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CPFL Energia – Highlights

• Brazilian’s largest player in distribution and commercializationbusinesses

• Energy market is concentrated in the most developed regions of Brazil (South/Southeast)

• CPFL is listed in the Novo Mercado in Bovespa and ADR level III in NYSE

• Differentiated Dividend Policy: payment of 50% of the net income on a semi-annual basis

• 100% hydraulic generation portfolio, with a strong growth in theinstalled capacity in the last few years

• Long term generation and distribution concessions

• 5 distribution companies’ acquisition, 9 SPP’s and RGE’s stake (33%), Foz do Chapecó HPP’s stake (11%) and Lajeado HPP’s stake (7%) inthe last 2 years, with a R$ 1.1 billion investment

• First company in the Brazilian electric sector to negotiate carbon credits, through a run-of-stream HPP

• Constitution of CPFL Bioenergia, for investments in energy generation from biomass

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• Organic growth and leadership in market-share

• Operational efficiency focus

• Small distribution companies acquisition, strategically located

• Large distribution companies acquisition

• Cooperatives acquisition

• Private networks incorporation

Distribution

Generation

• High EBITDA margin

• Long term concessions

• Projects’ conclusion

• SPP’s repowering, construction and acquisition

• Energy cogeneration through biomass

• Green field projects - Auctions

Commercialization

• Leadership in market-share: 21.3%

• Increasing in Value Added Services (VAS) and new products and services

• New opportunities - clients between 0.5 and 3.0 MW, supplied by cogeneration or SPP’s

• Consistent results

CPFL Energia’s Investment Case join the current portfolio growth with acquisition opportunities

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55

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Strong growth in the installed capacity and long term concessions in the generation ventures

GENERATION

812

434

854 915 1,072

1,588 1,738 1,7382,174

472 525 571 800 862 862 1,082

2003 2004 2005 2006 20073 2008(e) 2009(e) 2010(e)

Serra da Mesa1

SPP’s CPFL Geração Monte Claro Barra Grande

14 de Julho

Castro Alves Foz do ChapecóCampos Novos

CPFL Sul2 Lajeado

SPP’s CPFL Jaguariúna3

2027 2036 2036 2036 20362035

2028 20362032

2015

Installed Capacity (MW)Assured Energy (MWmedium)Concession Term 48.2%

40.2%

9.4%

7.7%

25.1%

25.5%

(1) CPFL has the right of 51.54% of the Assured Energy until 2028 (2) Hydroelectric projects with installed capacity <= 1,000 kW are not eligible to concession(3) Among the 9 SPP’s of CPFL Jaguariúna, 6 are in the situation mentioned in note 2

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SPP’s: Greenfield Projects

Partnership to studies and implementation of SPP’s

70 analysed projects and enrollment in ANEEL for 10 projects

• Low Internal Rate of Return• PPA’s already signed with unattractive prices• Impracticable environmental requirements

Feasible in the medium and long

term

Feasible in theshort term

Feasible Projects in the short term (up to 30 months)

GENERATION

Technical studies and enrollment in ANEEL

Installation License and

construction of the SPP’s

Basic projects and

environmental studies

(necessary for the previous

license)

ANEEL and environmental

agencies’approval

OK 2008 2008/2009 24 months

Capacity: 75.6 MW

Estimated investment:

R$ 285 million

60 discarded projects

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4

8

99

1010

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CPFL presents sales growth in the concession area and in the free market

33,076 31,23518,289

35,24531,7785,828

3,28811,230

9,5857,26324,117

38,49836,364

46,47541,363

2004 2005 2006 2007 1H08

TUSDCAPTIVE

4,277

8,9519,3347,120

3,209

2004 2005 2006 2007 1H08

Concession Area Sales - GWh Free Market Sales (GWh)27.8%

178.9%

Note: excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market)1) Excluding the effect of acquisition of CPFL Jaguariúna 2) Source: EPE (2Q08)11

Concession Area Sales – GWh – 1H08

2,8%1Southeast2

2,8%3,4%1

Brazil23,5%

6,0%

South2

4,8%

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Conclusion of the 2nd Periodic Tariff Revision cycle for the Group’s distributors,with CPFL Paulista and RGE’s indexes released in April

R$ million

Note: Nominal values (1) Values for the 1st and 2nd cycle using the same methodology: 2nd cycle – exclude PIS/COFINS and R&D charges (2) With financial components

22%4542316%430371Reintegration Quote

45%1,13210431%1,028783Reference Company

30%2,37817321%2,2061,823Parcel B1

25%4,83228418%4,5473,857Net RAB

28%10,42552821%9,8978,173Gross RAB

TotalAcquisitions (CPFL

Santa Cruz and CPFL Jaguariúna)

CPFL Paulista, CPFL Piratininga

and RGE

CPFL Paulista, CPFL Piratininga

and RGE

2nd Cycle 2007/081st Cycle 20031

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Summary

Capital market performance

Energy market overview

CPFL Energia’s investments

Dividends

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Spreading proposes consolidation opportunities

Distributors (#) 64

2007

61

376.9

Clients (million)

Distributed Energy (TWh)

• Distribution Business:

Market Breakdown

• The 5 largest groups have 50% of market-share

• State-owned companies: 34%

• Private Company: 66%

1) ANEEL – Ref. 2Q07 (Recalculation of CPFL’s participation) – last information available

Distribution Market Share1 %Market Share1 (%)

Brazilian market has 64 distribution’s companies

COPEL 6.8%

CELESC 4.0%

EdB 5.7%

Energisa 3.5%

Ashmore Energy 3.7%

Others 34.8%

CPFL Energia 13.3%

Brasiliana Energia 12.1%

CEMIG Companhia Energética 8.6%

Neoenergia 7.4%

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Generation Companies (#) 1,695

1Q08

108,852Installed Capacity (MW)

• Generation Business:

Market Breakdown

• The 5 largest groups have 50% of the market

• State-owned companies: 70%

• Private Company: 30%

Source: Aneel – last information available Market breakdown: Acende Brasil

Others 35%

Chesf 10%

Furnas 9%

Eletronorte 9%

CESP 7%Itaipu 7%

Cemig 6%

Tractebel 6%

Copel 4%

AES Tietê 3%

Duke 2%

CPFL Energia 2%

Market Share (%)

Brazilian market has 1,695 generation companies. The public sector concentrates 70% of the assets

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1818

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May, 2006

32.69%

414

Aug, 2006

11%

9

Oct, 2006

99.9%

203

Apr, 2007

100%

412

AcquiredStake

Investment –Equity

(R$ million)

Asset

CPFL Energia supports investment politics aligned with the Group’s growth strategy

606 627 797

627418

606 6331,133

1,5511,425

2004 2005 2006 2007

Capex Total(1) Acquisitions(2)

Actual Investment (R$ million)

(1) Considers minority shareholder participation’s acquisitions (2) Considers CERFRA Cooperative assets acquisition Note: Hedge not included19

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CPFL’s estimated Capex

Total Capex (R$ million)

519296 108 22 6

677828

782 815 783

890 837 789

1,1241,196

2008E 2009E 2010E 2011E 2012E

Generation Distribution

391

570515 546 512

285 258 267 269 271

2008E 2009E 2010E 2011E 2012E

Expansion Maintenance

362

225

8117 6

157

7127 5 0,3

2008E 2009E 2010E 2011E 2012E

Debt Equity

CPFL Energia’s investment in the next 5 years: R$ 5 billion

Distribution - R$ million Generation - R$ million

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