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Summary

Energy market overview

CPFL Energia – Highlights and Results

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Brazilian market has 64 distribution’s companies

Spreading proposes consolidation opportunities

Distribution Business – 2007

13%

12%

9%

8%

7%

6%

5%

4%

2%

35%

CPFL Energia

Brasiliana Energia

Cemig

Neoenergia

Copel

EdB

Celesc

Ashmore Energy

Energisa

Others

Distributors (#) 64

61Clients (million)

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

• State-owned companies: 34%

• Private Company: 66%

Market Breakdown

Distributed Energy (TWh) 376.9

Market Share1 (%)

1) ANEEL – Ref. 1Q08 annualized (Recalculation of CPFL’s participation)3

4

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

Generation Business – 1Q08

Hydroelectric plants (#) 1,695

108,852Installed Capacity (MW)

• The 6 largest groups have 50% of the market

• State-owned companies: 70%

• Private Company: 30%

Market Breakdown

10%

9%

9%

7%

7%

6%

6%

4%

4%

3%

2%

2%

31%

Chesf

Furnas

Eletronorte

Cesp

Itaipu

Cemig

Tractebel

Copel

Petrobrás

AES Tietê

Duke

CPFL Energia

Others

Market Share (%)

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

4th largest private generation company in Brazil

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Summary

Energy market overview

CPFL Energia – Highlights and Results

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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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7 1) Includes 0.2% of others 2) Aneel (estimated) Note: CPFL Jaguariúna will be maintened out of operation7

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• Operational efficiency focus

• Small distribution companies acquisition, strategically located

• Large distribution companies acquisition

• Cooperatives acquisition

• Private networks incorporation

Distribution

Generation

• Projects’ conclusion

• SPP’s repowering, construction and acquisition

• Energy cogeneration through biomass

• Green field projects - Auctions

Commercialization• 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

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

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Focus on capturing synergies and optimization of levels of Group delinquencies

Delinquency Recovery² – R$ million

Amount sent to SPC (in R$) Amount recovered (in R$)

4Q07 4Q08

Delinquency1 – (%)

1) Receivables past due > 30 days - % of total Revenues – outstanding as at December 31 2008 2) Excluding CPFL Jaguariúna

DISTRIBUTION

9

Consolidated

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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 1,737 1,7382,202

472 525 571 800 861 862 1,093

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%

9.3%

7.6%

26,71%

26,9%

(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 Note: Includes expected two SPP’s repowering in 200910

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GENERATION

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GENERATION

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• Contract signed: Aug 2008

• Construction of a sugar cane bagasse-fired thermoelectric generation plant

• Location: Pirassununga – SP

• Expected operations: April 2010

Baldin Project – CPFL Bioenergia’s 1st project

CPFL Energia is alert to the opportunities of business involving sugar cane biomass

CPFLInvestment:R$ 98 million

CPFL will have the right to 25 MW of energy exported during harvest season: 112 GWh/year

Energy supply contract

Amount: over R$ 500 millionContract period: 2009 to 2023

% of bioelectricity energy purchased in CPFL Brazil contracts

13%

10%

After the contractCurrent

Business ModelGENERATION COMMERCIALIZATION

• High pressure boilers• Condensing turbines• Back pressure turbines• Substation and transmission

CPFL invests in the generation-related

machinery…

…and receives the exceed

energy, for a certain period

Energy purchased from biomass source to sell in the free market

Sold 100%

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COMMERCIALIZATION

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1515

1616

1717

1818

1919

2020

2121

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Debt indexation Capex already signed up with BNDES CPFL Energia RatingsLocal scale

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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 included24

2525

2626

2727

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