59006

11

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

Code	Description	Current Quarter 06/30/2014	Previous Year 12/31/2013
1	Total assets	8,164,998	8,389,811
1.01	Current assets	2,012,100	1,720,232
1.01.01	Cash and cash equivalents	1,252,336	990,672
1.01.06	Recoverable taxes	41,178	29,874
1.01.06.01	Current recoverable taxes	41,178	29,874
1.01.08	Other current assets	718,586	699,686
1.01.08.03	Others	718,586	699,686
1.01.08.03.01	Other credits	2,473	1,984
1.01.08.03.02	Dividends and interest on shareholders’ equity	716,113	697,702
1.02	Noncurrent assets	6,152,898	6,669,579
1.02.01	Noncurrent assets	201,331	248,623
1.02.01.06	Deferred taxes	173,591	165,798
1.02.01.06.02	Deferred taxes credits	173,591	165,798
1.02.01.08	Related parties credits	2,163	8,948
1.02.01.08.02	Subsidiaries credits	2,163	8,948
1.02.01.09	Other noncurrent assets	25,577	73,877
1.02.01.09.03	Escrow deposits	572	91
1.02.01.09.05	Other credits	11,947	14,389
1.02.01.09.07	Advance for future capital increase	13,058	59,397
1.02.02	Investments	5,950,623	6,419,924
1.02.02.01	Permanent equity interests	5,950,623	6,419,924
1.02.02.01.02	Investments in subsidiares	5,950,623	6,419,924
1.02.03	Property, plant and equipment	926	1,000
1.02.04	Intangible assets	18	32
1.02.04.01	Intangible assets	18	32
1.02.04.01.01	Concession agreement	18	32

12

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

Code	Description	Current Quarter 06/30/2014	Previous Year 12/31/2013
2	Total liabilities	8,164,998	8,389,811
2.01	Current liabilities	1,334,800	46,245
2.01.01	Social and Labor Obligations	4	10
2.01.01.02	Labor Obligations	4	10
2.01.01.02.01	Estimated Labor Obligation	4	10
2.01.02	Suppliers	524	1,127
2.01.02.01	National Suppliers	524	1,127
2.01.03	Tax Obligations	252	359
2.01.03.01	Federal Tax Obligations	252	359
2.01.03.01.01	Income tax and Social Contribution	-	12
2.01.03.01.03	COFINS (Tax on Revenue)	47	47
2.01.03.01.04	Others Federal	205	300
2.01.04	Loans and financing	1,302,359	12,438
2.01.04.02	Debentures	1,302,359	12,438
2.01.04.02.01	Interest on debentures	13,710	12,438
2.01.04.02.02	Debentures	1,288,649	-
2.01.05	Other Current liabilities	31,661	32,311
2.01.05.02	Others	31,661	32,311
2.01.05.02.01	Dividends and interest on shareholders´ equity	16,125	15,407
2.01.05.02.05	Other payable	15,536	16,904
2.02	Noncurrent liabilities	30,565	1,319,667
2.02.01	Loans and financing	-	1,287,912
2.02.01.02	Debentures	-	1,287,912
2.02.02	Other liabilities	30,213	31,495
2.02.02.02	Others	30,213	31,495
2.02.02.02.04	Other payable	30,213	31,495
2.02.04	Provisons	352	260
2.02.04.01	Reserve for tax, civil and labor risks	352	260
2.02.04.01.02	Reserve for labor risks	128	97
2.02.04.01.04	Reserve for civil risks	224	163
2.03	Shareholders’ equity	6,799,633	7,023,899
2.03.01	Capital	4,793,424	4,793,424
2.03.02	Capital reserves	287,673	287,630
2.03.04	Profit reserves	1,020,535	1,545,178
2.03.04.01	Legal reserves	603,352	603,352
2.03.04.02	Statutory reserves	308,196	265,037
2.03.04.08	Additional Proposed dividend	-	567,802
2.03.04.10	Reserve of retained earnings for investment	108,987	108,987
2.03.05	Retained earnings / (loss)	313,208	-
2.03.08	Other Comprehensive Income	384,793	397,667
2.03.08.01	Accumulated Comprehensive Income	384,793	397,667

13

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

Code	Description	Current Year - Second Quarter	YTD Current Year	Previous Year - Second Quarter	YTD Previous Year
Code	Description	04/01/2014 to 06/30/2014	01/01/2014 to 06/30/2014	04/01/2013 to 06/30/2013	01/01/2013 to 06/30/2013
3.01	Net Operating revenues	33	33	20	50
3.03	Gross Operating income	33	33	20	50
3.04	Gross Operating income (expense)	165,566	346,090	(94,710)	312,223
3.04.02	General and administrative	(5,371)	(11,317)	(5,949)	(10,860)
3.04.06	Equity income	170,937	357,407	(88,761)	323,083
3.05	Income before financial income and taxes	165,599	346,123	(94,690)	312,273
3.06	Financial income / expense	(3,632)	(12,471)	(8,938)	(10,582)
3.06.01	Financial income	31,045	55,412	(1,041)	2,823
3.06.02	Financial expense	(34,677)	(67,883)	(7,897)	(13,405)
3.07	Income before taxes	161,967	333,652	(103,628)	301,691
3.08	Income tax and social contribution	2,667	7,478	(17,283)	(17,015)
3.08.01	Current	-	(317)	(12,215)	(12,214)
3.08.02	Deferred	2,667	7,795	(5,068)	(4,801)
3.09	Net income/(loss) from continuing operations	164,634	341,130	(120,911)	284,676
3.11	Net income/(loss)	164,634	341,130	(120,911)	284,676
3.99.01.01	ON	0.17	0.35	(0.13)	0.30
3.99.02.01	ON	0.17	0.35	(0.13)	0.29

14

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


Code	Description	Current Year - Second Quarter	YTD Current Year	Previous Year - Second Quarter	YTD Previous Year
Code	Description	04/01/2014 to 06/30/2014	01/01/2014 to 06/30/2014	04/01/2013 to 06/30/2013	01/01/2013 to 06/30/2013
4.01	Net income/(loss)	164,634	341,130	(120,911)	284,676
4.02	Other comprehensive income	-	-	502,927	502,927
4.02.01	Equity on comprehensive income of subsidiaries	-	-	502,927	502,927
4.03	Comprehensive income	164,634	341,130	382,016	787,603

15

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

Code	Description	YTD Current year 01/01/2014 to 06/30/2014	YTD Previous year 01/01/2013 to 06/30/2013
6.01	Net cash from operating activities	833,206	671,662
6.01.01	Cash generated (used) from operations	43,748	(9,876)
6.01.01.01	Net income, including income tax and social contribution	333,653	301,691
6.01.01.02	Depreciation and amortization	87	36
6.01.01.03	Reserve for tax, civil, labor	130	199
6.01.01.04	Equity in subsidiaries	(357,407)	(323,083)
6.01.01.05	Interest and monetary and exchange restatement	67,285	11,281
6.01.02	Variation on assets and liabilities	789,458	681,538
6.01.02.01	Dividend and interest on equity received	867,738	681,777
6.01.02.02	Recoverable taxes	(11,289)	(1,655)
6.01.02.03	Escrow deposits	(480)	(18)
6.01.02.04	Other operating assets	1,955	(2,912)
6.01.02.05	Suppliers	(603)	(541)
6.01.02.06	Other taxes and social contributions	(413)	6,650
6.01.02.07	Interest on debts (paid)	(65,405)	(2,437)
6.01.02.09	Other operating liabilities	(2,010)	674
6.01.02.10	Tax, civil and labor risks paid	(35)	-
6.02	Net cash in investing activities	(6,174)	3,947
6.02.01	Increase in property, plant and equipment	-	(275)
6.02.02	Financial investments	-	4,710
6.02.04	Intercompany loans with subsidiaries and associated companies	6,884	514
6.02.05	Capital increase in investments	-	(1)
6.02.06	Others	-	(1)
6.02.07	Additions to intangible assets	(13,058)	(1,000)
6.03	Net cash in financing activities	(565,368)	833,429
6.03.01	Payments of Loans, financing and debentures , net of derivatives	-	223
6.03.02	Payments of dividend and interest on shareholders’ equity	(565,368)	(453,968)
6.03.03	Loans, financing and debentures obtained	-	1,287,174
6.05	Increase (decrease) in cash and cash equivalents	261,664	1,509,038
6.05.01	Cash and cash equivalents at beginning of period	990,672	141,835
6.05.02	Cash and cash equivalents at end of period	1,252,336	1,650,873

16

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


Code	Description	Capital	Capital Reserves, options and treasury shares	Profit Reserves	Retained earnings	Other comprehensive income	Shareholders’ Equity Total
5.01	Opening balance	4,793,424	287,630	1,545,177	-	397,666	7,023,897
5.03	Adjusted balance	4,793,424	287,630	1,545,177	-	397,666	7,023,897
5.04	Capital transactions within shareholders	-	44	(567,802)	2,362	-	(565,396)
5.04.10	Additional dividend aproved	-	-	(567,802)	-	-	(567,802)
5.04.11	Prescribed dividend	-	-	-	2,362	-	2,362
5.04.12	Capital increase in subsidiaries without change in control	-	251	-	-	-	251
5.04.13	Gain (loss) in participation without change in control	-	(207)	-	-	-	(207)
5.05	Total comprehensive income	-	-	-	341,130	-	341,130
5.05.01	Net income / Loss for the period	-	-	-	341,130	-	341,130
5.06	Internal changes in Shareholders' equity	-	-	43,160	(30,284)	(12,876)	-
5.06.01	Formation of reserve	-	-	43,160	(43,160)	-	-
5.06.05	Equity on comprehensive income of subsidiaries	-	-	-	12,876	(12,876)	-
5.07	Final balance	4,793,424	287,674	1,020,535	313,208	384,790	6,799,631

17

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


Code	Description	Capital	Capital Reserves, options and treasury shares	Profit Reserves	Retained earnings	Other comprehensive income	Shareholders’ Equity Total
5.01	Opening balance	4,793,424	228,322	1,339,287	-	19,695	6,380,728
5.04	Capital transactions with the shareholders	-	-	(455,906)	2,192	-	(453,714)
5.04.10	Additional dividend aproved	-	-	(455,906)	-	-	(455,906)
5.04.11	Prescribed dividend	-	-	-	2,192	-	2,192
5.05	Total comprehensive income	-	-	-	284,676	502,930	787,606
5.05.01	Net income for the period	-	-	-	284,676	-	284,676
5.05.02	Other comprehensive income	-	-	-	-	502,930	502,930
5.05.02.03	Equity on comprehensive income of subsidiaries	-	-	-	-	502,930	502,930
5.06	Internal changes of shareholders' equity	-	-	(64,164)	76,181	(12,017)	-
5.06.04	Statutory reserve in the period	-	-	(64,164)	64,164	-	-
5.06.05	Equity on comprehensive income of subsidiaries	-	-	-	12,017	(12,017)	-
5.07	Final balance	4,793,424	228,322	819,217	363,049	510,608	6,714,620

18

PARENT COMPANY FINANCIAL STATEMENTS - STATEMENTS OF ADDED VALUE

(in thousands of Brazilian reais – R$)

Code	Description	YTD Current year 01/01/2014 to 06/30/2014	YTD Previous year 01/01/2013 to 06/30/2013
7.01	Revenues	37	330
7.01.01	Sales of goods, products and services	37	55
7.01.03	Revenues related to the construction of own assets	-	275
7.02	Inputs	(3,111)	(4,491)
7.02.02	Material-Energy-Outsourced services-Other	(2,379)	(2,671)
7.02.04	Other	(732)	(1,820)
7.03	Gross added value	(3,074)	(4,161)
7.04	Retentions	(87)	(36)
7.04.01	Depreciation and amortization	(87)	(36)
7.05	Net added value generated	(3,161)	(4,197)
7.06	Added value received in transfer	412,820	332,620
7.06.01	Equity in subsidiaries	357,407	323,083
7.06.02	Financial income	55,413	9,537
7.07	Added Value to be Distributed	409,659	328,423
7.08	Distribution of Added Value	409,659	328,423
7.08.01	Personnel	6,784	5,319
7.08.01.01	Direct Remuneration	3,937	3,912
7.08.01.02	Benefits	2,435	935
7.08.01.03	Government severance indemnity fund for employees-F.G.T.S.	412	472
7.08.02	Taxes, Fees and Contributions	(6,205)	24,980
7.08.02.01	Federal	(6,229)	24,960
7.08.02.02	State	24	20
7.08.03	Remuneration on third parties’ capital	67,950	13,448
7.08.03.01	Interest	67,882	13,385
7.08.03.02	Rental	68	63
7.08.04	Remuneration on own capital	341,130	284,676
7.08.04.03	Retained profit / loss for the period	341,130	284,676

19

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

Code	Description	Current Quarter 06/30/2014	Previous Year 12/31/2013
1	Total assets	32,537,156	31,042,796
1.01	Current assets	8,572,543	7,264,323
1.01.01	Cash and cash equivalents	4,740,672	4,206,422
1.01.02	Financial Investments	5,422	24,806
1.01.02.02	Financial Investments at amortized cost	5,422	24,806
1.01.02.02.01	Held to maturity	5,422	24,806
1.01.03	Accounts receivable	2,231,367	2,007,789
1.01.03.01	Consumers	2,231,367	2,007,789
1.01.04	Materials and suppliers	22,918	21,625
1.01.06	Recoverable taxes	266,577	262,433
1.01.06.01	Current Recoverable taxes	266,577	262,433
1.01.08	Other current assets	1,305,587	741,248
1.01.08.03	Other	1,305,587	741,248
1.01.08.03.01	Other credits	1,231,653	673,383
1.01.08.03.02	Derivatives	9,194	1,842
1.01.08.03.03	Leases	12,154	10,758
1.01.08.03.04	Dividends and interest on shareholders’ equity	52,586	55,265
1.02	Noncurrent assets	23,964,613	23,778,473
1.02.01	Noncurrent assets	6,440,413	6,280,045
1.02.01.03	Accounts receivable	137,375	153,854
1.02.01.03.01	Consumers	137,375	153,854
1.02.01.06	Deferred taxes	1,221,422	1,168,706
1.02.01.06.02	Deferred taxes credits	1,221,422	1,168,706
1.02.01.08	Related parties	96,598	86,655
1.02.01.08.03	Credits with related parties	96,598	86,655
1.02.01.09	Other noncurrent assets	4,985,018	4,870,830
1.02.01.09.03	Derivatives	180,537	316,648
1.02.01.09.04	Escrow deposits	1,143,779	1,143,179
1.02.01.09.05	Recoverable taxes	167,386	173,362
1.02.01.09.06	Leases	38,064	37,817
1.02.01.09.07	Financial asset of concession	3,021,163	2,787,073
1.02.01.09.09	Investments at cost	116,654	116,654
1.02.01.09.10	Other credits	317,435	296,097
1.02.02	Investments	1,173,705	1,032,681
1.02.02.01	Permanent equity interests	1,173,705	1,032,681
1.02.02.01.04	Other permanent equity interests	1,173,705	1,032,681
1.02.03	Property, plant and equipment	7,731,505	7,717,419
1.02.03.01	Fixed assets - in service	7,459,114	6,748,593
1.02.03.03	Fixed assets - in progress	272,391	968,826
1.02.04	Intangible assets	8,618,990	8,748,328
1.02.04.01	Intangible assets	8,618,990	8,748,328

20

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

Code	Description	Current Quarter 06/30/2014	Previous Year 12/31/2013
2	Total liabilities	32,537,156	31,042,796
2.01	Current liabilities	6,858,948	4,905,531
2.01.01	Social and Labor Obligations	97,688	67,633
2.01.01.02	Labor Obligations	97,688	67,633
2.01.01.02.01	Estimated Labor Obligation	97,688	67,633
2.01.02	Suppliers	1,930,713	1,884,693
2.01.02.01	National Suppliers	1,930,713	1,884,693
2.01.03	Tax Obligations	403,034	318,063
2.01.03.01	Federal Tax Obligations	166,998	196,884
2.01.03.01.01	Income tax and Social Contribution	61,232	92,431
2.01.03.01.02	PIS (Tax on Revenue)	15,848	14,256
2.01.03.01.03	COFINS (Tax on Revenue)	73,101	64,778
2.01.03.01.04	Others Federal	16,817	25,419
2.01.03.02	State Tax Obligations	233,381	117,905
2.01.03.02.01	ICMS (Tax on Revenue)	233,381	117,895
2.01.03.02.02	Others State	-	10
2.01.03.03	Municipal Tax Obligations	2,655	3,274
2.01.03.03.01	Others Municipal	2,655	3,274
2.01.04	Loans and financing	3,554,516	1,837,462
2.01.04.01	Loans and financing	1,433,976	1,640,456
2.01.04.01.01	Brazilian currency	1,379,293	1,582,742
2.01.04.01.02	Foreign Currency	54,683	57,714
2.01.04.02	Debentures	2,120,540	197,006
2.01.04.02.01	Debentures	1,878,170	34,872
2.01.04.02.02	Interest on debentures	242,370	162,134
2.01.05	Other liabilities	872,997	797,680
2.01.05.02	Others	872,997	797,680
2.01.05.02.01	Dividends and interest on shareholders´ equity	21,942	21,224
2.01.05.02.04	Derivatives	3,426	-
2.01.05.02.05	Post-employment benefit obligation	81,952	76,810
2.01.05.02.06	Regulatory charges	44,234	32,379
2.01.05.02.07	Public utility	3,943	3,738
2.01.05.02.08	Other payable	717,500	663,529
2.02	Noncurrent liabilities	17,142,317	17,338,547
2.02.01	Loans and financing	14,967,574	15,183,936
2.02.01.01	Loans and financing	8,249,835	7,589,540
2.02.01.01.01	Brazilian currency	5,428,519	5,638,800
2.02.01.01.02	Foreign Currency	2,821,316	1,950,740
2.02.01.02	Debentures	6,717,739	7,594,396
2.02.01.02.01	Debentures	6,717,739	7,562,219
2.02.01.02.02	Interest on debentures	-	32,177
2.02.02	Other payable	635,320	569,469
2.02.02.02	Other	635,320	569,469
2.02.02.02.03	Derivatives	97,075	2,950
2.02.02.02.04	Post-employment benefit obligation	308,960	350,640
2.02.02.02.05	Taxes and Contributions	21,062	32,555
2.02.02.02.06	Public utility	81,819	79,438
2.02.02.02.07	Other payable	126,404	103,886
2.02.03	Deferred taxes	1,108,395	1,117,146
2.02.03.01	Deferred Income tax and Social Contribution	1,108,395	1,117,146
2.02.04	Provisions	431,028	467,996
2.02.04.01	Reserve for tax, civil and labor risks	431,028	467,996
2.02.04.01.01	Reserve for tax risks	156,105	174,568
2.02.04.01.02	Reserve for labor risks	116,245	119,707
2.02.04.01.04	Reserve for civil risks	144,693	149,735
2.02.04.01.05	Reserve for other risks	13,985	23,986
2.03	Shareholders´ equity - consolidated	8,535,891	8,798,718
2.03.01	Capital	4,793,424	4,793,424
2.03.02	Capital reserves	287,673	287,630
2.03.04	Profit reserves	1,020,535	1,545,177
2.03.04.01	Legal reserves	603,352	603,352
2.03.04.02	Statutory reserve - financial asset of concession	308,196	265,037
2.03.04.08	Additional Proposed dividend	-	567,801
2.03.04.10	Reserve of retained earnings for investment	108,987	108,987
2.03.05	Retained earnings	313,208	-
2.03.08	Other comprehensive income	384,793	397,668
2.03.09	Noncontrolling interest	1,736,258	1,774,819

21

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

Code	Description	Current Year - Second Quarter	YTD Current Year	Previous Year - Second Quarter	YTD Previous Year
Code	Description	04/01/2014 to 06/30/2014	01/01/2014 to 06/30/2014	04/01/2013 to 06/30/2013	01/01/2013 to 06/30/2013
3.01	Net operating revenues	3,893,683	7,820,993	3,598,342	7,313,769
3.02	Cost of electric energy services	(3,069,796)	(6,203,267)	(2,776,123)	(5,311,628)
3.02.01	Cost of electric energy	(2,440,405)	(4,992,650)	(2,152,651)	(4,053,763)
3.02.02	Operating cost	(411,447)	(803,297)	(363,655)	(738,255)
3.02.03	Services rendered to third parties	(217,944)	(407,320)	(259,817)	(519,610)
3.03	Gross Operating income	823,887	1,617,726	822,219	2,002,141
3.04	Gross Operating income (expense)	(337,730)	(623,162)	(571,538)	(957,390)
3.04.01	Sales expenses	(102,912)	(204,235)	(105,009)	(207,730)
3.04.02	General and administrative	(185,837)	(348,915)	(400,211)	(601,509)
3.04.05	Others	(88,910)	(181,016)	(93,715)	(181,805)
3.04.06	Equity income	39,929	111,004	27,397	33,654
3.05	Income before financial income and taxes	486,157	994,564	250,681	1,044,751
3.06	Financial income / expense	(224,044)	(446,949)	(415,036)	(558,685)
3.06.01	Financial income	248,800	477,486	120,581	249,263
3.06.02	Financial expense	(472,844)	(924,435)	(535,617)	(807,948)
3.07	Income before taxes	262,113	547,615	(164,355)	486,066
3.08	Income tax and social contribution	(116,818)	(227,919)	30,287	(214,831)
3.08.01	Current	(124,809)	(291,724)	(66,888)	(251,364)
3.08.02	Deferred	7,991	63,805	97,175	36,533
3.09	Net income from continuing operations	145,295	319,696	(134,068)	271,235
3.11	Net income	145,295	319,696	(134,068)	271,235
3.11.01	Net income attributable to controlling shareholders	164,635	341,130	(120,911)	284,676
3.11.02	Net income attributable to noncontrolling shareholders	(19,340)	(21,434)	(13,157)	(13,441)

22

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

Code	Description	Current Year - Second Quarter	YTD Current Year	Previous Year - Second Quarter	YTD Previous Year
Code	Description	04/01/2014 to 06/30/2014	01/01/2014 to 06/30/2014	04/01/2013 to 06/30/2013	01/01/2013 to 06/30/2013
4.01	Net income	145,295	319,696	(134,067)	271,235
4.02	Other comprehensive income	-	-	502,927	502,927
4.02.01	Actuarial gain	-	-	502,927	502,927
4.03	Comprehensive income	145,295	319,696	368,860	774,162
4.03.01	Comprehensive income attributtable to controlling shareholders	164,635	341,130	382,016	787,603
4.03.02	Comprehensive income attributable to non controlling shareholders	(19,340)	(21,434)	(13,156)	(13,441)

23

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


Code	Description	YTD Current year 01/01/2014 to 06/30/2014	YTD Previous year 01/01/2013 to 06/30/2013
6.01	Net cash from operating activities	266,630	1,485,775
6.01.01	Cash generated from operations	1,853,166	1,972,997
6.01.01.01	Net income, including income tax and social contribution	547,615	486,066
6.01.01.02	Depreciation and amortization	563,784	525,839
6.01.01.03	Reserve for tax, civil, labor and environmental risks	75,198	222,076
6.01.01.04	Interest and monetary and exchange restatement	703,904	644,336
6.01.01.05	Gain on pension plan	24,079	41,060
6.01.01.06	Losses on disposal of noncurrent assets	23,542	18,260
6.01.01.07	Deferred taxes - PIS and COFINS	(19,638)	17,965
6.01.01.08	Other	(546)	475
6.01.01.09	Provision for doubtful accounts	46,232	50,574
6.01.01.10	Equity income	(111,004)	(33,654)
6.01.02	Variation on assets and liabilities	(1,586,536)	(487,222)
6.01.02.01	Consumers, Concessionaires and Licensees	(249,034)	303,374
6.01.02.02	Recoverable Taxes	9,519	(11,484)
6.01.02.03	Leases	(1,644)	(286)
6.01.02.04	Escrow deposits	42,641	74,980
6.01.02.05	Other operating assets	(64,143)	(55,223)
6.01.02.06	Suppliers	46,016	(81,574)
6.01.02.07	Taxes and social contributions paid	(321,968)	(325,791)
6.01.02.08	Other taxes and social contributions	94,334	(13,779)
6.01.02.09	Employee Pension Plans	(60,617)	(39,585)
6.01.02.10	Interest paid on debt	(620,210)	(449,450)
6.01.02.11	Regulator charges	11,855	(78,700)
6.01.02.12	Tax, civil and labor risks paid	(99,027)	(38,281)
6.01.02.13	Other operating liabilities	79,391	35,406
6.01.02.14	Dividend and interest on equity received	16,103	26,000
6.01.02.15	Resources provided by the Energy Development Account - CDE / CCEE	(477,448)	(78,053)
6.01.02.16	Resources provided by the CDE	7,696	245,224
6.02	Net cash in investing activities	(635,174)	(1,062,528)
6.02.01	Acquisition of property, plant and equipment	(167,449)	(581,201)
6.02.02	Marketable Securities, Deposits and Escrow Deposits	(12,862)	47,080
6.02.04	Acquisition of intangible assets	(352,399)	(448,398)
6.02.05	Sale of noncurrent assets	10,495	-
6.02.07	Other	-	(129)
6.02.08	Intercompany loans with subsidiaries and associated companies	950	(79,880)
6.02.09	Capital increase in investments	(45,445)	-
6.02.10	Acquisition of subsidiaries net of cash acquired	(68,464)	-
6.03	Net cash in financing activities	902,794	2,561,302
6.03.01	Loans, financing and debentures obtained	2,433,388	3,896,982
6.03.02	Payments of Loans, financing and debentures , net of derivatives	(949,514)	(860,537)
6.03.03	Dividend and interest on shareholders’ equity paid	(581,986)	(475,143)
6.03.04	Capital increase by noncontrolling shareholders	906	-
6.05	Increase (decrease) in cash and cash equivalents	534,250	2,984,549
6.05.01	Cash and cash equivalents at beginning of period	4,206,422	2,435,034
6.05.02	Cash and cash equivalents at end of period	4,740,672	5,419,583

24

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


Code	Description	Capital	Capital Reserves, options and treasury shares	Profit Reserves	Retained earnings	Other comprehensive income	Shareholders’ Equity Total	Noncontrolling Shareholders’ Equity	Consolidated Shareholders’ Equity
5.01	Opening balance	4,793,424	287,630	1,545,177	-	397,666	7,023,897	1,774,818	8,798,715
5.03	Adjusted opening balance	4,793,424	287,630	1,545,177	-	397,666	7,023,897	1,774,818	8,798,715
5.04	Capital transactions within shareholders	-	44	(567,802)	2,362	-	(565,396)	(17,070)	(582,466)
5.04.09	Additional dividend aproved	-	-	(567,802)	-	-	(567,802)	(16,617)	(584,419)
5.04.10	Prescribed dividend	-	-	-	2,362	-	2,362	-	2,362
5.04.11	Capital increase in subsidiaries without change in control	-	251	-	-	-	251	656	907
5.04.12	Gain (loss) in participation without change in control	-	(207)	-	-	-	(207)	207	-
5.04.13	Redemption of capital reserve of non-controlling shareholders	-	-	-	-	-	-	(1,316)	(1,316)
5.05	Total comprehensive income	-	-	-	341,130	-	341,130	(21,434)	319,696
5.05.01	Net income	-	-	-	341,130	-	341,130	(21,434)	319,696
5.06	Internal changes of shareholders equity	-	-	43,160	(30,284)	(12,876)	-	(56)	(56)
5.06.01	Formation of reserve	-	-	43,160	(43,160)	-	-	-	-
5.06.04	Other transactions within noncontrolling shareholders	-	-	-	-	-	-	(56)	(56)
5.06.06	Realization of deemed cost of fixed assets	-	-	-	19,508	(19,508)	-	-	-
5.06.07	Tax on deemed cost realization	-	-	-	(6,632)	6,632	-	-	-
5.07	Ending balance	4,793,424	287,674	1,020,535	313,208	384,790	6,799,631	1,736,258	8,535,889

25

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


Code	Description	Capital	Capital Reserves, options and treasury shares	Profit Reserves	Retained earnings	Other comprehensive income	Shareholders’ Equity Total	Noncontrolling Shareholders’ Equity	Consolidated Shareholders’ Equity
5.01	Opening balance	4,793,424	228,322	1,339,287	56,293	(36,598)	6,380,728	1,510,401	7,891,129
5.03	Adjusted opening balance	4,793,424	228,322	1,339,287	56,293	(36,598)	6,380,728	1,510,401	7,891,129
5.04	Capital transactions within shareholders	-	-	(455,906)	2,192	-	(453,714)	(11,799)	(465,513)
5.04.09	Additional dividend aproved	-	-	(455,906)	-	-	(455,906)	(11,799)	(467,705)
5.04.10	Prescribed dividend	-	-	-	2,192	-	2,192	-	2,192
5.05	Total comprehensive income	-	-	-	284,676	502,926	787,602	(13,441)	774,161
5.05.01	Net income	-	-	-	284,676	-	284,676	(13,441)	271,235
5.05.02	Other comprehensive income	-	-	-	-	502,926	502,926	-	502,926
5.05.02.06	Comprehensive income - Actuarial gain	-	-	-	-	502,926	502,926	-	502,926
5.06	Internal changes of shareholders equity	-	-	(64,164)	76,181	(12,017)	-	(23)	(23)
5.06.04	Other transactions within noncontrolling shareholders	-	-	-	-	-	-	(23)	(23)
5.06.05	Statutory reserve in the period	-	-	(64,164)	64,164	-	-	-	-
5.06.06	Realization of comprehensive income - deemed cost	-	-	-	18,208	(18,208)	-	-	-
5.06.07	Taxes on the realization of comprehensive income - deemed cost	-	-	-	(6,191)	6,191	-	-	-
5.07	Ending balance	4,793,424	228,322	819,217	419,342	454,311	6,714,616	1,485,138	8,199,754

26

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

Code	Description	YTD Current Year 01/01/2014 to 06/30/2014	YTD Previous Year 01/01/2013 to 06/30/2013
7.01	Revenues	10,522,713	10,301,398
7.01.01	Sales of goods, products and services	9,979,941	9,225,456
7.01.02	Other revenue	405,800	517,827
7.01.02.01	Revenue from construction of infrastructure distribution	405,800	517,827
7.01.03	Revenues related to the construction of own assets	183,204	608,689
7.01.04	Allowance for doubtful accounts	(46,232)	(50,574)
7.02	Inputs	(6,854,148)	(6,332,850)
7.02.01	Cost of sales	(5,790,254)	(4,510,245)
7.02.02	Material-Energy-Outsourced services-Other	(853,299)	(1,353,237)
7.02.04	Other	(210,595)	(469,368)
7.03	Gross added value	3,668,565	3,968,548
7.04	Retentions	(564,057)	(526,925)
7.04.01	Depreciation and amortization	(418,609)	(377,504)
7.04.02	Other	(145,448)	(149,421)
7.04.02.01	Intangible concession asset - amortization	(145,448)	(149,421)
7.05	Net added value generated	3,104,508	3,441,623
7.06	Added value received in transfer	590,042	297,803
7.06.01	Equity result	111,004	33,655
7.06.02	Financial income	479,038	264,148
7.07	Added Value to be Distributed	3,694,550	3,739,426
7.08	Distribution of Added Value	3,694,550	3,739,426
7.08.01	Personnel	394,158	384,929
7.08.01.01	Direct Remuneration	248,013	236,580
7.08.01.02	Benefits	126,017	130,398
7.08.01.03	Government severance indemnity fund for employees- F.G.T.S.	20,128	17,951
7.08.02	Taxes, Fees and Contributions	2,178,427	2,226,427
7.08.02.01	Federal	686,561	764,987
7.08.02.02	State	1,484,561	1,455,226
7.08.02.03	Municipal	7,305	6,214
7.08.03	Remuneration on third parties’ capital	953,386	856,835
7.08.03.01	Interest	924,397	834,495
7.08.03.02	Rental	23,111	22,340
7.08.03.03	Other	5,878	-
7.08.04	Remuneration on own capital	168,579	271,235
7.08.04.03	Retained profit / loss for the period	168,579	271,235

27

COMMENTS ON PERFORMANCE

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

Analysis of Results

CPFL Energia (Parent Company)

The increase in net income in the quarter was R$ 285,545, compared with the same quarter of 2013 (profit of R$ 164,634 in 2014 and loss of R$ 120,911 in 2013), primarily due to an increase of R$ 259,698 in income from equity in subsidiaries.

28

COMMENTS ON CONSOLIDATED PERFORMANCE

	Consolidated
	2nd Quarter						1st Semester
	2014		2013		%		2014		2013		%
Operating revenues	5,169,918		4,771,295		8.4%		10,385,741		9,743,283		6.6%
Electricity sales to final consumers (*)	3,712,763		3,408,713		8.9%		7,467,929		6,994,049		6.8%
Electricity sales to wholesaler´s	660,484		611,807		8.0%		1,361,439		1,293,192		5.3%
Revenue from construction of concession infrastructure	217,030		259,198		-16.3%		405,800		517,827		-21.6%
Other operating revenues (*)	579,641		491,578		17.9%		1,150,573		938,215		22.6%
Deductions from operating revenues	(1,276,235)		(1,172,953)		8.8%		(2,564,748)		(2,429,514)		5.6%
Net operating revenue	3,893,683		3,598,342		8.2%		7,820,993		7,313,769		6.9%
Cost of eletric energy	(2,440,406)		(2,152,651)		13.4%		(4,992,650)		(4,053,763)		23.2%
Electricity purchased for resale	(2,301,084)		(1,955,431)		17.7%		(4,661,044)		(3,734,588)		24.8%
Electricity network usage charges	(139,322)		(197,220)		-29.4%		(331,606)		(319,175)		3.9%
Operating cost/expense	(1,007,050)		(1,222,408)		-17.6%		(1,944,783)		(2,248,910)		-13.5%
Personnel	(215,508)		(184,972)		16.5%		(412,177)		(362,952)		13.6%
Employee pension plans	(12,038)		(20,530)		-41.4%		(24,079)		(41,060)		-41.4%
Materials	(28,921)		(28,788)		0.5%		(56,804)		(54,559)		4.1%
Outside services	(126,214)		(122,374)		3.1%		(245,569)		(244,692)		0.4%
Depreciation and amortization	(211,380)		(190,011)		11.2%		(418,335)		(376,418)		11.1%
Intangible of concession amortization	(73,805)		(74,929)		-1.5%		(145,448)		(149,421)		-2.7%
Costs related to infrastructure construction	(217,030)		(259,198)		-16.3%		(405,800)		(517,827)		-21.6%
Other	(122,155)		(341,605)		-64.2%		(236,571)		(501,980)		-52.9%
Income from electric energy service	446,227		223,284		99.8%		883,560		1,011,096		-12.6%
Financial income (expense)	(224,043)		(415,036)		-46.0%		(446,949)		(558,684)		-20.0%
Income	248,800		120,581		106.3%		477,486		249,263		91.6%
Expense	(472,843)		(535,617)		-11.7%		(924,435)		(807,947)		14.4%
Interest in subsidiaries, associates and joint ventures	39,929		27,397		45.7%		111,004		33,654		229.8%
Income before taxes	262,113		(164,354)		259.5%		547,615		486,066		12.7%
Social Contribution	(31,427)		8,923		452.2%		(61,856)		(57,423)		7.7%
Income Tax	(85,391)		21,364		499.7%		(166,063)		(157,408)		5.5%
Net income	145,295		(134,067)		208.4%		319,696		271,235		17.9%

Net income attributable to the shareholders of the company	164,634		(120,911)		236.2%		341,130		284,676		19.8%
Net income/(loss) attributable to the non controlling interests	(19,340)		(13,156)		47.0%		(21,434)		(13,441)		59.5%

EBITDA	771,636		515,622		49.7%		1,558,938		1,570,589		-0.7%

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

Net income for the period and EBITDA reconciliation
Net income	145,295		(134,067)		319,696		271,235
Depreciation and amortization	285,185		264,940		563,784		525,839
Amortization of value-added of assets	295		-		591		-
Financial income (expense)	224,043		415,036		446,949		558,684
Social contribution	31,427		(8,923)		61,856		57,423
Income tax	85,391		(21,364)		166,063		157,408
EBITDA	771,636		515,622		1,558,938		1,570,589

Gross Operating Revenue

The Gross Operating Revenue in the 2^nd quarter of 2014 was R$ 5,169,918, up 8.4% (R$ 398,623) compared with the same quarter of the previous year.

The main factors in this change were:

· Increase of 8.9% (R$ 304,050) in the supply of electric energy, due to increase of 7.6% in the average tariffs charged as a result of tariff reviews and increase of 1.2% in volume sold;

· Increase of 8.0% (R$ 48,677) in the energy supplied caused mainly by:

o Increase of R$ 225,655 in sales of current electric energy in the Electric Energy Commercialization Chamber (“CCEE”) mainly by an increase of 555 Gwh (R$183,619) and additional revenue of R$ 42,062 by the subsidiary CPFL Geração in the 2^nd quarter of 2014, due to the seasonalization;

o Increase of 8.2% (R$ 8,939) sold to Furnas due the up of 8.2% in the tariff adjustment, partially offset by:

29

o Decrease of 35.0% (R$ 185,917) in Other concessionaires and licensees, basically due (i) decrease of 32.2% in the volume sold mainly due to the termination of some contracts and, (ii) down of 4.1% in the average tariff.

· Decrease of 16.3% (R$ 42,168) in revenue from construction of the concession infrastructure due to the decline in investments in the quarter, with no impact on the net profit.

· Increase of 17.9% (R$ 88,063) in other operating revenues, due mainly to: (i) compensation of generators (R$ 63,490) by the distribution subsidiaries (ii) accounting for the low income subsidy and discounts on tariffs reimbursed by funds from the CDE (R$ 16,543) and (iii) leasing and rent (R$ 6,150).

Ø Quantity of Energy Sold

The quantity of energy bill to final consumers in the 2^nd quarter of 2014 increased by 2.4% in relation to the same period of the previous year. If the effect of migration of customers to the Free Market were to be excluded, the growth would be 6.5%.

The residential category, which accounts for 37.7% of the total captive market, recorded growth of 4.1%. If the effect of more days in the previously year were to be excluded, the growth would be 7.7%. The growth was boosted by the increase in new consumer units and the residential stocks of electrical appliances, due to the maintenance of high income levels and low unemployment.

The commercial category, which accounts for 21.2% of the total captive market, recorded an increase of 3.8%. If the effect of migration of customers to the Free Market and more days in the previously year were to be excluded, the growth would be 8.1%.We draw attention to the cumulative retail sales, which increased by 4.9% in the 12 months ended in April 2014. A similar comparison for sales of furniture and household electrical goods appliances shows a high of 5.6%.

The industrial category, which represents 20.8% of the total captive market, reported a decrease of 4.3%. If the effect of migration of customers to the Free Market and more days in the previously year were to be excluded, the growth would be 0.5%. This performance is the direct result of the modest vitality of Brazilian industrial activity which, year-to-date (to May 2014) dropped by -1.6%, reinforcing the signs of deceleration of the economy. Another significant factor is the impact of holiday shutdowns in some sectors in May and, in particular, in June, with a view to adjusting excess inventories in the industry.

Energy sales by the commercialization and generation segment were down 10.4% on the same period of the previous year, mainly due to the decrease in sales under bilateral agreements and free clients in the commercialization segment. Although there was an increase in the client portfolio, there was no significant growth in consumption by these clients in view of the relative stagnation of the industrial segment and the difficulties caused by the adverse energy scenario, offset by increased sales by CPFL Renováveis, due to the start-up of the Atlântica and Campo dos Ventos II complexes and finalization of the acquisition of Rosa dos Ventos.

Ø Tariffs

The supply tariffs increased by an average of 7.6% in the 2^st quarter of 2014, mainly due to the net effect of the distributors’ tariffs review, mainly:

RGE: 22.77% from June 2014(in 2013 the percentage was negative in 10.64%);
CPFL Paulista: 17.23% from April 2014.
CPFL Piratininga: 6.91% from October 2013

Deductions from Operating Revenue

Deductions from Operating Revenue in the 2^st quarter of 2014 amounted to R$ 1,276,235, up 8.8% (R$ 103,282) on the same quarter of 2013, largely due to:

30

· Increase of 12.5% (R$ 46,776) in PIS and COFINS, largely as a result of the increase in the calculation base for these taxes.

· Increase of 42,7.9% (R$ 38,617) in sector charges manly by increase of R$ 34,898 in the Energy Development Account due to the ratification of the new quote for 2014.

· Increase of 2.5% (R$ 17,419) in ICMS, largely as a result of the up of 10.5% in the supply billed.

Cost of Electric Energy

The cost of electric energy in the quarter totaled R$ 2,440,406, increase of 13.4% (R$ 287,755) on the same period of the previous year, mainly due to:

· Increase of 17.7% (R$ 345,653) in electric energy purchased for resale, due to:

o Increase of 59.0% (R$ 1,153,091) in the average price, reflecting the greater exposure and variation in the settlement price “PLD”; partially offset by

o Decrease of 3.3% (R$65,888) in the quantity of energy purchased, due to the decrease in sales;

o Decrease of R$ 741,550 due to the higher reimbursement of costs by the CDE for hydrological risk and overcontracting for the distribution subsidiaries.

· Decrease of 29.4% (R$ 57,898) in transmission and distribution network usage charges, mainly due to: (i) a decrease of R$ 51,870 in the System Service Charges, net of reimbursement of costs by the CDE, (ii) decrease of R$ 24,858 in the reserve energy charges - EER, partially offset by increase of R$ 10,473 in the basic network charges and R$ 2,272 in the charges of use of the distribution system.

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

Operating Costs and Expenses

Without taking into consideration the costs of infrastructure construction, Operating Costs and Expenses in the quarter amounted to R$ 790,020, down 18,0% (R$ 173,190) on the same period of the previous year. This was mainly due to:

· Personnel: an increase of 16.5% (R$ 30,536), mainly by: (i) increase of R$ 15,109 with profit sharing, (ii) decrease of R$ 13, 345 in the Capitalization of personnel costs in investment from January 2014, in accordance with the new methodology established by ANEEL, and (iii) incrcease of personnel and the effects of the 2014 collective labor (R$ 2,081);

· Employee Pension Plans: decrease of 41.4 % (R$ 8,493) as a result of the actuarial report for 2014;

· Outsourced Services: an increase of 3.1% (R$ 3,840), mainly due to the expenses with plant maintenance;

· Depreciation and Amortization: an increase of 11.2% (R$ 21,369), mainly due to (i) increase of R$ 15,682 for the subsidiary CPFL Renováveis due to the companies that started operations; (ii) increase of R$ 5,263 in amortization of the intangible distribution infrastructure asset, mainly due to addiction in the intangible assets base;

· Other Expense: decrease of 64,2% (R$ 219,450), primarily due to the decrease of (i) R$ 199,334 in legal, judicial and indemnities, (ii) R$ 13,747 in other taxes due to registration in 2013 of enrollment in the Special ICMS Financing Program – PEP, and (iii) R$ 2,338 in allowance for doubtful accounts.

31

Financial Income (Expense)

The Net Financial Expense in the quarter was R$ 224,043, compared with R$ 415,036 in the same quarter of 2013, a decrease of R$ 190,992 in net expense. This variation is mainly due to:

· Increase of 106.3% (R$ 128,219) in financial income, mainly due to (i) increase of R$ 64,015 in income from short-term cash investments, (ii) monetary and exchange restatement R$ 11,888, (iii) reversal of restatement of a provision for tax contingencies of R$ 17,879, (iv) restatement of legal deposits and tax credits of R$ 19,222, and (v) adjustment in the estimated cash flow of the financial assets of concession (R$ 12,405);

· Decrease of 11.7% (R$ 62,774) in financial expense, mainly due to increase of (i) decrease of R$ 126,491 with adjustment in the estimated cash flow of the financial assets of concession, (ii) decrease of R$ 59,579 in interest and tax fines, due to recognition in 2013 of a fine and interest on ICMS (Special Financing Program, partially offset by (i) increase of R$ 97,434 in debt charges and monetary and exchange restatement as a result of the increased debt, and increase of the indexes, and e (ii) decrease of R$ 15,426 with capitalized interests.

Interest in subsidiaries, associates and joint ventures

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

		2nd quarter 2014		2nd quarter 2013
Epasa		(4,602)		(9,760)
Baesa		3,824		3,069
Campos Novos		22,094		21,529
Chapecoense		18,909		12,560
Amortization of value-added of assets		(295)		-
Total		39,929		27,397

· Chapecoense: increase of R$ 6,349, primarily by increase with the income of transactions with the CCEE (R$ 14,789), partially offset by an increase with costs of energy, due to the effects of GSF (R$ 5,470).

Social Contribution and Income Tax

Taxes on income in the 2^nd quarter of 2014, were R$ 116,818, up by 486% (R$147,105) in relation to the income recorded in the same quarter of 2013, primarily due to the effects of changes in income before Taxes.

Net Income and EBITDA

As a result of the above factors, the income for the quarter was R$ 145,295, 208.4% (R$ 279,362) higher than the same period of 2013 (a loss of R$ 134,067).

32

EBITDA (net income for the quarter, excluding the effects of depreciation, amortization, financial income (expense), social contribution and income tax) for the 2^nd quarter of 2014 was R$ 771,636, or 49.7% (R$ 256,015) higher than EBITDA in the same quarter of 2013.

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities are not accounted for, in accordance with the pronouncements issued by the Accounting Pronouncements Committee (CPC) and International Financial Reporting Standards (IFRS). If they were recorded, there would be a positive impact on EBITDA of R$ 38 million in the 2^nd quarter of 2014 (R$ 26 million in the same quarter of 2013) and R$ 37 million on Net Income (R$ 19 million in the same quarter of 2013). The amounts relating to the deferral of regulatory assets and liabilities will be passed on to the tariffs in the next tariff readjustment, through the financial components. The amounts relating to amortization of these are reflected in the tariffs of each period.

33

COMMENTS ON THE PERFORMANCE OF SUBSIDIARIES/ASSOCIATES

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

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

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

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

Subsidiary/Associate: Companhia Piratininga de Força e Luz

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

Subsidiary/Associate: Rio Grande Energia S.A.

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

34

Subsidiary/Associate: CPFL Commercialization Brasil S.A.

	Consolidated
	2nd Quarter						1st Semester
	2014		2013		%		2014		2013		%
Operating revenues	520,766		558,938		-6.8%		1,085,448		1,162,157		-6.6%
Electricity sales to final consumers	227,576		226,986		0.3%		456,033		447,480		1.9%
Electricity sales to wholesaler´s	291,751		331,659		-12.0%		622,337		713,680		-12.8%
Other operating revenues	1,439		294		390.2%		7,079		997		610.0%
Deductions from operating revenues	(60,858)		(64,252)		-5.3%		(125,410)		(132,968)		-5.7%
Net operating revenue	459,908		494,686		-7.0%		960,038		1,029,188		-6.7%
Cost of eletric energy	(391,755)		(490,368)		-20.1%		(818,104)		(994,388)		-17.7%
Electricity purchased for resale	(395,274)		(489,560)		-19.3%		(821,584)		(993,550)		-17.3%
Electricity network usage charges	3,519		(807)		-535.9%		3,481		(838)		-515.5%
Operating cost/expense	(10,369)		(10,568)		-1.9%		(19,123)		(19,962)		-4.2%
Personnel	(6,168)		(6,100)		1.1%		(11,121)		(10,525)		5.7%
Materials	(42)		(65)		-35.6%		(81)		(129)		-37.4%
Outside services	(1,660)		(2,082)		-20.3%		(3,347)		(4,273)		-21.7%
Depreciation and amortization	(1,112)		(982)		13.2%		(2,217)		(1,949)		13.7%
Other	(1,386)		(1,339)		3.6%		(2,357)		(3,085)		-23.6%
Income from electric energy service	57,784		(6,250)		-1024.5%		122,811		14,839		727.6%
Financial income (expense)	1,005		1,416		-29.0%		3,052		4,925		-38.0%
Income	7,907		6,751		17.1%		16,829		14,994		12.2%
Expense	(6,902)		(5,335)		29.4%		(13,777)		(10,069)		36.8%
Income before taxes	58,789		(4,834)		-1316.0%		125,864		19,763		536.9%
Social contribution	(5,348)		404		-1424.0%		(11,411)		(1,848)		517.4%
Income tax	(14,864)		986		-1607.8%		(31,756)		(5,270)		502.6%
Net income	38,577		(3,445)		-1219.9%		82,696		12,645		554.0%

Net income attributable to the shareholders of the company	38,577		(3,445)		-1219.9%		82,696		12,645		554.0%

EBITDA	58,897		(5,268)		-1218.1%		125,028		16,788		644.8%

Net income for the period and EBITDA reconciliation
Net income	38,577		(3,445)		82,696		12,645
Depreciation and amortization	1,112		982		2,217		1,949
Financial income (expense)	(1,005)		(1,416)		(3,052)		(4,925)
Social contribution	5,348		(404)		11,411		1,848
Income tax	14,864		(986)		31,756		5,270
EBITDA	58,897		(5,268)		125,028		16,788

Gross Revenue

Gross Revenue in 2^nd quarter of 2014 was R$ 520,766, down R$ 38,172 (6.8%) in relation to the same quarter of 2013, primarily by the operations in the parent company:

· Energy Supply: decrease of R$ 39,907, due to:

o Bilateral agreements: decrease of R$ 173,946, due to the drop of 1,056 GWh (R$ 191,011), in sales, partially offset by an increase of 4.5%, (R$ 17,065) in the average price; and

o Sales in the CCEE: increase of R$ 134,039, due to the increase of 278 GWh in the amount sold.

Cost of Electric Energy

The cost of electric energy in 2^nd quarter of 2014 was R$ 391,755, down R$ 98,612 (20.1%) on the same quarter of 2013. This decrease is primarily due to the operations in the Company (decrease of R$ 94, 286):

35

· Decrease of R$ 68,450 in purchases through bilateral agreements, explained by the drop of 817 GWh (R$ 124,195) in the amount acquired, partially offset by an increase of 11.5%, (R$ 55,745) in the average price; and

· Reduction of R$ 25,836 in CCEE purchases, explained by the drop of 41 GWh (R$ 32,624) in the amount acquired, partially offset by the increase of 143% (R$ 6,788) in the average price.

Financial income (expense)

Net financial income of R$ 1,005 was recorded in 2^nd quarter of 2014, down R$ 411 (29.9%) on the same quarter of 2013, mainly by increase in financial expense, due to effect of CDI.

Net Income for the period and EBITDA

A net income of R$ 38,577 was recorded in 2^nd quarter of 2014, increase of R$ 42,022 when compared with the same quarter of 2013.

EBITDA (net Income before financial income (expense), income tax and social contribution, depreciation and amortization) of R$ 58,897 was recorded for 2^nd quarter of 2014, increase of 64,165 when compared with the same quarter of 2013.

Information not reviewed by the auditors.

36

NOTES TO THE INTERIM FINANCIAL STATEMENTS

CPFL ENERGIA S.A.

NOTES TO THE INTERIM FINANCIAL STATEMENTS

AT JUNE 30, 2014

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

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

CURRENT ASSETS
Cash and cash equivalents	5	1,252,336		990,672		4,740,672		4,206,422
Consumers, concessionaires and licensees	6	-		-		2,231,367		2,007,789
Dividends and interest on shareholders´ equity receivable	11	716,113		697,702		52,586		55,265
Financial investments		-		-		5,422		24,806
Recoverable taxes	7	41,178		29,874		266,577		262,433
Derivatives	32	-		-		9,194		1,842
Materials and supplies		-		-		22,918		21,625
Leases		-		-		12,154		10,757
Other credits	10	2,473		1,984		1,231,654		673,383
TOTAL CURRENT ASSETS		2,012,100		1,720,232		8,572,543		7,264,323

NONCURRENT ASSETS
Consumers, concessionaires and licensees	6	-		-		137,375		153,854
Loans to subsidiaries, associates and joint ventures	30	2,163		8,948		96,598		86,655
Escrow deposits	20	572		92		1,143,779		1,143,179
Recoverable taxes	7	-		-		167,386		173,362
Derivatives	32	-		-		180,537		316,648
Deferred taxes credits	8	173,591		165,798		1,221,422		1,168,706
Advances for future capital increase		13,058		59,397		-		-
Leases		-		-		38,064		37,817
Financial asset of concession	9	-		-		3,021,163		2,787,073
Investment at cost		-		-		116,654		116,654
Other credits	10	11,947		14,389		317,435		296,096
Investment	11	5,950,623		6,419,924		1,173,705		1,032,681
Property, plant and equipment	12	926		1,000		7,731,505		7,717,419
Intangible assets	13	18		32		8,618,990		8,748,328
TOTAL NONCURRENT ASSETS		6,152,899		6,669,579		23,964,613		23,778,473

TOTAL ASSETS		8,164,998		8,389,811		32,537,156		31,042,796

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

37

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

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

CURRENT LIABILITIES
Suppliers	14		524		1,127		1,930,713	1,884,693
Accrued interest on debts	15		-		-		101,147	125,829
Accrued interest on debentures	16		13,710		12,438		242,370	162,134
Loans and financing	15		-		-		1,332,828	1,514,626
Debentures	16		1,288,649		-		1,878,170	34,872
Post-employment benefit obligation	17		-		-		81,952	76,810
Regulatory charges	18		-		-		44,234	32,379
Taxes and social contributions payable	19		252		359		403,034	318,063
Dividends and Interest on Equity			16,125		15,407		21,942	21,224
Accrued liabilities			4		10		97,688	67,633
Derivatives	32		-		-		3,426	-
Public Utilities	21		-		-		3,943	3,738
Other accounts payable	22		15,535		16,904		717,497	663,529
TOTAL CURRENT LIABILITIES			1,334,799		46,246		6,858,948	4,905,531

NONCURRENT LIABILITIES
Accrued interest on debts	15		-		-		68,551	43,396
Accrued interest on debentures	16		-		-		-	32,177
Loans and financing	15		-		-		8,181,284	7,546,144
Debentures	16		-		1,287,912		6,717,739	7,562,219
Post-employment benefit obligation	17		-		-		308,960	350,640
Taxes and social contributions payable	19		-		-		21,062	32,555
Deferred taxes debits	8		-		-		1,108,395	1,117,146
Reserve for tax, civil and labor risks	20		352		260		431,028	467,996
Derivatives	32		-		-		97,075	2,950
Public utilities	21		-		-		81,819	79,438
Other accounts payable	22		30,214		31,495		126,404	103,886
TOTAL NONCURRENT LIABILITIES			30,566		1,319,667		17,142,317	17,338,547

SHAREHOLDERS' EQUITY	23
Capital			4,793,424		4,793,424		4,793,424	4,793,424
Capital reserves			287,673		287,630		287,673	287,630
Profit reserves			603,352		603,352		603,352	603,352
Reserve of retained earnings for investment			108,987		108,987		108,987	108,987
Statutory reserve - financial asset of concession			308,196		265,037		308,196	265,037
Dividend			-		567,802		-	567,802
Other comprehensive income			384,793		397,668		384,793	397,668
Retained earnings			313,208		-		313,208	-
			6,799,633		7,023,899		6,799,633	7,023,899
Net equity attributable to noncontrolling shareholders			-		-		1,736,258	1,774,819
TOTAL SHAREHOLDERS' EQUITY			6,799,633		7,023,899		8,535,891	8,798,718

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			8,164,998		8,389,811		32,537,156	31,042,796

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

38

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

		Parent company								Consolidated
		2014				2013				2014				2013
STATEMENT OF INCOME	Note	2nd quarter		1st semester		2nd quarter		1st semester		2nd quarter		1st semester		2nd quarter		1st semester

NET OPERATING REVENUE	25	33		33		20		50		3,893,683		7,820,993		3,598,342		7,313,769
COST OF ELECTRIC ENERGY SERVICES
Cost of electric energy	26	-		-		-		-		(2,440,406)		(4,992,650)		(2,152,651)		(4,053,763)
Operating cost	27	-		-		-		-		(411,447)		(803,297)		(363,655)		(738,255)
Services rendered to third parties	27	-		-		-		-		(217,944)		(407,321)		(259,817)		(519,610)

GROSS OPERATING INCOME		33		33		20		50		823,887		1,617,726		822,219		2,002,140
Operating expenses	27
Sales expenses		-		-		-		-		(102,912)		(204,235)		(105,009)		(207,730)
General and administrative expenses		(5,371)		(11,317)		(5,949)		(10,860)		(185,837)		(348,915)		(400,211)		(601,509)
Other operating expense		-		-		-		-		(88,910)		(181,016)		(93,715)		(181,805)


INCOME FROM ELECTRIC ENERGY SERVICE		(5,338)		(11,283)		(5,929)		(10,810)		446,227		883,560		223,284		1,011,096

INTEREST IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES	11	170,937		357,407		(88,761)		323,083		39,929		111,004		27,397		33,654
FINANCIAL INCOME (EXPENSE)	28
Income		31,045		55,412		(1,041)		2,823		248,800		477,486		120,581		249,263
Expense		(34,677)		(67,883)		(7,897)		(13,405)		(472,843)		(924,435)		(535,617)		(807,947)
		(3,632)		(12,471)		(8,938)		(10,582)		(224,043)		(446,949)		(415,036)		(558,684)
INCOME BEFORE TAXES		161,967		333,653		(103,628)		301,691		262,113		547,615		(164,354)		486,066
Social contribution	8	984		2,674		(3,651)		(3,590)		(31,427)		(61,856)		8,923		(57,423)
Income tax	8	1,684		4,804		(13,632)		(13,425)		(85,391)		(166,063)		21,364		(157,408)
		2,667		7,477		(17,283)		(17,015)		(116,818)		(227,919)		30,287		(214,831)

NET INCOME		164,634		341,130		(120,911)		284,676		145,295		319,696		(134,067)		271,235

Net income attributable to controlling shareholders										164,634		341,130		(120,911)		284,676
Net income attributable to noncontrolling shareholders										(19,340)		(21,434)		(13,156)		(13,441)
Earnings per share attributable to controlling shareholders - basic	24	0.17		0.35		(0.13)		0.30		0.17		0.35		(0.13)		0.30
Earnings per share attributable to controlling shareholders - diluted	24	0.17		0.35		(0.13)		0.29		0.17		0.35		(0.13)		0.29

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

39

CPFL Energia S.A.
Statement of comprehensive income for the periods ended on June 30, 2104 and 2013
(In thousands of Brazilian reais – R$)
		Parent company
		2014				2013
		2nd quarter		1st semester		2nd quarter		1st semester

Net income / (loss)		164,634		341,130		(120,911)		284,676

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

Comprehensive income of the period		164,634		341,130		382,016		787,603

		Consolidated
		2014				2013
		2nd quarter		1st semester		2nd quarter		1st semester
Net income / (loss)		145,295		319,696		(134,067)		271,235

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

Comprehensive income of the period		145,295		319,696		368,860		774,162
Comprehensive income attributable to controlling shareholders		164,634		341,130		382,016		787,603
Comprehensive income attributable to non controlling shareholders		(19,340)		(21,434)		(13,156)		(13,441)

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

40

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

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

Total comprehensive income
Net income for the period		-		-		-		-		-		-		-		-		341,130		341,130		-		(21,434)		319,696

Internal changes of shareholders'equity
- Realization of deemed cost of fixed assets		-		-		-		-		-		-		(19,508)		-		19,508		-		(1,127)		1,127		-
- Tax on deemed cost realization		-		-		-		-		-		-		6,632		-		(6,632)		-		383		(383)		-
- Statutory reserve for the period		-		-		-		-		43,160		-		-		-		(43,160)		-		-		-		-
- Other changes in non-controlling shareholders		-		-		-		-		-		-		-		-		-		-		-		(57)		(57)

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

Balance at June 30, 2014		4,793,424		287,673		603,352		108,987		308,196		-		496,790		(111,999)		313,208		6,799,633		17,747		1,718,511		8,535,891

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

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

Total comprehensive income
Net income for the period		-		-		-		-		-		-		-		-		284,676		284,676		-		(13,441)		271,235
Comprehensive income - Actuarial gain		-		-		-		-		-		-		-		502,927		-		502,927		-		-		502,927
														-		-		-
Internal changes of shareholders'equity		-		-		-		-		-		-		-		-		-
- Realization of deemed cost of fixed assets		-		-		-		-		-		-		(18,208)		-		18,208		-		189		(189)		-
- Tax on deemed cost realization		-		-		-		-		-		-		6,191		-		(6,191)		-		(64)		64		-
- Transfer to statutory reserve		-		-		-		(326,899)		326,899		-		-		-		-		-		-		-		-
- Statutory reserve in the period		-		-		-		-		(64,164)		-		-		-		64,164		-		-		-		-
- Other changes in non-controlling shareholders		-		-		-		-				-		-		-		-		-		-		(23)		(23)

Capital transactions with the shareholders
- Prescribed dividend		-		-		-		-		-				-		-		2,192		2,192		-		-		2,192
- Additional dividend aproved		-		-		-		-		-		(455,906)		-		-		-		(455,906)		-		(11,799)		(467,705)

Balance at June 30, 2013		4,793,424		228,322		556,481		-		262,735		-		523,610		(69,298)		419,342		6,714,617		19,866		1,465,272		8,199,755

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

41

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

	Parent company				Consolidated
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013

Income, before income tax and social contribution	333,653		301,691		547,615		486,066
Adjustment to reconcile Income to cash provided by operating activities
Depreciation and amortization	87		36		563,784		525,839
Reserve for tax, civil and labor risks	130		199		75,198		222,076
Allowance for doubtful accounts	-		-		46,232		50,574
Interest and monetary adjustment	67,285		11,281		703,904		644,336
Post-employment benefit loss	-		-		24,079		41,060
Interest in subsidiaries, associates and joint ventures	(357,407)		(323,083)		(111,004)		(33,654)
Losses on the write-off of noncurrent assets	-		-		23,542		18,260
Deferred taxes (PIS and COFINS)	-		-		(19,638)		17,965
Other	-		-		(546)		475
	43,748		(9,876)		1,853,166		1,972,997
Decrease (increase) In operating assets
Consumers, concessionaires and licensees	-		-		(249,034)		303,374
Dividend and interest on equity received	867,738		681,777		16,103		26,000
Recoverable taxes	(11,289)		(1,655)		9,519		(11,484)
Lease	-		-		(1,644)		(286)
Escrow deposits	(480)		(18)		42,641		74,980
Resources provided by the Energy Development Account - CDE / CCEE	-		-		(477,448)		(78,053)
Other operating assets	1,955		(2,912)		(64,143)		(55,223)

Increase (decrease) In operating liabilities
Suppliers	(603)		(541)		46,016		(81,574)
Other taxes and social contributions	(413)		6,650		94,334		(13,779)
Other liabilities with post-employment benefit obligation	-		-		(60,617)		(39,585)
Regulatory charges	-		-		11,855		(78,700)
Reserve for tax, civil and labor risks paid	(35)		-		(99,026)		(38,281)
Other liabilities - Resources provided by the CDE	-		-		7,696		245,224
Other operating liabilities	(2,010)		674		79,390		35,406
Cash flows provided by operations	898,611		674,099		1,208,808		2,261,016
Interests paid	(65,405)		(2,437)		(620,210)		(449,450)
Income tax and social contribution paid	-		-		(321,968)		(325,791)
Net cash from operating activities	833,206		671,662		266,630		1,485,775

Investing activities
Acquisition of subsidiaries net of cash acquired	-		-		(68,464)		-
Capital increase in investments	-		(1)		(45,445)		-
Additions to property, plant and equipment	-		(275)		(167,449)		(581,201)
Financial investments, pledges, funds and tied deposits	-		4,710		(12,862)		47,080
Additions to intangible assets	-		-		(352,399)		(448,398)
Sale of noncurrent assets	-		-		10,495		-
Advance for future capital increase	(13,058)		(1,000)		-		-
Loans to subsidiaries, associates and joint ventures	6,884		514		950		(79,880)
Other	-		(1)		-		(129)
Net cash flow from investing activities	(6,174)		3,947		(635,174)		(1,062,528)

Financing activities
Capital increase by noncontrolling shareholders	-		-		906		-
Loans, financing and debentures obtained	-		1,287,174		2,433,388		3,896,982
Loans, financing and debentures, net of derivatives paid	-		223		(949,514)		(860,537)
Dividend and interest on shareholders’ equity paid	(565,368)		(453,968)		(581,986)		(475,143)
Net cash flow provided by (used in) financing activities	(565,368)		833,429		902,794		2,561,302
Increase (decrease) in cash and cash equivalents	261,664		1,509,038		534,250		2,984,549
Opening balance of cash and cash equivalents	990,672		141,835		4,206,422		2,435,034
Closing balance of cash and cash equivalents	1,252,336		1,650,873		4,740,672		5,419,583

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

42

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

	Parent company				Consolidated
	1st semester 2014		1st semester 2013		1st semester 2014		1st semester 2013
1. Revenues	37		330		10,522,713		10,301,398
1.1 Operating revenues	37		55		9,979,941		9,225,456
1.2 Revenue related to the construction of own assets	-		275		183,204		608,689
1.3 Revenue from construction of concession infrastructure	-		-		405,800		517,827
1.4 Allowance of doubtful accounts	-		-		(46,232)		(50,574)

2. (-) Inputs	(3,111)		(4,491)		(6,601,844)		(6,332,850)
2.1 Electricity purchased for resale	-		-		(5,537,950)		(4,510,245)
2.2 Material	(4)		(280)		(420,663)		(783,919)
2.3 Outsourced services	(2,375)		(2,391)		(432,636)		(569,318)
2.4 Other	(731)		(1,820)		(210,595)		(469,368)

3. Gross added value (1 + 2)	(3,074)		(4,161)		3,920,869		3,968,548

4. Retentions	(87)		(36)		(564,058)		(526,925)
4.1 Depreciation and amortization	(87)		(36)		(418,610)		(377,504)
4.2 Amortization of intangible assets	-		-		(145,448)		(149,421)

5. Net added value generated (3 + 4)	(3,161)		(4,197)		3,356,811		3,441,623

6. Added value received in transfer	412,820		332,620		590,042		297,801
6.1 Financial Income	55,412		9,537		479,038		264,148
6.2 Interest in subsidiaries, associates and joint ventures	357,407		323,083		111,004		33,654

7. Added value to be distributed (5 + 6)	409,659		328,424		3,946,854		3,739,426

8. Distribution of added value
8.1 Personnel and charges	6,783		5,319		394,158		384,929
8.1.1 Direct remuneration	3,937		3,912		248,013		236,580
8.1.2 Benefits	2,434		935		126,017		130,398
8.1.3 Government severance indemnity fund for employees - F.G.T.S.	411		472		20,128		17,951
8.2 Taxes, fees and contributions	(6,204)		24,982		2,279,613		2,226,427
8.2.1 Federal	(6,229)		24,961		787,748		764,987
8.2.2 Estate	24		20		1,484,561		1,455,227
8.2.3 Municipal	-		-		7,305		6,214
8.3 Interest and rentals	67,950		13,447		953,386		856,835
8.3.1 Interest	67,882		13,385		924,397		834,495
8.3.2 Rental	68		63		23,111		22,340
8.3.3 Other	-		-		5,878		-
8.4 Interest on capital	341,130		284,676		319,696		271,235
8.4.1 Retained earnings	341,130		284,676		319,696		271,235
	409,659		328,424		3,946,854		3,739,426

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

43

( 1 ) OPERATIONS

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

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

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

Energy distribution

Company Type

Equity Interest

Location (State)

Number of municipalities

Approximate number of consumers (in thousands)

Concession term

End of the concession

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

Publicly-quoted corporation

Direct
100%

Interior of São Paulo

234

4,068

30 years

November 2027

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

Publicly-quoted corporation

Direct
100%

Interior of São Paulo

27

1,596

30 years

October 2028

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

Publicly-quoted corporation

Direct
100%

Interior of Rio Grande do Sul

255

1,417

30 years

November 2027

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

Private corporation

Direct
100%

Interior of São Paulo and Paraná

27

199

16 years

July 2015

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

Private corporation

Direct
100%

Interior of São Paulo

7

55

16 years

July 2015

Companhia Jaguari de Energia ("CPFL Jaguari")

Private corporation

Direct
100%

Interior of São Paulo

2

38

16 years

July 2015

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

Private corporation

Direct
100%

Interior of São Paulo

5

81

16 years

July 2015

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

Private corporation

Direct
100%

Interior of São Paulo and Minas Gerais

4

44

16 years

July 2015

Installed power (MW)

Energy generation
(conventional and renewable sources)

Company Type

Equity Interest

Location (State)

Number of plants / type of energy

Total

CPFL participation

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

Publicly-quoted corporation

Direct
100%

São Paulo, Goiás and Minas Gerais

1 Hydroelectric, 2 SHPs (*) e 1 Thermal

694

694

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

Private corporation

Indirect
65%

Rio Grande do Sul

3 Hydroelectric

360

234

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

Private corporation

Indirect
51%

Santa Catarina and
Rio Grande do Sul

1 Hydroelectric

855

436

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

Private corporation

Indirect
48,72%

Santa Catarina

1 Hydroelectric

880

429

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

Publicly-quoted corporation

Indirect
25,01%

Santa Catarina and
Rio Grande do Sul

1 Hydroelectric

690

173

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

Private corporation

Indirect
57.13%

Paraíba

2 Thermals

342

195

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

Private corporation

Indirect
59,93% (b)

Tocantins

1 Hydroelectric

903

63

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

Publicly-quoted corporation

Indirect
58.84%

(c)

(c)

(c)

(c)

CPFL Centrais Geradoras Ltda ("CPFL Centrais Geradoras")

Limited company

Direct
100%

São Paulo

9 SHPs

24

24

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

44

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

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

(a) SHP – Small Hydropower Plant

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

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

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

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

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

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

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

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

45

( 2 ) PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS

2.1 Basis of preparation

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

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

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

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

The consolidated financial statements were authorized for issue by the Board of Directors on August 11, 2014.

2.2 Basis of measurement

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

2.3 Use of estimates and judgments

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

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

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

· Note 6 – Consumers, concessionaire and licensees;

· Note 8 – Deferred tax credits and debits;

· Note 9 – Financial asset of concession;

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

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

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

· Note 17 – Post-employment Benefit Obligation;

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

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

· Note 25 – Net operating revenues;

· Note 26 – Cost of electric energy;

· Note 32 – Financial instruments;

· Leasing.

2.4 Functional currency and presentation currency

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

2.5 Basis of consolidation:

(i) Business combinations

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

(ii) Subsidiaries

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

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

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

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

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

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

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

(iii) Acquisition of non-controlling interest

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

2.6 Segment information

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

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

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

2.7 Information on corporate interests

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

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

2.8 Value added statements

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

( 3 ) SUMMARY OF THE SIGNIFICANT ACCOUNTING POLICIES

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

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( 4 ) DETERMINATION OF FAIR VALUES

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

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

- Property, plant and equipment and intangible assets

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

- Financial instruments

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

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

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

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

49

( 5 ) CASH AND CASH EQUIVALENTS

	Parent company				Consolidated
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
Bank balances	545		936		49,795		132,130
Short-term financial investments	1,251,791		989,737		4,690,876		4,074,292
Overnight investment (a)	-		-		10,207		46,809
Bank deposit certificates (b)	-		-		566,199		377,556
Repurchase agreements with debentures (b)	-		-		73,794		8,970
Investment funds (c)	1,251,791		989,737		4,040,677		3,640,957
Total	1,252,336		990,672		4,740,672		4,206,422

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

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

c) Amounts invested in an Exclusive Fund, involving investments subject to floating rates tied to the CDI in federal government bonds, quotas of investment funds, CDBs, secured debentures of major financial institutions, with daily liquidity, low credit risk and interest equivalent, on average, to 101% of the CDI.

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( 6 ) CONSUMERS, CONCESSIONAIRES AND LICENSEES

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

	Consolidated
	Amounts		Past due				Total
	coming due		until 90 days		> 90 days		June 30, 2014		December 31, 2013
Current
Consumer classes
Residential	316,501		217,911		41,764		576,176		500,623
Industrial	125,284		49,469		27,307		202,060		179,953
Commercial	134,318		39,103		13,269		186,690		173,828
Rural	33,186		6,068		1,196		40,450		35,023
Public administration	32,458		5,174		277		37,909		33,906
Public lighting	28,169		2,487		9,536		40,192		38,134
Public utilities	46,806		5,181		503		52,490		41,182
Billed	716,722		325,393		93,852		1,135,967		1,002,649
Unbilled	663,417		-		-		663,417		627,852
Financing of consumers' debts	58,200		9,056		61,731		128,987		128,782
Free energy	4,281		-		-		4,281		4,161
CCEE transactions	164,574		-		-		164,574		21,313
Concessionaires and licensees	257,103		-		-		257,103		324,535
Other	19,574		-		-		19,574		24,254
	1,883,872		334,449		155,583		2,373,904		2,133,546
Allowance for doubtful accounts							(142,537)		(125,758)
Total							2,231,367		2,007,789

Non current
Financing of consumers' debts	104,233		-		-		104,233		120,042
CCEE transactions	41,301		-		-		41,301		41,301
	145,534		-		-		145,534		161,343
Allowance for doubtful accounts							(8,159)		(7,489)
Total							137,375		153,854

Allowance for doubtful accounts

Changes in the allowance for doubtful accounts are shown below:

	Consolidated
	Consumers, concessionaires and licensees		Other Credits (note 10)		Total
At December 31, 2013	(133,247)		(13,152)		(146,398)
Allowance for doubtful accounts	(66,518)		812		(65,706)
Recovery of revenue	19,688		(214)		19,474
Write-off of accounts receivable and provisioned	29,380		740		30,120
At June 30, 2014	(150,696)		(11,813)		(162,509)
Current
Noncurrent	(142,537)		(11,813)		(154,351)
	(8,159)		-		(8,159)

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( 7 ) RECOVERABLE TAXES

	Parent company				Consolidated
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
Current
Prepayments of social contribution - CSLL	-		393		2,672		3,054
Prepayments of income tax - IRPJ	-		1,301		7,840		5,767
IRRF on interest on equity	423		14,091		423		14,537
Income tax and social contribution to be offset	30,834		807		57,156		14,731
Withholding tax - IRRF	9,858		13,218		84,251		106,627
ICMS to be offset	-		-		72,987		77,559
Social Integration Program - PIS	-		-		6,679		6,783
Contribution for Social Security financing- COFINS	42		42		30,572		30,123
National Social Security Institute - INSS	1		1		2,278		2,279
Other	20		20		1,719		972
Total	41,178		29,874		266,577		262,433

Noncurrent
Social contribution to be offset - CSLL	-		-		44,881		42,848
Income tax to be offset - IRPJ	-		-		9,111		11,851
ICMS to be offset	-		-		94,828		99,777
Social Integration Program - PIS	-		-		3,073		3,073
Contribution for Social Security financing- COFINS	-		-		14,116		14,116
Other	-		-		1,377		1,698
Total	-		-		167,386		173,362

( 8 ) DEFERRED TAXES

8.1- Breakdown of tax credits and debits:

	Parent company				Consolidated
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
Social contribution credit/(debit)
Tax losses carryforwards	43,918		41,245		51,376		47,660
Tax benefit of merged goodwill	-		-		114,589		121,820
Deductible temporary differences	595		511		(169,832)		(185,861)
Subtotal	44,512		41,756		(3,867)		(16,381)

Income tax credit / (debit)
Tax losses carryforwards	128,232		123,429		148,980		141,113
Tax benefit of merged goodwill	-		-		392,179		416,418
Deductible temporary differences	847		612		(473,929)		(519,615)
Subtotal	129,079		124,042		67,231		37,917

PIS and COFINS credit/(debit)
Deductible temporary differences	-		-		49,663		30,025

Total	173,591		165,798		113,027		51,560

Total tax credit	173,591		165,798		1,221,422		1,168,706
Total tax debit	-		-		(1,108,395)		(1,117,146)

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

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8.2 - Tax benefit of merged goodwill:

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

	Consolidated
	June 30, 2014				December 31, 2013
	Social contribution		Income tax		Social contribution		Income tax
CPFL Paulista	65,378		181,607		68,938		191,495
CPFL Piratininga	15,419		52,916		16,148		55,414
RGE	29,919		123,560		31,342		129,436
CPFL Santa Cruz	1,313		4,129		1,757		5,525
CPFL Leste Paulista	663		2,023		939		2,863
CPFL Sul Paulista	995		3,112		1,386		4,332
CPFL Jaguari	568		1,739		824		2,516
CPFL Mococa	333		1,027		485		1,499
CPFL Geração	-		22,041		-		23,282
CPFL Serviços	-		27		-		57
Total	114,589		392,179		121,820		416,418

8.3 – Accumulated balances on deductible temporary differences:

	Consolidated
	June 30, 2014						December 31, 2013
	Social contribution		Income tax		PIS/COFINS		Social contribution		Income tax		PIS/COFINS
Deductible temporary differences
Reserve for tax, civil and labor	33,532		93,147		-		32,746		90,959		-
Private pension fund	1,951		5,420		-		2,004		5,566		-
Allowance for doubtful accounts	14,864		41,288		-		13,379		37,163		-
Free energy provision	5,789		16,079		-		5,429		15,081		-
Research and development and energy efficiency programs	12,061		33,504		-		11,471		31,864		-
Reserves related to personnel	1,748		4,854		-		3,522		9,785		-
Depreciation rate difference	7,218		20,050		-		7,212		20,033		-
Recognition of the concession - adjustment of intangible assets (IFRS / CPC)	(1,685)		(4,682)		-		(1,798)		(4,995)		-
Recognition of the concession - financial adjustment (IFRS / CPC)	(41,862)		(116,282)		-		(36,093)		(100,258)		(22)
Reversal of regulatory assets and liabilities (IFRS / CPC)	46,310		128,638		49,735		27,218		75,605		30,046
Actuarial losses (IFRS / CPC)	33,393		92,759		-		33,178		92,464		-
Other adjustments (IFRS / CPC)	15,142		41,926		(72)		13,758		38,081		-
Accelerated depreciation	(14)		(38)		-		(9)		(26)		-
Other	4,179		9,561		-		4,719		9,606		-
Deductible temporary differences - comprehensive income:
Property, plant and equipment - deemed cost adjustments (IFRS/CPC)	(63,453)		(176,258)		-		(65,079)		(180,774)		-
Deductible temporary differences - Business combination - CPFL Renováveis					-
Deferred taxes - asset:
Fair value of property, plant and equipment (negative value added of assets)	26,315		73,097		-		27,050		75,138		-
Deferred taxes - liability:
Value added derived from determination of deemed cost	(6,723)		(18,676)		-		(6,970)		(19,360)		-
Value added of assets received from the former ERSA	(91,275)		(253,540)		-		(93,120)		(258,667)		-
Intangible asset - exploration right/authorization in indirect subsidiaries acquired	(157,152)		(436,533)		-		(155,471)		(431,863)		-
Other temporary differences	(10,169)		(28,242)		-		(9,006)		(25,016)		-
Total	(169,832)		(473,929)		49,663		(185,861)		(519,615)		30,025

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

	Parent company								Consolidated
	Social contribution								Social contribution
	2014				2013				2014				2013
	2nd quarter		1st semester		2nd quarter		1st semester		2nd quarter		1st semester		2nd quarter		1st semester
Income/(loss) before taxes	161,967		333,653		(103,628)		301,691		262,113		547,615		(164,354)		486,066
Adjustments to reflect effective rate:
Equity in subsidiaries	(170,937)		(357,407)		88,761		(323,083)		(39,929)		(111,004)		(27,397)		(33,654)
Amortization of intangible asset acquired	(6,295)		(12,590)		(7,009)		(14,018)		23,265		46,529		25,781		51,562
Tax incentives - PIIT(*)	-		-		-		-		(2,700)		(4,217)		(2,283)		(3,770)
Effect of presumed profit system	-		-		-		-		(8,272)		(11,988)		(14,719)		(29,551)
Adjustment of excess and surplus revenue of reactive	-		-		-		-		25,098		50,794		20,701		29,333
Interest on shareholders’ equity	-		-		72,450		72,450		-		-		-		-
Other permanent additions, net	1,497		3,801		1,085		2,314		17,405		24,942		7,217		10,534
Calculation base	(13,768)		(32,543)		51,658		39,354		276,979		542,671		(155,054)		510,520
Statutory rate	9%		9%		9%		9%		9%		9%		9%		9%
Tax credit/(debit) result	1,239		2,929		(4,649)		(3,542)		(24,928)		(48,840)		13,955		(45,947)
Tax credit recorded/(not recorded)	(255)		(255)		999		(48)		(6,499)		(13,015)		(5,032)		(11,476)
Total	984		2,674		(3,651)		(3,590)		(31,427)		(61,856)		8,923		(57,423)

Current	-		(84)		(2,579)		(2,579)		(34,187)		(80,451)		(17,706)		(68,653)
Deferred	984		2,758		(1,071)		(1,011)		2,760		18,595		26,629		11,230


	Parent company								Consolidated
	Income tax								Income tax
	2014				2013				2014				2013
	2nd quarter		1st semester		2nd quarter		1st semester		2nd quarter		1st semester		2nd quarter		1st semester
Income/(loss) before taxes	161,967		333,653		(103,628)		301,691		262,113		547,615		(164,354)		486,066
Adjustments to reflect effective rate:
Equity in subsidiaries	(170,937)		(357,407)		88,761		(323,083)		(39,929)		(111,004)		(27,397)		(33,654)
Amortization of intangible asset acquired	-		-		-		-		29,855		59,710		33,100		66,200
Tax incentives - PIIT(*)	-		-		-		-		(2,700)		(4,217)		(2,283)		(3,770)
Effect of presumed profit system	-		-		-		-		(15,543)		(28,968)		(21,735)		(43,461)
Adjustment of excess and surplus revenue of reactive	-		-		-		-		25,098		50,794		20,701		29,333
Interest on shareholders’ equity	-		-		72,450		72,450		-		-		-		-
Tax incentive - Exploitation profit	-		-		-		-		6,152		(2,984)		1,804		(7,468)
Other permanent additions, net	1,497		3,801		1,222		2,597		7,218		10,803		7,081		4,492
Calculation base	(7,473)		(19,953)		58,805		53,654		272,263		521,750		(153,083)		497,737
Statutory rate	25%		25%		25%		25%		25%		25%		25%		25%
Tax credit/(debit) result	1,868		4,988		(14,701)		(13,414)		(68,066)		(130,438)		38,271		(124,435)
Tax credit recorded/(not recorded)	(185)		(185)		1,069		(11)		(17,327)		(35,625)		(16,906)		(32,972)
Total	1,684		4,804		(13,632)		(13,425)		(85,391)		(166,063)		21,364		(157,408)

Current	-		(234)		(9,635)		(9,635)		(90,622)		(211,273)		(49,182)		(182,711)
Deferred	1,684		5,037		(3,997)		(3,790)		5,231		45,210		70,546		25,303

(*)Technical Innovation Incentive Program

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( 9 ) FINANCIAL ASSET OF CONCESSION

	Consolidated

At December 31, 2013 (noncurrent)	2,787,073

Additions	176,010
Spin-off generation activity on the distribuition	(5,542)
Change in the expectation of cash flow (distribution)	69,602
Income from financial asset measured at amortized cost (transmission)	544
Disposal	(6,522)
At June 30, 2014 (noncurrent)	3,021,163

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

For the energy distribution, in accordance with the current tariff model, remuneration for this asset is recognized in profit or loss on billing to the consumers and it is realized on receipt of the electric energy bills. Additionally, the difference to adjust the balance to its expected cash flows is recorded against the financial income/expense account in profit or loss for the period, (financial income of R$ 69,602 in the first semester of 2014 and a financial expense of R$ 96,571 on the first semester of 2013) in accordance with the new replacement amount (“VNR” methodology).

For the energy transmitter, remuneration for this asset is recognized in accordance with the internal rate of return, which takes into account the investment made and the allowed annual income (“RAP”)to be received during the remaining term of the concession. Financial income of R$ 544 in relation to the concession revenue, set against other operating income, since this is a component of the allowed annual income to make the network available to ONS (National System Operator).

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

55

( 10 ) OTHER CREDITS

		Consolidated
		Current				Noncurrent
		June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
Advances - Fundação CESP		9,415		9,113		-		-
Advances to suppliers		28,659		17,159		-		-
Pledges, funds and tied deposits		5,926		7,695		213,399		174,538
Orders in progress		277,115		273,496		-		-
Outside services		8,539		6,929		-		-
Advance to energy purchase agreements		7,380		14,614		31,708		30,981
Collection agreements		62,997		61,771		-		-
Prepaid expenses		46,389		39,207		902		1,359
Receivables from resources provided by the energy development account - CDE/CCEE		647,991		170,543		-		-
Receivables - business combination		-		-		13,950		13,950
Advances to employees		21,918		11,097		-		-
Allowance for doubtful accounts (note 6)		(11,813)		(12,930)		-		(221)
Other		127,139		74,689		57,476		75,488
Total		1,231,654		673,383		317,435		296,096

Receivables from Resources provided by the Energy Development Account – CDE/CCEE – refer to: (i) low income subsidies totaling R$ 12,809; (ii) other tariff discounts granted to consumers amounting to R$ 374,816; and (iii) R$ 260,366 mainly related to involuntary exposure and CCEAR account - Electric Energy Sales in the Regulated Environment Agreement.

( 11 ) INVESTMENTS

	Parent company				Consolidated
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
Permanent equity interests - equity method
By equity method of the subsidiary	5,020,760		5,430,352		1,160,180		1,018,565
Value-added of assets, net	923,808		983,518		13,525		14,116
Goodwill	6,054		6,054		-		-
Total	5,950,623		6,419,924		1,173,705		1,032,681

56

11.1 - Permanent Equity Interests – equity method:

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

				June 30, 2014							June 30, 2014		December 31, 2013		1st semester 2014		1st semester 2013
Investment		Number of shares (thousand)		Total assets		Capital	Shareholders' equity		Profit or loss for the period		Shareholders equity interest				Equity in subsidiaries
CPFL Paulista		241,264		7,273,454		241,264	821,642		120,677		821,642		1,186,113		120,677		313,602
CPFL Piratininga		53,081,259		2,832,581		156,610	376,359		32,486		376,359		384,609		32,486		(85,179)
CPFL Santa Cruz		371,772		354,360		67,580	115,150		16,846		115,150		100,369		16,846		(9,090)
CPFL Leste Paulista		892,772		173,114		25,392	56,565		6,422		56,565		60,578		6,422		(4,558)
CPFL Sul Paulista		454,958		191,579		22,751	55,175		9,031		55,175		51,432		9,031		(157)
CPFL Jaguari		209,294		158,439		17,292	27,351		2,089		27,351		23,261		2,089		(772)
CPFL Mococa		117,199		127,781		14,002	35,664		7,015		35,664		34,145		7,015		6,021
RGE		807,169		3,444,613		934,472	1,187,902		25,587		1,187,902		1,254,557		25,587		77,266
CPFL Geração		205,487,717		6,475,738		1,039,619	2,048,571		93,887		2,048,571		2,116,833		93,887		75,229
CPFL Jaguari Geração (*)		40,108		46,449		40,108	45,425		3,041		45,425		48,356		3,041		2,990
CPFL Brasil		2,999		520,651		2,999	96,138		82,696		96,138		35,246		82,696		12,645
CPFL Planalto (*)		630		1,246		630	1,120		1,235		1,120		(115)		1,235		(1,814)
CPFL Serviços		1,528,988		159,851		66,620	75,688		4,538		75,688		77,078		4,538		(608)
CPFL Atende (*)		1		23,582		13,991	16,985		3,239		16,985		13,746		3,239		870
Nect (*)		2,059		16,526		2,059	6,232		3,793		6,232		5,999		3,793		1,946
CPFL Total (*)		19,005		40,235		19,005	24,243		5,077		24,243		20,893		5,077		1,267
CPFL Jaguariuna (*)		189,660		2,679		2,966	2,613		61		2,613		2,512		61		(24)
CPFL Telecom		9,377		66,738		9,377	4,683		(3,363)		4,683		(1,311)		(3,363)		(971)
CPFL Centrais Geradoras (*)		20,430		26,122		20,430	23,248		2,764		23,248		16,041		2,764		-
CPFL Participações		10		-		-	6		-		6		10		(4)		-
Subtotal - By shareholders' equity of the subsidiary											5,020,760		5,430,352		417,117		388,663
Amortization of added value on assets											-		-		(59,710)		(65,580)
Total											5,020,760		5,430,352		357,407		323,083
(*) number of quotes

Fair value adjustments (added value) of net assets acquired in business combinations are classified under Investments in the parent company’s balance sheet. Amortization of the fair value adjustments (added value) of net assets of R$ 59,710 (R$ 65,580 in the first semester of 2013) is classified in the parent company’s income statement under “income from equity in subsidiaries”, in accordance with ICPC 09.

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

Investment		Investment as of December 31, 2013		Capital increase /payment of capital		Equity in subsidiary (profit or loss)		Movement of capital in subsidiaries without a change in control		Dividend and Interest on shareholders’ equity receivable		Corporate restructuring		Investment as of June 30, 2014
CPFL Paulista		1,186,113		-		120,677		-		(485,148)		-		821,642
CPFL Piratininga		384,609		50,000		32,486		-		(90,735)		-		376,359
CPFL Santa Cruz		100,369		-		16,846		-		(2,065)		-		115,150
CPFL Leste Paulista		60,578		-		6,422		-		(9,445)		(989)		56,565
CPFL Sul Paulista		51,432		-		9,031		-		(3,853)		(1,435)		55,175
CPFL Jaguari		23,261		-		2,089		-		2,914		(912)		27,351
CPFL Mococa		34,145		-		7,015		-		(3,378)		(2,119)		35,664
RGE		1,254,557		-		25,587		-		(92,242)		-		1,187,902
CPFL Geração		2,116,833		-		93,887		44		(162,193)		-		2,048,571
CPFL Jaguari Geração		48,356		-		3,041		-		(5,973)		-		45,425
CPFL Brasil		35,246		-		82,696		-		(21,803)		-		96,138
CPFL Planalto		(115)		-		1,235		-		-		-		1,120
CPFL Serviços		77,078		-		4,538		-		(5,928)		-		75,688
CPFL Atende		13,746		-		3,239		-		-		-		16,985
Nect		5,999		-		3,793		-		(3,560)		-		6,232
CPFL Total		20,893		-		5,077		-		(1,726)		-		24,243
CPFL Jaguariuna		2,512		40		61		-		-		-		2,613
CPFL Telecom		(1,311)		9,357		(3,363)		-		-		-		4,683
CPFL Centrais Geradoras		16,041		-		2,764		-		(1,012)		5,454		23,248
CPFL Participações		10		-		(4)		-		-		-		6
		5,430,352		59,397		417,117		44		(886,149)		-		5,020,760

57

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

Investment in joint ventures		June 30, 2014		December 31, 2013		1st semester 2014		1st semester 2013
Investment in joint ventures		Shareholders equity interest				Equity in subsidiaries

Baesa		160,863		153,175		7,687		1,185
Enercan		428,778		391,728		50,474		29,981
Chapecoense		459,166		390,822		68,345		16,486
EPASA		111,372		82,839		(14,911)		(13,999)
Value-added of assets, net		13,525		14,116		(591)		-
		1,173,705		1,032,681		111,004		33,654

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

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

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

11.3 – Dividends and Interest on shareholders’ equity receivable

	Parent company
	Dividends				Interest on shareholders´ equity				Total
Investment	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
CPFL Paulista	474,578		389,872		10,570		34,879		485,149		424,752
CPFL Piratininga	-		117,816		-		11,267		-		129,083
CPFL Santa Cruz	13,127		19,764		1,873		3,916		15,000		23,681
CPFL Leste Paulista	18,299		10,323		2,409		940		20,708		11,263
CPFL Sul Paulista	23,329		21,095		3,784		2,165		27,114		23,260
CPFL Jaguari	8,508		11,422		723		723		9,232		12,145
CPFL Mococa	18,872		15,919		1,590		1,166		20,463		17,085
RGE	67,204		-		50,077		25,039		117,281		25,039
CPFL Jaguari Geração	998		4,709		-		-		998		4,709
CPFL Planalto	-		5,101		-		-		-		5,101
CPFL Serviços	12,026		9,080		4,583		1,601		16,610		10,681
CPFL Atende	-		1,389		-		624		-		2,013
Nect	3,560		7,696		-		-		3,560		7,696
CPFL Total	-		792		-		404		-		1,196
	640,502		614,977		75,611		82,725		716,113		697,702

11.4 – Business combinations

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

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

58

On February 27, 2014 was concluded the Rosa dos Ventos acquisition. The total purchase price is R$102,724, which includes: (i) the amount of R$ 70,296 paid to the seller; and (ii) assumption of Rosa dos Ventos’ net debt of R$32,428. The subsidiary CPFL Renováveis also added the amount of R$ 634, as an adjustment of the acquisition price.

11.4.1 Additional information about acquisition

a) Considerations

		Rosa dos Ventos
		February 28, 2014

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

b) Assets acquired and liabilities recognized on the acquisition date

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

The allocation of the amount paid is based on reports produced by the Management of the subsidiary CPFL Renováveis, pending finalization of the economic/financial assessment report. The subsidiary's management expects the economic/financial assessment report will be ended by September 2014.

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

59

The initial accounting for the acquisition was made using 28 February 2014 as reference. Since the audit of the closing balance sheet has not been finalized, we show below the subsidiary's best estimate:

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

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

Current liabilities		3,033

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

c) Outflow of net cash on acquisition of the subsidiary


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

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

		Net operating revenue		Net income
		2014		2014

Rosa dos Ventos - from March 1, 2014 to June 30, 2014.		3,864		1,261
		3,864		1,261

60

e) Combined financial information on the net operating income and profit for the first semester of 2014 if the acquisition had occurred at the beginning of the period.

		Net operating revenue		Net income
		2014		2014

Consolidated CPFL Energia - historical		7,820,993		319,696
Pro forma adjustment (i)		2,929		706
Total		7,823,922		320,402

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

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

The Company's consolidated information for the six-month period ended June 30, 2014 includes 4 (four) months of operations of the subsidiary Rosa dos Ventos.

11.5 – Interest of non-controlling shareholders and joint ventures

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

11.5.1 – Changes in the interest on non-controlling shareholders

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

Net equity attributable to noncontrolling shareholders		25,534		(49,374)		2,406		(21,434)
Other movements		-		(485)		(26)		(511)
Dividends		(11,900)		-		(4,717)		(16,617)
At June 30, 2014		229,965		1,431,006		75,287		1,736,258
Equity interests and voting capital		35.00%		41.17%	*	40.07%

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

61

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

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

		June 30, 2014						December 31, 2013
		CERAN		CPFL Renováveis		Paulista Lajeado		CERAN		CPFL Renováveis		Paulista Lajeado
Current assets		153,111		992,497		13,895		110,430		1,040,470		26,529
Cash and cash equivalents		114,816		730,152		3,045		73,686		731,055		14,657
Noncurrent assets		1,069,760		8,486,029		116,738		1,090,695		8,454,767		116,739

Current liabilities		107,883		1,052,700		16,905		96,831		1,082,806		24,241
Financial liabilities		77,537		923,826		6,801		64,921		986,721		1,577
Noncurrent liabilities		457,946		4,968,107		-		486,207		4,834,189		-
Financial liabilities		457,946		4,008,110		-		486,207		3,842,990		-
Shareholders' equity		657,042		3,457,719		113,728		618,087		3,578,242		119,027
Controlling shareholders´ interest		657,042		3,445,093		113,728		618,087		3,564,361		119,027
Non-controlling shareholders´ interest		-		12,627		-		-		13,880		-

		1st semester 2014						1st semester 2013
		CERAN		CPFL Renováveis		Paulista Lajeado		CERAN		CPFL Renováveis		Paulista Lajeado
Net operating revenue		186,909		534,057		26,097		129,266		415,692		32,458
Depreciation and amortization		(22,040)		(206,156)		(3)		(23,751)		(172,305)		(3)
Interest income		5,119		43,788		505		2,663		17,061		267
Interest expense		(20,607)		(200,080)		-		(22,782)		(139,905)		-
Social contribution and income tax		(36,902)		(3,143)		(1,009)		(12,278)		(4,484)		(3,089)
Net income		72,955		(120,194)		6,004		25,385		(66,798)		5,801
Net income attributable to controlling shareholders		72,955		(120,256)		6,004		25,385		(66,764)		5,801
Net income attributable to noncontrolling shareholders		-		62		-		-		(34)		-

11.5.3 – Joint venture

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

		June 30, 2014								December 31, 2013
Joint venture		Enercan		Baesa		Chapecoense		Epasa		Enercan		Baesa		Chapecoense		Epasa
Current assets		150,769		71,343		391,020		233,268		97,961		58,980		144,018		171,387
Cash and cash equivalents		65,628		35,670		168,863		41,054		21,483		36,010		44,924		19,173
Noncurrent assets		1,272,570		1,243,021		3,148,794		634,752		1,296,035		1,267,818		3,200,402		644,508
Current liabilities		129,364		132,892		387,893		331,806		136,414		131,196		274,679		279,753
Financial liabilities		91,372		122,529		239,117		211,619		88,969		125,372		206,968		158,049
Noncurrent liabilities		413,943		538,173		2,251,594		341,271		453,592		583,045		2,303,424		374,763
Financial liabilities		351,944		280,421		1,594,782		341,204		416,513		573,781		2,295,940		374,696
Shareholders' equity		880,032		643,299		900,326		194,944		803,990		612,557		766,317		161,379
		1st semester 2014								1st semester 2013
Joint venture		Enercan		Baesa		Chapecoense		Epasa		Enercan		Baesa		Chapecoense		Epasa
Net operating revenue		257,959		155,632		462,540		535,614		239,217		149,113		316,915		287,437
Depreciation and amortization		(26,888)		(25,389)		(66,673)		(16,158)		(24,079)		(25,942)		(65,781)		(16,149)
Interest income		7,768		3,427		10,083		751		9,990		1,897		4,051		394
Interest expense		(20,812)		(17,263)		(67,842)		(17,531)		(23,093)		(20,470)		(70,148)		(18,785)
Social contribution and income tax		(53,389)		(15,608)		(68,272)		12,909		(31,537)		(2,346)		(16,985)		13,560
Net income		103,594		30,742		134,010		(25,293)		61,166		4,448		32,326		(26,538)
Equity Interests and voting capital		48.72%		25.01%		51.00%		*57,13% ()**		48.72%		25.01%		51.00%		52.75%

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

62

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

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

11.5.4 – Joint venture operations

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

11.6 – Capital increase in the joint venture Epasa

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

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

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

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

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

On February 17, 2014, the subsidiary CPFL Renováveis and DESA signed an association agreement, which will involve the merger by CPFL Renováveis of WF2 Holding S.A. - (“WF2”), which will hold all the shares issued by DESA at the merger date.

As a result of the merger, the net equity of the subsidiary CPFL Renováveis will be increased by a new share issue, corresponding to 12.63% of its common shares. The participation may be adjusted as a result of the audit and compliance with the prior conditions, as described below. The subsidiary CPFL Geração will continue to be the majority shareholder of CPFL Renováveis, holding more than 50% of its common shares.

63

Finalization of the association is conditional on compliance with certain prior conditions common in similar transactions, including approval by the Banco Nacional do Desenvolvimento - BNDES (financing agent) and by certain creditors of DESA and WF2.

Finalization is also conditional on a satisfactory outcome of the legal, accounting and financial, engineering and environmental audits conducted by both CPFL Renováveis, in relation to DESA's operations, and DESA in relation to the operations of the subsidiary CPFL Renováveis.

64

( 12 ) PROPERTY, PLANT AND EQUIPMENT

	Consolidated
	Land		Reservoirs, dams and water mains		Buildings, construction and improvements		Machinery and equipment		Vehicles		Furniture and fittings		In progress		Total
At December 31, 2013	115,946		986,527		1,318,394		4,291,334		22,661		13,732		968,826		7,717,419
Historic cost	126,820		1,375,993		1,718,629		5,671,053		29,928		24,277		968,826		9,915,527
Accumulated depreciation	(10,874)		(389,467)		(400,235)		(1,379,719)		(7,267)		(10,545)		-		(2,198,107)

Additions	3		19		450		2,116		-		1		175,528		178,117
Disposals	-		-		-		(35)		(357)		(571)		-		(964)
Provision to environmental costs	-		-		9,193		-		-		-		-		9,193
Transfers	600		809		183,395		680,071		7,055		61		(871,990)		-
Transfers to/from other assets - cost	(1,777)		163		(14,632)		(16,535)		-		(3,168)		(322)		(36,271)
Depreciation	(2,058)		(23,556)		(32,092)		(133,932)		(1,955)		(1,314)		-		(194,907)
Disposal of depreciation	-		-		-		16		206		471		-		692
Reclassification and transfers to/from other assets - depreciation	-		-		(20)		(853)		-		1,534		-		662
Business combination	-		-		7,818		43,510		-		59		349		51,735
Spin-off generation activity on the distribuition - cost	-		-		460		6,090		-		204		-		6,754
Spin-off generation activity on the distribuition - depreciation	-		-		(32)		(866)		-		(28)		-		(926)

At June 30, 2014	112,714		963,961		1,472,934		4,870,916		27,610		10,980		272,391		7,731,505
Historic cost	125,645		1,376,983		1,905,312		6,386,270		36,626		20,862		272,391		10,124,091
Accumulated depreciation	(12,931)		(413,023)		(432,378)		(1,515,354)		(9,017)		(9,882)		-		(2,392,585)

Average depreciation rate	3.86%		3.39%		3.41%		4.59%		12.27%		13.33%

In accordance with CPC 20 (R1) and IAS 23, the interest on loans taken out by the subsidiaries is capitalized to the qualifying property, plant and equipment. In the consolidated statements R$ 10,668 was capitalized for the first semester of 2014 (R$ 23,875 in the first semester of 2013) at the rate of 8.72% p.a. (7.57% p.a. in 2013)

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

65

( 13 ) INTANGIBLE ASSETS

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

Additions	-		618		24		350,879		-		4,384		355,904
Amortization	-		(145,484)		(217,783)		-		(709)		(5,210)		(369,186)
Transfer - intangible assets	-		-		191,758		(191,758)		-		-		-
Transfer - financial asset	-		-		613		(173,705)		-		-		(173,092)
Disposal and transfer - other assets	-		-		(14,977)		-		-		7,181		(7,796)
Business combination	-		64,762		-		-		-		355		65,117
Spin-off generation activity on the distribuition	-		-		(299)		-		-		13		(286)
At June 30, 2014	6,115		4,232,276		3,722,530		559,549		30,872		67,648		8,618,990
Historic cost	6,152		6,879,862		9,352,385		559,549		35,840		167,743		17,001,532
Accumulated depreciation	(37)		(2,647,587)		(5,629,855)		-		(4,968)		(100,095)		(8,382,542)

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

In accordance with CPC 20 (R1) and IAS 23, the interest on loans taken out by the subsidiaries is capitalized to qualifying intangible assets. During the first semester of 2014, R$ 3,505 was capitalized in the interim consolidated financial statements (R$ 5,139 in the first semester of 2013) at a rate of 7.50% p.a. (9.00% p.a. in 2013).

66

13.1 Intangible assets acquired in business combinations

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

	Consolidated
	June 30, 2014						December 31, 2013		Annual amortization rate
	Historic cost		Accumulated amortization		Net value		Net value		2014		2013
Intangible asset - acquired in business combinations
Intangible asset acquired, not merged
Parent company
CPFL Paulista	304,861		(164,697)		140,165		147,933		5.10%		6.03%
CPFL Piratininga	39,065		(19,783)		19,282		20,192		4.66%		4.85%
RGE	3,150		(1,297)		1,853		1,943		5.70%		5.86%
CPFL Geração	54,555		(27,715)		26,839		28,170		4.88%		4.83%
CPFL Santa Cruz	9		(7)		2		3		16.22%		16.40%
CPFL Leste Paulista	3,333		(2,531)		802		1,091		17.36%		17.45%
CPFL Sul Paulista	7,288		(5,493)		1,795		2,434		17.53%		16.94%
CPFL Jaguari	5,213		(4,001)		1,212		1,710		19.13%		16.49%
CPFL Mococa	9,110		(7,271)		1,839		2,638		17.53%		18.96%
CPFL Jaguari Geração	7,896		(2,545)		5,351		5,616		6.71%		7.07%
	434,480		(235,340)		199,140		211,730

Subsidiaries
CPFL Renováveis	3,202,770		(354,404)		2,848,366		2,850,857		4.07%		4.11%
Other	15,096		(13,793)		1,304		1,083
	3,217,866		(368,196)		2,849,669		2,851,940

Subtotal	3,652,346		(603,536)		3,048,809		3,063,670

Intangible asset acquired and merged – deductible
Subsidiaries
RGE	1,120,266		(808,872)		311,395		321,225		1.75%		1.89%
CPFL Geração	426,450		(279,046)		147,404		155,698		3.89%		3.66%
Subtotal	1,546,716		(1,087,918)		458,798		476,923

Intangible asset acquired and merged – reassessed
Parent company
CPFL Paulista	1,074,026		(618,857)		455,169		479,952		4.61%		5.39%
CPFL Piratininga	115,762		(58,624)		57,138		59,836		4.66%		4.85%
RGE	310,128		(133,958)		176,170		184,700		5.50%		5.65%
CPFL Santa Cruz	61,685		(52,538)		9,148		12,241		10.03%		10.14%
CPFL Leste Paulista	27,034		(22,372)		4,662		6,615		14.45%		14.47%
CPFL Sul Paulista	38,168		(31,245)		6,923		9,662		14.35%		14.02%
CPFL Mococa	15,124		(12,796)		2,328		3,390		14.05%		14.85%
CPFL Jaguari	23,600		(19,595)		4,004		5,813		15.33%		14.28%
CPFL Jaguari Geração	15,275		(6,148)		9,126		9,578		5.91%		6.23%
Subtotal	1,680,801		(956,133)		724,668		771,788

Total	6,879,862		(2,647,587)		4,232,276		4,312,381

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

67

( 14 ) SUPPLIERS

		Consolidated
		June 30, 2014		December 31, 2013
Current
System service charges		19,034		61,880
Energy purchased		1,531,905		1,300,598
Electricity network usage charges		95,852		91,603
Materials and services		187,216		338,524
Free energy		96,707		92,088
Total		1,930,713		1,884,693

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

		Consolidated
		June 30, 2014								December 31, 2013
		Interest - Current and Noncurrent		Principal				Total		Interest - Current and Noncurrent		Principal				Total
		Interest - Current and Noncurrent		Current		Noncurrent		Total		Interest - Current and Noncurrent		Current		Noncurrent		Total
Measured at cost
Brazilian currency
Power increases		-		-		-		-		6		1,229		-		1,235
Investment		23,955		858,770		3,906,387		4,789,112		24,555		872,818		4,071,441		4,968,814
Property income		21		1,269		5,080		6,370		27		1,364		5,717		7,108
Financial Institutions		130,218		396,244		1,450,005		1,976,467		128,752		560,121		1,520,231		2,209,104
Other		691		38,614		16,521		55,826		674		40,658		19,063		60,395
Total at Cost		154,885		1,294,897		5,377,993		6,827,775		154,013		1,476,190		5,616,452		7,246,656

Measured at fair value
Foreign currency
Financial Institutions		14,813		39,687		2,744,548		2,799,049		15,213		42,307		1,906,739		1,964,259
Mark to Market		-		183		80,072		80,254		-		194		44,001		44,195
Total at fair value		14,813		39,869		2,824,620		2,879,303		15,213		42,501		1,950,740		2,008,454

Fundraising		-		(1,938)		(21,329)		(23,267)		-		(4,066)		(21,048)		(25,114)

Total		169,699		1,332,828		8,181,284		9,683,811		169,226		1,514,626		7,546,144		9,229,996

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

Investment
CPFL Paulista
FINEM IV		32,044		64,103		TJLP + 3.28% to 3.4%		60 monthly installments from January 2010		CPFL Energia guarantee and receivables
FINEM V		120,370		137,195		TJLP + 2.12% to 3.3%		72 monthly installments from February 2012		CPFL Energia guarantee and receivables
FINEM V		7,999		8,874		Fixed rate 8%		90 monthly installments from August 2011		CPFL Energia guarantee and receivables
FINEM V		49,698		53,481		Fixed rate 5.5%		96 monthly installments from February 2013		CPFL Energia guarantee and receivables
FINEM VI		269,880		284,373		TJLP + 2,06% to 3,08%		72 monthly installments from January 2014		CPFL Energia guarantee and receivables
FINEM VI		12,668		12,684		Fixed rate 2,5%		114 monthly installments from June 2013		CPFL Energia guarantee and receivables
FINEM VI		221,396		204,849		Fixed rate 2,5%		96 monthly installments from December 2014		CPFL Energia guarantee and receivables
FINAME		46,474		50,706		Fixed rate 4.5%		96 monthly installments from January 2012		CPFL Energia guarantee
CPFL Piratininga
FINEM III		13,357		26,719		TJLP + 3.28% to 3.4%		60 monthly installments from January 2010		CPFL Energia guarantee and receivables
FINEM IV		64,831		73,892		TJLP + 2.12% to 3.3%		72 monthly installments from February 2012		CPFL Energia guarantee and receivables
FINEM IV		2,579		2,861		Fixed rate 8%		90 monthly installments from August 2011		CPFL Energia guarantee and receivables
FINEM IV		25,845		27,812		Fixed rate 5.5%		96 monthly installments from February 2013		CPFL Energia guarantee and receivables
FINEM V		78,879		80,513		TJLP + 2,06% to 3,08%		72 monthly installments from January 2014		CPFL Energia guarantee and receivables
FINEM V		3,327		3,288		Fixed rate 2,5%		114 monthly installments from June 2013		CPFL Energia guarantee and receivables
FINEM V		55,095		48,237		Fixed rate 2,5%		96 monthly installments from December 2014		CPFL Energia guarantee and receivables
FINAME		22,037		24,044		Fixed rate 4.5%		96 monthly installments from January 2012		CPFL Energia guarantee
RGE
FINEM IV		20,398		40,805		TJLP + 3.28 to 3.4%		60 monthly installments from January 2010		CPFL Energia guarantee and receivables
FINEM V		72,862		83,046		TJLP + 2.12 to 3.3%		72 monthly installments from February 2012		CPFL Energia guarantee and receivables
FINEM V		19,065		20,516		Fixed rate 5.5%		96 monthly installments from February 2013		CPFL Energia guarantee and receivables
FINEM VI		144,179		157,318		TJLP + 2,06% to 3,08%		72 monthly installments from January 2014		CPFL Energia guarantee and receivables
FINEM VI		1,340		1,420		Fixed rate 2,5%		114 monthly installments from June 2013		CPFL Energia guarantee and receivables
FINEM VI		81,409		73,013		Fixed rate 2,5%		96 monthly installments from December 2014		CPFL Energia guarantee and receivables
FINAME		11,059		12,065		Fixed rate 4.5%		96 monthly installments from January 2012		CPFL Energia guarantee
FINAME		316		345		Fixed rate 10,0%		90 monthly installments from May 2012		Fiduciary alienation of assets
CPFL Santa Cruz
Bank credit note - Unibanco		2,044		3,159		TJLP + 2.9%		54 monthly installments from December 2010		CPFL Energia guarantee and receivables
CPFL Leste Paulista
Bank credit note - Unibanco		1,986		2,688		TJLP + 2.90%		54 monthly installments from June 2011		CPFL Energia guarantee and receivables
CPFL Sul Paulista
Bank credit note - Unibanco		2,151		2,911		TJLP + 2.90%		54 monthly installments from June 2011		CPFL Energia guarantee and receivables
CPFL Jaguari
Bank credit note - Unibanco		1,001		1,547		TJLP + 2.90%		54 monthly installments from December 2010		CPFL Energia guarantee and receivables
Bank credit note - Santander		2,100		2,136		TJLP + 3.10%		96 monthly installments from June 2014		CPFL Energia guarantee
Bank credit note - Santander		561		607		UMBNDES + 2.1%		96 monthly installments from June 2014		CPFL Energia guarantee
CPFL Mococa
Bank credit note - Unibanco		1,216		1,824		TJLP + 2.9%		54 monthly installments from January 2011		CPFL Energia guarantee and receivables
Bank credit note - Santander		2,702		2,747		TJLP + 3.1%		96 monthly installments from June 2014		CPFL Energia guarantee
Bank credit note - Santander		1,583		1,358		UMBNDES +1.99% to 2.1%		96 monthly installments from June 2014		CPFL Energia guarantee
Bank credit note - Santander		3,617		2,305		TJLP + 2.99%		96 monthly installments from October 2015		CPFL Energia guarantee
CPFL Serviços
FINAME		1,701		1,701		Fixed rate 2.5% to 5.5%		96 monthly installments from April 2012		CPFL Energia guarantee and equipment fiduciary alienation
FINAME		251		-		Fixed rate 6%		72 monthly installments from April 2016		CPFL Energia guarantee and equipment fiduciary alienation
FINAME		1,374		1,258		Fixed rate 6% to 10%		90 monthly installments from May 2013		CPFL Energia guarantee and equipment fiduciary alienation
FINAME		15,677		11,699		Fixed rate 2.5% to 5.5%		114 monthly installments from February 2013		CPFL Energia guarantee and equipment fiduciary alienation
FINAME		80		87		TJLP + 4.2%		90 monthly installments from May 2012		CPFL Energia guarantee and equipment fiduciary alienation
CERAN
BNDES		384,647		409,365		TJLP + 3.69% to 5%		168 monthly installments from December 2005		Pledge of shares, credit and concession rights and revenue and CPFL Energia guarantee
BNDES		48,397		54,956		UMBNDES + 5% (1)		168 monthly installments from February 2006		Pledge of shares, credit and concession rights and revenue and CPFL Energia guarantee
CPFL Transmissão
FINAME		9,338		4,667		Fixed rate 3.0%		96 monthly installments from July 2015		CPFL Energia guarantee
CPFL Renováveis
FINEM I		336,866		352,830		TJLP + 1.95%		168 monthly installments from October 2009		PCH Holding a joint debtor, Letters of guarantee
FINEM II		30,293		31,997		TJLP + 1.90 %		144 monthly installments from June 2011		CPFL Energia guarantee, fiduciary alienation of assets and joint fiduciary assignment of credit rights
FINEM III		585,419		605,263		TJLP + 1,72%		192 monthly installments from May 2013		CPFL Energia guarantee, plegde of shares, fiduciary alienation of assets and joint fiduciary assignment of credit rights
FINEM V		107,381		113,106		TJLP + 2.8% to 3.4%		143 monthly installments from December 2011		PCH Holding 2 and CPFL Renováveis debtor solidarity.
FINEM VI		75,803		76,673		TJLP + 2.05 %		192 monthly installments from October 2013		CPFL Renováveis pledge of shares, pledge of receivables
FINEM VII		186,253		194,041		TJLP + 1.92 %		156 monthly installments from October 2010		Pledge of shares, fiduciary alienation and equipment fiduciary alienation
FINEM VIII		49,231		50,811		TJLP + 2.02 %		192 monthly installments from January 2014		Pledge of shares and Reserve Account of SPE Assignment of Receivables
FINEM IX		43,275		46,994		TJLP + 2.15 %		120 monthly installments from May 2010		Pledge of shares, fiduciary alienation and equipment fiduciary alienation
FINEM X		977		1,108		TJLP		84 monthly installments from October 2010		Pledge of shares, fiduciary alienation and equipment fiduciary alienation
FINEM XI		132,350		138,101		TJLP + 1,87% to 1,9%		168 monthly installments from January 2012		CPFL Energia guarantee, fiduciary alienation of assets and joint fiduciary assignment of credit rights
FINEM XII		345,585		336,782		TJLP + 2,18%		192 monthly installments from July 2014		CPFL Energia guarantee, fiduciary alienation of assets, joint fiduciary assignment of credit rights and pledge of shares
FINAME I		176,898		190,396		Fixed rate 5.5%		108 monthly installments from January 2012		CPFL Energia guarantee, fiduciary alienation of assets and fiduciary assignment of credit rights
FINAME II		28,722		31,168		Fixed rate 4.5%		102 monthly installments from June 2011		CPFL Energia guarantee, fiduciary alienation of assets and fiduciary assignment of credit rights
FINAME III		122,658		129,659		Fixed rate 2.5%		108 monthly installments from January 2014		Pledge of CPFL Renováveis shares Pledge of shares and Reserve Account of SPE Assignment of receivables
FINEP I		2,506		2,506		Fixed rate 3.5%		61 installments from October 2014		Bank Garantee
BNB		128,581		133,192		Fixed rate 9.5% to 10%		168 monthly installments from January 2009		Fiduciary alienation
BNB		175,798		175,695		Fixed rate 10%		222 monthly installments from May 2010		CPFL Energia guarantee
BNB		34,132		-		Fixed rate 9.5%		228 monthly installments from July 2009		CPFL Energia guarantee, fiduciary alienation of assets and joint fiduciary assignment of credit rights
NIB		78,565		79,109		IGPM + 8.63%		Interest and principal quarterly paid started in June 2011 until September 2023		No guarantee
Bridge BNDES II		89,210		84,507		TJLP + 3.02 %		1 installment in February 2014		Pledge of SPE shares
Bridge BNDES III		201,924		194,242		TJLP + 3.02 %		1 installment in February 2014		Pledge of SPE shares
CPFL Brasil
FINEP		3,061		3,461		Fixed rate 5%		81 monthly installments from August 2011		Receivables

69

Purchase of assets
CPFL Serviços
FINAME		-		146		TJLP + 2.15%		36 monthly installments from March 2011		Fiduciary alienation of assets
FINAME		4,627		4,911		Fixed rate 2.5% to 8.70%		96 monthly installments from April 2012		Fiduciary alienation of assets and CPFL Energia guarantee
FINAME		1,743		2,051		TJLP + 1.72%		60 monthly installments from May 2012		CPFL Energia guarantee
Financial Institutions
CPFL Paulista
Banco do Brasil - Law 8727		-		4,648		IGP-M + 7.42%		240 monthly installments from May 1994		Receivables (CPFL Paulista and São Paulo Government)
Banco do Brasil - Working capital		105,323		105,124		107% of CDI		1 installment in April 2015		CPFL Energia guarantee
Banco do Brasil - Working capital (*)		139,858		133,334		98.50% of CDI		4 annual installments from July 2012		CPFL Energia guarantee
Banco do Brasil - Working capital (**)		-		95,704		99.00% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (***)		274,974		261,334		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
CPFL Piratininga
Banco do Brasil - Working capital (*)		12,863		12,263		98.5% of CDI		4 annual installments from July 2012		CPFL Energia guarantee
Banco do Brasil - Working capital (**)		-		12,282		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (****)		48,395		45,995		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
RGE
Banco do Brasil - Working capital (*)		60,477		57,656		98.5% of CDI		4 annual installments from July 2012		CPFL Energia guarantee
Banco do Brasil - Working capital (**)		-		35,338		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
CPFL Santa Cruz
Banco do Brasil - Working capital (**)		-		4,340		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (***)		36,297		34,496		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
CPFL Leste Paulista
Banco do Brasil - Working capital (**)		-		11,156		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco IBM - Working capital (***)		7,786		8,140		100.0% of CDI		14 semiannual installments from December 2012		CPFL Energia guarantee
Banco IBM - Working capital		26,439		-		CDI + 0,1%		12 semiannual installments from October 2014		CPFL Energia guarantee
CPFL Sul Paulista
Banco do Brasil - Working capital (**)		-		5,982		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (***)		23,098		21,952		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
CPFL Jaguari
Banco do Brasil - Working Capital (**)		-		3,755		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (***)		3,190		3,031		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
Banco IBM - Working capital (***)		15,856		16,615		100.0% of CDI		14 Semi-annual installments from December 2012		CPFL Energia guarantee
Banco IBM - Working capital		14,270		-		CDI + 0,1%		12 semiannual installments from October 2014		CPFL Energia guarantee
CPFL Mococa
Banco do Brasil - Working capital (**)		-		1,909		99.0% of CDI		2 annual installments from March 2013		CPFL Energia guarantee
Banco do Brasil - Working capital (***)		20,898		19,861		104.90% of CDI		2 annual installments from July 2017		CPFL Energia guarantee
Banco IBM - Working capital (***)		5,145		5,392		100.0% of CDI		14 Semi-annual installments from December 2012		CPFL Energia guarantee
CPFL Serviços
Banco IBM - Working capital (***)		6,837		7,325		CDI + 0.10%		11 semiannual installments from June 2013		CPFL Energia guarantee
CPFL Geração
Banco do Brasil - Working capital		635,906		628,828		107.0% of CDI		1 installment in April 2015		CPFL Energia guarantee
CPFL Renovaveis
Banco Safra		27,722		27,713		CDI+ 0.4%		Annual installment until 2014		No guarantee
HSBC		322,055		350,329		CDI + 0.5%		8 annual installment from June 2013		Shares alienation
Banco do Brasil - Promissory Note		-		144,428		108.5% of CDI		1 installment in January 2014		Shares alienation
Banco do Brasil - Promissory Note		145,281		-		108.5% of CDI		1 installment in July 2014		Shares alienation
Banco Itaú - Promissory Note		-		150,175		105% of CDI		1 installment in June 2014		No guarantee
BNB - Working capital		113		-		Fixed rate 1.75%		36 monthly installments from November 2011		Guarantee
CPFL Telecom
Banco IBM - Working capital		39,773		-		CDI + 0.18%		12 semiannual installments from August 2014		CPFL Energia guarantee

Other
Eletrobrás
CPFL Paulista		6,166		6,918		RGR + 6.0% to 6.5%		monthly installments from August 2006		Receivables and promissory notes
CPFL Piratininga		314		390		RGR + 6%		monthly installments from August 2006		Receivables and promissory notes
RGE		10,789		11,834		RGR + 6%		monthly installments from August 2006		Receivables and promissory notes
CPFL Santa Cruz		1,887		2,173		RGR + 6%		monthly installments from January 2007		Receivables and promissory notes
CPFL Leste Paulista		854		961		RGR + 6%		monthly installments from February 2008		Receivables and promissory notes
CPFL Sul Paulista		940		1,072		RGR + 6%		monthly installments from August 2007		Receivables and promissory notes
CPFL Jaguari		49		58		RGR + 6%		monthly installments from June 2007		Receivables and promissory notes
CPFL Mococa		249		275		RGR + 6%		monthly installments from January 2008		Receivables and promissory notes
Other		34,577		36,713
Subtotal Brazilian Currency - Cost		6,827,775		7,246,658

Foreign Currency
Measured at fair value
Financial Institutions
CPFL Paulista
Bank of America Merrill Lynch		223,534		238,318		US$ + 3,69 % (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
Bank of America Merrill Lynch		330,812		352,685		US$ + Libor 3 months + 1.48% (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
Bank of America Merrill Lynch		98,914		-		US$ + Libor 3 months + 1.70% (4)		1 installment in Setember 2018		CPFL Energia guarantee and promissory notes
Bank of Tokyo-Mitsubishi		109,935		-		US$ + Libor 3 months + 0.80% (3)		4 semiannual installments from Setember 2017		CPFL Energia guarantee and promissory notes
Citibank		110,522		117,821		US$ + Libor 6 months + 1.77% (2)		1 installment in September 2016		CPFL Energia guarantee and promissory notes
Citibank		109,995		-		US$+Libor 3 months + 1.35% (4)		1 installment in March 2019		CPFL Energia guarantee and promissory notes
Mizuho Bank		164,837		-		US$+Libor+1.55% (3)		3 semiannual installments from March 2018		CPFL Energia guarantee and promissory notes
Morgan Stanley		110,530		117,843		US$ + Libor 6 months + 1.75% (2)		1 installment in September 2016		CPFL Energia guarantee and promissory notes
Scotiabank		53,731		57,299		US$ + 3,3125% (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
CPFL Piratininga
Citibank		17,702		18,878		US$ + Libor 6 months + 1.69%(2)		1 installment in August 2016		CPFL Energia guarantee and promissory notes
Citibank		138,189		-		US$ + Libor 6 monthss + 1.14% (2)		1 installment in January 2017		CPFL Energia guarantee and promissory notes
Citibank		109,995		-		US$ + Libor 3 months + 1.35% (4)		1 installment in March 2019		CPFL Energia guarantee and promissory notes
Santander		99,740		106,348		US$ + 2.58% (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
Scotiabank		70,179		74,840		US$ + 3.3125% (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
Sumitomo		110,241		-		US$ + Libor 3 months + 1.35% (3)		1 installment in April 2018		CPFL Energia guarantee and promissory notes

70

RGE
Bank of Tokyo-Mitsubishi		39,633		42,252		US$ + Libor 3 months + 0.82%(3)		1 installment in April 2018		CPFL Energia guarantee and promissory notes
Bank of Tokyo-Mitsubishi		180,396		192,298		US$ + Libor 3 months + 0.83%(3)		1 installment in May 2018		CPFL Energia guarantee and promissory notes
Citibank		33,018		-		US$ + Libor 3 months + 1.25%(4)		2 annual installments from May 2018		CPFL Energia guarantee and promissory notes
Citibank		154,347		164,567		US$ + Libor 6 months + 1.45% (3)		1 installment in April 2017		CPFL Energia guarantee and promissory notes
J.P. Morgan		104,330		111,235		US$ + 2.64% (3)		1 installment in July 2016		CPFL Energia guarantee and promissory notes
CPFL Santa Cruz
J.P. Morgan		21,399		22,813		US$ + 2.38% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
Santander		19,515		20,805		USD + 2.544% (3)		1 installment in June 2016		CPFL Energia guarantee and promissory notes
CPFL Leste Paulista
Citibank		10,528		11,226		US$ + Libor 6 months + 1.52%(2)		1 installment in September 2014		CPFL Energia guarantee and promissory notes
Scotiabank		27,236		29,037		US$ + 2.695% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
CPFL Sul Paulista
Citibank		10,528		11,226		US$ + Libor 6 months + 1.52%(2)		1 installment in September 2014		CPFL Energia guarantee and promissory notes
J.P. Morgan		11,234		11,977		US$ + 2.38% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
Santander		21,466		22,885		US$ + 2.544% (3)		1 installment in June 2016		CPFL Energia guarantee and promissory notes
Scotiabank		11,439		12,195		US$ + 2.695% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
CPFL Jaguari
Citibank		9,644		10,284		US$ + Libor 6 months + 1.57%(2)		1 installment in August 2014		CPFL Energia guarantee and promissory notes
Santander		30,248		32,247		US$ + 2.544% (3)		1 installment in June 2016		CPFL Energia guarantee and promissory notes
Scotiabank		14,163		15,099		US$ + 2.695% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
CPFL Mococa
Citibank		9,212		9,822		US$ + Libor 6 months + 1.52%(2)		1 installment in September 2014		CPFL Energia guarantee and promissory notes
Scotiabank		11,984		12,776		US$ + 2.695% (2)		1 installment in July 2015		CPFL Energia guarantee and promissory notes
CPFL Geração
Citibank		-		147,482		US$ + Libor 6 months + 1.69% (2)		1 installment in August 2016		CPFL Energia guarantee and promissory notes
HSBC		219,872		-		US$+Libor 3 months + 1.30% (3)		1 installment in March 2017		CPFL Energia guarantee and promissory notes

Mark to market		80,254		44,195

Total Foreign Currency - fair value		2,879,303		2,008,452

Fundraising costs(a)		(23,267)		(25,115)

Total - Consolidated		9,683,811		9,229,996

The subsdiaries hold swaps converting the operating cost of currency variation to interest tax variation in reais, corresponding to :
(1) 176,19% of CDI		(3) 104,1% to 109% of CDI
(2) 99% to 104% of CDI		(4) 109,1% to 109,5% of CDI
(*) Efective rate: CPFL Paulista and CPFL Piratininga - 106,75% of CDI RGE - 106.01% of CDI CPFL Santa Cruz, CPFL Sul Paulista, CPFL Leste Paulista, CPFL Mococa, CPFL Jaguari - 108.66% of CDI
(**) Efective rate: CPFL Paulista, CPFL Piratininga, RGE, CPFL Santa Cruz, CPFL Sul Paulista, CPFL Leste Paulista, CPFL Mococa, CPFL Jaguari - 107.67% of CDI
(***) Efective rate: CPFL Paulista, CPFL Santa Cruz, CPFL Leste Paulista, CPFL Mococa e CPFL Jaguari - 109.47% of CDI CPFL Serviços - CDI + 0.10 % + 1.88% CPFL Piratininga – 98.65% of CDI +0.10%
(****) Efective rate: CPFL Piratininga – 104.9% of CDI

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

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

The objective of classification of financial liabilities measured at fair value is to compare the effects of recognition of income and expense derived from marking hedge derivatives to market, tied to the loans and financing, in order to obtain more relevant and consistent accounting information. At June 30, 2014, the total balance of the loans and financing measured at fair value was R$ 2,879,303 (R$ 2,008,454 at December 31, 2013).

Changes in the fair values of these loans and financing are recognized in the financial income (expense) of the subsidiaries. Losses of R$ 80,254 (R$ 44,195 at December 31, 2013), on marking the debts to market, less the gains of R$ 31,759 (R$ 18,080 at December 31, 2013), of marking to market the derivative financial instruments contracted as a hedge against foreign exchange variations (Note 32), results in a total net loss of R$ 48,495 (R$ 26,114 at December 31, 2013).

71

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

Maturity		Consolidated
From July 1, 2015		446,075
2016		1,772,924
2017		1,224,100
2018		1,427,050
2019		1,477,703
2020 to 2024		1,309,907
2025 to 2029		441,971
2030 to 2034		1,482
Subtotal		8,101,212
Mark to Market		80,072
Total		8,181,284

Main additions in the period:

Brazilian currency

R$ thousand

Company

Bank / credit line

Total approved

1st semester of 2014 released

Released net of fundraising costs

Interest

Destination of the resources

Investment

CPFL Paulista

FINEM VI (*)

790,000

26,969

26,969

Monthly

Subsidiary's investment plan

CPFL Piratininga

FINEM V (*)

220,000

12,442

12,442

Monthly

Subsidiary's investment plan

RGE

FINEM VI (*)

274,997

8,354

8,354

Monthly

Subsidiary's investment plan

CPFL Mococa

Bank credit note Santander (**)

6,119

1,631

1,631

Monthly

Subsidiary's investment plan

CPFL Serviços

FINAME (**)

5,011

5,011

5,011

Monthly

Acquisition of electrical equipment and vehicules

CPFL Transmissão

FINAME (**)

23,824

4,664

4,664

Monthly

Acquisition of electrical equipment

CPFL Renováveis

BNB (**)

(****)

(****)

(****)

(****)

(****)

Financial Institutions

CPFL Leste Paulista

Bank credit note - Banco IBM (**)

26,043

26,043

26,043

Semiannual

Reinforce working capital

CPFL Jaguari

Bank credit note - Banco IBM (**)

13,986

13,986

13,986

Semiannual

Reinforce working capital

CPFL Renováveis

Banco do Brasil - Promissory Note (**)

138,000

138,000

138,000

(***)

(***)

CPFL Telecom

Bank credit note - Banco IBM (**)

37,989

37,989

37,989

Semiannual

Reinforce working capital

(*)The outstanding balance was cancelled

(**)The agreement has no restrictive covenants

(***)The outstanding balance of the promissory notes issued by the indirectly owned subsidiaries Atlântica I, Atlântica II, Atlântica IV and Atlântica V was settled in January 2014, using funds from a new issue under the same conditions.

(****)The indirect subsidiary Rosa dos Ventos, purchased in February 2014, owned these operations, which are consolidated in the Company's financial statements as from March 2014.

72

Foreign currency

R$ thousand

Company

Bank / credit line

Total approved

1st semester of 2014 released

Released net of fundraising costs

Interest

Destination of the resources

Instituições Financeiras:

CPFL Paulista

Bank of America Merrill Lynch - Law 4131/62

106,020

106,020

106,020

Quartely

Extend the debt profile

CPFL Paulista

Banco Tokyo-Mitsubishi - Law 4131/62

117,400

117,400

116,226

Quartely

Extend the debt profile

CPFL Paulista

Citibank - Law 4131/62

117,250

117,250

117,250

Quartely

Extend the debt profile

CPFL Paulista

Mizuho Bank - Law 4131/62

174,900

174,900

173,413

Quartely

Extend the debt profile

CPFL Piratininga

Citibank - Law 4131/62

151,875

151,875

151,875

Semmiannual

Extend the debt profile

CPFL Piratininga

Citibank - Law 4131/62

117,250

117,250

117,250

Quartely

Extend the debt profile

CPFL Piratininga

Sumitomo - Law 4131/62

110,275

110,275

109,448

Quartely

Reinforce working capital

RGE

Citibank - Law 4131/62

33,285

33,285

33,285

Quartely

Reinforce working capital

CPFL Geração

HSBC - Law 4131/62

232,520

232,520

232,520

Quartely

Extend the debt profile

Prepayment

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

RESTRICTIVE COVENANTS

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

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

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

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

For purposes of determining covenants, the definition of EBITDA for the subsidiaries of energy distribution and CPFL Geração takes into consideration inclusion of the main regulatory assets and liabilities. In the Company’s case, it also takes into account consolidation based on the interest in the subsidiaries, associates and joint ventures (for both EBITDA and assets and liabilities).

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

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

73

( 16 ) ACCRUED INTEREST ON DEBENTURES AND DEBENTURES

			Consolidated
			June 30, 2014								December 31, 2013
			Current and noncurrent interest		Current		Noncurrent		Total		Current and noncurrent interest		Current		Noncurrent		Total
Parent Company
4th Issue	Single series		13,710		1,290,000		-		1,303,710		12,438		-		1,290,000		1,302,438
			13,710		1,290,000		-		1,303,710		12,438		-		1,290,000		1,302,438
CPFL Paulista
6th Issue	Single series		34,919		-		660,000		694,919		31,674		-		660,000		691,674
7th Issue	Single series		21,753		-		505,000		526,753		20,173		-		505,000		525,173
			56,673		-		1,165,000		1,221,673		51,847		-		1,165,000		1,216,847
CPFL Piratininga
3rd Issue	Single series		6,878		260,000		-		266,878		6,331		-		260,000		266,331
6th Issue	Single series		5,820		-		110,000		115,820		5,279		-		110,000		115,279
7th Issue	Single series		10,123				235,000		245,123		9,388				235,000		244,388
			22,821		260,000		345,000		627,821		20,998		-		605,000		625,998
RGE
6th Issue	Single series		26,454		-		500,000		526,454		23,995		-		500,000		523,995
7th Issue	Single series		7,323		-		170,000		177,323		6,791		-		170,000		176,791
			33,777		-		670,000		703,777		30,786		-		670,000		700,786
CPFL Santa Cruz
1st Issue	Single series		422		-		65,000		65,422		416		-		65,000		65,416
CPFL Brasil
2nd Issue	Single series		2,011		-		228,000		230,011		1,948		-		228,000		229,948
CPFL Geração
3rd Issue	Single series		6,983		264,000		-		270,983		6,429		-		264,000		270,429
4th Issue	Single series		5,998		-		680,000		685,998		5,809		-		680,000		685,809
5th Issue	Single series		9,632		-		1,092,000		1,101,632		9,329		-		1,092,000		1,101,329
6th Issue	Single series		17,267		-		460,000		477,267		16,254		-		460,000		476,254
7th Issue	Single series		12,666		-		635,000		647,666		-		-		-		-
8th Issue	Single series		691		-		70,793		71,484		-		-		-		-
			53,237		264,000		2,937,793		3,255,030		37,821		-		2,496,000		2,533,821
CPFL Renováveis
1st Issue - SIIF	1st to 12nd series		801		35,738		482,467		519,006		814		34,872		489,858		525,544
1st Issue - PCH Holding 2	Single series		44,920		8,701		149,492		203,113		32,177		-		158,193		190,370
1st Issue - Renováveis	Single series		5,538		21,500		408,500		435,538		5,065		-		430,000		435,065
2nd Issue - Renováveis	Single series		8,461		-		300,000		308,461		-		-		-		-
			59,720		65,939		1,340,459		1,466,118		38,056		34,872		1,078,051		1,150,979

*Fund raising costs()**			-		(1,769)		(33,513)		(35,282)		-		-		(34,832)		(34,832)

Total			242,370		1,878,170		6,717,739		8,838,279		194,311		34,872		7,562,219		7,791,402

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

74

		Consolidated
		Issued		Annual Remuneration		Annual Effective rate		Amortization Conditions		Collateral
Parent Company
4th Issue	Single series	129.000		CDI + 0.40%		CDI + 0.51%		1 installment in May 2015		Unsecured

CPFL Paulista
6th Issue	Single series	660		CDI + 0.8% (2)		CDI + 0.87%		3 annual installments from July 2017		CPFL Energia guarantee
7th Issue	Single series	50,500		CDI + 0.83% (3)		CDI + 0.89%		4 annual installments from February 2018		CPFL Energia guarantee

CPFL Piratininga
3rd Issue	Single series	260		107% of CDI		108,23% of CDI		1 installment in April 2015		CPFL Energia guarantee
6th Issue	Single series	110		CDI + 0.8% (2)		CDI + 0.91%		3 annual installments from July 2017		CPFL Energia guarantee
7th Issue	Single series	23,500		CDI + 0.83% (2)		CDI + 0.89%		4 annual installments from February 2018		CPFL Energia guarantee

RGE
6th Issue	Single series	500		CDI + 0.8% (2)		CDI + 0.88%		3 annual installments from July 2017		CPFL Energia guarantee
7th Issue	Single series	17,000		CDI + 0.83% (3)		CDI + 0.88%		4 annual installments from February 2018		CPFL Energia guarantee

CPFL Santa Cruz
1st Issue	Single series	650		CDI + 1.4%		CDI + 1.52%		2 annual instalments from June 2017		CPFL Energia guarantee

CPFL Brasil
2nd Issue	Single series	2,280		CDI + 1.4%		CDI + 1.48%		2 annual instalments from June 2017		CPFL Energia guarantee

CPFL Geração
3rd Issue	Single series	264		107% of CDI		108,23% of CDI		1 installment in April 2015		CPFL Energia guarantee
4th Issue	Single series	6,800		CDI + 1.4%		CDI + 1.49%		2 annual instalments from June 2017		CPFL Energia guarantee
5th Issue	Single series	10,920		CDI + 1.4%		CDI + 1.48%		2 annual instalments from June 2017		CPFL Energia guarantee
6th Issue	Single series	46,000		CDI + 0.75% (1)		CDI + 0.75%		3 annual instalments from August 2018		CPFL Energia guarantee
7th Issue	Single series	63,500		CDI + 1.06%		CDI + 1.11%		1 installment in April 2019		CPFL Energia guarantee
8th Issue	Single series	1		IPCA + 5.86% (1)		103.33% of CDI		1 installment in April 2019		CPFL Energia guarantee

CPFL Renováveis
1st Issue - SIIF	1st to 12nd Series	432,299,666		TJLP + 1%		TJLP + 1% + 0.22%		39 consecutive semi-annual installments from 2009		Fiduciary alienation
1st Issue - PCH Holding 2	Single series	1,581		CDI + 1.6%		CDI + 1.6%		9 annual installments from June 2015		CPFL Renováveis guarantee
1st Issue - Renováveis	Single series	43,000		CDI + 1.7%		CDI + 1.7%		Annual installments from May 2015		BVP and PCH Holding fiduciary assigment of dividends
2st Issue - Renováveis	Single series	300,000		114.0% of CDI		114.0% of CDI		5 annual instalments from June 2017		Unsecured

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

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

Maturity		Consolidated
From July 1, 2015		17,869
2016		87,439
2017		1,524,925
2018		1,958,901
2019		1,775,701
2020 to 2024		1,209,950
2025 to 2029		142,953
Total		6,717,739

Main additions in the period:

CPFL Geração - 7th and 8th issues

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

(i) 7th issue: 63,500 debentures were issued, with a total value of R$ 635,000 (R$ 633,450 net of issuance costs). The funds will be used to refinance the subsidiary's debts. Interest will be paid half-yearly and the principal will be amortized in a single installment at maturity;

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

CPFL Renováveis – 2nd issue

75

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

RESTRICTIVE COVENANTS

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

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

CPFL Geração - 7th and 8th issues

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

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

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

CPFL Renováveis – 2nd issue

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

For purposes of determining covenants, the definition of EBITDA for the subsidiary CPFL Geração takes into consideration inclusion of the main regulatory assets and liabilities. In the Company’s case, it also takes into account consolidation based on the interest in the subsidiaries, associates and joint ventures (for both EBITDA and assets and liabilities).

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

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

( 17 ) POST-EMPLOYMENT BENEFIT OBLIGATION

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

I - CPFL Paulista

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

76

As a result of the Retirement Plan modification occurred in October 1997, a commitment calculated at the time by the external actuaries of Fundação CESP, was established by the subsidiary CPFL Paulista, which will be settled until 2027. Such commitment is annually adjusted at 6% p.a. and monetarily restated at the IGP-DI rate (FGV). At the end of each year, after appraisal by external actuaries, the balance of the commitment is adjusted to reflect the equilibrium of the equity of the Fundação CESP pension plans. The amount of the commitment at June 30, 2014 is R$ 846,485 (R$ 840,602 at December 31, 2013), which differs from the carrying amount of the post-employment benefit obligation, that is recorded by the subsidiary, in accordance with CPC 23 (R1) / IAS 19.

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

II - CPFL Piratininga

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

As a result of the Retirement Plan modification in September 1997, Eletropaulo Metropolitana El. São Paulo S.A. (Bandeirante’s predecessor) by the external actuaries of Fundação CESP, was established by the subsidiary CPFL Piratininga, which will be settled up to 2026. Such commitment is annually adjusted at 6% p.a. and monetarily restated at the IGP-DI rate (FGV). At the end of each year, after appraisal by external actuaries, the balance of the commitment is adjusted to reflect the equilibrium of the equity of the Fundação CESP pension plans. The amount of the commitment at June 30, 2014 is R$ 217,487 (R$ 217,011 at December 31, 2013), which differs from the carrying amount of the post-employment benefit obligation, that is recorded by the subsidiary, which is in accordance with CPC 33 (R1) / IAS 19.

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

III - RGE

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

IV - CPFL Santa Cruz

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

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

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

VI - CPFL Geração

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

With the modification of the Retirement Plan, at that point maintained by CPFL Paulista, in October 1997, a commitment was recognized by the subsidiary CPFL Geração, calculated by the external actuaries of Fundação CESP to be settled to 2027. Such commitment is annually adjusted at 6% p.a. and monetarily restated at the IGP-DI rate (FGV). At the end of each year, after appraisal by external actuaries, the balance of the commitment is adjusted to reflect the equilibrium of the equity of the Fundação CESP pension plans. The amount of the commitment at June 30, 2014 is
R$ 17,434 (R$ 17,310 at December 31, 2013), which differs from the carrying amount recorded by the subsidiary, which is in accordance with CPC 03 (R1) / IAS 19.

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

78

VII - Changes in the defined benefit plans

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

	CPFL Paulista		CPFL Piratininga		CPFL Geração		RGE		Total
Net actuarial liabilities at of December 31, 2013	364,085		44,895		-		3,046		412,026
Expense (income) recognized in income statement	20,179		3,990		38		(128)		24,079
Sponsors' contributions transferred during the period	(44,659)		(13,083)		(922)		(3,642)		(62,306)
Effect of the limit on the assets to be accounted for	-		-		884		724		1,608
Net actuarial liabilities at of June 30, 2014	339,605		35,802		-		-		375,407
Other contributions	14,860		447		68		131		15,506
Subtotal	354,465		36,249		68		131		390,912

Current									81,952
Noncurrent									308,960

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


	1st semester 2014
	CPFL Paulista		CPFL Piratininga		CPFL Geração		RGE		Consolidado
Service cost	576		1,968		76		(22)		2,598
Interest on actuarial obligations	202,463		52,046		4,626		13,874		273,009
Expected return on plan assets	(182,860)		(50,024)		(4,730)		(13,980)		(251,594)
Amortization of unrecognized actuarial gains	-		-		66		-		66
Total income / (expense)	20,179		3,990		38		(128)		24,079

	1st semester 2013
	CPFL Paulista		CPFL Piratininga		CPFL Geração		RGE		Consolidado
Service cost	814		3,448		92		327		4,681
Interest on actuarial obligations	188,426		49,624		4,326		12,755		255,130
Expected return on plan assets	(160,674)		(42,347)		(3,983)		(11,748)		(218,751)
Total income	28,566		10,725		435		1,334		41,060

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

	December 31, 2013		December 31, 2012

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

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( 18 ) REGULATORY CHARGES

	June 30, 2014		December 31, 2013
Fee for the use of water resources	2,209		1,590
Global reverse fund - RGR	15,993		15,983
ANEEL inspection fee	1,462		1,869
Energy development account - CDE	24,570		12,937
Total	44,234		32,379

( 19 ) TAXES AND SOCIAL CONTRIBUTIONS PAYABLE

	Consolidated
	June 30, 2014		December 31, 2013
Current
ICMS (State VAT)	233,378		117,895
PIS (Tax on Revenue)	11,748		10,156
COFINS (Tax on Revenue)	54,215		45,892
IRPJ (Corporate Income Tax)	45,458		62,771
CSLL (Social Contribution Tax)	15,774		29,659
PIS (REFIS)	4,100		4,100
COFINS (REFIS)	18,886		18,886
Other	19,476		28,704
Total	403,034		318,063

Noncurrent
PIS (REFIS)	3,757		5,807
COFINS (REFIS)	17,305		26,748
Total	21,062		32,555

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

	Consolidated
	June 30, 2014				December 31, 2013
	Provision for tax, civil and labor risks		Escrow Deposits		Provision for tax, civil and labor risks		Escrow Deposits
Labor
Various	116,245		86,244		119,707		80,516

Civil
Various	144,693		133,367		149,735		174,961

Tax
FINSOCIAL	26,575		75,833		25,682		73,633
Income Tax	114,823		809,674		128,332		779,899
Other	14,706		37,574		20,555		33,785
	156,105		923,082		174,568		887,318

Various	13,985		1,086		23,985		384

Total	431,028		1,143,779		467,996		1,143,179

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

	Consolidated
	December 31, 2013		Addition		Reversal		Payment		Monetary Restatement		June 30, 2014
Labor	119,707		28,526		(9,538)		(29,142)		6,691		116,245
Civil	149,735		64,618		(8,294)		(67,672)		6,307		144,693
Tax	174,568		5,007		(25,947)		(2,211)		4,688		156,105
Other	23,985		-		(10,000)		-		-		13,985
	467,996		98,151		(53,779)		(99,026)		17,685		431,028

In June 30, 2014, the subsidiary CPFL Renováveis wrote off the receivable of R$ 10,000 in relation to the compensation arising from assessment of the fair value of contingent liabilities identified in the business combination of the indirectly-controlled subsidiary Bons Ventos, as a result of the maturity established in the sale agreement for the subsidiary. These amounts were set against the provision for tax, civil and labor risks, under “Other”.

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

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

Possible losses - the Company and its subsidiaries are parties to other suits and risks in which Management, supported by its external legal advisers, believes that the chances of a successful outcome are possible, due to a solid defensive position in these cases. Consequently, no provision has been established for these suits. It is not yet possible to predict the outcome of the courts’ decisions or any other decisions in similar proceedings considered probable or remote. The claims relating to possible losses, at June 30, 2014, were as follows: (i) R$ 266,009 labor (R$ 244,277 at December 31, 2013) related mainly to workplace accidents, risk premium, overtime, etc; (ii)
R$ 383,512 civil, related mainly to bodily injury, environmental impacts and tariff increases (R$ 413,850 at December 31, 2013); (iii) R$ 2,771,668 tax, related mainly to Income tax, ICMS, FINSOCIAL, PIS and COFINS (R$ 2,704,881 at December 31, 2013), one of the main issues is the deductibility of the expense recognized in 1997 in relation to the pension plan for employees of the subsidiary CPFL Paulista with Fundação CESP of R$ 987,603 (estimated), involving an escrow deposit of R$ 673,898; and (iv) R$ 27,535 regulatory at June 30, 2014 (R$ 27,628 at December 31, 2013).

81

The regulatory possible loss mainly relates to collection of the system service charge – ESS, in accordance with CNPE Resolution nº 03, of March 6, 2013, in which the subsidiaries and jointly-controlled subsidiaries of the Company obtained, through the Brazilian Association of Independent Producers of Electric Energy (Associação Brasileira dos Produtores Independentes de Energia Elétrica – APINE) and the Brazilian Clean Energy Generation Association (Associação Brasileira de Geração de Energia Limpa - ABRAGEL), an injunction suspending collection of the above-mentioned charge, leading the Company’s legal advisers to qualify the risk of loss as possible. The total risk amount is R$ 15,447, related to the indirect subsidiaries CPFL Renováveis (R$ 11,631), Ceran (R$ 3,126) and Paulista Lajeado (R$ 690).

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

( 21 ) USE OF PUBLIC UTILITIES

		Consolidated
Company		June 30, 2014		December 31, 2013	Quantity of remaining installments
CERAN		85,762		83,176	261

Current		3,943		3,738
Noncurrent		81,819		79,438

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( 22 ) OTHER ACCOUNTS PAYABLE

	Consolidated
	Consolidated
	Current				Noncurrent
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
Consumers and concessionaires	49,281		43,804		-		-
Energy efficiency program - PEE	250,237		218,419		13,449		11,537
Research & Development - P&D	136,455		164,180		11,899		4,842
National scientific and technological development fund - FNDCT	1,864		1,966		-		-
Energy research company - EPE	931		982		-		-
Fund of reversal	-		-		17,750		17,750
Advances	83,343		34,879		5,527		-
Provision for socio-environmental costs and decommissioning of assets	-		-		43,969		34,471
Payroll	7,871		17,639		-		-
Profit sharing	26,754		36,601		4,171		4,171
Collections agreement	85,480		73,240		-		-
Guarantees	-		-		27,852		29,133
Advance CDE	16,942		9,246		-		-
Account payable - bussiness combination	10,623		10,477		-		-
Other	47,716		52,095		1,787		1,981
Total	717,497		663,529		126,404		103,886

( 23 ) SHAREHOLDERS’ EQUITY

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

		Number of shares
		June 30, 2014				December 31, 2013
Shareholders		Common shares		Interest %		Common shares		Interest %
BB Carteira Livre I FIA		288,569,602		29.99		288,569,602		29.99
Caixa de Previdência dos Funcionários do Banco do Brasil - Previ		487,700		0.05		487,700		0.05
Camargo Correa S.A.		837,860		0.09		837,860		0.09
ESC Energia S.A.		234,092,930		24.33		234,092,930		24.33
Bonaire Participações S.A.		6,308,790		0.66		6,308,790		0.66
Energia São Paulo FIA		136,820,640		14.22		136,820,640		14.22
Fundação Petrobras de Seguridade Social - Petros		1,759,900		0.18		1,759,900		0.18
Fundação Sistel de Seguridade Social		19,500		0.00		19,500		0.00
BNDES Participações S.A.		64,842,768		6.74		64,842,768		6.74
Antares Holdings Ltda.		16,039,720		1.67		16,039,720		1.67
Brumado Holdings Ltda.		34,502,100		3.59		34,502,100		3.59
Members of Executive Board		102,300		0.01		102,350		0.01
Other shareholders		177,890,450		18.49		177,890,400		18.49
Total		962,274,260		100.00		962,274,260		100.00

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

23.1 - Change in capital - controlling shareholder

On June 28, 2014, the shareholder Bonaire Participações S.A. issued a Notice to Shareholders to communicate the approval of a reduction of R$ 206,541 in its capital, with no cancellation of shares. The shareholders were reimbursed as follows: (i) R$ 171,339 in cash, (ii) 35,202 by delivery of 5,108,790 (five million, one hundred and eight thousand seven hundred and ninety) common shares in the Company held by Bonaire.

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

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23.2 - Dividends:

As decided in the AGM/EGM held on April 29, 2014, the Company registered a dividend payable of R$ 567,802 in relation to the second half-year of 2013. The amount of R$ 565,368 was paid during the half-year.

( 24 ) EARNINGS PER SHARE

Earnings per share – basic and diluted

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

	2nd Quarter 2014		1st Semester 2014		2nd Quarter 2013		1st Semester 2013
Numerator
Net income/(loss) attributable to controlling shareholders	164,634		341,130		(120,911)		284,676
Denominator
Weighted average shares outstanding during the year	962,274,260		962,274,260		962,274,260		962,274,260
Net income/(loss) per share - basic	0.17		0.35		(0.13)		0.30

Numerator
Net income/(loss) attributable to controlling shareholders	164,634		341,130		(120,911)		284,676
Dilutive effect of convertible debentures of subsidiary CPFL Renováveis (*)	(13)		(951)		-		(1,304)
Net income/(loss) attributable to the Controlling Shareholders	164,622		340,179		(120,911)		283,372

Denominator
Weighted average shares outstanding during the year	962,274,260		962,274,260		962,274,260		962,274,260
Net income/(loss) per share - diluted	0.17		0.35		(0.13)		0.29

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

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

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( 25 ) OPERATING REVENUE

	Consolidated
	2014				2013
Revenue from Eletric Energy Operations	2nd quarter		1st semester		2nd quarter		1st semester
Consumer class
Residential	1,510,664		3,135,514		1,355,933		2,955,705
Industrial	936,484		1,822,876		890,589		1,784,562
Commercial	810,496		1,662,134		707,749		1,520,628
Rural	114,612		225,037		98,425		204,515
Public administration	114,600		223,959		102,149		201,795
Public lighting	76,503		146,113		68,865		147,009
Public services	137,531		269,316		123,355		242,674
(-) Adjustment of excess and surplus revenue of reactive	(20,293)		(41,291)		(16,455)		(23,033)
Billed	3,680,596		7,443,660		3,330,610		7,033,855
Unbilled (net)	32,167		24,268		78,102		(39,548)
Emergency charges - ECE/EAEE	-		-		-		(257)
Reclassification to network usage charge - TUSD - captive consumers	(1,293,790)		(2,635,784)		(1,253,582)		(2,891,103)
Electricity sales to final consumers	2,418,973		4,832,145		2,155,130		4,102,947

Furnas Centrais Elétricas S.A.	118,207		238,817		109,268		217,386
Other concessionaires and licensees	345,299		708,272		531,216		942,460
Current electric energy	196,978		414,350		(28,677)		133,347
Electricity sales to wholesaler´s	660,484		1,361,439		611,807		1,293,192

Revenue due to network usage charge - TUSD - captive consumers	1,293,790		2,635,784		1,253,582		2,891,103
Revenue due to network usage charge - TUSD - free consumers	247,985		481,618		249,573		509,944
(-) Adjustment of revenue surplus and excess responsive	(4,805)		(9,503)		(4,246)		(6,300)
Revenue from construction of concession infrastructure	217,030		405,800		259,198		517,827
Resources provided by the Energy Development Account - CDE	176,271		375,297		159,728		278,144
Other revenue and income	160,190		303,161		86,524		156,427
Other operating revenues	2,090,461		4,192,156		2,004,358		4,347,144
Total gross revenues	5,169,918		10,385,741		4,771,295		9,743,283

Deductions from operating revenues
ICMS	(723,491)		(1,480,935)		(706,072)		(1,447,015)
PIS	(75,265)		(150,709)		(66,918)		(136,718)
COFINS	(346,697)		(694,542)		(308,268)		(629,806)
ISS	(1,778)		(3,302)		(1,300)		(2,421)
Global reversal reserve - RGR	(593)		(1,176)		306		267
Fuel consumption account - CCC	-		-		-		(34,432)
Energy development account - CDE	(73,711)		(124,156)		(38,812)		(77,624)
Research and development and energy efficiency programs	(29,158)		(59,466)		(26,651)		(55,309)
PROINFA	(25,542)		(50,452)		(25,229)		(46,687)
Emergency charges - ECE/EAEE	-		-		(1)		256
IPI	-		(10)		(7)		(23)
	(1,276,235)		(2,564,748)		(1,172,953)		(2,429,514)
Net revenue	3,893,683		7,820,993		3,598,342		7,313,769


	Consolidated
	2014				2013
*Revenue from eletric energy operations - in GWh ()**	2nd quarter		1st semester		2nd quarter		1st semester
Consumer class
Residential	3,899		8,361		3,747		7,679
Industrial	3,493		6,973		3,661		7,276
Commercial	2,237		4,810		2,153		4,489
Rural	545		1,120		483		974
Public administration	316		647		313		617
Public lighting	400		801		397		781
Public services	457		940		455		911
Billed	11,346		23,652		11,207		22,726
Own comsuption	8		17		9		18
Electricity sales to final consumers	11,354		23,669		11,216		22,744

Furnas Centrais Elétricas S.A.	754		1,501		754		1,501
Other concessionaires and licensees	2,076		4,321		3,063		5,579
Current electric energy	503		922		(52)		473
Electricity sales to wholesaler´s	3,333		6,743		3,766		7,552
(*) Information not reviewed by the independent auditors

85

		Consolidated
*Number of consumers ()**		June 30, 2014		June 30, 2013
Consumer class
Residential		6,637,615		6,409,806
Industrial		58,001		58,703
Commercial		487,563		492,648
Rural		246,101		244,581
Public Administration		50,066		48,985
Public Lighting		9,795		9,360
Public Services		8,070		7,835
Total		7,497,211		7,271,918
(*) Information not reviewed by the independent auditors

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

25.1 - Adjustment of surplus and excess reactive power

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

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

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

86

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

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

				2014				2013
Company		Month		Annual Tariff Review - RTA		Effect perceived by consumers (a)		Annual Tariff Review - RTA		Effect perceived by consumers (a)
CPFL Paulista		April		17.18%		17.23%		5.48%		6.18%
CPFL Piratininga		October		(b)		(b)		7.42%		6.91%
RGE		June		21.82%		22.77%		-10.32%		-10.64%
CPFL Santa Cruz		February		14.86%		26.00%		9.32%		-0.94%
CPFL Leste Paulista		February		-7.67%		-5.32%		6.48%		3.36%
CPFL Jaguari		February		-3.73%		3.70%		2.71%		2.68%
CPFL Sul Paulista		February		-5.51%		0.43%		2.27%		2.21%
CPFL Mococa		February		-2.07%		-9.53%		7.00%		5.10%

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

(b) The annual tariff adjustment has not yet occurred for 2014. The 2012 RTA for the subsidiary was approved on October 16, 2012, with an average tariff increase of 8.79% and an average effect perceived by consumers of 5.50%. The new tariffs were in effect from October 23, 2012 to October 22, 2013. On October 22, 2013, ANEEL published Authorization Resolution 1,638, fixing the tariff increase for the subsidiary from that date at an average of 7.42%, with an average perception by consumers of 6.91%.

25.3 Extraordinary Tariff Review (“RTE”)

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

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

(*)Information not reviewed by the independent auditors

87

25.4 – Resources provided by the Energy Development Account - CDE

Provisional Measure 579, of September 11, 2012 (converted into Law 12783 of January 11, 2013) determined that the resources related to the low income subsidy, as well as other tariff discounts should be fully subsidized by resources from the CDE. Income of R$ 375,297 was recorded in the first semester of 2014 (R$ 278,143 in the first semester of 2013), R$ 36,937 for the low income subsidy (R$ 35,054 in the first semester of 2013) and R$ 338,360 for other tariff discounts (R$ 243,089 in the first semester of 2013), set against accounts receivable – Resources provided by the CDE/CCEE (Note 10) and payable accounts - Resources provided by the CDE (Note 22).

( 26 ) COST OF ELECTRIC ENERGY

	Consolidated
	2014				2013
Electricity Purchased for Resale	2nd quarter		1st semester		2nd quarter		1st semester
Itaipu Binacional	329,627		672,085		316,117		611,258
Current Electric Energy	791,519		2,215,650		134,943		341,477
PROINFA	65,576		131,849		57,827		119,810
Energy purchased of bilateral contracts and through action in the regulated market	2,149,604		4,083,501		1,707,832		3,532,336
Resources provided by the energy development account - CDE/CCEE	(804,894)		(1,974,709)		(63,344)		(495,107)
Credit of PIS and COFINS	(230,348)		(467,332)		(197,945)		(375,186)
Subtotal	2,301,084		4,661,044		1,955,431		3,734,588

Electricity Network Usage Charge
Basic Network Charges	148,149		294,819		137,676		264,846
Transmission from Itaipu	8,770		17,307		8,668		17,128
Connection Charges	11,232		22,495		10,778		22,532
Charges of Use of the Distribution System	8,716		15,914		6,444		15,235
System Service Charges - ESS	(35,957)		776		77,107		321,097
Reserve Energy charges	10,930		10,898		35,788		35,758
Resources provided by the energy development account - CDE	-		(12)		(61,194)		(327,637)
Credit of PIS and COFINS	(12,519)		(30,591)		(18,048)		(29,784)
Subtotal	139,322		331,606		197,220		319,175

Total	2,440,406		4,992,650		2,152,651		4,053,763

	Consolidated
	2014				2013
*Electricity Purchased for Resale - in GWh ()**	2nd quarter		1st semester		2nd quarter		1st semester
Itaipu Binacional	2,587		5,153		2,684		5,300
Current Electric Energy	1,340		3,670		793		1,489
PROINFA	247		481		237		473
Energy purchased of bilateral contracts and through action in the regulated market	10,047		20,185		10,986		21,875
Total	14,220		29,489		14,700		29,136
(*) Information not reviewed by the independent auditors

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

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

88

In the first semester of 2014 a total amount of R$ 1,974,721 was recognized as a result of these regulations (R$ 822,744 in the first semester of 2013).

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

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


	1st semester 2014
	Electricity purchased for resale								Electricity network usage charge				Total
	Overcontracting		Quotas and hydrological risk		Electricity purchased - regulated market		*Electricity purchased - tariff review ()**		System service charges - ESS		*System service charges - ESS - tariff review ()**		Total
CPFL Paulista	652,338		(6,241)		199,343		-		6		-		845,446
CPFL Piratininga	417,084		(357)		209,607		-		2		-		626,336
CPFL Santa Cruz	55,429		(17)		12,795		-		1		-		68,208
CPFL Leste Paulista	6,576		(8)		-		-		-		-		6,568
CPFL Sul Palista	6		(7)		11		-		-		-		10
CPFL Jaguari	142		(48)		320		-		-		-		414
CPFL Mococa	-		(5)		-		-		-		-		(5)
RGE	409,119		(98)		18,721		-		3		-		427,745
Total	1,540,694		(6,781)		440,797		-		12		-		1,974,721


	1st semester 2013
	Electricity purchased for resale								Electricity network usage charge				Total
	Overcontracting		Quotas and hydrological risk		Electricity purchased - regulated market		*Electricity purchased - tariff review ()**		System service charges - ESS		*System service charges - ESS - tariff review ()**		Total
CPFL Paulista	83,314		17,852		-		327,252		141,821		44,207		614,446
CPFL Piratininga	39,817		1,146		-		-		61,565		-		102,528
CPFL Santa Cruz	7,971		(1)		-		-		9,760		-		17,729
CPFL Leste Paulista	-		-		-		-		2,739		-		2,739
CPFL Sul Palista	-		(1)		-		-		2,727		-		2,726
CPFL Jaguari	-		172		-		-		3,349		-		3,521
CPFL Mococa	-		-		-		-		1,869		-		1,869
RGE	15,443		(11)		-		2,153		51,048		8,553		77,185
Total	146,545		19,157		-		329,405		274,877		52,760		822,744

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

89

( 27 ) OPERATING COSTS AND EXPENSES

	Parent company
	2nd quarter								1st semester
	Operating Expenses				Total				Operating Expenses				Total
	General				Total				General				Total
	2014		2013		2014		2013		2014		2013		2014		2013
Personnel	4,151		3,497		4,151		3,497		8,027		6,525		8,027		6,525
Materials	1		3		1		3		4		5		4		5
Outside Services	713		1,359		713		1,359		2,375		2,391		2,375		2,391
Depreciation and Amortization	43		18		43		18		87		36		87		36
Other:	464		1,072		464		1,072		823		1,903		823		1,903
Leases and Rentals	32		32		32		32		68		63		68		63
Publicity and Advertising	122		517		122		517		128		670		128		670
Legal, Judicial and Indemnities	126		274		126		274		166		669		166		669
Donations, Contributions and Subsidies	128		179		128		179		330		375		330		375
Other	56		71		56		71		132		127		132		127
Total	5,371		5,949		5,371		5,949		11,317		10,860		11,317		10,860

	Consolidated
	2nd quarter
					Services Rendered to Third Parties				Operating Expenses												Total
	Operating costs				Services Rendered to Third Parties				Sales				General				Other				Total
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Personnel	133,524		104,980		1		-		28,075		26,884		53,908		53,108		-		-		215,508		184,972
Post-employment benefit obligation	12,038		20,530		-		-		-		-		-		-		-		-		12,038		20,530
Materials	25,535		25,762		301		207		1,054		905		2,030		1,913		-		-		28,920		28,788
Outside services	42,461		36,811		614		414		27,022		26,819		56,116		58,333		-		-		126,215		122,376
Depreciation and amortization	185,036		167,491		-		-		8,003		8,885		18,341		13,636		-		-		211,380		190,011
Costs related to infrastructure construction	-		-		217,030		259,198		-		-		-		-		-		-		217,030		259,198
Other	12,853		8,081		(2)		(2)		38,758		41,516		55,442		273,222		88,910		93,715		195,960		416,533
Collection charges	-		-		-		-		13,370		13,142		-		-		-		-		13,370		13,142
Allowance for doubtful accounts	-		-		-		-		23,505		25,843		-		-		-		-		23,505		25,843
Leases and rentals	7,356		5,394		-		-		-		2		4,027		2,718		-		-		11,383		8,114
Publicity and advertising	213		82		-		-		29		92		4,597		3,004		-		-		4,838		3,178
Legal, judicial and indemnities	-		-		-		-		-		-		45,098		247,378		-		-		45,098		247,378
Donations, contributions and subsidies	-		-		-		-		1,608		2,034		923		757		-		-		2,532		2,790
Inspection fee	-		-		-		-		-		-		-		-		5,071		6,516		5,071		6,516
Loss/(Gain) on disposal and decommissioning and other on noncurrent assets	-		-		-		-		-		-		-		-		10,330		12,270		10,330		12,270
Intangible of concession amortization	-		-		-		-		-		-		-		-		73,805		74,929		73,805		74,929
Financial compensation for water resources utilization	3,442		1,190		-		-		-		-		-		-		-		-		3,442		1,190
Other	1,842		1,415		(2)		(2)		245		403		796		19,365		(296)		-		2,586		21,182
Total	411,447		363,655		217,944		259,817		102,912		105,009		185,837		400,211		88,910		93,715		1,007,050		1,222,408

90


	Consolidated
	1st semester
					Services Rendered to Third Parties				Operating Expenses												Total
	Operating costs				Services Rendered to Third Parties				Sales				General				Other				Total
	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Personnel	256,802		210,835		1		-		53,463		53,010		101,911		99,107		-		-		412,177		362,952
Post-employment benefit obligation	24,079		41,060		-		-		-		-		-		-		-		-		24,079		41,060
Materials	50,694		48,527		451		794		2,066		1,971		3,592		3,268		-		-		56,803		54,559
Outside services	78,749		85,999		1,073		994		55,601		53,575		110,146		104,131		-		-		245,569		244,698
Depreciation and amortization	365,815		331,967		-		-		16,227		16,992		36,293		27,459		-		-		418,335		376,418
Costs related to infrastructure construction	-		-		405,800		517,827		-		-		-		-		-		-		405,800		517,827
Other	27,158		19,867		(4)		(4)		76,878		82,181		96,972		367,545		181,016		181,805		382,019		651,395
Collection charges	-		-		-		-		26,570		26,379		-		-		-		-		26,570		26,379
Allowance for doubtful accounts	-		-		-		-		46,232		50,574		-		-		-		-		46,232		50,574
Leases and rentals	14,695		13,138		-		-		-		6		7,130		5,413		-		-		21,825		18,557
Publicity and advertising	376		115		-		-		81		154		7,032		5,627		-		-		7,489		5,897
Legal, judicial and indemnities	-		-		-		-		-		-		79,435		331,410		-		-		79,435		331,410
Donations, contributions and subsidies	-		-		-		-		3,245		4,047		2,040		2,160		-		-		5,285		6,207
Inspection fee	-		-		-		-		-		-		-		-		11,226		14,122		11,226		14,122
Loss/(Gain) on disposal and decommissioning and other on noncurrent assets	-		-		-		-		-		-		-		-		23,542		18,260		23,542		18,260
Intangible of concession amortization	-		-		-		-		-		-		-		-		145,448		149,421		145,448		149,421
Financial compensation for water resources utilization	6,520		3,112		-		-		-		-		-		-		-		-		6,520		3,112
Other	5,567		3,501		(4)		(4)		750		1,022		1,335		22,936		800		2		8,447		27,460
Total	803,297		738,255		407,321		519,610		204,235		207,730		348,915		601,509		181,016		181,805		1,944,783		2,248,910

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( 28 ) FINANCIAL INCOME AND EXPENSES

	Parent company								Consolidated
	2014				2013				2014				2013
	2nd quarter		1st semester		2nd quarter		1st semester		2nd quarter		1st semester		2nd quarter		1st semester
Financial Income
Income from financial investments	28,830		52,477		3,053		5,694		119,521		208,204		55,505		94,315
Arrears of interest and fines	-		-		1		2		35,154		72,021		34,869		76,553
Restatement of tax credits	1,456		1,456		906		906		4,926		9,846		2,925		4,408
Restatement of escrow deposits	-		1		167		323		26,419		40,952		9,198		18,122
Monetary and exchange adjustment	-		-		-		-		33,589		44,087		3,821		17,356
Adjustment to expected cash flow (note 9)	-		-		-		-		10,375		69,602		(2,030)		3,139
Discount on purchase of ICMS credit	-		-		-		-		927		2,146		3,303		8,964
PIS and COFINS on insterest on shareholders' equity	-		-		(6,702)		(6,702)		-		-		(6,702)		(6,702)
Other	758		1,478		1,533		2,601		17,889		30,627		19,692		33,109
Total	31,045		55,412		(1,041)		2,823		248,800		477,486		120,581		249,263

Financial Expense
Debt charges	(34,676)		(67,642)		(7,553)		(12,907)		(382,442)		(739,033)		(290,140)		(551,909)
Monetary and exchange variations	3		3		(295)		(458)		(57,828)		(129,968)		(52,696)		(73,274)
Adjustment to expected cash flow (note 9)	-		-		-		-		-		-		(126,491)		(99,710)
Interest and fines on taxes	-		-		-		-		-		-		(59,579)		(60,483)
(-) Capitalized borrowing costs	-		-		-		-		1,981		14,277		17,407		29,015
Public utilities	-		-		-		-		(3,892)		(6,942)		(2,147)		(4,901)
Other	(4)		(244)		(49)		(41)		(30,661)		(62,768)		(21,971)		(46,685)
Total	(34,677)		(67,883)		(7,897)		(13,405)		(472,843)		(924,435)		(535,617)		(807,947)

Net financial income (expense)	(3,632)		(12,471)		(8,938)		(10,582)		(224,043)		(446,949)		(415,036)		(558,684)

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

In the first semester of 2014, the line monetary and exchange restatement includes the effects of losses of R$ 246,166 (loss of R$ 136,500 on the second quarter of 2014) and gain of R$ 123,397 in the first semester of 2013 (gain of R$ 195,890 on the second quarter of 2013) on derivative instruments (Note 32).

( 29 ) SEGMENT INFORMATION

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

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

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

	Distribution		Generation (conventional sources)		Generation (Renewable sources)		Commercialization		Services		*Other ()**		Elimination		Total
1st semester 2014
Net revenue	6,203,990		399,132		379,712		788,825		49,300		33		-		7,820,993
(-) Intersegment revenues	8,732		152,205		218,991		172,461		85,586		-		(637,976)		-
Income from electric energy service	413,115		310,839		30,224		124,028		16,595		(11,240)		-		883,560
Financial income	315,465		36,598		48,013		13,240		8,754		55,416		-		477,486
Financial expense	(417,026)		(225,833)		(195,171)		(13,777)		(4,747)		(67,881)		-		(924,435)
Income / (loss) before taxes	311,553		232,608		(116,934)		123,491		20,602		(23,705)		-		547,615
Income tax and social contribution	(138,917)		(42,516)		(3,143)		(43,378)		(7,441)		7,476		-		(227,919)
Net Income / (loss)	172,636		190,092		(120,077)		80,112		13,160		(16,228)		-		319,696
Total Assets (**)	15,427,711		5,372,568		9,455,623		473,617		321,832		1,485,804		-		32,537,156
Capital Expenditures and other intangible assets	348,014		3,066		113,367		1,436		53,965		-				519,848
Depreciation and Amortization	(286,338)		(64,984)		(206,156)		(2,221)		(3,928)		(158)		-		(563,784)

1st semester 2013 ()*
Net revenue	5,775,096		294,982		300,325		915,138		28,178		50		-		7,313,769
(-) Intersegment revenues	7,548		158,282		143,353		117,980		51,497		-		(478,660)		-
Income from electric energy service	679,557		262,190		66,692		13,189		298		(10,829)		-		1,011,096
Financial income	194,198		12,299		18,717		15,124		6,125		2,800		-		249,263
Financial expense	(492,016)		(142,885)		(147,723)		(10,069)		(1,844)		(13,410)		-		(807,947)
Income / (loss) before taxes	381,738		165,258		(62,314)		18,243		4,579		(21,439)		-		486,066
Income tax and social contribution	(148,096)		(35,731)		(4,484)		(7,412)		(2,092)		(17,015)		-		(214,831)
Net Income / (loss)	233,643		129,527		(66,798)		10,831		2,487		(38,454)		-		271,235
Total Assets (**)	15,263,417		4,515,880		9,470,564		342,516		243,612		1,206,806		-		31,042,796
Capital Expenditures and other intangible assets	443,431		6,231		564,496		1,600		13,888		266		-		1,029,912
Depreciation and Amortization	(282,490)		(67,735)		(172,311)		(1,953)		(1,309)		(41)		-		(525,839)

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

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

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

( 30 ) RELATED PARTY TRANSACTIONS

The Company’s controlling shareholders are as follows:

· ESC Energia S.A.

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

· Energia São Paulo Fundo de Investimento em Ações

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

· Bonaire Participações S.A.

Controlled by Energia São Paulo Fundo de Investimento em Ações.

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

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

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

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

The main transactions are listed below:

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

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

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

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

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

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

g) Other revenue – refers basically to revenue from rental of use of the distribution system for telephony services.

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

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

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

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

The total remuneration of key management personnel in the first semester of 2014, in accordance with CVM Decision 560/2008, was R$ 20,521 (R$ 15,860 in the first semester of 2013). This amount comprises R$ 20,053 in respect of short-term benefits (R$ 19,109 in the first semester of 2013) and R$ 468 for post-employment benefits (R$ 426 in the first semester of 2013) and recorded by the accrual method. A provision of R$ 3,675 for other long-term benefits was reversed in the first semester of 2013.

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

	Consolidated
	Assets				Liabilities				Revenue				Expense
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013		1st semester 2014		1st semester 2013		1st semester 2014		1st semester 2013
Bank deposits and short-term investments
Banco do Brasil S.A.	149,701		115,968		-		-		5,418		2,709		-		-

Loans and financing, debentures and derivatives contracts
Banco do Brasil S.A.	-		-		1,546,333		1,638,769		-		-		87,199		73,225

Other financial transactions
Banco do Brasil S.A.	-		-		-		-		-		816		3,098		3,007
JBS S/A	-		-		-		-		-		68		-		-
BAESA – Energética Barra Grande S.A.	-		-		-		-		-		-		1,115		-
Foz do Chapecó Energia S.A.	-		-		-		-		-		-		2,551		-
ENERCAN - Campos Novos Energia S.A.	-		-		-		-		-		-		1,993		-

Advances
BAESA – Energética Barra Grande S.A.	-		-		844		862		-		-		-		-
Foz do Chapecó Energia S.A.	-		-		1,196		1,222		-		-		-		-
ENERCAN - Campos Novos Energia S.A.	-		-		1,389		1,496		-		-		-		-
EPASA - Centrais Elétricas da Paraiba	-		-		537		549		-		-		-		-

Energy purchase and sale and charges
Afluente Transmissão de Energia Elétrica S.A.	-		-		28		24		-		-		535		6
Arizona 1 Energia Renovável S.A	-		-		-		-		-		-		410		-
Baguari I Geração de Energia Elétrica S.A.	-		-		5		5		-		-		122		-
Braskem S.A	-		-		-		-		694		16,279		-		-
Caetite 2 Energia Renovável S.A.	-		-		-		-		-		-		376		-
Caetité 3 Energia Renovável S.A.	-		-		-		5		-		-		380		-
Calango 1 Energia Renovável S.A.	-		-		-		-		-		-		454		-
Calango 2 Energia Renovável S.A.	-		-		-		-		-		-		388		-
Calango 3 Energia Renovável S.A.	-		-		-		-		-		-		454		-
Calango 4 Energia Renovável S.A.	-		-		-		-		-		-		421		-
Calango 5 Energia Renovável S.A.	-		-		-		-		-		-		448		-
Companhia de Eletricidade do Estado da Bahia – COELBA	1,346		728		-		-		6,691		1,741		-		1
Companhia Energética de Pernambuco - CELPE	878		545		-		-		2,075		1,619		67		1
Companhia Energética do Rio Grande do Norte - COSERN	160		223		80		191		1,048		806		118		1
Energética Águas da Pedra S.A.	-		-		113		120		-		-		1,934		-
Estaleiro Atlântico Sul S.A.	-		-		-		-		3,326		2,198		-		-
Goiás Sul Geração de Enegia S.A.	-		-		-		-		-		-		75		-
Mel 2 Energia Renovável S.A.	-		-		-		-		-		-		306		-
NC ENERGIA S.A.	-		-		-		-		1,837		11,905		-		-
Rio PCH I S.A.	-		-		208		220		-		-		3,653		-
SE Narandiba S.A.	-		-		-		-		-		-		53		1
Serra do Facão Energia S.A. - SEFAC	-		-		469		547		-		-		9,766		-
Tavex Brasil S.A	-		-		-		-		1,252		5,310		-		-
ThyssenKrupp Companhia Siderúrgica do Atlântico	-		-		8		178		3,907		-		2,856		-
Vale Energia S.A.	-		6,960		-		-		-		27,389		3,384		-
VALE S.A.	-		-		-		-		-		-		-		1,419
BAESA – Energética Barra Grande S.A.	-		-		36,139		29,568		710		664		37,760		36,169
Foz do Chapecó Energia S.A.	1,384		-		106,460		111,019		9,129		2,164		151,762		143,773
ENERCAN - Campos Novos Energia S.A.	558		544		100,946		103,252		3,974		6,853		107,938		106,562
EPASA - Centrais Elétricas da Paraiba	83		2		20,623		17,094		22,502		71,512		93,190		42,241

Intangible assets, Property, plant and equipment, Materials and Service
Alpargatas S.A.	-		-		1		-		-		-		-		-
Banco do Brasil S A	-		-		-		-		-		-		58		82
Boa Vista Empreendimento Imobiliário SPE Ltda.	-		2		-		-		-		50		-		-
Braskem S.A	-		-		-		-		-		-		-		-
Cia.de Saneamento Básico do Estado de São Paulo - SABESP	8		85		42		36		43		468		-		15
Concessionária do Sistema Anhanguera - Bandeirante S.A.	-		-		-		-		-		-		5		-
Embraer S.A	-		-		-		-		-		37		-		-
Estaleiro Atlântico Sul S.A.	-		-		-		-		6		-		-		-
Ferrovia Centro-Atlântica S.A.	4		507		-		-		9		238		-		-
HM 11 Empreendimento Imobiliário SPE Ltda	-		-		-		-		-		9		-		-
HM 12 Empreendimento Imobiliário SPE Ltda	-		-		-		-		-		9		-		-
Indústrias Romi S.A.	4		4		-		-		23		22		-		-
JBS S/A	443		-		-		-		2,221		-		-		-
MULTINER S/A	-		-		-		-		-		2		-		-
Renovias Concessionária S.A.	-		-		-		-		-		-		-		6
Rodovias Integradas do Oeste - SP Vias	8		26		28		28		-		-		-		-
SAMM - Sociedade de Atividades em Multimídia Ltda.	23		306		-		-		137		498		-		-
TOTVS S.A.	-		-		1		42		-		-		1		1,342
BAESA – Energética Barra Grande S.A.	-		66		-		-		-		664		-		-
Foz do Chapecó Energia S.A.	-		-		-		-		-		717		-		-
ENERCAN - Campos Novos Energia S.A.	-		-		-		-		-		664		-		-

Intercompany loans
EPASA - Centrais Elétricas da Paraíba S.A.	89,719		86,655		-		-		4,971		2,232		-		-
Noncontrolling shareholders - CPFL Renováveis	6,879		6,862		-		-		1,332		163		-		-

Dividends and Interest on shareholders´ equity
BAESA – Energética Barra Grande S.A.	-		48		-		-		-		-		-		-
Chapecoense Geração S.A.	21,744		21,744		-		-		-		-		-		-
ENERCAN - Campos Novos Energia S.A.	13,424		16,054		-		-		-		-		-		-
EPASA - Centrais Elétricas da Paraiba	14,891		14,891		-		-		-		-		-		-

( 31 ) RISK MANAGEMENT

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

Risk management structure:

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

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

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

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

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

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

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

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

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

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Risk of Acceleration of Debts: The Company and its subsidiaries have loans and financing agreements and debentures with restrictive clauses (covenants) normally applicable to these kinds of arrangement, involving compliance with economic and financial ratios, cash generation, etc. These covenants are monitored and do not restrict the capacity to operate normally.

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

Risk Management for Financial instruments

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

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

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( 32 ) FINANCIAL INSTRUMENTS

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

									Consolidated
									June 30, 2014				December 31, 2013
	Note		Category		Measurement		*Level ()**		Accounting balance		Fair value		Accounting balance		Fair value
Asset
Cash and cash equivalent	5		(a)		(2)		Level 1		2,316,712		2,316,712		2,105,618		2,105,618
Cash and cash equivalent	5		(a)		(2)		Level 2		2,423,960		2,423,960		2,100,804		2,100,804
Consumers, concessionaires and licensees	6		(b)		(1)		n/a		2,368,742		2,368,742		2,161,643		2,161,643
Leases			(b)		(1)		n/a		50,218		50,218		48,574		48,574
Associates, subsidiaries and parent company			(b)		(1)		n/a		96,598		96,598		86,655		86,655
Financial investments			(a)		(2)		Level 1		5,422		5,422		24,806		24,806
Derivatives	32		(a)		(2)		Level 2		189,731		189,731		318,490		318,490
Financial asset of concession	9		(d)		(2)		Level 3		3,002,221		3,002,221		2,771,593		2,771,593
Financial asset of concession	9		(b)		(1)		n/a		18,943		18,943		15,480		15,480
Receivables from Resources provided by CDE	10		(b)		(1)		n/a		647,991		647,991		170,543		170,543
Other finance assets (**)			(b)		(1)		n/a		290,862		290,862		250,933		250,933
									11,411,398		11,411,398		10,055,140		10,055,140
Liabilitiy
Suppliers	14		(e)		(1)		n/a		1,930,713		1,930,713		1,884,693		1,884,693
Loans and financing - Principal and interest	15		(e)		(1)		n/a		6,807,812		6,116,667		7,221,542		6,416,990
Loans and financing - certain debts	15 (****)		(a)		(2)		Level 2		2,875,999		2,875,999		2,008,454		2,008,454
Debentures - Principal and interest	16		(e)		(1)		n/a		8,838,279		8,965,321		7,791,402		7,859,140
Regulatory charges	18		(e)		(1)		n/a		44,234		44,234		32,379		32,379
Derivatives	32		(a)		(2)		Level 2		100,501		100,501		2,950		2,950
Public utility	21		(e)		(1)		n/a		85,762		85,762		83,176		83,176
Other finance liabilities (***)			(e)		(1)		n/a		182,872		182,872		148,220		148,220
									20,866,173		20,302,069		19,172,816		18,436,002
(*) Refers to the hierarchy for determination of fair value
(**) Other financial assets include: (i) Pledges, funds and tied deposits, (ii) Services rendered to third parties, (iii) Collection agreements, as disclosed in note 10
(***) Other financial liabilities include: (i) Consumers and concessionaires, (ii) Nacional scietific and technological development fund - FNDCT, (iii) Energy research company - EPE, (iv) Collection agreement, (v) Reversal fund, (vi) Business combination and (vii) Advance CDE/CCEE, as disclosed in note 22.
(****) As a result of the initial designation of this financial liability, the financial statements showed a loss of R$ 36,059 in the first quarter of 2014 (gain of R$ 5,830 in the first quarter of 2013)
Key
Category:	Measurement:
(a) - Measured at fair value through profit or loss	(1) - Measured at amortized cost
(b) - Loans and receivables	(2) - Mensured at fair value
(c) - Held to maturity
(d) - Available for sale
(e) - Other finance liabilities

a) Valuation of financial instruments

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

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

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

The three levels of fair value are:

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

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

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

Since the distribution subsidiaries have classified their financial asset of concession as available-for-sale, the relevant factors for measurement at fair value are not publicly observable. The fair value hierarchy classification is therefore level 3. The changes between periods and the respective gains (losses) in net income was R$ 69,602 (Note 9). There is no effect on equity.

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

98

b) Derivatives

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

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

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

99

		Market values (accouting balance)
Company / strategy / counterparts		Assets		Liabilities		Fair value, net		Values at cost, net		Gain/(Loss) on marking to market		Currecy / index		Maturity range		Notional		Negotiation market
Derivatives for protection of debts designated at fair value
Exchange rate hedge
CPFL Paulista
Bank of America Merrill Lynch		69,614		-		69,614		59,688		9,926		dollar		July 2016		156,700		over the counter
Citibank		25,065		-		25,065		22,444		2,621		dollar		September 2016		85,750		over the counter
Morgan Stanley		25,173		-		25,173		22,658		2,515		dollar		September 2016		85,475		over the counter
Scotiabank		3,658		-		3,658		2,333		1,325		dollar		July 2016		49,000		over the counter
Bank of America Merrill Lynch		-		(14,218)		(14,218)		(16,709)		2,491		dollar		July 2016		340,380		over the counter
Citibank		-		(8,524)		(8,524)		(8,073)		(451)		dollar		March 2019		117,250		over the counter
Bank of Tokyo-Mitsubishi		-		(9,012)		(9,012)		(8,063)		(949)		dollar		March 2019		117,400		over the counter
Bank of America Merrill Lynch		-		(5,836)		(5,836)		(7,243)		1,407		dollar		September 2018		106,020		over the counter
Bank of America Merrill Lynch		-		(5,232)		(5,232)		(6,757)		1,525		dollar		March 2019		116,600		over the counter
J.P. Morgan		-		(2,618)		(2,618)		(3,379)		760		dollar		March 2019		58,300		over the counter
		123,510		(45,441)		78,069		56,899		21,170
CPFL Piratininga
Citibank		-		(18,263)		(18,263)		(19,903)		1,640		dollar		January 2017		151,875		over the counter
Citibank		4,790		-		4,790		4,436		354		dollar		August 2016		12,840		over the counter
Scotiabank		4,778		-		4,778		3,047		1,731		dollar		July 2016		64,000		over the counter
Santander		-		(4,731)		(4,731)		(5,484)		754		dollar		July 2016		100,000		over the counter
Citibank		-		(8,524)		(8,524)		(8,073)		(451)		dollar		March 2019		117,250		over the counter
HSBC		-		(573)		(573)		(1,192)		619		dollar		April 2018		55,138		over the counter
J.P.Morgan		-		(532)		(532)		(1,190)		658		dollar		April 2018		55,138		over the counter
		9,568		(32,624)		(23,056)		(28,359)		5,304
CPFL Santa Cruz
J.P. Morgan		705		-		705		434		271		dolar		July 2015		20,000		over the counter
Santander		-		(389)		(389)		(520)		131		dolar		June 2016		20,000		over the counter
		705		(389)		316		(86)		402
CPFL Leste Paulista										-
Citibank		2,345		-		2,345		2,305		39		dollar		September 2014		8,000		over the counter
Scotiabank		1,325		-		1,325		983		342		dollar		July 2015		25,000		over the counter
		3,670		-		3,670		3,289		382
CPFL Sul Paulista
Citibank		2,345		-		2,345		2,305		39		dollar		September 2014		8,000		over the counter
J.P. Morgan		370		-		370		228		142		dollar		July 2015		10,500		over the counter
Scotiabank		557		-		557		413		144		dollar		July 2015		10,500		over the counter
Santander		-		(428)		(428)		(572)		144		dollar		June 2016		22,000		over the counter
		3,272		(428)		2,844		2,374		470
CPFL Jaguari
Citibank		2,452		-		2,452		2,420		32		dollar		August 2014		7,000		over the counter
Scotiabank		689		-		689		511		178		dollar		July 2015		13,000		over the counter
Santander		-		(603)		(603)		(806)		203		dollar		June 2016		31,000		over the counter
		3,141		(603)		2,539		2,126		413
CPFL Mococa
Citibank		2,052		-		2,052		2,017		35		dollar		September 2014		7,000		over the counter
Scotiabank		583		-		583		433		151		dollar		July 2015		11,000		over the counter
		2,635		-		2,635		2,450		185
CPFL Geração
HSBC		-		(10,803)		(10,803)		(13,421)		2,618		dollar		March 2017		232,520		over the counter

RGE
Citibank		25,066		-		25,066		23,165		1,901		dollar		April 2017		128,590		over the counter
J.P. Morgan		7,391		-		7,391		5,485		1,906		dollar		July 2016		94,410		over the counter
Bank of Tokyo-Mitsubishi		2,030		-		2,030		2,636		(605)		dollar		April 2018		36,270		over the counter
Bank of Tokyo-Mitsubishi		8,126		-		8,126		10,246		(2,120)		dollar		May 2018		168,346		over the counter
Citibank		-		(942)		(942)		(677)		(265)		dollar		May 2019		33,285		over the counter
		42,613		(942)		41,672		40,855		816
Subtotal
		189,114		(91,228)		97,886		66,126		31,759
Derivatives for protection of debts not designated at fair value
Exchange rate hedge
CPFL Geração
Votorantim		-		(3,426)		(3,426)		(2,935)		(491)		dollar		from July 2014 to December 2014		41,307		over the counter

Exchange price index
CPFL Geração
Santander		308		-		308		21		287		IPCA		April 2019		35,235		over the counter
J.P.Morgan		308		-		308		21		287		IPCA		April 2019		35,235		over the counter
		617		-		617		42		575
Hedge interest rate variation ⁽¹⁾
CPFL Paulista
Bank of America Merrill Lynch		-		(1,719)		(1,719)		32		(1,750)		CDI		July 2019		660,000		over the counter
J.P. Morgan		-		(909)		(909)		14		(923)		CDI		February 2021		300,000		over the counter
Votorantin		-		(274)		(274)		7		(281)		CDI		February 2021		100,000		over the counter
Santander		-		(282)		(282)		8		(290)		CDI		February 2021		105,000		over the counter
		-		(3,184)		(3,184)		60		(3,244)
CPFL Piratininga
J.P. Morgan		-		(286)		(286)		5		(292)		CDI		July 2019		110,000		over the counter
Votorantim		-		(297)		(297)		15		(313)		CDI		February 2021		135,000		over the counter
Santander		-		(205)		(205)		13		(218)		CDI		February 2021		100,000		over the counter
		-		(789)		(789)		33		(822)
RGE
HSBC		-		(1,302)		(1,302)		24		(1,326)		CDI		July 2019		500,000		over the counter
Votorantim		-		(548)		(548)		5		(553)		CDI		February 2021		170,000		over the counter
		-		(1,850)		(1,850)		29		(1,879)

CPFL Geração
Votorantim		-		(24)		(24)		104		(128)		CDI		August 2020		460,000		over the counter

Subtotal		617		(9,273)		(8,657)		(2,667)		(5,990)

Total		189,731		(100,502)		89,229		63,459		25,769

Current		9,194		(3,426)
Noncurrent		180,537		(97,075)

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

100

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

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

					Gain (Loss)
					2014				2013
Company		Hedged risk / transaction			2nd quarter		1st semester		2nd quarter		1st semester
CPFL Energia		Interest rate variation			-		-		106		220
CPFL Energia		Mark to Market			-		-		(235)		(357)
CPFL Paulista		Interest rate variation			(4)		97		72		72
CPFL Paulista		Exchange variation			(62,255)		(124,916)		109,131		86,835
CPFL Paulista		Mark to Market			(3,625)		6,839		(2,228)		(18,074)
CPFL Piratininga		Interest rate variation			11		53		22		25
CPFL Piratininga		Exchange variation			(24,297)		(51,941)		38,293		29,307
CPFL Piratininga		Mark to Market			891		5,354		2,134		(4,132)
RGE		Interest rate variation			(9)		42		124		207
RGE		Exchange variation			(23,590)		(50,098)		29,358		24,106
RGE		Mark to Market			(342)		5,331		(3,561)		(6,992)
CPFL Geração		Interest rate variation			70		179		-		-
CPFL Geração		Exchange variation			(14,207)		(19,669)		13,034		9,271
CPFL Geração		Mark to Market			661		1,748		2,639		(178)
CPFL Santa Cruz		Exchange variation			(1,972)		(4,218)		755		315
CPFL Santa Cruz		Mark to Market			15		435		38		(178)
CPFL Leste Paulista		Exchange variation			(1,696)		(3,650)		2,469		1,721
CPFL Leste Paulista		Mark to Market			(55)		189		99		(167)
CPFL Sul Paulista		Exchange variation			(2,567)		(5,511)		1,486		829
CPFL Sul Paulista		Mark to Market			(9)		475		68		(241)
CPFL Jaguari		Exchange variation			(2,564)		(5,504)		604		145
CPFL Jaguari		Mark to Market			20		542		31		(185)
CPFL Mococa		Exchange variation			(939)		(2,027)		1,396		983
CPFL Mococa		Mark to Market			(35)		82		55		(135)
					(136,500)		(246,166)		195,890		123,397

c) Sensitivity Analysis

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

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

101

c.1) Exchange rates variation

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

		Consolidated
Instruments		Exposure R$ thuosand (1)		Risk		Exchange depreciation of 10,2%*		Exchange depreciation of 25%**		Exchange depreciation of 50%**
Financial liability instruments		(2,929,844)				(298,505)		(1,105,592)		(1,912,679)
Derivatives - Plain Vanilla Swap		2,929,541				298,474		1,105,478		1,912,482
		(303)		dollar apprec.		(31)		(114)		(198)

Total (increase) decrease		(303)				(31)		(114)		(198)
(1) Exchange rate at June 30, 2014: R$ 2.20.
(*) In accordance with exchange graphs contained in information provided by the BM&F. Exchange rate used: R$ 2.43
(**) In compliance with CVM Instruction 475/08, the percentage of exchange depreciation are related to the information provided by the BM&F. As the net exposure is an asset, the risk is of a drop in the dollar and the exchange rate is therefore appreciated by 25% and 50% in relation to the probable dollar.

c.2) Variation in interest rates

Assuming that (i) the scenario of net exposure of the financial instruments indexed to variable interest rates at June 30, 2014 is maintained, and (ii) the respective accumulated annual indexes for the last 12 months remain stable (CDI 9.63% p.a.; IGP-M 6.24% p.a.; TJLP 5% p.a. and IPCA 6.52% p.a.), the effects on the Company’s financial statements for the next 12 months would be a net financial expense of R$ 921,813 (CDI R$ 720,699; IGP-M R$ 4,866; and TJLP R$ 196,267 and IPCA income of R$ 18). The risk to which the instruments are exposed is evaluated based on the net position. In the event of fluctuations in the indexes in accordance with the three scenarios described, the effect on the net financial expense would as follows:

		Consolidated
Instruments		Exposure R$ thousand		Risk		Scenario I*		Raising/Drop index by 25%()**		Raising/Drop index by 50%()**
Financial asset instruments		5,686,119				80,743		237,822		394,901
Financial liability instruments		(10,255,514)				(145,628)		(428,937)		(712,245)
Derivatives - Plain Vanilla Swap		(2,912,079)				(41,352)		(121,798)		(202,244)
		(7,481,474)		CDI apprec.		(106,237)		(312,913)		(519,588)

Financial liability instruments		(78,565)		IGP-M apprec.		715		(332)		(1,379)

Financial liability instruments		(3,923,659)		TJLP apprec.		-		(49,046)		(98,091)

Financial liability instruments		(71,484)				550		1,578		2,606
Derivatives - Plain Vanilla Swap		71,767				(553)		(1,584)		(2,616)
		283		drop in the IPCA		(2)		(6)		(10)

Total increase		(11,483,415)				(105,524)		(362,297)		(619,069)
(*) The CDI, IGP-M, TJLP and IPCA indexes considered of 11,05%, 5,33%, 5% and 5,75%, respectively, were obtained from information available in the market.
(**) In compliance with CVM Instruction 475/08, the percentage of raising index were applied to Scenario I indexes.

102

( 33 ) REGULATORY ASSETS AND LIABILITIES

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

	Consolidated
	June 30, 2014		March 31, 2014		December 31, 2013		June 30, 2013		March 31, 2013		December 31, 2012
Assets
Consumers, Concessionaires and Licensees
Discounts TUSD (*) and Irrigation	2,301		5,620		16,821		39,513		60,711		65,534
	2,301		5,620		16,821		39,513		60,711		65,534
Deferred Costs Variations
CVA (**)	810,102		688,357		547,402		694,043		686,461		897,364
	810,102		688,357		547,402		694,043		686,461		897,364
Prepaid Expenses
Overcontracting	303,593		248,454		170,084		66,543		83,174		74,885
Low income consumers' subsidy - Losses	-		-		-		-		-		2,064
Neutrality of the sector charges	3,506		-		-		5,497		2,845		2,850
Tariff adjustment	28,056		25,095		13,309		2,663		3,790		2,696
Other financial components	20,505		26,555		41,608		68,250		84,047		92,582
	355,660		300,104		225,001		142,953		173,856		175,078
Liabilities
Deferred Gains Variations
Parcel "A"	(1,454)		(1,454)		(1,454)		(1,454)		(1,454)		(1,443)
CVA (**)	(474,889)		(339,339)		(330,266)		(298,582)		(372,532)		(373,784)
	(476,343)		(340,793)		(331,720)		(300,037)		(373,987)		(375,227)
Other Accounts Payable
Replacement reibursement in PTR (***)	(102,768)		(138,089)		(138,621)		(177,032)		(205,913)		(242,987)
Discounts TUSD and Irrigation (*)	-		(64)		(193)		(453)		(376)		(363)
Tariff adjustment	(23,286)		(11,614)		(16,692)		-		-		-
Overcontracting	(9,737)		(17,513)		(29,928)		(40,346)		(26,090)		(28,919)
Low income consumers' subsidy - Gains	-		-		(5)		(10,587)		(13,979)		(22,813)
Neutrality of the sector charges	(28,692)		(36,611)		(34,745)		(58,064)		(60,033)		(66,985)
Other financial components	(53,471)		(36,286)		(29,393)		(21,521)		(4,027)		(4,254)
	(217,954)		(240,177)		(249,576)		(308,003)		(310,417)		(366,321)

Total net	473,766		413,111		207,928		268,470		236,624		396,428

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

( 34 ) NON CASH TRANSACTIONS

	Parent company				Consolidated
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Transactions resulting from business combinations
Loans, financing and debentures	-		-		(34,894)		-
Property, plant and eqiupment acquired through business combination	-		-		51,735		-
Intangible asset acquired in business combination, net of tax effects	-		-		42,743		-
Other net assets acquired through business combination	-		-		11,346		-
	-		-		70,930		-
Cash acquired in the business combination	-		-		(2,466)		-
Acquisition price paid	-		-		68,464		-

Other transactions
Capital increase in subsidiaries with Advance for future capital increase	59,397		-		-		-
Provision for socio-environmental costs capitalized in property, plant and equipment	-		-		9,193		-
Reversal of provision for socio-environmental costs capitalized in property, plant and equipment	-		-		-		624
Interest capitalized in property, plant and equipment	-		-		10,668		23,876
Interest capitalized in intangible concessoin asset - distribution infrastructure	-		-		3,505		5,139
Transfer from financial concession asset and intangible to property, plant and equipment as result of Spin-off generation activity on the distribuition	-		-		5,828		-
Transfer between property, plant and equipament and intangible	-		-		7,155		11,837
Transfer between property, plant and equipament and other assets	-		-		28,454		11,746
Realization of noncontrolling's capital reserve against to receivables	-		-		1,316		-

103

( 35 ) RELEVANT FACTS AND SUBSEQUENT EVENT

35.1 - Law 12973 of May 13, 2014

Publication of this Law introduced important changes in the regulations relating to Corporate income tax - IRPJ, Social Contribution on Net Income - CSSL, Employees’ profit participation program/Public Service Employee Savings Program (PIS/Pasep) and Contribution for Social Security Financing - Cofins regulations, including revocation of the Transitional Tax System (RTT) from January 1, 2014, for those adopting the measures, and January 1, 2015 for non-opting parties.

The Managements of the Company and its subsidiaries are assessing the impacts of these changes and the best time for adopting the measures.

104

OTHER RELEVANT INFORMATION

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

Shareholders		Common shares		Interest - %
ESC Energia S.A.		234,092,930		24.33
BB Carteira Livre I FIA		288,569,602		29.99
Bonaire Participações S.A.		6,308,790		0.66
Energia São Paulo FIA		136,820,640		14.22
Caixa de Previdência dos Funcionários do Banco do Brasil - Previ		487,700		0.05
Camargo Correa S.A.		837,860		0.09
Fundação Petrobras de Seguridade Social - Petros		1,759,900		0.18
Fundação Sistel de Seguridade Social		19,500		0.00
BNDES Participações S.A.		64,842,768		6.74
Other shareholders		228,534,570		23.75
Total		962,274,260		100.00

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

		June 30, 2014				June 30, 2013
Acionistas		Common shares		Interest - %		Common shares		Interest - %
Controlling shareholders		668,896,922		69.51		666,668,822		69.28
Administrator		-		-		-		-
Members of the Executive Officers		102,300		0.01		72,077		0.01
Members of the Board of Directors		800		0.00		-		-
Fiscal Council Members		-		-		-		-
Other shareholders		293,274,238		30.48		295,533,361		30.71
Total		962,274,260		100.00		962,274,260		100.00
Outstanding shares - free float		293,274,238		30.48		295,533,361		30.71

105

SHAREHOLDING STRUCTURE								2nd quarter 2014
CPFL ENERGIA S/A								Per units shares		Date of last change
1 - SHAREHOLDERS OF THE COMPANY	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders		668,896,922	69.51%	100.00%	-	0.00%	0.00%	668,896,922	69.51%
1.1 Esc Energia S.A.	15.146.011/0001-51	234,092,930	24.33%	100.00%	-	0.00%	0.00%	234,092,930	24.33%	25-Mar-13
1.2 Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I	73.899.742/0001-74	288,569,602	29.99%	100.00%	-	0.00%	0.00%	288,569,602	29.99%	26-Dec-12
1.3 Bonaire Participações S.A.	02.117.801/0001-67	6,308,790	0.66%	100.00%	-	0.00%	0.00%	6,308,790	0.66%	9-Apr-12
1.4 Energia São Paulo FIA	02.178.371/0001-93	136,820,640	14.22%	100.00%	-	0.00%	0.00%	136,820,640	14.22%	25-Mar-13
1.5 Caixa de Previdência dos Funcionários do Banco do Brasil - Previ	33.754.482/0001-24	487,700	0.05%	100.00%	-	0.00%	0.00%	487,700	0.05%	9-Apr-12
1.6 Camargo Correa S.A.	01.098.905/0001-09	837,860	0.09%	100.00%	-	0.00%	0.00%	837,860	0.09%	25-Mar-13
1.7 Fundação Petrobras de Seguridade Social - Petros	34.053.942/0001-50	1,759,900	0.18%	100.00%	-	0.00%	0.00%	1,759,900	0.18%	7-Jun-13
1.8 Fundação Sistel de Seguridade Social	00.493.916/0001-20	19,500	0.00%	100.00%	-	0.00%	0.00%	19,500	0.00%	26-Sep-13
Noncontrolling shareholders		293,377,338	30.49%	100.00%	-	0.00%	0.00%	293,377,338	30.49%
1.9 BNDES Participações S.A.	00.383.281/0001-09	64,842,768	6.74%	100.00%	-	0.00%	0.00%	64,842,768	6.74%	30-Nov-13
1.10 Board of Directors		800	0.00%	100.00%	-	0.00%	0.00%	800	0.00%	30-Apr-14
1.11 Executive officers		102,300	0.01%	100.00%	-	0.00%	0.00%	102,300	0.01%	31-Jan-13
1.12 Other shareholders		228,431,470	23.74%	100.00%	-	0.00%	0.00%	228,431,470	23.74%
Total		962,274,260	100.00%	100.00%	-	0.00%	0.00%	962,274,260	100.00%
2 - Entity: 1.1 Esc Energia S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders		1,108,804,612	100.00%	100.00%	-	0.00%	0.00%	1,108,804,612	100.00%
1.1.1 VBC Energia S.A.	00.095.147/0001-02	554,402,306	50.00%	100.00%	-	0.00%	0.00%	554,402,306	50.00%	28-Nov-13
1.1.2 Átila Holdings S/A	07.305.671/0001-00	554,402,306	50.00%	100.00%	-	0.00%	0.00%	554,402,306	50.00%	28-Nov-13
Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
Total		1,108,804,612	100.00%	100.00%	-	0.00%	0.00%	1,108,804,612	100.00%
3 - Entity: 1.1.1 VBC ENERGIA S/A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders		3,840,605	88.55%	98.39%	62,981	100.00%	1.61%	3,903,586	88.71%
1.1.1.1 Camargo Corrêa Energia S.A.	04.922.357/0001-88	1,937,959	44.68%	97.63%	47,018	74.65%	2.37%	1,984,977	45.11%	28-Nov-13
1.1.1.2 Camargo Corrêa S.A.	01.098.905/0001-09	1,902,646	43.87%	99.17%	15,963	25.35%	0.83%	1,918,609	43.60%	28-Nov-13
Noncontrolling shareholders		496,670	11.45%	100.00%	-	0.00%	0.00%	496,670	11.29%
1.1.1.3 Camargo Corrêa Investimento em Infra-Estrutura S.A.	02.372.232/0001-04	496,665	11.45%	100.00%	-	0.00%	0.00%	496,665	11.29%	28-Nov-13
1.1.1.4 Demais acionistas		5	0.00%	100.00%	-	0.00%	0.00%	5	0.00%
Total		4,337,275	100.00%	98.57%	62,981	100.00%	1.43%	4,400,256	100.00%
4- Entity: 1.1.2 Átila Holdings S/A	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders		821,452,787	100.00%	100.00%	-	0.00%	0.00%	821,452,787	100.00%
1.1.2.1 Construções e Comércio Camargo Corrêa S.A.	61.522.512/0001-02	380,575,180	46.33%	100.00%	-	0.00%	0.00%	380,575,180	46.33%	31-Aug-11
1.1.2.2 Camargo Corrêa S.A	01.098.905/0001-09	440,877,607	53.67%	100.00%	-	0.00%	0.00%	440,877,607	53.67%	1-Sep-09
Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
Total		821,452,787	100.00%	100.00%	-	0.00%	0.00%	821,452,787	100.00%
5 - Entity: 1.1.1.1 Camargo Corrêa Energia S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders		2,360,886	100.00%	77.41%	689,071	100.00%	22.59%	3,049,957	100.00%
1.1.1.1.1 Camargo Corrêa Investimento em Infra-Estrutura S.A.	02.372.232/0001-04	2,360,886	100.00%	77.41%	689,071	100.00%	22.59%	3,049,957	100.00%	30-Apr-12
Noncontrolling shareholders		-	0.00%	0.00%	4	0.00%	100.00%	4	0.00%
1.1.1.1.2 Other shareholders		-	0.00%	0.00%	4	0.00%	100.00%	4	0.00%
Total		2,360,886	100.00%	77.41%	689,075	100.00%	22.59%	3,049,961	100.00%
6 - Entity: 1.1.1.2 Camargo Corrêa S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders		48,943	99.99%	34.46%	93,099	100.00%	65.54%	142,042	100.00%
1.1.1.2.1 Participações Morro Vermelho S.A.	03.987.192/0001-60	48,943	99.99%	34.46%	93,099	100.00%	65.54%	142,042	100.00%	30-Apr-12
Noncontrolling shareholders		3	0.01%	75.00%	1	0.00%	25.00%	4	0.00%
1.1.1.2.2 Other shareholders		3	0.01%	75.00%	1	0.00%	25.00%	4	0.00%
Total		48,946	100.00%	34.46%	93,100	100.00%	65.54%	142,046	100.00%
7 - Entity: 1.1.1.3 Camargo Corrêa Investimento em Infra-Estrutura S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders		1,058,326,174	100.00%	100.00%	-	0.00%	0.00%	1,058,326,174	100.00%
1.1.1.3.1 Camargo Corrêa S.A.	01.098.905/0001-09	1,058,326,174	100.00%	100.00%	-	0.00%	0.00%	1,058,326,174	100.00%	2-mai-13
Noncontrolling shareholders		4	0.00%	100.00%	-	0.00%	0.00%	4	0.00%
1.1.1.3.2 Other shareholders		4	0.00%	100.00%	-	0.00%	0.00%	4	0.00%
Total		1,058,326,178	100.00%	100.00%	-	0.00%	0.00%	1,058,326,178	100.00%
8 - Entity: 1.1.2.1 Construções e Comércio Camargo Corrêa S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders		527,213	100.00%	85.73%	87,780	100.00%	14.27%	614,993	100.00%
1.1.2.1.1 Camargo Corrêa Construções e Participações S.A.	11.196.609/0001-02	527,213	100.00%	85.73%	87,780	100.00%	14.27%	614,993	100.00%	30-Apr-14
Noncontrolling shareholders		1	0.00%	100.00%	-	0.00%	0.00%	1	0.00%
1.1.2.1.2 Other shareholders		1	0.00%	100.00%	-	0.00%	0.00%	1	0.00%
Total		527,214	100.00%	85.73%	87,780	100.00%	14.27%	614,994	100.00%
9 - Entity: 1.1.1.2.1 Participações Morro Vermelho S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders		2,249,991	100.00%	100.00%	-	0.00%	0.00%	2,249,991	33.33%
1.1.1.2.1.1 RCABON Empreendimentos e Participações S.A	09.594.448/0001-55	749,997	33.33%	100.00%	-	0.00%	0.00%	749,997	11.11%	2-May-12
1.1.1.2.1.2 RCNON Empreendimentos e Participações S.A	09.594.570/0001-21	749,997	33.33%	100.00%	-	0.00%	0.00%	749,997	11.11%	2-May-12
1.1.1.2.1.3 RCPODON Empreendimentos e Participações S.A	09.594.541/0001-60	749,997	33.33%	100.00%	-	0.00%	0.00%	749,997	11.11%	2-May-12
Noncontrolling shareholders		9	0.00%	0.00%	4,500,000	100.00%	100.00%	4,500,009	66.67%
1.1.1.2.1.4 RCABPN Empreendimentos e Participações S.A	09.594.459/0001-35	-	0.00%	0.00%	1,498,080	33.29%	100.00%	1,498,080	22.19%	1-Oct-08
1.1.1.2.1.5 RCNPN Empreendimentos e Participações S.A	09.594.480/0001-30	-	0.00%	0.00%	1,498,080	33.29%	100.00%	1,498,080	22.19%	1-Oct-08
1.1.1.2.1.6 RCPODPN Empreendimentos e Participações S.A	09.594.468/0001-26	-	0.00%	0.00%	1,498,080	33.29%	100.00%	1,498,080	22.19%	1-Oct-08
1.1.1.2.1.7 RRRPN Empreendimentos e Participações S.A	09.608.284/0001-78	-	0.00%	0.00%	5,760	0.13%	100.00%	5,760	0.09%	1-Oct-08
1.1.1.2.1.8 Other shareholders		9	0.00%	100.00%	-	0.00%	0.00%	9	0.00%
Total		2,250,000	100.00%	33.33%	4,500,000	100.00%	66.67%	6,750,000	100.00%
10 - Entity: 1.1.2.1.1 Camargo Corrêa Construções e Participações S.A.	CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders		2,398,357,921	100.00%	100.00%	-	0.00%	0.00%	2,398,357,921	100.00%
1.1.2.1.1.1 Camargo Corrêa S.A.	01.098.905/0001-09	2,398,357,921	100.00%	100.00%	-	0.00%	0.00%	2,398,357,921	100.00%	15-Oct-13
Noncontrolling shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
1.1.2.1.1.2 Other shareholders		-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
Total		2,398,357,921	100.00%	100.00%	-	0.00%	0.00%	2,398,357,921	100.00%

(continue)

106

11 - Entity: 1.1.1.2.1.1 RCABON Empreendimentos e Participações S.A		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			749,850	100.00%	99.99%	40	26.67%	0.01%	749,890	99.99%
1.1.1.2.1.1.1 Rosana Camargo de Arruda Botelho		535.804.358-68	749,850	100.00%	99.99%	40	26.67%	0.01%	749,890	99.99%		1-Oct-08
Noncontrolling shareholders			-	0.00%	0.00%	110	73.33%	100.00%	110	0.01%
1.1.1.2.1.1.2 Other shareholders			-	0.00%	0.00%	110	73.33%	100.00%	110	0.01%
Total			749,850	100.00%	99.98%	150	100.00%	0.02%	750,000	100.00%
12 - Entity: 1.1.1.2.1.2 RCNON Empreendimentos e Participações S.A		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			749,850	100.00%	99.99%	40	26.67%	0.01%	749,890	99.99%
1.1.1.2.1.2.1 Renata de Camargo Nascimento		535.804.608-97	749,850	100.00%	99.99%	40	26.67%	0.01%	749,890	99.99%		1-Oct-08
Noncontrolling shareholders			-	0.00%	0.00%	110	73.33%	100.00%	110	0.01%
1.1.1.2.1.2.2 Other shareholders			-	0.00%	0.00%	110	73.33%	100.00%	110	0.01%
Total			749,850	100.00%	99.98%	150	100.00%	0.02%	750,000	100.00%
13 - Entity: 1.1.1.2.1.3 RCPODON Empreendimentos e Participações S.A		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			749,850	100.00%	100.00%	-	0.00%	0.00%	749,850	99.98%
1.1.1.2.1.3.1 Regina de Camargo Pires Oliveira Dias		153.204.398-81	749,850	100.00%	100.00%	-	0.00%	0.00%	749,850	99.98%		1-Oct-08
Noncontrolling shareholders			-	0.00%	0.00%	150	100.00%	100.00%	150	0.02%
1.1.1.2.1.3.2 Other shareholders			-	0.00%	0.00%	150	100.00%	100.00%	150	0.02%
Total			749,850	100.00%	99.98%	150	100.00%	0.02%	750,000	100.00%
14 - Entity: 1.1.1.2.1.4 RCABPN Empreendimentos e Participações S.A		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			1,499,890	99.99%	100.00%	-	0.00%	0.00%	1,499,890	99.99%
1.1.1.2.1.4.1 Rosana Camargo de Arruda Botelho		535.804.358-68	1,499,890	99.99%	100.00%	-	0.00%	0.00%	1,499,890	99.99%		1-Oct-08
Noncontrolling shareholders			110	0.01%	100.00%	-	0.00%	0.00%	110	0.01%
1.1.1.2.1.4.2 Other shareholders			110	0.01%	100.00%	-	0.00%	0.00%	110	0.01%
Total			1,500,000	100.00%	100.00%	-	0.00%	0.00%	1,500,000	100.00%
15 - Entity: 1.1.1.2.1.5 RCNPN Empreendimentos e Participações S.A		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			1,499,890	99.99%	100.00%	-	0.00%	0.00%	1,499,890	99.99%
1.1.1.2.1.5.1 Renata de Camargo Nascimento		535.804.608-97	1,499,890	99.99%	100.00%	-	0.00%	0.00%	1,499,890	99.99%		1-Oct-08
Noncontrolling shareholders			110	0.01%	100.00%	-	0.00%	0.00%	110	0.01%
1.1.1.2.1.5.2 Other shareholders			110	0.01%	100.00%	-	0.00%	0.00%	110	0.01%
Total			1,500,000	100.00%	100.00%	-	0.00%	0.00%	1,500,000	100.00%
16 - Entity: 1.1.1.2.1.6 RCPODPN Empreendimentos e Participações S.A		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			1,499,850	99.99%	100.00%	-	0.00%	0.00%	1,499,850	99.99%
1.1.1.2.1.6.1 Regina de Camargo Pires Oliveira Dias		153.204.398-81	1,499,850	99.99%	100.00%	-	0.00%	0.00%	1,499,850	99.99%		1-Oct-08
Noncontrolling shareholders			150	0.01%	100.00%	-	0.00%	0.00%	150	0.01%
1.1.1.2.1.6.2 Other shareholders			150	0.01%	100.00%	-	0.00%	0.00%	150	0.01%
Total			1,500,000	100.00%	100.00%	-	0.00%	0.00%	1,500,000	100.00%
17 - Entity: 1.1.1.2.1.7 RRRPN Empreendimentos e Participações S.A		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			5,940	100.00%	100.00%	-	0.00%	0.00%	5,940	100.00%
1.1.1.2.1.7.1 Rosana Camargo de Arruda Botelho		535.804.358-68	1,980	33.33%	100.00%	-	0.00%	0.00%	1,980	33.33%		1-Oct-08
1.1.1.2.1.7.2 Renata de Camargo Nascimento		535.804.608-97	1,980	33.33%	100.00%	-	0.00%	0.00%	1,980	33.33%		1-Oct-08
1.1.1.2.1.7.3 Regina de Camargo Pires Oliveira Dias		153.204.398-81	1,980	33.33%	100.00%	-	0.00%	0.00%	1,980	33.33%		1-Oct-08
Noncontrolling shareholders			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
Total			5,940	100.00%	100.00%	-	0.00%	0.00%	5,940	100.00%
18 - Entity: 1.2 Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			130,163,541	100.00%	100.00%	-	0.00%	0.00%	130,163,541	100.00%
1.2.1 Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI		33.754.482/0001-24	130,163,541	100.00%	100.00%	-	0.00%	0.00%	130,163,541	100.00%		3-Nov-09
Noncontrolling shareholders			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
Total			130,163,541	100.00%	100.00%	-	0.00%	0.00%	130,163,541	100.00%
19 - Entity: 1.3 Bonaire Participações S.A.		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			66,728,875	0.00%	100.00%	-	0.00%	0.00%	66,728,875	0.00%
1.3.1 Energia São Paulo Fundo de Investimento em Ações		02.178.371/0001-93	66,728,875	0.00%	100.00%	-	0.00%	0.00%	66,728,875	0.00%		19-Dec-12
Noncontrolling shareholders			3	0.00%	100.00%	-	0.00%	0.00%	3	0.00%
1.3.2 Other shareholders			3	0.00%	100.00%	-	0.00%	0.00%	3	0.00%
Total			66,728,878	0.00%	100.00%	-	0.00%	0.00%	66,728,878	0.00%
20 - Entity: 1.4 Energia São Paulo Fundo de Investimento em Ações		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			796,479,768	100.00%	100.00%	-	0.00%	0.00%	796,479,768	100.00%
1.4.1 Fundos de Investimento em Cotas de Fundo de Investimento em Participações 114		07.792.436/0001-00	353,528,507	44.39%	100.00%	-	0.00%	0.00%	353,528,507	44.39%		16-Nov-04
1.4.2 Fundação Petrobras de Seguridade Social - Petros		34.053.942/0001-50	181,405,069	22.78%	100.00%	-	0.00%	0.00%	181,405,069	22.78%		16-Nov-04
1.4.3 Fundação Sabesp de Seguridade Social - Sabesprev		65.471.914/0001-86	4,823,881	0.61%	100.00%	-	0.00%	0.00%	4,823,881	0.61%		16-Nov-04
1.4.4 Fundação Sistel de Seguridade Social		00.493.916/0001-20	256,722,311	32.23%	100.00%	-	0.00%	0.00%	256,722,311	32.23%		16-Nov-04
Noncontrolling shareholders			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
Total			796,479,768	100.00%	100.00%	-	0.00%	0.00%	796,479,768	100.00%
21 - Entity: 1.4.1 Fundos de Investimento em Cotas de Fundo de Investimento em Participações 114		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			353,528,507	100.00%	100.00%	-	0.00%	0.00%	353,528,507	100.00%
1.4.1.1 Fundação CESP		62.465.117/0001-06	353,528,507	100.00%	100.00%	-	0.00%	0.00%	353,528,507	100.00%		16-Nov-04
Noncontrolling shareholders			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
Total			353,528,507	100.00%	100.00%	-	0.00%	0.00%	353,528,507	100.00%
22 - Entity: 1.9 BNDES Participações S.A.		CNPJ or CPF	Quotes/common shares	%	% Total	Preferred shares	%	% Total	TOTAL	% Total
Controlling shareholders			1	100.00%	100.00%	-	0.00%	0.00%	1	100.00%
1.9.1 Banco Nacional de Desenv. Econômico e Social ( 1 )		33.657.248/0001-89	1	100.00%	100.00%	-	0.00%	0.00%	1	100.00%		15-Dec-09
Noncontrolling shareholders			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
			-	0.00%	0.00%	-	0.00%	0.00%	-	0.00%
Total			1	100.00%	100.00%	-	0.00%	0.00%	1	100.00%

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

107

Half Yearly Social Report 2014 /2013 (*)


Company: CPFL ENERGIA S.A.

1 - Basis for Calculation	1st semester of 2014 Value (R$ thousand)			1st semester of 2013 Value (R$ thousand)
Net Revenues (NR)	7,820,993			7,313,769
Operating Result (OR)	547,615			486,066
Gross Payroll (GP)	339,809			326,672
2 - Internal Social Indicators	Value (thousand)	% of GP	% of NR	Value (thousand)	% of GP	% of NR
Food	28,771	8.47%	0.37%	27,267	8.35%	0.37%
Mandatory payroll taxes	90,846	26.73%	1.16%	87,772	26.87%	1.20%
Private pension plan	18,025	5.30%	0.23%	17,753	5.43%	0.24%
Health	17,843	5.25%	0.23%	18,169	5.56%	0.25%
Occupational safety and health	1,226	0.36%	0.02%	1,398	0.43%	0.02%
Education	1,070	0.31%	0.01%	1,135	0.35%	0.02%
Culture	0	0.00%	0.00%	0	0.00%	0.00%
Trainning and professional development	3,045	0.90%	0.04%	5,633	1.72%	0.08%
Day-care / allowance	486	0.14%	0.01%	478	0.15%	0.01%
Profit / income sharing	26,557	7.82%	0.34%	17,648	5.40%	0.24%
Others	3,340	0.98%	0.04%	3,164	0.97%	0.04%
Total - internal social indicators	191,209	56.27%	2.44%	180,417	55.23%	2.47%
3 - External Social Indicators	Value (thousand)	% of OR	% of NR	Value (thousand)	% of OR	% of NR
Education	70	0.01%	0.00%	830	0.17%	0.01%
Culture	3,924	0.72%	0.05%	5,099	1.05%	0.07%
Health and sanitation	343	0.06%	0.00%	292	0.06%	0.00%
Sport	0	0.00%	0.00%	153	0.03%	0.00%
War on hunger and malnutrition	0	0.00%	0.00%	0	0.00%	0.00%
Others	2,854	0.52%	0.04%	1,636	0.34%	0.02%
Total contributions to society	7,191	1.31%	0.09%	8,010	1.65%	0.11%
Taxes (excluding payroll taxes)	2,214,780	404.44%	28.32%	2,161,314	444.65%	29.55%
Total - external social indicators	2,221,971	405.75%	28.41%	2,169,324	446.30%	29.66%
4 - Environmental Indicators	Value (thousand)	% of OR	% of NR	Value (thousand)	% of OR	% of NR
Investments relalated to company production / operation	17,276	3.15%	0.22%	18,284	3.76%	0.25%
Investments in external programs and/or projects	28,131	5.14%	0.36%	32,224	6.63%	0.44%
Total environmental investments	45,407	8.29%	0.58%	50,508	10.39%	0.69%
Regarding the establishment of "annual targets" to minimize residues, the consumption in production / operation and increase efficiency in the use of natural resources, the company:	( ) do not have targets ( ) fulfill from 51 to 75% ( ) fulfill from 0 to 50% (X) fulfill from 76 to 100%			( ) do not have targets ( ) fulfill from 51 to 75% ( ) fulfill from 0 to 50% (X) fulfill from 76 to 100%
5 - Staff Indicators	1st semester of 2014			1st semester of 2013
Nº of employees at the end of period	8,827			8,639
Nº of employees hired during the period	1,252			620
Nº of outsourced employees	ND			ND
Nº of interns	195			242
Nº of employees above 45 years age	2,057			1,987
Nº of women working at the company	2,004			2,169
% of management position occupied by women	8.72%			10.24%
Nº of Afro-Brazilian employees working at the company	1,524			1,232
% of management position occupied by Afro-Brazilian employees	0.58%			1.96%
Nº of employees with disabilities	275			276
6 - Relevant information regarding the exercise of corporate citizenship	1st semester of 2014			1st semester of 2013
Ratio of the highest to the lowest compensation at company	24.23			24.07
Total number of work-related accidents	24			32
Social and environmental projects developed by the company were decided upon by:	( ) directors	(X) directors and managers	( ) all employees	( ) directors	(X) directors and managers	( ) all employees
Health and safety standards at the workplace were decided upon by:	( ) directors and managers	( ) all employees	(X) all + Cipa	( ) directors and managers	( ) all employees	(X) all + Cipa
Regarding the liberty to join a union, the right to a collective negotiation and the internal representation of the employees, the company:	( ) does not get involved	( ) follows the OIT rules	(X) motivates and follows OIT	( ) does not get involved	( ) follows the OIT rules	(X) motivates and follows OIT
The private pension plan contemplates:	( ) directors	( ) directors and managers	(X) all employees	( ) directors	( ) directors and managers	(X) all employees
The profit / income sharing contemplates:	( ) directors	( ) directors and managers	(X) all employees	( ) directors	( ) directors and managers	(X) all employees
In the selection of suppliers, the same ethical standards and social / environmental responsibilities adopted by the company:	( ) are not considered	( ) are suggested	(X) are required	( ) are not considered	( ) are suggested	(X) are required
Regarding the participation of employees in voluntary work programs, the company:	( ) does not get involved	( ) supports	(X) organizes and motivates	( ) does not get involved	( ) supports	(X) organizes and motivates
Total number of customer complaints and criticisms:	in the company	in Procon	in the Courts	in the company (**)	in Procon (**)	in the Courts
Total number of customer complaints and criticisms:	972,115	738	3,314	885,610	526	1,083
% of complaints and criticisms attended to or resolved:	in the company	in Procon	in the Courts	in the company (**)	in Procon (**)	in the Courts
% of complaints and criticisms attended to or resolved:	100%	100%	22.5%	100%	100%	3.2%
Total value-added to distribute (R$ 000):	1S14	3,946,854		1S13	3,739,426
Value-Added Distribution (VAD):	57.8% government 10,0% employees 0% shareholders 24.2% third parties 8.1% retained			59.5% government 10.2% employees 0% shareholders 22.9% third parties 7.3% retained
7 - Other information
Responsible: Sergio Luiz Felice, phone: 55-19-3756-8018, [email protected]
(*) Information not reviewed by the independent auditors

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

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

108

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

(Convenience Translation into English from the Original Previously Issued in Portuguese)

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

To the Board of Directors and Shareholders of

CPFL Energia S.A.

São Paulo - SP

Introduction

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

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

Scope of review

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

Conclusion on the individual interim financial information

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

109

Conclusion on the consolidated interim financial information

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

Emphases of matter

Founds Transferred from Energy Development Account - CDE

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

Other matters

Statements of value added

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

Campinas, August 11, 2014

DELOITTE TOUCHE TOHMATSU	Marcelo Magalhães Fernandes
Auditores Independentes	Engagement Partner

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

110

SIGNATURES

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

Date: August 15, 2014

CPFL ENERGIA S.A.

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

FORWARD-LOOKING STATEMENTS

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