Itr 2

Light S.A.
Report of independent auditors on special review of the Quarterly Information (ITR) June 30, 2010
(A translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange Commission (CVM) containing quarterly information prepared in accordance with the regulations issued by CVM)
Review Report of Independent Auditors
(A translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange Commission (CVM) containing quarterly information prepared in accordance with the regulations issued by CVM) To the Board of Directors and Shareholders of
Light S.A. Rio de Janeiro - RJ
1. We have reviewed the accounting information included in the Quarterly Information - ITR of Light S.A. (The Company) and in the consolidated Quarterly Information of the Company and its subsidiaries for the quarter ended June 30, 2010, comprising the balance sheet, the statements of income, of changes in shareholders equity and of cash flows, the explanatory notes and the management report which are the responsibility of its management. 2. Our review was performed in accordance with the review standards established by the IBRACON - Brazilian Institute of Independent Auditors and the Federal Council of Accountancy - CFC, which comprised, mainly: (a) inquiries and discussions with the persons responsible for the Accounting, Financial and Operational areas of the Company and its subsidiaries, as to the main criteria adopted in the preparation of the Quarterly Information; and (b) reviewing information and subsequent events that have or may have material effects on the financial situation and operations of the Company and its subsidiaries. 3. Based on our review, we are not aware of any material changes that should be made to the accounting information contained in the Quarterly Information aforementioned for it to be in accordance with the accounting practices adopted in Brazil and the standards issued by the Brazilian Securities and Exchange Commission - CVM, applicable to the preparation of the Quarterly Information. 4. As mentioned in Note 2, CVM has approved, throughout 2009, several accounting pronouncements, interpretations and orientations issued by the Accounting Pronouncements Committee (CPC), which are effective for 2010, and change the accounting practices adopted in Brazil. As permitted by Deliberation CVM n 603/09, Companys Management opted to present its Quarterly Information using the accounting practices adopted in Brazil as of December 31, 2009, and therefore not applying those Standards in force for 2010. As required by Deliberation CVM n 603/09, the Company has disclosed in note 2 this fact, the description of the main changes which may impact its financial statements for the year ending, and the reasons which did not allow to present estimate of possible effects on the
shareholders equity and statement of income, as required by the aforementioned Deliberation. 5. The financial statements of Fundao de Seguridade Social Braslight for the three-month period ended March 31, 2010, were examined by other independent auditors whose opinion, dated May 6, 2010, includes an emphasis paragraph regarding the balance of R$138,593 thousand related to tax credits arising from the Entitys tax court case which was successful in obtaining a final and non-appealable decision, which, according to the Managements forecast, will allow them to utilize these credits to offset taxes payable in future years. The future realization of the credits is subject to the completion of the offset process with the Federal Tax Authority (Secretaria da Receita Federal), which the Entity suspended in September 2005. If the Entity does not complete the offset process, they may eventually record a provision for this asset. This asset, which guarantees the Entitys actuarial reserves, was deducted from calculation of the subsidiaries actuarial deficit, as required by Resolution 371/00 of the Brazilian Securities and Exchange Commission - CVM. Consequently, in the event that a provision is recorded for this amount, Companys liability will be proportionally adjusted. Rio de Janeiro, August 4, 2010
KPMG Auditores Independentes CRC SP-014428/O-6 F-RJ
Vnia Andrade de Souza Accountant CRC RJ-057497-O-2
A free translation of the original in Portuguese) FEDERAL PUBLIC SERVICE BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM) June 30, 2010 QUARTERLY INFORMATION (ITR) COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES 01987-9 06.01 NOTES TO THE FINANCIAL STATEMENTS LIGHT S.A.
Brazilian Corporation Law
03.378.521/0001-75
LIGHT S.A. BALANCE SHEET AS OF JUNE 30, 2010 ( In thousands of reais )

ASSETS Parent Company 6/30/2010 3/31/2010 3,787 885 63 2,078 6,813 3,088,835 434,435 851 119 1,558 436,963 2,993,020 Consolidated 6/30/2010 3/31/2010 729,673 1,255,284 530,051 20,174 194,683 90,563 103,132 2,923,560 6,105,490 915,418 1,413,767 550,355 25,977 118 167,431 171,249 90,356 3,334,671 6,104,067
Notes CURRENT Cash and Cash Equivalents Consumers, concessionaires and permissionaires Recoverable Taxes Inventories Receivables from swap transactions Services Prepaid Expenses Other receivables 4 5 6 27 7 8
NON-CURRENT LONG-TERM ASSETS Consumers, concessionaires and permissionaires Recoverable Taxes Receivables from swap transactions Escrow deposits Prepaid expenses Other receivables
5 6 27 7 8
180 180 3,087,914 741 3,095,648
180 180 2,992,171 669 3,429,983
282,850 763,278 45 208,280 79,683 7,865 1,342,001 22,710 4,460,058 280,721 9,029,050
282,571 870,227 203,875 45,753 8,667 1,411,093 19,257 4,393,971 279,746 9,438,738
Investments Property, Plant and Equipment Intangible assets
9 10 11
03.378.521/0001-75
LIGHT S.A. BALANCE SHEET AS OF JUNE 30, 2010 ( In thousands of reais )

LIABILITIES Parent Company 6/30/2010 3/31/2010 Consolidated 6/30/2010 3/31/2010
Notes CURRENT Suppliers Payroll Taxes Loans, Financing and Financial Charges Debentures and Financial Charges Dividends Payable Estimated Liabilities Sector charges Consumer Contributions Pension plan and other employee benefits Other Liabilities
12 6 13 14
15 18 17
129 25 10 103 1,745 2,012 -
248 141 130 432,340 202 1,561 434,622 -
493,791 1,613 207,649 230,072 386,713 44,532 120,142 93,590 369,266 1,947,368 3,988,046
549,879 3,219 147,533 209,857 94,327 432,340 53,458 123,781 94,588 394,048 2,103,030 4,340,347
NON-CURRENT LONG-TERM LIABILITIES Loans, Financing and Financial Charges Debentures and Financial Charges Taxes Provision for contingencies Debts with related parties Pension plan and other employee benefits Other Liabilities 13 14 6 16 18 17
1,082,442 835,612 174,013 637,855 60 878,159 379,905 3,988,046
985,684 1,149,358 301,199 692,336 871,410 340,360 4,340,347
SHAREHOLDERS' EQUITY Capital stock Profits Reserve Legal Reserve Profit Retention Capital Reserve Recognized granted options Treasury Shares Retained earnings (accrued losses)
20
20
2,225,822 648,989 133,999 514,990 218,825 3,093,636 3,095,648
2,225,822 648,989 133,999 514,990 120,550 2,995,361 3,429,983
2,225,822 648,989 133,999 514,990 218,825 3,093,636 9,029,050
2,225,822 648,989 133,999 514,990 120,550 2,995,361 9,438,738
03.378.521/0001-75
LIGHT S.A. INCOME STATEMENT FOR THE YEARS ENDED JUNE 30, 2010 AND 2009 (in thousands of reais) Parent Company 4/1/2010 to 6/30/2010 NET OPERATING REVENUE ELECTRIC POWER COST Electric Power Purchased for Resale OPERATING COST Personnel Material Outsourced services Depreciation and amortization Other 25 24 24 24 24 24 GROSS OPERATING PROFIT OPERATING EXPENSES Selling General and Administrative 24 24 (1,317) (1,317) 99,438 (11,623) (11,623) 133,012 (22,466) (22,466) 311,336 (873,082) (873,082) (35,826) (6,626) (35,932) (69,569) (2,471) (150,424) 377,225 (98,339) (38,617) (136,956) (1,888,117) (1,888,117) (67,949) (13,855) (72,471) (137,001) (6,579) (297,855) 809,052 (185,012) (147,766) (332,778) (811,854) (811,854) (46,045) (5,299) (27,984) (67,177) (4,274) (150,779) 310,665 (86,630) (79,539) (166,169) (1,683,847) (1,683,847) (78,634) (8,966) (53,439) (134,587) (8,973) (284,599) 742,404 (164,063) (160,633) (324,696) Parent Company 1/1/2010 to 6/30/2010 Parent Company 4/1/2009 to 6/30/2009 Parent Company 1/1/2009 to 6/30/2009 Consolidated 4/1/2010 to 6/30/2010 1,919,916 108,343 204,993 2,233,252 (566,673) (131,084) (134,070) (694) (832,521) 1,400,731 Consolidated 1/1/2010 to 6/30/2010 4,118,218 205,030 398,577 4,721,825 (1,177,719) (270,302) (276,611) (2,169) (1,726,801) 2,995,024 Consolidated 4/1/2009 to 6/30/2009 1,832,084 94,746 138,086 2,064,916 (508,127) (186,252) (96,833) (406) (791,618) 1,273,298 Consolidated 1/1/2009 to 6/30/2009 3,933,474 178,897 278,180 4,390,551 (1,075,675) (377,482) (224,874) (1,670) (1,679,701) 2,710,850
Notes OPERATING REVENUE Electric Power Supply Electric Power Supply Other Revenues Deductions from operating revenue ICMS Consumer Charges PIS/COFINS Other 21 21 22
23
(3,491) (3,491) 221,982
EQUITY IN THE EARNINGS OF SUBSIDIARIES FINANCIAL REVENUES (EXPENSES) Revenues Expenses
26 26
183 (2) 181
370 370
268 (218) 50
1,103 (241) 862
51,736 (84,286) (32,550)
96,166 (226,562) (130,396)
39,259 (50,789) (11,530)
85,528 (121,810) (36,282)
OTHER OPERATING REVENUES (EXPENSES) Revenues Expenses INCOME BEFORE TAXES AND INTEREST Current income tax and social contributions Deferred income tax and social contributions INCOME BEFORE INTEREST Interest NET INCOME FOR THE PERIOD Earnings per share R$ No. of shares, Ex-Treasury 6 6
98,302 98,302 (27) 98,275 0.48190 203,934,060
218,861 218,861 (36) 218,825 1.07302 203,934,060
121,439
289,732 -
10,839 218,558 (67,038) (45,907) 105,613 (7,338) 98,275 0.48190 203,934,060
10,839 (244) 356,473 (116,454) (11,410) 228,609 (9,784) 218,825 1.07302 203,934,060
1,909 (4,293) 130,582 (73,953) 71,674 128,303 (6,866) 121,437 0.59547 203,934,060
8,023 (5,126) 384,323 (107,578) 27,054 303,799 (14,074) 289,725 1.42068 203,934,060
121,439 (2) 121,437 0.59547 203,934,060
289,732 (7) 289,725 1.42068 203,934,060
03.378.521/0001-75
LIGHT - S.A. DEMONSTRAO DAS MUTAES DO PATRIMNIO LQUIDO TRIMESTRE FINDO EM 30 DE JUNHO DE 2010 ( Em milhares de reais )
SALDOS EM 31/03/10 Aumento do Capital Social Dividendos pagos - reserva de lucros Opes Outorgadas exercidas Transf.de Opes no Exercidas Lucro lquido do perodo SALDOS EM 30/06/10
CAPITAL SOCIAL 2,225,822 2,225,822
RESERVAS DE CAPITAL -
RESERVA LEGAL 133,999 -
RESERVAS DE LUCRO RETENO DE LUCROS 514,990 514,990
LUCROS (PREJUZOS) ACUMULADOS 120,550 98,275 218,825
TOTAL 2,995,361 98,275 3,093,636
133,999
LIGHT - S.A. DEMONSTRAO DAS MUTAES DO PATRIMNIO LQUIDO SEMESTRE FINDO EM 30 DE JUNHO DE 2010 ( Em milhares de reais )
SALDOS EM 31/12/09 Aumento do Capital Social Dividendos pagos - reserva de lucros Opes Outorgadas exercidas Transf.de Opes no Exercidas Lucro lquido do perodo SALDOS EM 30/06/10
CAPITAL SOCIAL 2,225,822 2,225,822
RESERVAS DE CAPITAL 28,045 (12,243) (15,802) -
RESERVAS DE LUCRO RETENO RESERVA DE LEGAL LUCROS 133,999 499,188 133,999 15,802 514,990
LUCROS (PREJUZOS) ACUMULADOS 218,825 218,825
TOTAL 2,887,054 (12,243) 218,825 3,093,636
03.378.521/0001-75
LIGHT - S.A. DEMONSTRAO DOS FLUXOS DE CAIXA PERODOS FINDOS EM 30 DE JUNHO DE 2010 E DE 2009 ( Em milhares de reais )
Controladora 01/04/2010 a 30/06/2010 Das operaes Lucro lquido do perodo Despesas (receitas) que no afetam o caixa: Proviso para devedores duvidosos Atualizao de ativos e passivos regulatrios e contingentes Ajuste a valor presente de recebveis Depreciao e amortizao Resultado de Equivalncia Patrimonial Juros e variaes monetrias - lquidas Resultado na baixa de bens do imobilizado Imposto de renda e contribuies social diferidos Encargos e variao monetria de obrigaes ps-emprego Provises no exigvel - contingncias Opes outorgadas Outras (Aumento) Reduo de ativos Consumidores e revendedores Tributos a compensar Servios prestados Estoques Despesas pagas antecipadamente (outros) Dividendos Recebidos Ativos regulatrios (CVA e Bolhas) Depsitos vinculados a litgios Outros Aumento (Reduo) de passivos Fornecedores Fornecedores de energia Salrios e contribuies sociais Tributos e Contribuies Sociais Contas de compensao - CVA Taxas regulamentares Contingncias Obrigaes ps-emprego Outros (133,012) 10,068 (1,507) (27) 44 407,868 (30) (30) (311,336) 20,043 (1,568) (376) 88 407,868 01/01/2010 a 30/06/2010 01/04/2009 a 30/06/2009 121,437 01/01/2009 a 30/06/2009 289,725 01/04/2010 a 30/06/2010 Consolidado 01/01/2010 a 30/06/2010 01/04/2009 a 30/06/2009 01/01/2009 a 30/06/2009
98,275
218,825
98,275 75,258
5,727 (3,436) 78,787 52,749 (10,839) 45,907 28,826 (37,436) -
218,825 138,793 22,807 (8,057) 155,154

-
121,437 66,543 9,992 (5,619) 76,078 45,852 2,384 (71,674) 11,296 18,393 10,068
284,750
289,725 126,708 32,470 (11,419) 152,420 88,702 (2,788) (27,054) 20,488 23,539 20,045
(471) 712,365
(99,438)
(1,163) -
(221,982)
(3,157) -
105,493 (10,605) 11,410 61,122 (7,656) 5,199 692,485
2,804
336,622
(34)
56
(111)
112
85,894 70,310 (27,252) 5,803 (1,016)

-
(10,843) 182,617 (62,781) (5,805) (1,996)

-
29,146
-
461,486
(28)
(520)
28,648
(500)
460,959
46
407,901 (97) 134 37 -
31
407,581 (213) 126 32 -
47,772 (4,405) (12,719)

164,387
130,031 (7,760) (19,295)

204,168
118,345 (468) (9,089) (147) (8,751) 123,615 (11,988) 14,379

225,896
(87,675) 116,118 (19,880) (1,421) (10,167) 196,952 (14,375) 67,236

246,788
(119)
-
(6,219)
-
(215) (120)
-
(95) (43)
-
283
(171)
1,330
(5,027) 452,775
172
246 406,640
141
86 406,099
(21,404) (34,684) (10,531) (37,690) 8,645 (6,443) (22,772) (23,075) 453

(147,501) 353,508
(48,137) (22,253) (6,229) (177,723) 14,404 4,152 (51,235) (45,804) 103,924

(228,901) 667,752
(38,152) (42,842) (14,177) 29,341 (34,746) (350) (22,867) (23,177) (4,630)

(151,600) 359,046
(27,229) 10,033 (6,542) (58,904) (89,828) (23,193) (37,709) (46,531) (21,644)

(301,547) 657,606
Caixa gerado pelas operaes Atividades de investimento Adiantamentos Alienaes de bens Aplicaes no imobilizado Aquisio de aes Recebimento ref. aes Aumento de capital Contribuies do consumidor Participaes Societrias Caixa aplicado nas atividades de investimento Atividades de financiamento Dividendos Pagos Emprstimos e financiamentos obtidos Amortizao de emprstimos e financiamentos Caixa aplicado nas atividades de financiamento Variao lquida do caixa Demonstrao da variao lquida de caixa No inicio do perodo No final do perodo Variao no caixa
27,314
(21,646) -
(45,359) 51,749 (33,646) (3,976) (31,232)
1,533 1,533
1,533 (36,388) (34,855)
12,876 (152,330) 4,271 (3,976) (139,159)
13,562 (297,904) (45,359) 51,749 5,553 (3,976) (276,375)
1,230 (130,221) 1,331

(127,660)
6,927 (242,665) 3,180

(232,558)
(3,976)
(25,622)
(432,340) (432,340) (430,648)
(432,340) (432,340) (10,797)
(407,868) (407,868) 305
(407,868) (407,868) (36,624)
(432,340)
(432,340)
131,879 (99,633)
(400,094) (185,745)
881,879 (939,615)
(490,076) (98,699)
(407,868) 101,266 (91,420)

(398,022) (166,636)
(407,868) 123,940 (161,609)

(445,537) (20,489)
434,435 3,787
(430,648)
14,584 3,787 (10,797)
3,327 3,632 305
40,256 3,632 (36,624)
915,418 729,673
(185,745)
828,372 729,673
(98,699)
736,273 569,637
(166,636)
590,126 569,637
(20,489)
03.378.521/0001-75
TABLE OF CONTENTS 1. 2. 3. 4. 5. 6. 7. 8. 9. OPERATIONS PRESENTATION OF THE QUARTERLY INFORMATION REGULATORY ASSETS AND LIABILITIES CASH AND CASH EQUIVALENTS CONSUMERS, CONCESSIONAIRES, PERMISSIONAIRES AND CLIENTS TAXES PREPAID EXPENSES OTHER RECEIVABLES INVESTMENTS
10. PROPERTY, PLANT AND EQUIPMENT 11. INTANGIBLE ASSETS 12. SUPPLIERS 13. LOANS, FINANCING AND FINANCIAL CHARGES 14. DEBENTURES AND FINANCIAL CHARGES 15. REGULATORY CHARGES CONSUMER CONTRIBUTIONS 16. PROVISION FOR CONTINGENCIES 17. OTHER PAYABLES 18. PENSION PLAN AND OTHER EMPLOYEE BENEFITS 19. RELATED-PARTY TRANSACTIONS 20. SHAREHOLDERS EQUITY 21. ELECTRIC POWER SUPPLY 22. OTHER REVENUE 23. CONSUMER CHARGES (OPERATING REVENUE DEDUCTIONS) 24. OPERATING COSTS AND EXPENSES 25. ELECTRIC POWER PURCHASED FOR RESALE 26. FINANCIAL INCOME 27. FINANCIAL INSTRUMENTS 28. INSURANCE 29. STATEMENT OF OPERATIONS BY COMPANY 30. LONG-TERM INCENTIVE PLAN
03.378.521/0001-75
NOTES TO THE QUARTERLY INFORMATION ON JUNE 30, 2010

(Amounts in thousands of Brazilian reais)
1. OPERATIONS Light S.A.s corporate purpose is to hold equity interests in other companies, as partner or shareholder, and is involved in the direct or indirect exploitation, as applicable, of electric power services, including electric power generation, transmission, sale and distribution systems, as well as other related services. Light S.A. is a parent company of the following companies: Light Servios de Eletricidade S.A. (Light Sesa) - Publicly-held corporation engaged in the distribution of electric power; Light Energia S.A. - (Light Energia) Closely-held corporation whose main activity is to study, plan, construct, operate and exploit systems of electric power generation, transmission and sales, and related services. Light Esco Prestao de Servios S.A. - (Light Esco) Privately-held corporation whose main activity is the purchase, sale, import and export of energy and advisory services in general in the energy market. Lightcom Comercializadora de Energia S.A. (Lightcom) Privately-held corporation whose purpose is the purchase, sale, import and export of energy and advisory services in general in the energy free and regulated markets. Itaocara Energia Ltda. - (Itaocara Energia) Company in the pre-operating stage, primarily engaged in the execution of project, construction, installation, operation and exploration of electric power generation plants. Lightger S.A. (Light Ger) and Lighthidro Ltda. (Light Hidro) Both companies are in the pre-operating stage and participate in auctions for concession, authorization and permission for new plants. On December 24, 2008, Light Ger obtained the installation license that authorizes the start of implementation works of Paracambi small hydroelectric power plant (PCH). Instituto Light para o Desenvolvimento Urbano e Social (Light Institute) Non-profit private limited company, engaged in participating in social and cultural projects, with interest in the cities economic and social development, affirming the Companys ability to be socially responsible. Axxiom Solues Tecnolgicas S.A. (Axxiom) Privately-held corporation, whose purpose is to offer technology solutions and systems for operating management of
10
03.378.521/0001-75
public utilities companies, including electric power, gas, water and sewage, in addition to other public utilities. It is jointly controlled by Light S.A (51%) and Companhia Energtica de Minas Gerais - CEMIG (49%), and the aforementioned interest was acquired by Light S.A. in June 2010. Grupo Lights concessions and authorizations:
Date of Concession / Authorization Jul/1996 Feb/2001 Mar/2001
Concessions / Authorizations Generation, transmission and distribution PCH Paracambi Itaocara Hydroelectric Power Plant
Maturity Date Jun/2026 Feb/2031 Mar/2036
2. PRESENTATION OF THE QUARTERLY INFORMATION The individual and consolidated quarterly information including the notes thereto, is presented in thousands of reais and other currencies, except when otherwise indicated. This quarterly information was prepared in accordance with the accounting practices adopted in Brazil, which comprises the Brazilian corporation laws, pronouncements, guidance and interpretations issued by the Brazilian Committee on Accounting Pronouncements (CPC), rules issued by the Brazilian Securities and Exchange Commission (CVM), and standards established by the Brazilian Electricity Regulatory Agency (ANEEL) according to the Accounting Guide for the Electric Power Public Utility. This quarterly financial information - ITR was prepared according to the principles, practices and criteria in conformity with those adopted in the preparation of the annual financial statements as of December 31, 2009 and the quarterly information as of March 30, 2010. Thus, this quarterly financial information should be read together with said annual financial statements. Given that the Company is comprised primarily of interests in other corporations, the notes to the quarterly financial information primarily reflect the accounting practices and breakdown of its subsidiaries accounts. The consolidated quarterly financial information was prepared pursuant to CVM Rule 247 of March 27, 1996, which provides for, among other subjects, on the procedures to prepare and disclose the consolidated financial statements. Application of the Technical Pronouncements Issued in 2009 CVM approved in 2009 several pronouncements, interpretations and technical guidance issued by CPC to be effective as of 2010, which changed the accounting practices
11
03.378.521/0001-75
adopted in Brazil. As authorized by CVM Resolution 603/09 and amendments issued by CVM Resolution 626/10, the Company decided to present its quarterly financial information using the accounting standards adopted in Brazil until December 31, 2009: The Company is assessing the possible effects of applying the technical pronouncements already issued and preliminary concluded that the main effects will derive from the application of the following standards: Technical Interpretation ICPC 01 Concession Agreements, which sets forth the general principles on the recognition and measurement of the liabilities and the respective rights of the concession agreements. According to ICPC 01, the compensation received or receivable by the concessionaire shall be recorded by its fair value, which corresponds to the rights of a financial asset and/or intangible asset. Currently, it is not possible to estimate the effects of applying this standard (ICPC 01), as the concepts introduced have been still analyzed for the purposes of application, but certain significant adjustments resulting from the reclassification of fixed assets as intangible and/or financial asset, recognition of construction revenues and treatment for concessionrelated liabilities are expected. CPC 15 Business Combinations establishes the general principles regarding the recognition of goodwill on the expectation of future profitability or negative goodwill from advantageous purchases. In the case of negative goodwill from advantageous purchases, the amount obtained should be recorded in net income for the year on the date when it is determined. In the first half of the year, the Company acquired a direct interest in Axxiom Solues Tecnolgicas S.A. and indirect interest in Central Elica Fontainha and Central Elica So Judas Tadeu, for which preliminary studies show realization of the assets. The Company, however, is evaluating the possible effects caused by this pronouncement on these new investments. CPC 24 Subsequent event and ICPC 08 Accounting for the dividends payment proposal. The Management is required to propose the profit sharing at year-end. This profit sharing may be modified by shareholders. Therefore, pursuant to CPC 24, the undeclared proposed dividends above the mandatory minimum dividends and interest on equity will be maintained under shareholders equity and liabilities at year-end will not be recognized. If the Company had adopted this pronouncement, the shareholders equity would increase R$288,693 at the year ended December 31, 2009. CPC 43 It defines the first-time adoption criteria of CPCs 15 to 40 and specifies that exceptions to the international standards are restricted to the maintenance of equity pick-up in the individual financial statements with investments appraised by the equity accounting method and maintenance of the deferred assets until December 31, 2008 until its full amortization. Currently, regulatory assets and liabilities are recorded in Brazil, and when the regulatory authority sets forth criteria to allocate revenues or expenses to subsequent periods, a regulatory asset or liability is recognized. Currently, these regulatory assets and liabilities show differences between BR GAAP and IFRS.
12
03.378.521/0001-75
Currently, IASB is preparing an interpretation that may change the accounting treatment of regulatory assets and liabilities according to IFRS. The Management is awaiting the results of this new IASB interpretation to assess its effects on the BR GAAP financial statements. 3. REGULATORY ASSETS AND LIABILITIES
Consolidated Current 3/31/2010 Assets Consumers, concessionaries and permissionaires (Note 5) Tariff Readjustment - TUSD Prepaid expenses (Note 7) CVA - (c) Other regulatories - (c) TOTAL ASSETS Liabilities Suppliers (Note 12) Free energy refund to generation companies (a) Other payables (Note 17) Portion "A" - (a) CVA - (c) Other regulatories - (c) Provision for regulatory liabilities - energy overcontracting (d) TOTAL LIABILITIES NET OVERALL TOTAL 1,062 1,062 167,471 134,063 33,408 168,533 12/31/2009 6,511 6,511 258,121 206,631 51,490 264,632 3/31/2010 44,562 44,562 44,562 Non-current 12/31/2009 36,121 36,121 36,121
(54,185) (54,185) (25,867) (12,090) (2,171) (11,606) (80,052) 88,481
(54,185) (54,185) (39,780) (18,612) (3,273) (17,895) (93,965) 170,667
(149,568) (34,464) (115,104) (149,568) (105,006)
(55,876) (14,793) (41,083) (55,876) (19,755)
a) Portion A: Due to the maturity of term for the RTE billing (Loss of Revenue), the Variation in Portion A items (from January 1, 2001 to October 25, 2001) was recovered from March 2008, as approved by ANEEL Directive Release 267/04. Pursuant to ANEELs rules, the additional tariff should remain effective until the end of the month when the ratified amount would be fully amortized, duly adjusted by the Central Bank overnight (Selic) rate. In the case of Light Sesa, this amortization occurred by mid June 2009. Amounts billed after the amortization of ratified Portion A amount were recorded in 2009s tariff adjustment, totaling R$23,003 and refunded to consumers. The balance is recorded in Other Debts, under current liabilities. b) Free Energy - Refund to Generation Companies In compliance with ANEEL Order 4,722 of December 18, 2009, Distribution Concessionaires calculated the amounts due to the Generation Concessionaires, according to the calculation established at Resolution 387 of January 12,2010. The amount calculated, by estimate, was recorded in liabilities, under Suppliers (see Note 12), against the financial result, amounting to R$54,185 on June 30, 2010 (R$54,185 on March 31, 2010).
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c) Memorandum account for Portion A Variations (CVA) CVA records the variations during the period, the annual tariff adjustment restated based on the Central Bank overnight rate (SELIC) for: purchase of energy; transportation of electric power from Itaipu; the Fuel Usage Quota (CCC); the Economic Development Account (CDE); System service charges (ESS); the tariff for the use of transmission facilities of the basic electric network; and compensation for the use of water resources (CFURH) and Incentive Program to Electric Power Alternative Sources (PROINFA). The amounts recorded under current (assets and liabilities) refer to amounts already approved by ANEEL in November 2009, when the tariff adjustment was conducted. The amounts recorded under non-current represent an estimate of the formation of CVA to be approved in the next tariff adjustment (November 2010). Breakdown of CVA
Consolidated Assets Current 6/30/2010 Breakdown - CVA Fuel Consumption Account - CCC Economic Development Account - CDE Reserve Energy Charges - EER System Service Charges- ESS PROINFA Transportation of electric power from Itaipu Transportation of electric power to basic electric network TOTAL - CVA 52,821 3,662 8,169 328 3,546 68,526 3/31/2010 102,786 7,126 16,393 639 7,119 134,063 Consolidated Liabilities Current 6/30/2010 Breakdown - CVA Fuel Consumption Account - CCC Energy Development Account - CDE Cost of electricity acquisition TOTAL - CVA (913) (293) (1,206) 3/31/2010 (1,703) (468) (2,171) Non-current 6/30/2010 3/31/2010 (55,597) (55,597) (34,464) (34,464) Non-current 6/30/2010 3/31/2010 35,488 321 11,843 16,300 6,643 405 7,715 78,715 28,173 294 1,489 4,620 297 9,689 44,562
d) Other regulatory assets/liabilities Finance costs transferred in the annual tariff adjustment of subsidiary Light Sesa in accordance with Normative Resolution 905 of November 4, 2009, as per chart below:
14
A free translation of the original in Portuguese) FEDERAL PUBLIC SERVICE BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM) June 30, 2010 QUARTERLY INFORMATION (ITR) COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES 01987-9 06.01 NOTES TO THE FINANCIAL STATEMENTS
Assets Consolidated 6/30/2010 3/31/2010 Other Regulatory Assets Financial adjustment - final review Furnas connection Involuntary exposure Guarantees at auction (CCEAR) 2008 review - financial items TOTAL 1,159 (7) 15,245 68 554 17,019 2,377 61 29,666 131 1,173 33,408
LIGHT S.A.
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Values approved on 11/04/2009 (*) 4,579 143 56,442 249 2,276 63,689
Liabilities Consolidated 6/30/2010 3/31/2010 Other Regulatory Liabilities Financial adjustment TUSD generation companies Boundary adjustment CVA under process Onlending of energy overcontracting (art.38 of Decree 5,163/04) TOTAL (3,333) (439) (124) (2,064) (5,960) (6,550) (800) (240) (4,016) (11,606)
Values approved on 11/04/2009 (*) (12,519) (1,504) (456) (7,641) (22,120)
(*) As per ANEEL's Ratifying Resolution
e) The Article 38 of Decree 5163 of July 30, 2004, sets forth that when electric power acquisition costs are transferred to end consumers bills, ANEEL shall consider up to 103% of the total amount of electric power contracted in relation to the distribution agents annual supply volume. This means that electric power distribution companies may include in the calculation of its consumers bills up to 3% of energy contracted above expectations in order to supply its market, i.e., costs of up to 3% related to overcontracting may be transferred to end consumers bills. f) Portion A Neutrality By means of Technical Note no. 022/2010, as of January 28, 2010 and Order no. 245, as of February 2, 2010, ANEEL approved a standard addendum to the concession agreements of electric power distribution services, in order to guarantee the neutrality of the Portion A sector charges. This change in calculation will be valid as of the annual tariff adjustment of 2010, aiming to eliminate the tax effect caused by the current adjustment method provided for at the Concession Agreement, thus guaranteeing the neutrality of the aforementioned charges. Monthly differences calculated between the amounts of each item charged in the period and the respective amounts contemplated in the previous adjustment or tariff revision will be duly remunerated based on the same index used to calculate the balance of the Memorandum Account for Portion A Variations CVA. In February 2010, Light signed the above mentioned addendum, and the neutrality of charges became effective.
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4. CASH AND CASH EQUIVALENTS

Parent Company 6/30/2010 3/31/2010 Financial investments Cash available Total 3,545 242 3,787 2,050 432,385 434,435 Consolidated 6/30/2010 3/31/2010 714,596 15,077 729,673 471,998 443,420 915,418
Parent Company 6/30/2010 3/31/2010 Temporary cash investments: CDB Total Fee CDI Maturity Daily
Consolidated 6/30/2010 3/31/2010
3,545 3,545
2,050 2,050
714,596 714,596
471,998 471,998
5. RECEIVABLES FROM CONSUMERS, PERMISSIONAIRIES AND CLIENTS
CONCESSIONAIRES,
Consolidated 6/30/2010 3/31/2010 CURRENT Billed sales Unbilled sales Debt payment by installments (b) Other receivables 1,758,620 231,212 156,800 653 2,147,285 11,409 49,219 2,541 63,169 (955,170) 1,255,284 1,798,927 282,360 163,246 2,244,533 5,412 43,400 1,062 49,874 (880,640) 1,413,767
Sales within the scope of CCEE Supply and charges related to the use of electric network Tariff recoverable credits (note 3)
(-) Allowance for doubtful accounts (a)
NON-CURRENT Debt payment by installments (b) Other receivables
281,883 967 282,850
282,571 282,571
a) In the second quarter of 2010 bad debts of R$728 were written-off (R$746 in the first quarter of 2010). b) The accounts receivable include the installment agreements present value, including options of early payment of installments, which if they are exercised ensure payment discounts to clients. During 2010, total discounts that may be granted is approximately R$36,501 and the discount, if this option is exercised shall be recorded in the income statement, under financial expenses.
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Overdue and falling due balances related to electric power billed sales and debt payment by installments are distributed as follows:
6/30/2010 Maturing balance Residential Industrial Commercial Rural Public sector Public lighting Public utility Billed sales and renegotiated debts (current and non-current) 124,441 23,290 108,276 527 35,142 12,968 262,715 567,359 Overdue up to 90 days 160,904 14,814 41,010 354 19,821 2,186 1,106 240,195 Overdue over 90 days 860,814 150,736 221,177 690 115,288 32,238 8,806 1,389,749
Total 1,146,159 188,840 370,463 1,571 170,251 47,392 272,627 2,197,303
3/31/2010 Maturing balance Residential Industrial Commercial Rural Public sector Public lighting Public utility Billed sales and renegotiated debts (current and non-current) 157,295 22,767 127,838 502 39,193 11,938 261,692 621,225 Overdue up to 90 days 186,388 14,979 48,065 332 32,799 3,106 770 286,439 Overdue over 90 days 799,001 170,362 211,254 660 113,065 33,020 9,718 1,337,080
Total 1,142,684 208,108 387,157 1,494 185,057 48,064 272,180 2,244,744
6. TAXES
Parent Company Assets Liabilities 3/31/2010 6/30/2010 3/31/2010 851 851 10 10 130 130 Consolidated Assets 6/30/2010 79,199 225,537 121,613 5,700 65,817 32,185 530,051 3/31/2010 126,418 11,522 233,143 111,748 11,231 24,522 31,771 550,355 Liabilities 6/30/2010 3/31/2010 362 11,716 20,244 48,772 116,914 9,641 207,649 736 3,485 28,571 55,897 49,418 9,426 147,533
6/30/2010 CURRENT Tax credits IRPJ and CSLL (a) IRRF (Withholding Income Tax) recoverable IRRF (Withholding Income Tax) payable Deferred IRPJ and CSLL (b) ICMS recoverable (d) ICMS payable Installment Payment - Law 11,941/09 (c) PIS/COFINS recoverable (e) PIS/COFINS payable Prepaid IRPJ/CSLL Provision for IRPJ/CSLL Other TOTAL NON-CURRENT Deferred IRPJ and CSLL (b) Installment Payment - Law 11,941/09 (c) ICMS recoverable (d) TOTAL 885 885
705,370 57,908 763,278
814,644 55,583 870,227
174,013 174,013
301,199 301,199
a) The balance refers to tax credits recoverable arising from negative balance withholdings of cash investments and government agencies in the amount of R$5,737 and prepaid Income Tax and Social Contribution credits for 2008 and 2009 amounting to R$73,462. The variation of the amounts for the quarter arises from the
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adjustment based on the Selic rate in the amount of R$18,341, including new credits in the amount of R$94,096, net of offsets in the year, amounting to R$159,656. b) The deferred tax assets include amounts expected to be recoverable within 10 years, as set forth in CVM Rule 371/02, and in the assumption of not being barred by credit, and it is based on a feasibility study approved by the Board of Directors, which shows the balance recovery within 4 years The deferred assets is broken down as follows:
Consolidated 6/30/2010 3/31/2010 ASSETS AND LIABILITIES - CURRENT AND NON-CURRENT Tax loss carryforwards Allowance for doubtful accounts Provision for profit sharing Provision for labor contingencies Provision for tax contingencies Provision for civil contingencies Impacts resulting from the adoption of Law 11,638/07 Other provisions Total - Light SESA Tax loss carryforwards - Light Energia and Light Esco S.A. Total - Consolidated 326,527 322,055 5,393 55,134 65,598 85,473 15,434 54,633 930,247 660 930,907 447,233 296,467 9,674 55,769 65,176 86,777 17,166 68,829 1,047,091 696 1,047,787
c) New REFIS (Tax Recovery Program) - (Law 11,941/09) Light has been making monthly minimum payments of one hundred reais as provided for by laws, plus payment of installments deriving from migration of PAES (Special Installment Payment Program) - Social Security (REFIS II), in the consolidated monthly amount of R$1,752. Given the request to partially discontinue the writ of mandamus 2003.51.01.005514-8, concerning the taxation thesis (Cash Basis x Accrual Basis) of the companies LIR and LOI was neither accepted by the National Treasury Office nor by the Court, the Company decided to totally abandon the aforementioned petition. Therefore, the Company recalculated the income obtained abroad by the equity pick-up taxation from 2002 to 2007 (REFIS period), by the accrual accounting method, using the tax losses accumulated in the period to pay IR/CS on this income, resulting in the full settlement thereof. Consequently, the change in the REFIS balance in the quarter is explained by excluding the amount previously included in REFIS, referring to the debit of the profit abroad thesis in the restated amount of R$133,761, in addition to the amount paid to PAES Social Security mentioned previously. d) The amount of the state VAT (ICMS) recovery on June 30, 2010 includes R$17,118 (R$25,671 on March 31, 2010) of credits deriving from the renegotiations of the CEDAE debt in July and December 2006.
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e) Recoverable PIS (Social Contribution Tax on Gross Revenue for Social Integration Program) and COFINS (Social Contribution Tax on Gross Revenue for Social Security Financing) balance refers to contributions retained by public authorities and services rendering. Reconciliation of effective and nominal rates of the provision for income and social contribution taxes:
Consolidated 6/30/2010 6/30/2009 356,473 384,323 (9,784) (14,074) 346,689 370,249 34% 34% (117,874) (125,885) (13,939) (4,256) 31,956 (62,051) 60 36 (1,121) (7,347) 118,462 (27,616) 670 517 (127,864) (80,524) (116,454) (11,410) (127,864) (107,578) 27,054 (80,524)
Earnings before Income and Social Contribution Taxes (LAIR) Profit sharing Adjusted income basis for taxation Combined income and social contribution tax rate Income and social contribution taxes at statutory rates Income and social contribution tax effect on permanent additions and exclusions Income and social contribution tax effect on equity in the earnings of subsidiaries Difference between calculation bases - income and social contribution tax Deferred tax credits not recognized CVM 371/02 - Light S.A. Reversal of provision for IRPJ and CSLL - Deferred Effects of abandonment of LIR and LOI process- Law 11,941/2009 Tax incentives Income and social contribution tax in income Current IRPJ and CSLL on income Deferred IRPJ and CSLL on income
7. PREPAID EXPENSES
Parent Company 6/30/2010 3/31/2010 CURRENT CVA (Note 3) Financial components IRT (Note 3) Other Total NONCURRENT CVA (Note 3) Other Total 63 63 119 119 Consolidated 6/30/2010 3/31/2010 68,526 17,019 5,018 90,563 134,063 33,408 3,778 171,249
78,715 968 79,683
44,562 1,191 45,753
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8. OTHER RECEIVABLES
Parent Company 6/30/2010 3/31/2010 CURRENT Advances to suppliers and employees Property rental Public lighting fee Expenditures to refund Subsidy to low-income segment Other Total NON-CURRENT Assets and rights for disposal Other Total 37 2,041 2,078 14 1,544 1,558 Consolidated 6/30/2010 3/31/2010 16,562 389 40,069 9,064 24,646 12,402 103,132 21,981 402 27,501 14,441 15,423 10,608 90,356
7,226 639 7,865
7,229 1,438 8,667
9.
INVESTMENTS
Parent Company 6/30/2010 3/31/2010 Consolidated 6/30/2010 3/31/2010 3,796 11,297 7,617 22,710 22,710 3,796 11,297 4,164 19,257 19,257
Accounted for under the equity method: Light SESA Light Energia S.A. Light Esco Prestao de Servios S.A. Lightger S.A. (a) LightCom Itaocara Energia (a) Axxiom Solues Tecnolgicas S.A. Lighthidro Ltda (a) Subtotal Accounted for at cost Leased assets Other Subtotal Total
2,695,552 273,159 35,406 59,138 1,542 19,092 1,941 50 3,085,880 2,034 2,034 3,087,914
2,656,512 248,815 29,526 40,734 779 15,586 50 2,992,002 169 169 2,992,171
On May 6, 2010, the Board of Directors of Light S.A. approved the acquisition of 3,672,000 registered common shares of Axxiom Solues Tecnolgicas S.A., representing 51% of the Companys total and voting capital, for R$3,975, recording goodwill of R$2,034. This goodwill is based on expected future profitability arising from a projected cash flow study conducted at the moment of the acquisition. INFORMATION ON SUBSIDIARIES
Light SESA 03/30/2010 Ownership interest (%) Paid-up capital Shareholders' equity Dividends paid Additional dividends paid Income for the year 100 2,082,365 2,695,552 29,146 169,568 Light SESA 03/31/2010 Ownership interest (%) Paid-up capital Shareholders' equity Proposed dividends Dividends paid Additional dividends paid Net income for the year 100 2,082,365 2,656,512 (402,149) (29,146) 101,381 Light Energia 100 77,440 273,159 43,957 Light Energia 100 77,422 248,815 (26,833) 19,614 Light Esco 100 7,584 35,406 7,581 Light Esco 100 7,584 29,526 (3,358) 1,701 LightCom 100 1,000 1,542 542 LightCom 100 1,000 779 (221) Light Ger 100 52,937 59,138 327 Light Ger 100 34,791 40,734 69 Light Hidro 100 50 50 Light Hidro 100 50 50 Instituto Light 100 300 Instituto Light 100 300 Itaocara Energia 100 20,794 19,092 7 Itaocara Energia 100 17,294 15,586 Axxiom 51 3,672 1,941 -
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CHANGES IN INVESTMENTS IN SUBSIDIARIES

Light SESA Balances on 3/31/2010 Capital increase Acquisition of interest Additional dividends paid Equity accounting Balances on 6/30/2010 2,656,512 (29,146) 68,186 2,695,552 Light Energia 248,815 24,344 273,159 Light Esco 29,526 5,880 35,406 LightCom 779 763 1,542 Light Ger 40,734 18,146 258 59,138 Light Hidro 50 50 Itaocara Energia Instituto Light 15,586 3,499 7 19,092 Axxiom 1,941 1,941 Total 2,992,002 21,645 1,941 (29,146) 99,438 3,085,880
The amount of R$29,146 recorded as additional dividend from subsidiary Light Sesa on April 12, 2010 was used to increase the capital in subsidiaries Lightger S.A. and Itaocara Energia Ltda. 10. PROPERTY, PLANT AND EQUIPMENT
Consolidated 6/30/2010 Accumulated depreciation Net value (462,068) (8,427) (3,175,865) (163,105) (16,721) (3,826,186) (3,826,186) 10,634 (3,815,552) 490,935 8,872 3,136,700 87,386 12,052 3,735,945 163,817 652,166 94,152 2,282 912,417 4,648,362 (188,304) 4,460,058 3/31/2010 Net value 497,697 8,954 3,182,296 87,509 12,569 3,789,025 137,261 561,560 87,978 2,180 788,979 4,578,004 (184,033) 4,393,971
PROPERTY, PLANT AND EQUIPMENT ACTIVITY Generation Transmission Distribution Administration Sales In service Generation Distribution Administration Sales In progress Total property, plant and equipment Special obligations linked to concession (a) Total property, plant and equipment, net
Historical cost 953,003 17,299 6,312,565 250,491 28,773 7,562,131 163,817 652,166 94,152 2,282 912,417 8,474,548 (198,938) 8,275,610
a) The balance of special obligations derives from the consumers financial income, appropriation of the Federal Government, federal, state and municipal funds to finance the work necessary to meet the electric power demand.
Consolidated 6/30/2010 3/31/2010 143,284 137,262 (7,214) (6,049) 37,721 37,721 (2,492) (2,095) 17,933 17,933 (928) (739) 188,304 184,033
Consumer contribution Consumer contribution depreciation Donations/subsidies for investments Depreciation of donations/subsidies for investments Research and Development Depreciation of research and development Total
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Construction in progress includes inventories of materials for projects totaling R$53,540 as of June 30, 2010 (R$43,667 on March 31, 2010) and a provision for inventory loss of R$5,749 (R$5,749 on March 31, 2010). 11. INTANGIBLE ASSETS
Consolidated 6/30/2010 Accumulated Net Amortization Value (160,986) (5,669) (61,172) (124,441) (352,268) (352,268) 22,427 130 20,342 39,296 82,195 13,413 122,309 62,294 510 198,526 280,721 3/31/2010 Net Value 22,943 132 20,856 45,162 89,093 13,413 118,939 57,791 510 190,653 279,746
Historical Cost Intangible assets Distribution Generation Administration Sales In service Distribution Generation Administration Sales In progress Total intangible assets, net 183,413 5,799 81,514 163,737 434,463 13,413 122,309 62,294 510 198,526 632,989
Grupo Light classifies Software as intangible assets, amortized at a rate of 20% p.a., and Right-of-Ways are not depreciated since they represent the right to use certain areas of land, usually associated with a Transmission and Distribution Line. Generation intangible assets, in progress, includes the amount of R$122,231 (R$118,860 on March 31, 2010) referring to the onerous concession of Use of Public Asset of Itaocara Energia Ltda., as per Note 17.
12. SUPPLIERS
Parent Company 6/30/2010 3/31/2010 CURRENT Sales within the scope of CCEE Electric network usage charges System service charges Free energy refund to generation companies (Note 3) Electric power auctions Itaipu binational UTE Norte Fluminense Supplies and services Total 129 129 248 248 Consolidated 6/30/2010 3/31/2010 23,110 48,490 2,281 54,185 120,565 90,636 65,443 404,710 89,081 493,791 26,632 48,645 2,551 54,185 145,369 89,556 67,387 434,325 115,554 549,879
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13. LOANS, FINANCING AND FINANCIAL CHARGES

Consolidated
6/30/2010 Date of Signature Current Financing Entity Principal Non-Current Current Charges Currency/ Index Non-Current Interest Rate p.a. PR Payment Beginning End Reference date 6/30/2010 Principal Amortization
TN - Par Bond TN - Collateral - Par Bond TN - Discount Bond TN - Collateral - Discount Bond TN - C. Bond TN - Debit. Conv. TN - Bib KFW III , IV, and V - Tranche A/B/C Foreign currency Eletrobrs CCB Bradesco BNDES - FINEM BNDES - FINEM direct BNDES - FINEM + 1 BNDES - FINEM direct PSI Working capital - ABN Amro BNDES - PROESCO Banco Real RGR Sundry banking warranties Domestic Currency
4/29/1996 4/29/1996 4/29/1996 4/29/1996 4/29/1996 4/29/1996 4/26/1996 11/3/2000 Sundry 10/18/2007 11/5/2007 11/30/2009 11/30/2009 11/30/2009 8/27/2008 12/12/2008 5/25/2010
SWAP
Overall total
5,960 6,676 216 700 13,552 781 82,616 3,181 3,181 1,131 80,000 456 425 171,771 185,323
70,113 (36,305) 48,923 (25,533) 17,879 6,675 542 82,294 2,315 450,000 268,501 110,924 110,924 55,757 1,707 1,000,128 1,082,422
906 169 407 48 14 1,544 1 30,042 1,437 1,140 1,268 335 2,729 7 246 354 37,559 5,646 44,749
20 20
US$ US$ US$ US$ US$ US$ US$ US$ UFIR CDI TJLP TJLP TJLP CDI TJLP
6% U$ Treasury Libor + 13/16 U$ Treasury 8% Libor + 7/8 6% Libor + 0,65% 5% CDI + 0,85% TJLP + 4,3% TJLP + 2,58% TJLP + 1% + 2,58% 4.50% CDI + 0,95% TJLP + 2,5% 16.77%
1 1 1 1 8 4 7 1 between 2 and 120 6 51 72 72 101 1 58 24
Lump sum Lump sum Lump sum Lump sum Half-yearly Half-yearly Half-yearly Half-yearly Monthly and quarterly Yearly Monthly Monthly Monthly Monthly Yearly Monthly Monthly
2024 2024 2024 2024 2004 2004 1999 2003
2024 2024 2024 2024 2014 2012 2013 2010 2013 a 2017 2017 2014 2017 2017 2019 2010 2014 2012
2012 2009 2011 2011 2011 2009 2009 2010
Consolidated 3/31/2010 Date of Signature Financing Entity Current Principal Non-Current Current Charges Non-Current Currency/ Index Interest Rate p.a. PR Reference date 3/31/2010 Principal Amortization Payment Beginning End
TN - Par Bond TN - Collateral - Par Bond TN - Discount Bond TN - Collateral - Discount Bond TN - C. Bond TN - Debit. Conv. TN - Bib BNDES - Imports KFW III , IV, and V - Tranche A/B/C Foreign currency Eletrobrs CCB Bradesco BNDES - FINEM BNDES - FINEM direct BNDES - FINEM + 1 BNDES - FINEM direct PSI Working capital - ABN Amro BNDES - PROESCO RGR Sundry banking warranties Domestic Currency
4/29/1996 4/29/1996 4/29/1996 4/29/1996 4/29/1996 4/29/1996 4/26/1996 3/27/1998 11/3/2000 Sundry 10/18/2007 11/5/2007 11/30/2009 11/30/2009 11/30/2009 8/27/2008 12/12/2008
SWAP
Overall Total
5,892 6,599 214 114 1,473 14,292 996 82,616 80,000 350 163,962 178,254
69,316 (35,892) 48,366 (25,243) 20,622 9,899 536 87,604 2,455 450,000 289,155 59,344 59,344 35,029 1,368 896,695 984,299
1,970 488 997 170 2 4 3,631 1 18,635 1,624 1,034 1,150 325 720 6 246 271 24,012 3,960 31,603
1,385 1,385
US$ US$ US$ US$ US$ US$ US$ UMBNDES US$ UFIR CDI TJLP TJLP TJLP CDI TJLP
6% U$ Treasury Libor + 13/16 U$ Treasury 8% Libor + 7/8 6% Cesta BNDES + 4% Libor + 0,65% 5% CDI + 0,85% TJLP + 4,3% TJLP + 2,58% TJLP + 1% + 2,58% 4.50% CDI + 0,95% TJLP + 2,5%
1 1 1 1 9 5 8 1 2 between 2 and 120 6 54 72 72 101 1 61
Lump sum Lump sum Lump sum Lump sum Half-yearly Half-yearly Half-yearly Monthly Half-yearly Monthly and quarterly Yearly Monthly Monthly Monthly Monthly Yearly Monthly
2024 2024 2024 2024 2004 2004 1999 2000 2003
2024 2024 2024 2024 2014 2012 2013 2010 2010 2013 a 2017 2017 2014 2017 2017 2019 2010 2014
2012 2009 2011 2011 2011 2009 2009
TN = National Treasury PR = Remaining Installments On November 6, 2009, Light Sesa and Light Energia received the consent from ANEEL to obtain a loan from the Brazilian Development Bank (BNDES) amounting to R$510,871 and R$30,490 respectively. These credits are part of the FINEM credit lines to be invested in the expansion and modernization of the Electric System. The agreements with BNDES were signed on November 30, 2009 and the first portion was released on December 28, 2009. On June 28, 2010 the second portion was released to Light Sesa in the amount of R$121,190 and on April 22, 2010 to Light Energia (R$10,156). In addition to the collaterals indicated above, loans are guaranteed by receivables in the approximate amount of R$45,656.
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The principal of long-term loans and financing matures as follows (excluding financial charges):
Consolidated Local Currency 2010 2011 Total (current) 2011 2012 2013 2014 2015 2016 after 2016 Total (non-current) Total (current and non-current) 122,459 49,312 171,771 64,224 203,448 203,435 182,543 120,151 120,020 106,307 1,000,128 1,171,899 6/30/2010 Foreign Currency 7,126 6,426 13,552 6,426 9,514 6,176 2,980 57,198 82,294 95,846 Total 129,585 55,738 185,323 70,650 212,962 209,611 185,523 120,151 120,020 163,505 1,082,422 1,267,745 Local Currency 143,079 20,883 163,962 78,565 182,496 182,483 161,592 99,252 99,174 93,133 896,695 1,060,657 3/31/2010 Foreign Currency 14,185 107 14,292 12,598 9,406 6,106 2,946 56,548 87,604 101,896 Total 157,264 20,990 178,254 91,163 191,902 188,589 164,538 99,252 99,174 149,681 984,299 1,162,553
In percentage terms, the variation of major foreign currencies and economic ratios in the period, which are used to adjust loans, financing and debentures, was as follows in the six-month periods:
USD EUR UMBNDES IGP-M CDI SELIC 6/30/2010 1.15 (8.44) 0.90 2.83 2.22 2.22 6/30/2009 (15.70) (10.99) (16.31) (0.32) 2.38 2.39
Covenants The funding of CCB Bradesco, the loans with ABN Amro and with BNDES FINEM, classified as current and non-current, requires that the Company maintain certain debt ratios and interest coverage. In the period ended June 30, 2010, the Company and its subsidiaries are in compliance with all required debt covenants.
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14. DEBENTURES AND FINANCIAL CHARGES

Consolidated 6/30/2010 Principal Charges Current Noncurrent Current Noncurrent
19 68,221 297,348 365,588 76 835,536 835,612 18,528 2,597 21,125 -
Financing Entity Debentures 4 Issue Debentures 5 Issue Debentures 6 Issue Domestic Currency
PR - Remaining installments
th th th
Date of Signature
6/30/2005 1/22/2007 6/1/2009
Currency / Index
TJLP CDI CDI
Interest Rate p.a. RI

TJLP + 4% CDI + 1,50% 115% of CDI 60 15 1
Reference date 6/30/2010 Principal Amortization Payment Beginning Monthly Quarterly Lump Sum
2009 2008 2011
End
2015 2014 2011
Consolidated Financing Entity Debentures 4 Issue Debentures 5 Issue Debentures 6 Issue Domestic Currency
PR - Remaining installments
th th th
Date of Signature
6/30/2005 1/22/2007 6/1/2009
3/31/2010 Principal Current Noncurrent

19 68,221 68,240 81 852,591 296,686 1,149,358
Charges Current Noncurrent

16,664 9,423 26,087 -
Currency / Index
TJLP CDI CDI
Interest Rate p.a. RI

TJLP + 4% CDI + 1,50% 115% do CDI 63 16 1
Reference date 3/31/2010 Principal Amortization Payment Beginning Monthly Quarterly Lump Sum
2009 2008 2011
End
2015 2014 2011
Total principal amount is represented net of debentures issue costs, as provided for in CVM Resolution 556/08. These costs are detailed in the table below.
Issue Debentures 4th issue Debentures 5th issue Debentures 6th issue TOTAL Amount Incurred 7,446 6,205 2,638 16,289 6/30/2010 Unearned Amount 22 6,243 2,653 8,918 Total Cost 7,468 12,448 5,291 25,207
Issue Debentures 4th issue Debentures 5th issue Debentures 6th issue TOTAL
Amount Incurred 7,445 5,760 1,977 15,182
3/31/2010 Unearned Amount 23 6,688 3,314 10,025
Total Cost 7,468 12,448 5,291 25,207
The portions related to the principal of debentures have the following maturities (excluding financial charges):
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Domestic Currency 6/30/2010 3/31/2010 2010 2011 Total (Current) 2011 2012 2013 2014 2015 Total (Non-current) Total 34,121 331,467 365,588 34,120 198,241 268,241 335,002 8 835,612 1,201,200 51,181 17,059 68,240 347,866 198,241 268,241 335,002 8 1,149,358 1,217,598
Covenants Classified in the current and non-current, the 5th and 6th Issue of Debentures require the maintenance of indebtedness indexes and coverage of interest rates. In the period ended June 30, 2010, the Company and its subsidiaries complied with all the covenants required.
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15. REGULATORY CHARGES CONSUMER CONTRIBUTIONS

Consolidated 6/30/2010 3/31/2010 CURRENT Fuel usage account quota CCC Energy development account quota CDE Reversal global reserve quota RGR Incentive Program to Electric Power Alternative Sources PROINFA Charges for capacity and emergency acquisition 15,683 17,182 5,182 8,926 73,169 120,142 19,323 17,182 5,182 8,926 73,168 123,781
16. PROVISION FOR CONTINGENCIES Light S.A. and its subsidiaries are party in tax, labor and civil lawsuits and regulatory proceedings in several courts. Management periodically assesses the risks of contingencies related to these proceedings, and based on the legal counsels opinion it records a provision when unfavorable decisions are probable and whose amounts are quantifiable. In addition, the Company does not record assets related to lawsuits with a less-than-probable chance of success, as they are considered uncertain. Provisions for contingencies are as follows:
Consolidated Current 6/30/2010 3/31/2010 Liabilities Balance on 3/31/2010 164,027 255,228 177,451 95,630 692,336 Additions 11,943 10,727 22,670 Restatement 3,194 739 1,804 5,737 Write-offs Payments Reversals (1,620) (247) (12,492) (6,479) (8,669) (53,381) (22,781) (60,107) Balance on 6/30/2010 162,160 251,394 178,190 46,111 637,855 Judicial Deposits 7,831 24,771 36,513 1,655 70,770 Noncurrent 6/30/2010 3/31/2010 162,160 164,027 251,394 255,228 178,190 177,451 46,111 95,630 637,855 692,336
Labor Civil Tax Other Total
Labor Civil Tax Other Total
16.1 Labor Contingencies There are approximately 3,591 labor-related legal proceedings in progress (3,642 on March 31, 2010) in which the Company and subsidiaries are the defendants. These labor proceedings mainly involve the following matters: overtime; hazardous work wage premium; equal pay; pain and suffering; subsidiary/joint liability of employees from outsourced companies; difference of 40% fine of FGTS (Government Severance Indemnity Fund for Employees) derived from the adjustment due to understated inflation and overtime.
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16.2 Civil Contingencies The Company and its subsidiaries are defendants in approximately 40,190 civil legal proceedings (39,799 on March 31, 2010), of which 16,683 are in the state and federal courts referring to Civil Proceedings (15,600 on March 31, 2010), among which those claims that can be accurately assessed amounting to R$812,060 (R$730,758 on March 31, 2010) and 23,507 are in Special Civil Courts (24,199 on March 31, 2010), with total claims amounting to R$350,482 (R$349,956 on March 31, 2009).
Civil Contingencies Accrued Value (probable loss) 6/30/2010 a) Civil proceedings b) Special civil court c) "Cruzado" Plan Total 119,214 30,115 102,065 251,394 3/31/2010 127,954 27,261 100,013 255,228
a) The Provision for civil proceedings comprises lawsuits in which Light Sesa is the defendant and it is probable the claim will result in a loss in the opinion of the respective attorneys. The claims mainly involve alleged moral and property damage as well as consumers challenging the amounts paid. The Company is also party to civil proceedings that Management believes that risk of loss are less than probable, based on the opinion of its legal counsels. Therefore, no provision was established. The amount, currently assessed, represented by these claims is R$543,791 (R$458,457 on March 31, 2010). b) Lawsuits in the Special Civil Court are mostly related to matters regarding consumer relations, such as improper collection, undue power cut, power cut due to delinquency, network problems, various irregularities, bill complaints, meter complaints and problems with ownership transfer. There is a limit of 40 minimum monthly wages for claims under procedural progress at the Special Civil Court. Accruals are based on the moving average of the last 12 months of condemnation amount. c) There are civil actions in which some industrial consumers have challenged, in court, the increases in electric power tariff rates approved in 1986 by the National Department of Water and Electric Power (Cruzado Plan). The provision includes a civil action in the public interest, under phase of calculation of the award.
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16.3 Tax Contingencies The provisions established for tax contingencies are as follows:
Tax Contingencies Accrued Value (probable loss) 6/30/2010 a) PIS/COFINS RGR and CCC b) INSS tax deficiency notice c) INSS quarterly d) ICMS e) CIDE f) Other Total 8,561 40,062 21,992 98,367 4,881 4,327 178,190 3/31/2010 8,561 39,672 21,736 98,367 4,834 4,281 177,451
The Company and its subsidiaries are parties to tax, regulatory and legal proceedings in which Management, based on the opinion of its legal counsels, believes the risks of loss are less than probable, and for which no provision was recorded. Currently, the quantifiable amount of these proceedings is R$949,100 (R$1,229,600 on March 31, 2010). The tax proceedings, deemed as possible loss, had effects in the quarter: (i) ICMS (Aluvale). These are tax foreclosures related to the ICMS deferral in the supply of electric power for the consumer ALUVALE, an electro-intensive industrial consumer. Light Sesa included debts referring to these tax foreclosures included in the Tax payment program of Law 11,941. The payment was made in a single installment, in cash, by the actual taxpayer of this ICMS, Companhia Vale S.A., as ALUVALEs acquiring company. (ii) Reversal of social contribution tax loss carryforward with COFINS Reversal executed by Light Sesa, which used the social contribution tax loss carryforward calculated in 1998 to settle COFINS debts. Lights appeal was denied, which is why the Company filed a Voluntary Appeal. On June 30, 2010 it totaled R$27,900 (R$27,600 on March 31, 2010). (iii) ISS Nilpolis Tax foreclosure to discuss the collection of ISS by the City of Nilpolis concerning services associated with the electric power supply activity. The tax foreclosure motions filed by Light Sesa were held valid. The total amount on June 30, 2010 was R$8,000 (R$7,900 on March 31, 2010). (iv) ITR Lajes and Tocos Reservoirs Collection of ITR on Light Sesas granting area in the city of Rio Claro. Regarding Light Sesas Voluntary Appeal, the court decided to cancel the notice of violation. This decision became final and unappealable and the
29
03.378.521/0001-75
notice of violation was definitively cancelled. The total amount on June 30, 2010 was R$10,700. (v) Transfer of PIS/COFINS Up to June 30, 2010, Light Sesa received 137 lawsuits (92 on March 31, 2010) from commercial clients questioning the transfer of PIS and COFINS into the electricity bill, claiming the return of the amounts unduly paid. According to its lawyers analysis, losses were deemed possible, which is why the Company did not establish a provision. 16.4 Other Contingencies a) Administrative Regulatory Contingencies The Company has regulatory contingencies incurred or to be incurred in 1Q10, derived from administrative challenges against ANEEL: a.1) Tax Deficiency Notice ANEEL 007/2010-SFE The notice was drawn up on February 17, 2010, including a fine of R$9,544 as a result of the inspection conducted by the Agency in December 2009 in order to identify and assess the causes of interruptions in the Concessionaires underground distribution system. Light Sesa filed its defense on March 5, 2010 requesting the cancelation of non-conformities, and subsidiarily a reduction of fines. Alternatively to the imposition of fines, Light Sesa pleaded to convert the fine into the Conduct Adjustment Agreement (TAC). Currently, we await ANEELs final decision on the appeal lodged and the pleading for TAC. The Company set up a provision for the total fine amount. a.2) Tax Deficiency Notice ANEEL 071/2010-SFF The notice was drawn up on March 17, 2010, including a fine in the amount of R$448 under the allegation that nonconformities were verified in the economic, financial and accounting inspection conducted in the Concessionaire. Light Sesa lodged an appeal on April 1, 2010, requesting to convert fines into warning and currently awaits ANEELs decision thereon. ANEEL Order no. 1665/2010 as of June 10, 2010 reduced the penalty to R$419. The Company is awaiting ANEELs final opinion on the appeal filed. The Company set up a provision for the total fine amount. a.3) ANEEL Tax Deficiency Note no. 013/2010-SFG The notice was drawn up on May 4, 2010, including a fine of R$1,120, since ANEEL saw flaws in the black-start process of the generating units of SHP Fontes Nova, Nilo Peanha and Pereira Passos, in the adjustment of SIN after the troubles of November 10, 2009. Light Energia lodged an appeal on May 19, 2010 requiring lower penalties. SFG maintained its decision and is awaiting the decision of ANEELs Board of Executive Officers. The Company set up a provision for the total fine amount. a.4) Tax Deficiency Note no. 061/2010-SFE The notice was drawn up on May 19, 2010, including a fine of R$5,049 under the allegation of non-compliance with technical
30
03.378.521/0001-75
and commercial oversight by ANEEL in May 2009. Light Sesa lodged an appeal on June 3, 2010 requiring the cancellation of the penalties and its further reduction. The Company is currently awaiting ANEELs opinion on this matter and set up a provision for the total fine amount. a.5) ANEEL Tax Deficiency Note no. 082/2010-SFE The notice was drawn up on June 18, 2010, including a fine of R$16,052 under the allegation that Light Sesa had infringed DEC (Equivalent Duration of Interruption per Client) and FEC (Equivalent Frequency of Interruption per Client) continuity indexes of 65 groups in 2009, and included the November 10, 2009 Furnas Blackout to calculate the indexes. Light Sesa filed an appeal on July 8, 2010 requiring the reduction of the fine so that the November 10, 2009 interruption is not taken into consideration for purposes of calculating DEC and FEC. Light Sesa set up a provision of R$4,110, according to the opinion of its legal advisors, who believe that ANEEL may reduce the fine, considering Light Sesas defense on the elimination of the hours the service was interrupted in Furnas transmission lines, since it is a fortuitous event/force majeure or third-party fact, in both cases, excluding Light Sesas responsibility. b) Environmental Contingencies In February 2010, a settlement between subsidiary Light Energia and the municipality of Barra do Pira and the Public Prosecutor Office was ratified at court, resulting from the public civil action, in which the plaintiff requested the remediation and recovery of several environmental damages caused by the construction of the Santa Ceclia and Santana plants, as an integral part of the transposition system of waters from the Rio Paraba do Sul basin to the Rio Guand basin, feeding the Fontes, Nilo Peanha and Pereira Passos plants. The settlement amount was R$14,200 (to be paid by installments until June 2010), considering that Light Energia had a provision of R$6,000, the difference was accrued in 1Q10. The Company paid the last installment of the agreement on June 1, 2010 and now does not have any obligations to settle. After the compliance with liabilities assumed municipality (dredging in Pira river), both lawsuits will be shelved.
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17. OTHER PAYABLES

Parent Company 6/30/2010 3/31/2010 CURRENT Advance from clients CVA (Note 3) Compensation for use of water resources Energy Research Company EPE National Scientific and Technological Development Fund FNDCT Energy Efficiency Program PEE Research and Development Program P&D Portion "A" (Note 3) Public lighting fee Other tariff charges (Note 3) Other Total NONCURRENT CVA (Note 3) Provision for regulatory liabilities - energy overcontracting (Note 3) Reversal reserve Use of Public Asset - UBP Other Total 1,745 1,745 1,561 1,561 Consolidated 6/30/2010 3/31/2010 15,421 1,206 3,902 942 1,884 168,329 83,438 6,213 51,005 5,960 30,966 369,266 21,118 2,171 4,649 1,094 2,189 160,304 79,594 12,090 53,998 11,606 45,235 394,048
55,597 129,617 69,933 122,231 2,527 379,905
34,464 115,104 69,933 118,860 1,999 340,360
18. PENSION PLAN AND OTHER EMPLOYEE BENEFITS Light Groups companies sponsor Fundao de Seguridade Social BRASLIGHT, a nonprofit closed pension entity, whose purpose is to provide retirement benefits to the Companys employees and pension benefits to their dependents. BRASLIGHT was incorporated in April 1974 and has three plans - A, B and C established in 1975, 1984 and 1998, respectively, with about 96% of the active participants of the other plans having migrated to Plan C. BRASLIGHT and Light groups companies created a new Social Security Benefit Plan called Plan D, which became effective on March 22, 2010, approved by the National Superintendence of Supplementary Private Pension (PREVIC).
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03.378.521/0001-75
Transactions occurred in the quarter in net actuarial liabilities were the following:
Total Consolidated Pension plan on 3/31/2010 Amortizations in the period Restatements in the period Transfer from non-current to current Pension plan on 6/30/2010 965,998 (23,168) 28,919 971,749 Current 94,588 (23,168) 3,081 19,089 93,590 Noncurrent 871,410 25,838 (19,089) 878,159
19. RELATED-PARTY TRANSACTIONS The Companys main shareholders are: Controlling Group Companhia Energtica de Minas Gerais CEMIG, Andrade Gutierrez Concesses, Luce Empreendimentos e Participaes S.A. and Rio Minas Energia Participaes S.A (RME) company controlled by Equatorial Energia (see Note 20). BNDESPAR
Interest in operating subsidiaries are outlined in the Note 1. Below, a summary of related-party transactions occurred in the years ended 2009 and 2010:
33
03.378.521/0001-75
C o ntra c ts with the s a m e gro up Ite m (Agree m e nt o bje c tive s and c ha ra c te ris tic s ) S trategic a gree m e nt P urc ha s e a gre e m ent o f e le c tric po we r betwe e n Light S ESA a nd C EM IG S trategic a gree m e nt P urc ha s e a gre e m ent o f e le c tric po we r betwe e n Light S ESA a nd C EM IG S trategic a gree m e nt S a le agre e m e nt o f ele ctric po wer be twe e n Light Ene rgia a nd C EM IG S trategic a gree m e nt C o lle c tio n o f dis tributio n s ys te m us age cha rge s betwe e n Light S ES A a nd C EM IG S trategic a gree m e nt C o m m itm e nt to the ba s ic e lec tric ne two rk us a ge c ha rges be twe en Light S ES A and C EM IG S trategic a gree m e nt C o m m itm e nt to the ba s ic e lec tric ne two rk us a ge c ha rges be twe en Light Energia a nd C EM IG S trategic a gree m e nt Elec tric po we r s ale c o m m itm e nt be twe e n Light Energia a nd C EM AR * Lo a ns F INEM 8 Lo a ns Line o f c re dit 9 Lo a ns De be nture s 1s t is s ue - no n-c o nve rtible 10 Lo a ns
R e la tio ns hip with Light S.A. A s s e ts 6 / 3 0 / 2 0 10 3 / 3 1/ 2 0 10 C EM IG (pa rty o f the c o ntro lling gro up) C EM IG (pa rty o f the c o ntro lling gro up) C EM IG (pa rty o f the c o ntro lling gro up) C EM IG (pa rty o f the c o ntro lling gro up) C EM IG (pa rty o f the c o ntro lling gro up) C EM IG (pa rty o f the c o ntro lling gro up)
C o ns o lida ted Lia b ilit ie s R e v e n ue 6 / 3 0 / 2 0 10 3 / 3 1/ 2 0 10 6 / 3 0 / 2 0 10 6/30/2009
E xp e n s e s 6 / 3 0 / 2 0 10 6/30/2009
2,170 384 13
2,326 190 13
5,977 115 2,170 -
8,597 164 2,208 -
10,187 1,148 59
10,865 1,021 57
38,335 651 9,912 -
52,859 6,791 -
Equa to ria l (pa rty o f the c o ntro lling gro up)
1,018
B NDES
952
4,393
4,321
B NDES
352,554
373,395
9,011
B NDES
114
234
B NDES P r Es c o a nd Ene rgy Effic ie nc y P ro je ct Lo a ns De be nture s 4 th is s ue - c o nve rtible B NDES
2,170
1,724
13
796 32
11
12 Lo a ns Line o f c re dit - dire c t 13 Lo a ns Line o f c re dit - dire c t + 1% 14 Lo a ns Line o f c re dit - dire c t P SI 15 P e ns io n P la n F unda o de Se gurida de So c ia l (S o c ial Se c urity F o unda tio n) - B R AS LIGHT B R AS LIGHT (party o f the c o ntro lling gro up) B NDES B NDES B NDES
95
100
9,564
37
115,245
60,378
1,429
115,373
60,494
1,465
57,223
35,354
406
16
971,749
965,998
28,919
11,296
* Equatorial Energia S.A.s subsidiary.
34
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Below, a summary of agreements executed with related parties:
C o ntra c ts with the s am e gro up Item
R e la tio ns hip with Light S A.
Origina l Am o unt
Ma turity da te o r te rm
C o nditio ns fo r te rm ina tio n o r e nd
R em a ining ba la nc e 6.30.2010
Agree m e nt C o nditio ns
(Agre e me nt o bje c tive s a nd c ha rac te ris tic s ) S tra te gic a gre e me nt P urc ha s e a gre em e nt o f e le ctric po we r betwe e n Light S ES A a nd C EMIG S tra te gic a gre e me nt P urc ha s e a gre em e nt o f e le ctric po we r betwe e n Light S ES A a nd C EMIG S tra te gic a gre e me nt S a le a gree m e nt o f e lec tric po we r be twe e n Light Ene rgia a nd C EMIG S tra te gic a gre e me nt C o lle c tio n o f dis tributio n s ys te m us a ge cha rge s be twe e n Light S ESA a nd C EM IG S tra te gic a gre e me nt C o m m itme nt to the bas ic e lec tric ne two rk us a ge c ha rge s be twe e n Light SES A and C EM IG S tra te gic a gre e me nt C o m m itme nt to the bas ic e lec tric ne two rk us a ge c ha rge s be twe e n Light Ene rgia a nd CEM IG S tra te gic a gre e me nt Elec tric po we r s a le c o m m itme nt betwe e n Light Ene rgia a nd C EMAR * Lo ans F INEM 8 Lo ans Line o f c re dit 9 Lo ans Debe nture s 1s t is s ue - no n-c o nve rtible 10 Lo ans B NDES 11 P r Es c o a nd Ene rgy Effic ienc y P ro je c t Lo ans Debe nture s 4 th is s ue - c o nvertible 12 Lo ans Line o f c re dit - dire c t 13 Lo ans Line o f c re dit - dire c t + 1% 14 Lo ans Line o f c re dit - dire c t P S I 15 P ens io n P la n F unda o de S eguridade S o c ia l (So c ia l Se c urity F o unda tio n) - BR AS LIGHT B R ASLIGHT (pa rty o f the c o ntro lling gro up) B NDES B NDES B NDES B NDES B NDES B NDES B NDES C EM IG (pa rty o f the c o ntro lling gro up)
Da te 30% o f re m a ining ba la nce 30% o f re m a ining ba la nce N/A P ric e e s ta blis he d in the re gula te d m a rke t
614,049
J a n/2006
De c /2038
485,994
C EM IG (pa rty o f the c o ntro lling gro up) C EM IG (pa rty o f the c o ntro lling gro up) C EM IG (pa rty o f the c o ntro lling gro up) C EM IG (pa rty o f the c o ntro lling gro up) C EM IG (pa rty o f the c o ntro lling gro up)
37,600
J a n/2010
De c /2039
36,951
P ric e e s ta blis he d in the re gula te d m a rke t P ric e e s ta blis he d in the re gula te d m a rke t P ric e e s ta blis he d in the re gula te d m a rke t P ric e e s ta blis he d in the re gula te d m a rke t P ric e e s ta blis he d in the re gula te d m a rke t
156,239 -
J a n/2005
De c /2013
65,599 384 2,170 13
No v/2003
Unde term ined
N/A
De c /2002
Unde term ined
N/A
De c /2002
Unde term ined
N/A
Equato ria l (pa rty o f the c o ntro lling gro up)
61,214
J a n/2005
De c /2013
N/A
26,284
P ric e e s ta blis he d in the re gula te d m a rke t
739,148
No v/2007
S e p/2014
N/A
352,554
TJ LP + 4.3% p.a .
14,147
Ma r/1999
Apr/2010
N/A
B NDES B a s ke t + 4% p.a .
105,000
J a n/1998
J a n/2010
N/A
TJ LP + 4% p.a.
596
De c /2008
Oc t/2014
N/A
2,170
TJ LP + 2.5% p.a .
767,252
J un/2005
J un/2015
N/A
95
TJ LP + 4% p.a.
114,510
De c /2009
Apr/2017
N/A
115,245
TJ LP + 2.58% p.a .
114,510
De c /2009
Apr/2017
N/A
115,373
TJ LP + 1% + 2.58% p.a .
57,125
De c /2009
S e p/2019
N/A
57,223
4.5% p.a .
535,052
J un/2001
J un/2026
N/A
971,749
IP C A+ 6% p.a.
16
* Equatorial Energia S.A.s subsidiary. Related-party transactions have been executed under usual market conditions.
20. SHAREHOLDERS EQUITY a) Capital Stock There are 203,934,060 non-par and book-entry common shares of Light S.A. (203,934,060 on March 31, 2010) as of June 30, 2010 recorded as Capital Stock in the total amount of R$2,225,822 (R$2,225,822 on March 31, 2010), as follows:
35
6/30/2010 Number of Shares 106,304,597 26,576,150 1,081,649 52,070,649 26,576,149 97,629,463 46,823,482 50,805,981 203,934,060 3/31/2010 Number of Shares 106,304,597 26,576,150 1,081,649 52,070,649 26,576,149 97,629,463 48,494,482 49,134,981 203,934,060
LIGHT S.A.
03.378.521/0001-75
SHAREHOLDERS Controlling Group RME Rio Minas Energia Participaes S.A. Andrade Gutierrez Concesses S.A. Companhia Energtica de Minas Gerais S.A. Luce Empreendimentos e Participaes S.A. Other BNDES Participaes S.A. - BNDESPAR Public Overall total
% Interest 52.12 13.03 0.53 25.53 13.03 47.88 22.96 24.92 100.00
% Interest 52.12 13.03 0.53 25.53 13.03 47.88 23.78 24.10 100.00
Light S.A. is authorized to increase its capital up to the limit of R$203,965,072 through resolution of the Board of Directors, regardless of amendments to the bylaws. However, this increase is to occur exclusively upon the exercise of the warrants issued, strictly pursuant to the conditions of the warrants (Bylaws, Article 5, paragraph 2).
21. ELECTRIC POWER SUPPLY
04.01 to 06.30 Residential Industrial Commerce, services and other Rural Public sector Public lighting Public utility Own consumption Billed sales ICMS (State VAT) Unbilled sales TOTAL SUPPLY (3) Electric power auction Short-term energy TOTAL SUPPLY OVERALL TOTAL
Number of billed sales (1) (2) 2010 2009 3,719,905 11,565 273,030 11,145 10,219 779 1,314 361 4,028,318 4,028,318 4,028,318 3,651,775 12,002 269,417 11,016 10,159 432 1,309 328 3,956,438 3,956,438 3,956,438
Consolidated GWh (1) 2010 1,992 423 1,505 12 362 170 274 17 4,755 4,755 1,110 141 1,251 6,006 2009 1,860 459 1,477 12 352 171 271 17 4,619 4,619 1,134 353 1,487 6,106 2010
R$ 2009 610,268 106,182 466,013 2,264 111,313 25,707 55,388 1,377,135 504,911 (49,962) 1,832,084 80,931 13,815 94,746 1,926,830
665,809 84,702 462,540 2,285 113,219 26,030 55,705 1,410,290 560,773 (51,147) 1,919,916 93,169 15,174 108,343 2,028,259
(1) Not revised by the independent auditors (2) Number of billed sales in June 2010, with and without consumption (3) Light SESA
36
Consolidated GWh (1) 2010 4,408 872 3,207 26 752 337 549 34 10,185 10,185 2,240 609 2,849 13,034 2009 4,024 892 3,059 25 712 339 536 34 9,621 9,621 2,259 482 2,741 12,362 2010 1,468,502 175,043 965,497 4,815 229,751 51,287 110,228 3,005,123 1,168,052 (54,957) 4,118,218 182,934 22,096 205,030 4,323,248
LIGHT S.A.
03.378.521/0001-75
01.01 to 06.30 Residential Industrial Commerce, services and other Rural Public sector Public lighting Public utility Own consumption Billed sales ICMS (State VAT) Unbilled sales TOTAL SUPPLY (3) Electric power auction Short-term energy TOTAL SUPPLY OVERALL TOTAL
Number of billed sales (1) (2) 2010 2009 3,719,905 11,565 273,030 11,145 10,219 779 1,314 361 4,028,318 4,028,318 4,028,318 3,651,775 12,002 269,417 11,016 10,159 432 1,309 328 3,956,438 3,956,438 3,956,438
R$ 2009 1,328,805 208,486 961,038 4,809 223,146 51,116 108,224 2,885,624 1,068,876 (21,026) 3,933,474 159,295 19,602 178,897 4,112,371
(1) Not revised by the independent auditors (2) Number of billed sales in June 2010, with and without consumption (3) Light SESA
22. OTHER INCOME

Consolidated 2010 2009 11,125 10,209 178,526 120,986 14,830 6,196 512 695 204,993 138,086
04.01 to 06.30 Leases, rentals and other Income from network usage Income from services rendered Taxed service
01.01 to 06.30 Leases, rentals and other Income from network usage Income from services rendered Taxed service
Consolidated 2010 2009 21,898 19,843 348,301 241,902 27,399 15,081 979 1,354 398,577 278,180
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23. CONSUMER CHARGES (Operating Revenue Deductions)
04.01 to 06.30 CCC - Cash CCC - CVA CCC - CVA Amortization CDE - Cash CDE - CVA CDE - CVA Amortization Taxes Charged from Consumers - RGR EPE - Energy Research Company FNDCT - National Development Fund PEE - Energy Efficiency Plan P&D - Research and Development
Consolidated 2010 2009 (51,672) (30,118) 7,314 (19,310) (1,003) (61,693) (51,546) (51,519) (3,576) 366 175 9,852 (16,088) (21,166) (1,446) (1,340) (2,893) (2,679) (6,503) (5,966) (3,846) (2,679) (131,084) (186,252)
01.01 to 06.30 CCC - Cash CCC - CVA CCC - CVA Amortization CDE - Cash CDE - CVA CDE - CVA Amortization Taxes Charged from Consumers - RGR EPE - Energy Research Company FNDCT - National Development Fund PEE - Energy Efficiency Plan P&D - Research and Development
Consolidated 2010 (105,446) 16,628 (3,591) (103,092) (9,274) 387 (33,940) (3,091) (6,179) (13,977) (8,727) (270,302)
2009 (67,324) (30,989) (127,945) (103,038) 705 20,484 (42,396) (2,841) (5,686) (12,766) (5,686) (377,482)
24. OPERATING COSTS AND EXPENSES

Cost of Service 04.01 to 06.30 Nature of the expense Personnel and management Material Outsourced services Electricity purchased for resale (Note 25) Depreciation and amortization Allowance for doubtful accounts Provision for contingencies Other Total Electric Power (873,082) (873,082) Operation (35,826) (6,626) (35,932) (69,569) (2,471) (150,424) Selling (3,774) (528) (18,374) (260) (75,258) (145) (98,339) Consolidated Operating Expenses General and Adm (17,240) (930) (28,201) (8,958) 38,120 (21,408) (38,617) Other Operating Revenues (Expenses) 10,839 10,839 2010 2009
(56,840) (8,084) (82,507) (873,082) (78,787) (75,258) 38,120 (13,185) (1,149,623)
(62,663) (6,465) (63,903) (811,854) (76,078) (66,543) (18,494) (25,186) (1,131,186)
Cost of Service 01.01 to 06.30 Nature of the expense Personnel and management Material Outsourced services Electricity purchased for resale (Note 25) Depreciation and amortization Allowance for doubtful accounts Provision for contingencies Other Total Electric Power (1,888,117) (1,888,117) Operation (67,949) (13,855) (72,471) (137,001) (6,579) (297,855) Selling (7,158) (1,104) (37,059) (512) (138,793) (386) (185,012)
Consolidated Operating Expenses General and Adm (32,697) (1,944) (56,879) (17,641) 131 (38,736) (147,766) Other Operating Revenues (Expenses) 10,595 10,595 2010 2009
(107,804) (16,903) (166,409) (1,888,117) (155,154) (138,793) 131 (35,106) (2,508,155)
(124,756) (10,938) (122,708) (1,683,847) (152,420) (126,708) (23,881) (44,987) (2,290,245)
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25. ELECTRIC POWER PURCHASED FOR RESALE

Consolidated 04.01 to 06.30 2010 CVA (Recoverable Cost Variation) Connection charges Spot market energy Network usage charges Itaipu UTE Norte Fluminense Other contracts and electric power auctions National Electric System Operator (O.N.S.) 9 1,345 1,583 3,567 6,504 GWh
(1)
2009 1,404 1,583 3,519 6,506
R$ 2010 (70,923) (4,546) 3,718 (105,094) (137,982) (198,510) (354,850) (4,895) (873,082)
2009 36,794 (4,822) 13,113 (95,659) (160,790) (239,394) (356,869) (4,227) (811,854)
(1) Not revised by the independent auditors
Consolidated 01.01 to 06.30 2010 CVA (Recoverable Cost Variation) Connection charges Spot market energy Network usage charges Itaipu UTE Norte Fluminense Other contracts and electric power auctions National Electric System Operator (O.N.S.) 765 2,676 3,150 7,732 14,323 GWh
(1)
2009 568 2,791 3,150 7,292 13,801
R$ 2010 (235,430) (9,195) (8,080) (210,305) (278,677) (394,815) (742,021) (9,594) (1,888,117)
2009 64,318 (9,574) (53,237) (194,951) (343,130) (476,191) (664,037) (7,045) (1,683,847)
(1) Not revised by the independent auditors
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03.378.521/0001-75
26. FINANCIAL INCOME

04.01 to 06.30 REVENUES Interest and variation on debts paid by installments Restatement of tax credits Charges on CVA accounts and Portion "A" Income from temporary cash investments Swap operations Other EXPENSES Adjustment at present value of receivables Restatement of tax liabilities Restatement of provision for contingencies Banking expenses Charges and monetary variations with BNDES financing Charges and monetary variations on actuarial liability of Brasilight Interest and charges on loans and financing foreign currency Interest and charges on loans and financing domestic currency Charges on regulatory liabilities Reversal Income Tax credit Debenture 4th Issue Interest and fines on taxes Regulatory fines Installment payment - other fines and interest rates Law 11,941/09 Monetary variation local currency Exchange variation foreign currency Swap operations Other Parent Company 2010 2009 5 175 3 183 (2) (2) 181 261 7 268 (217) (1) (218) 50 Consolidated 2010 22,066 15,281 12,312 (23) 2,100 51,736 3,436 (9) (5,737) (559) (12,284) (28,919) (1,692) (45,072) (2,828) (11,523) 10,377 (4,152) 18,945 (12) (1,057) (189) (3,011) (84,286) (32,550) 2009 29,180 8,285 772 10,450 (7,196) (2,232) 39,259 5,619 (7,312) (8,722) (2,360) (384) (11,296) (3,317) (43,470) (2,043) (6) 21,895 (2,560) 3,167 (50,789) (11,530)
NET FINANCIAL INCOME
01.01 to 06.30 REVENUES Interest and variation on debts paid by installments Restatement of tax credits Charges on CVA accounts and Portion "A" Income from temporary cash investments Swap operations Other EXPENSES Adjustment at present value of receivables Adjustment Braslight surplus Restatement of tax liabilities Restatement of provision for contingencies Banking expenses Charges and monetary variations with BNDES financing Charges and monetary variations on actuarial liability of Brasilight Interest and charges on loans and financing foreign currency Interest and charges on loans and financing domestic currency Charges on regulatory liabilities Reversal Income Tax credit Debenture 4 Issue Interest and fines on taxes Regulatory fines Installment payment - other fines and interest rates Law 11,941/09 Monetary variation local currency Exchange variation foreign currency Swap operations Other
th
Parent Company 2010 2009 20 343 7 370 370 1,088 15 1,103 (217) (24) (241) 862
Consolidated 2010 41,955 18,073 28,723 32 7,383 96,166 8,057 (6,388) (34) (22,817) (15,338) (24,734) (61,215) (3,972) (87,180) (5,223) (11,523) 9,718 (6,895) 12,447 (10) (3,238) 81 (8,298) (226,562) (130,396) 2009 46,089 14,926 6,001 27,858 (8,286) (1,060) 85,528 11,419 (15,589) (30,190) (2,411) (708) (20,488) (7,752) (90,662) (7,133) (7) 42,808 (2,560) 1,463 (121,810) (36,282)
NET FINANCIAL INCOME
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27. FINANCIAL INSTRUMENTS Below, we compared book and market values of financial instruments assets and liabilities:
Consolidated 6/30/2010 3/31/2010 Book value Market Value Book value Market Value ASSETS Temporary cash investments (Note 4) Accounts receivable (Note 5) Swaps 714,596 1,532,326 45 2,246,967 714,596 1,532,326 45 2,246,967 471,998 1,696,338 118 2,168,454 471,998 1,696,338 118 2,168,454
LIABILITIES Suppliers (Note 12) Loans and financing (Note 13) Debentures (Note 14) Swaps (Note 13)
493,791 1,267,745 1,201,200 5,666 2,968,402
493,791 1,272,061 1,201,200 5,666 2,972,718
549,879 1,162,553 1,217,598 5,345 2,935,375
549,879 1,169,467 1,217,598 5,345 2,942,289
a) Policy for utilization of derivatives The policy for utilization of derivative instruments approved by the Board of Directors determines the debt service protection (principal plus interest and commissions) denominated in foreign currency to mature within 24 months, forbidding any utilization for speculative purposes, whether in derivatives or any other risk assets. In line with provisions of this policy, the Company and its subsidiaries do not have futures contracts, options, swaptions, swaps with regret option, flexible options, derivatives embedded in other products, structure operations with derivatives and exotic derivatives. In addition, it is evidenced through the chart above that the single derivative instrument used by the Company and its subsidiaries is the non-cash currency swap (US$ versus CDI), whose Contractual Notional Value corresponds to the amount of foreign currency-denominated debt service to expire within 24 months, in line with the policy for the utilization of aforementioned derivatives. b) Risk management and objectives achieved The management of derivative instruments is conducted by means of operating strategies, aiming liquidity, profitability and safety. The control policy consists of permanently inspecting the policy compliance in the utilization of derivatives, as well as to monitor the rates contracted against those used in the market.
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c) Classification and measurement of financial instruments: Concerning the calculation of market value, below a few considerations: Receivables - consumers, concessionaires and permissionaires (clients) are classified as loans and receivables and are recorded by their original values, less provision for losses and present value adjustment, where applicable. Suppliers are measured by the amortized cost method and therefore, recognized by their original value. According to OCPC 03 guidelines, these financial instruments are recorded as financial liabilities not measured at the fair value. Loans and financing: are measured by the amortized cost method. Market values were calculated at interest rates applicable to instruments with similar nature, maturities and risks, or based on market quotations of these securities. The market values for BNDES financing are identical to accounting balances, since there are no similar instruments, with comparable maturities and interest rates. In case of debentures, book and market values are identical, as there is no liquid trading market for these debentures as an accurate benchmark in the market calculation. These financial instruments are classified as financial liabilities not measured at the fair value. Swap operations: are measured by the market value. A the determination of market value used available information in the market and usual pricing methodology: the face value (notional) evaluation for long position (in U.S. dollars) until maturity date and discounted at present value of clean coupon rates, published in bulletins of Securities, Commodities and Futures Exchange BM&F Bovespa. It is worth mentioning that estimated market values of financial assets and liabilities were determined by means of information available on the market and appropriate valuation methodologies. Nevertheless, meaningful judgment was required when interpreting market data to produce the most appropriate market value estimate. As a result, estimates used and presented below do not necessarily indicate the amounts that may be realized in current exchange market. d) Risk Factors During the normal course of its businesses, the Company and its subsidiaries are exposed to the market risks related to currency variations and interest rates, as evidenced in the chart below:
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03.378.521/0001-75
Debt breakdown (excluding financial charges):

Consolidated 6/30/2010 USD Currency basket BNDES Foreign currency (current and noncurrent) CDI TJLP Other Local currency (current and noncurrent) Overall total (current and noncurrent) R$ 95,846 95,846 1,731,105 581,585 60,409 2,373,099 2,468,945 % 3.9 3.9 70.1 23.6 2.4 96.1 100.0 3/31/2010 R$ 101,782 114 101,896 1,747,498 492,277 38,480 2,278,255 2,380,151 % 4.3 4.3 73.4 20.7 1.6 95.7 100.0
On June 30, 2010, according to the chart above, the foreign currency-denominated debt is R$95,846, or 3.88% of total debt. Financial derivative instruments were contracted for the amount of foreign currencydenominated debt service to expire within 24 months, in the swap modality, whose notional value on June 30, 2010 stood at US$21,879, according to the policy for utilization of derivative instruments approved by the Board of Directors. Thus, if we deduct this amount from total foreign currency-denominated debt, the foreign exchange exposure represents 2.29% of total debt. Below we provide a few considerations and analyses on risk factors impacting on business of Grupo Light companies: Currency risk Considering that a portion of Light Sesas loans and financing is denominated in foreign currency, the company uses derivative financial instruments (swap operations) to hedge service associated with these debts (principal plus interest and commissions) to expire within 24 months. Derivative operations resulted in a R$189 loss in 2Q10 (a loss of R$9,756 in 2Q09). The net amount of swap operations as of June 30, 2010, considering the fair amount, is a negative R$5,621 (negative by R$116 on June 30, 2009), as shown below:
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Institution
Light's Receivable US$+2.80% US$+2.80% US$+2.80% US$+2.20% US$+2.33% US$+2.30% US$+2.79% US$+3.20% US$+2.82%
Light's Payable 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI
Starting Date Maturity Date
Citibank Citibank Citibank Banco Itau Citibank Banco Itau Banco Itau Citibank Banco Itau
2/10/09 2/10/09 2/10/09 6/18/09 6/18/09 9/10/09 10/9/09 3/10/10 4/12/10
9/10/10 10/11/10 12/27/10 3/10/11 4/12/11 9/12/11 10/11/11 3/12/12 4/11/12 Totals
Notional Value Contracted (US$ thousand) 74 5,511 376 69 5,436 67 5,272 64 5,010 21,879
Fair Value Jun/10 (R$) Assets 45 45
Fair Value Jun/10 (R$) Liabilities (50) (3,743) (254) (20) (1,578) (8) (13) (5,666)
Fair Value Jun/10 (R$) Balance (50) (3,743) (254) (20) (1,578) (8) (13) 45 (5,621)
The amount recorded was already measured by its fair value on June 30, 2010. All operations with derivative financial instruments are registered in clearing houses for the custody and financial settlement of securities and there is no margin deposited in guarantee. Operations have no initial cost.
Below, the sensitivity analysis for foreign exchange and interest rates fluctuations, showing eventual impacts on financial result of the Company and its subsidiaries. The methodology used in the Probable Scenario was to consider that both foreign exchange and interest rates will maintain the same level verified on June 30, 2010 until the end of 2010, maintaining steady liabilities, derivatives and temporary cash investments verified on June 30, 2010. It is worth highlighting that, as this refers to a sensitivity analysis of the impact on the 2010 financial result, the realized amounts of financial expense and/or revenue until 2Q10 were considered, and charges projection for the next six months over debt balance on June 30, 2010. It is worth mentioning that the behavior of debt and derivatives balances will observe their respective contracts, and the balance of temporary cash investments will fluctuate according to the need or available funds of the Company and its subsidiaries.
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Operation FINANCIAL LIABILITIES Par Bond Discount Bond C. Bond Debit. Conv. Bib BNDES - Financ. Imports KfW DERIVATIVES Swaps
Risk
Scenario (I): Probable (116,765) (40,428) (26,308) (29,633) (17,530) (943) (366) (1,557) (2,283)
R$ Scenario (II) (141,441) (49,232) (32,289) (35,751) (20,903) (1,136) (366) (1,764) 7,801
Scenario (III) (166,393) (58,149) (38,355) (41,906) (24,301) (1,329) (366) (1,987) 17,884
USD USD USD USD USD Basket USD USD
Reference for financial assets and liabilities Financial R$/US$ exchange rate (end of the period)
+25% 1.8015 2.2519
+50% 2.7023
Exchange Rate Appreciation Risk R$ Scenario (IV) (91,537) (31,397) (20,157) (23,439) (14,109) (750) (366) (1,319) (12,366)
Operation FINANCIAL LIABILITIES Par Bond Discount Bond C. Bond Debit. Conv. Bib BNDES - Financ. Imports KfW DERIVATIVES Swaps
Risk
Scenario (I): Probable (116,765) (40,428) (26,308) (29,633) (17,530) (943) (366) (1,557) (2,283)
Scenario (V) (66,585) (22,480) (14,091) (17,284) (10,711) (557) (366) (1,096) (22,449)
USD USD USD USD USD Basket USD USD
Reference for financial assets and liabilities Financial R$/US$ exchange rate (end of the period)
-25% 1.8015 1.3511
-50% 0.9008
With the chart above, it is possible to identify that despite partial hedge against foreign currency-denominated debt (only limited to debt service to expire within 24 months), as R$/US$ quote increases, liabilities financial expense also increases but financial revenues of derivatives also partially offset this negative impact and vice-versa. Thus, cash is hedged thanks to the derivatives policy of the Company and its subsidiaries.
Interest rate risk This risk derives from impact of interest rates fluctuation not only over financial expense associated with loans and financing of subsidiaries, but also over financial revenues deriving from temporary cash investments. The policy for utilization of derivatives approved by the Board of Directors does not comprise the contracting of instruments against such risk. Nevertheless, the Company and its subsidiaries
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03.378.521/0001-75
continuously monitor interest rates so that to evaluate eventual need of contracting derivatives to hedge against interest rates volatility risk. See below the sensitivity analysis of interest rate risk, evidencing the effects on scenarios variation results:
R$ Scenario (II)
Operation
Risk
Scenario (I): Probable 61,949
Scenario (III)
FINANCIAL ASSETS Temporary cash investments FINANCIAL LIABILITIES Debentures 5 issue CCB Bradesco CCB Bco ABN Amro Banking S/A th Debentures 4 issue FINEM BNDES 2006-2008 FINEM BNDES 2009-2010 FINEM BNDES 2009-2010 TJLP+1 PROESCO th Debentures 6 issue DERIVATIVES Swaps Reference for FINANCIAL ASSETS CDI (% YTD) Reference for FINANCIAL LIABILITIES CDI (% YTD) TJLP (% YTD)
th
CDI
66,278
70,534
(244,350) CDI CDI CDI TJLP TJLP TJLP TJLP TJLP CDI (99,262) (46,475) (5,282) (14) (41,635) (9,206) (9,973) (178) (32,325)
(272,977) (110,859) (52,191) (5,614) (15) (45,533) (10,466) (11,240) (199) (36,860)
(301,668) (122,455) (57,907) (5,946) (16) (49,431) (11,727) (12,507) (219) (41,460)
CDI
(2,283)
(2,848) +25% 10.79% +25% 10.79% 6.47%
(3,408) +50% 12.05% +50% 12.05% 6.85%
9.52%
9.52% 6.09%
46
Risk of Interest Rate Increase R$ Scenario (II)
LIGHT S.A.
03.378.521/0001-75
Operation
Risk
Scenario (I): Probable 61,949
Scenario (III)
FINANCIAL ASSETS Temporary cash investments FINANCIAL LIABILITIES th Debentures 5 issue CCB Bradesco CCB Bco ABN Amro Banking S/A th Debentures 4 issue FINEM BNDES 2006-2008 FINEM BNDES 2009-2010 FINEM BNDES 2009-2010 TJLP+1 PROESCO th Debentures 6 issue DERIVATIVES Swaps Reference for FINANCIAL ASSETS CDI (% YTD) Reference for FINANCIAL LIABILITIES CDI (% YTD) TJLP (% YTD)
CDI
57,545
53,063
CDI CDI CDI TJLP TJLP TJLP TJLP TJLP CDI CDI
(244,350) (99,262) (46,475) (5,282) (14) (41,635) (9,206) (9,973) (178) (32,325) (2,283)
(215,786) (87,668) (40,760) (4,949) (12) (37,737) (7,945) (8,706) (157) (27,852) (1,710)
(187,285) (76,071) (35,044) (4,617) (11) (33,838) (6,685) (7,439) (137) (23,443) (1,131)
9.52%
-25% 8.23% -25% 8.23% 5.70%
-50% 6.93% -50% 6.93% 5.31%
9.52% 6.09%
Credit risk It refers to the Company and its subsidiaries eventually suffering losses deriving from default of counterparties or financial institutions depositary of funds or temporary cash investments. To mitigate these risks, the Company and its subsidiaries adopt the analysis of financial and equity position of its counterparties as practice, as well as the definition of credit limits and permanent monitoring of outstanding positions. Concerning financial institutions, the Company and its subsidiaries only carry out operations with low-risk financial institutions classified by rating agencies.
28. INSURANCE On June 30, 2010, Light Group had insurance covering its main assets. The assumptions of risks adopted, given their nature, are not included in the scope of a special review, accordingly, they were not audited by independent auditors. Insurance coverage as of June 30, 2010 is considered sufficient by Management, as summarized below:
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RISKS Directors & Officers (D&O) Civil and general liabilities Operating risks* * Maximum Limit of Indemnification (MLI) = R$300,000
Effective Term From To 8/10/2009 9/25/2009 10/31/2009
Amount Insured
Premium US$ 81 R$452 R$1,632
8/10/2010 US$20.000 9/25/2010 R$20,000 10/31/2010 R$ 3,572,187
29. STATEMENT OF INCOME BY COMPANY

01.01 to 06.30
OPERATING REVENUE Billed sales Unbilled sales Supply - Electric Power Other REVENUES DEDUCTION Billed sales - ICMS (State VAT) Consumer charges PIS (Tax on Revenues) COFINS (Tax on Revenues) COFINS - CVA - Amortization Other NET OPERATING REVENUE OPERATING EXPENSES AND COSTS Personnel Material Outsourced services Energy purchased Depreciation Provisions Other Equity in the earnings of subsidiaries FINANCIAL INCOME Financial revenue Financial expenses INCOME BEFORE TAXES Social contribution Income tax INCOME AFTER TAXES Employees profit sharing NET INCOME Light SESA 4,507,310 4,173,175 (54,957) 10,841 378,251 (1,691,593) (1,168,052) (263,080) (47,182) (211,981) (1,298) 2,815,717 (2,425,602) (95,201) (10,683) (147,160) (1,880,034) (142,670) (129,337) (20,517) (111,131) 110,500 (221,631) 278,984 (23,867) (76,633) 178,484 (8,916) 169,568 Light Energia 169,307 166,273 3,034 (21,658) (7,222) (2,574) (11,856) (6) 147,649 (58,973) (9,118) (347) (7,104) (7,150) (12,178) (9,325) (13,751) (20,745) 3,432 (24,177) 67,931 (6,184) (17,098) 44,649 (692) 43,957 Light SA (3,491) (2,089) (6) (1,037) (359) 221,982 370 370 218,861 218,861 (36) 218,825 Light ESCO 75,362 49,431 25,931 (7,398) (3,643) (516) (2,374) (865) 67,964 (57,113) (1,396) (5,757) (10,805) (38,319) (306) (530) 538 590 (52) 11,389 (978) (2,690) 7,721 (140) 7,581 Lightcom 38,602 38,602 (6,152) (6,024) (22) (106) 32,450 (31,732) (110) (303) (31,190) (129) 86 109 (23) 804 (72) (190) 542 542 Other 486 497 (11) 486 (42) (110) 334 334 (60,117) (8,639) (68,756) 68,756 68,576 180 (221,982) (19,332) 19,332 (221,982) (221,982) (221,982) Removals (68,756) Consolidated 2010 4,721,825 4,173,175 (54,957) 205,030 398,577 (1,726,801) (1,177,719) (270,302) (50,294) (226,317) (2,169) 2,995,024 (2,508,155) (107,804) (16,903) (166,409) (1,888,117) (155,154) (138,662) (35,106) (130,396) 96,166 (226,562) 356,473 (31,143) (96,721) 228,609 (9,784) 218,825
30. LONG-TERM INCENTIVE PLAN On June 30,2010 the subsidiary Light Sesa set up a provision of R$1,059 referring to the vesting period of the long-term phantom options incentive plan, incurred in the second quarter of 2010 against personnel expenses, in the total provision amount of R$2,118 in 2010.
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BOARD OF DIRECTORS MEMBERS Aldo Floris Ana Marta Horta Veloso Djalma Bastos de Morais Joo Mrcio Lignani Siqueira Firmino Ferreira Sampaio Neto Luiz Carlos Costeira Urquiza Carlos Roberto Teixeira Junger Srgio Alair Barroso Maria Silvia Bastos Marques Carlos Alberto da Cruz Elvio Lima Gaspar ALTERNATES Lauro Alberto de Luca Joo Procpio Loures Vale Joo Batista Zolini Carneiro Fernando Henrique Schuffner Neto Carlos Augusto Leone Piani Paulo Roberto Reckziegel Guedes Ricardo Simonsen Luiz Fernando Rolla Almir Jos dos Santos Carmen Lcia Claussen Kanter Joaquim Dias de Castro
FISCAL COUNCIL MEMBERS Ari Barcelos da Silva Isabel da Silva Ramos Kemmelmeier Eduardo Grande Bittencourt Maurcio Wanderley Estanislau da Costa Aristteles Luiz Menezes Vasconcellos Drummond ALTERNATES Eduardo Gomes Santos Ronald Gasto Andrade Reis Ricardo Genton Peixoto Mrcio Cunha Cavour Pereira de Almeida Aliomar Silva Lima
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BOARD OF EXECUTIVE OFFICERS Jerson Kelman Chief Executive Officer
Joo Batista Zolini Carneiro Chief Financial and Investor Relations Officer
Evandro Leite Vasconcelos Officer
Paulo Carvalho Filho Officer
Ana Silvia Corso Matte Officer
Jos Humberto Castro Officer
Paulo Roberto Ribeiro Pinto Officer
CONTROLLERSHIP AND PLANNING SUPERINTENDENCE Luciana Maximino Maia Accountant Accounting Manager CPF 144.021.098-50 CRC-RJ 091476/O-0
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Light S.A.

Review Report of Independent Auditors

KPMG Auditores Independentes CRC SP-014428/O-6 F-RJ

Vnia Andrade de Souza Accountant CRC RJ-057497-O-2

Brazilian Corporation Law

LIGHT S.A. BALANCE SHEET AS OF JUNE 30, 2010 ( In thousands of reais )

180 180 3,087,914 741 3,095,648

180 180 2,992,171 669 3,429,983

Investments Property, Plant and Equipment Intangible assets

Brazilian Corporation Law

LIGHT S.A. BALANCE SHEET AS OF JUNE 30, 2010 ( In thousands of reais )

129 25 10 103 1,745 2,012 -

248 141 130 432,340 202 1,561 434,622 -

1,082,442 835,612 174,013 637,855 60 878,159 379,905 3,988,046

985,684 1,149,358 301,199 692,336 871,410 340,360 4,340,347

2,225,822 648,989 133,999 514,990 218,825 3,093,636 3,095,648

2,225,822 648,989 133,999 514,990 120,550 2,995,361 3,429,983

2,225,822 648,989 133,999 514,990 218,825 3,093,636 9,029,050

2,225,822 648,989 133,999 514,990 120,550 2,995,361 9,438,738

Brazilian Corporation Law

(3,491) (3,491) 221,982

EQUITY IN THE EARNINGS OF SUBSIDIARIES FINANCIAL REVENUES (EXPENSES) Revenues Expenses

183 (2) 181

1,103 (241) 862

51,736 (84,286) (32,550)

96,166 (226,562) (130,396)

39,259 (50,789) (11,530)

85,528 (121,810) (36,282)

98,302 98,302 (27) 98,275 0.48190 203,934,060

218,861 218,861 (36) 218,825 1.07302 203,934,060

10,839 218,558 (67,038) (45,907) 105,613 (7,338) 98,275 0.48190 203,934,060

121,439 (2) 121,437 0.59547 203,934,060

289,732 (7) 289,725 1.42068 203,934,060

Brazilian Corporation Law

CAPITAL SOCIAL 2,225,822 2,225,822

RESERVA LEGAL 133,999 -

RESERVAS DE LUCRO RETENO DE LUCROS 514,990 514,990

LUCROS (PREJUZOS) ACUMULADOS 120,550 98,275 218,825

TOTAL 2,995,361 98,275 3,093,636

CAPITAL SOCIAL 2,225,822 2,225,822

RESERVAS DE CAPITAL 28,045 (12,243) (15,802) -

LUCROS (PREJUZOS) ACUMULADOS 218,825 218,825

TOTAL 2,887,054 (12,243) 218,825 3,093,636

Brazilian Corporation Law

218,825 138,793 22,807 (8,057) 155,154

105,493 (10,605) 11,410 61,122 (7,656) 5,199 692,485

85,894 70,310 (27,252) 5,803 (1,016)

(10,843) 182,617 (62,781) (5,805) (1,996)

47,772 (4,405) (12,719)

130,031 (7,760) (19,295)

118,345 (468) (9,089) (147) (8,751) 123,615 (11,988) 14,379

(87,675) 116,118 (19,880) (1,421) (10,167) 196,952 (14,375) 67,236

(21,404) (34,684) (10,531) (37,690) 8,645 (6,443) (22,772) (23,075) 453

(48,137) (22,253) (6,229) (177,723) 14,404 4,152 (51,235) (45,804) 103,924

(38,152) (42,842) (14,177) 29,341 (34,746) (350) (22,867) (23,177) (4,630)

(27,229) 10,033 (6,542) (58,904) (89,828) (23,193) (37,709) (46,531) (21,644)

(45,359) 51,749 (33,646) (3,976) (31,232)

1,533 (36,388) (34,855)

12,876 (152,330) 4,271 (3,976) (139,159)

13,562 (297,904) (45,359) 51,749 5,553 (3,976) (276,375)

1,230 (130,221) 1,331

6,927 (242,665) 3,180