The document provides an overview of the Brazilian energy market and highlights of CPFL Energia, the largest private company in the sector. The key points are: 1) The Brazilian energy market is concentrated among a few large players and state-owned companies control 70% of generation assets and 34% of the market share. 2) CPFL Energia is the largest private company in distribution and commercialization with a 13% market share. It has expanded significantly through acquisitions in recent years. 3) CPFL Energia has a 100% hydroelectric generation portfolio with long-term contracts. It is expanding into biomass generation through its subsidiary CPFL Bioenergia.

2. Summary
Energy market overview
CPFL Energia – Highlights and Results
2

3. Brazilian market has 64 distribution’s companies
Market Share1 (%)
Distribution Business – 2008
CPFL Energia 13%
Distributors (#) 64
Brasiliana Energia 12%
Clients (million) 63 Cemig 8%
Neoenergia 8%
Distributed Energy (TWh) 393
Copel 7%
Market Breakdown Celesc 5%
Energias do Brasil 5%
• The 5 largest groups have 48%
of market-share Rede Energia 4%
• State-owned companies: 34% 4%
Ashmore Energy
• Private Company: 66%
Others 34%
Spreading proposes consolidation opportunities
3 1) ANEEL – Ref. 1H08

4. Brazilian market has 1,994 power plants. The public sector concentrates
70% of the assets
Market Share1 (%)
Generation Business – 2008
Chesf 10%
Furnas 9%
Hydroelectric plants (#) 1,994
Eletronorte 9%
Cesp 7%
Installed Capacity (MW) 111,540 Itaipu 7%
Cemig 7%
Tractebel 6%
Market Breakdown Petrobras 5%
Copel 4%
• The 6 largest groups have 50%
of the market AES Tietê 3%
Duke 2%
• State-owned companies: 70%
CPFL Energia 2%
• Private Company: 30%
Others 29%
4th largest private generation company in Brazil
4 1) ANEEL – Ref. 1H08

5. Summary
Energy market overview
CPFL Energia – Highlights and Results
5

6. Highlights
• Brazilian’s largest player in distribution and commercialization
businesses
• Energy market is concentrated in the most developed regions of Brazil
(South/Southeast)
• CPFL is listed in the Bovespa’s Novo Mercado and NYSE’s ADR level III
• Differentiated Dividend Policy: payment of 50% of the net income on
a semi-annual basis
• 100% hydraulic generation portfolio, with a strong growth in the
installed capacity in the last few years
• Long term generation and distribution concessions
• 5 distribution companies’ acquisition, 9 SPP’s and RGE’s stake (33%),
Foz do Chapecó HPP’s stake (11%) and Lajeado HPP’s stake (7%) in
the last 2 years, with a R$ 1.1 billion investment
• First company in the Brazilian electric sector to negotiate carbon
credits, through a run-of-stream HPP
• Constitution of CPFL Bioenergia, for investments in energy generation
from biomass
6

7. Corporate Structure
25.7%1 31.1% 12.7% 30.5%
COMMERCIALIZATION and VAS
GENERATION
DISTRIBUTION
100% 100% 100%
100% 100% 100%
100% 65%
99.95%
25.01%
99.99% 100%
48.72%
96.56% 100%
51%
90.15% 89.81%
100%
100%
87.80% 90.15%
89.75% 59.93%
5.91%
7 1) Inclui participação da Camargo Correa S.A.

8. The solidity achieved by CPFL reflects its operational efficiency and
the quality of the markets in which operates
Distribution1 – 1H09
Distribution Companies (#) 8
Municipalities (#) 568
Concession Area (km²) 208,226
Market Share (%) 13.0
Costumers (million) 6.4
Sales Concession Area (GWh) 49,033¹
8 1) TUSD + Captive (Excludes CCEE sales) - LTM

9. CPFL Energia: Industrial segment by activity
Industrial segment by activity: CPFL Energia’s concession area (GWh)
Dec.08 2Q09
Others: 23% Others: 23%
Metallurgical: 17%
Metallurgical: 20%
Paper and Cardboard: Paper and Cardboard:
5% 5%
Non-metallic minerals: Non-metallic minerals: Food: 16%
6% Food: 15% 6%
Rubber: 6% Rubber: 6%
Transportation Transportation Chemicals: 12%
Chemicals: 10%
equipment: 7% Textiles: 8% equipment: 6% Textiles: 8%
CPFL Energia – Characteristics of the revenues:
1
• Distribution: reduction in the demand of the customer is
done only 180 days after the request
• Commercialization: average take or pay of the contracts
in 2009 is 96%
• Generation: 100% long-term contracted energy, without
possibility of reduction
9 1) From Oct, 08 to Jun,09

10. Tariff Review Cycle - Overview
2nd Cycle 3rd Cycle
2nd Cycle – Regulatory Premise1
Oct/2007 Oct/2011
Kd 14.97%
Feb/2008 Feb/2012 Ke 16.71%
Nominal WACC 12.81% per year
Feb/2008 Feb/2012
Real WACC 9.95% per year
Feb/2008 Feb/2012
Feb/2008 Feb/2012
Feb/2008 Feb/2012 2nd Tariff Review Cycle
Net Regulatory Asset Base
Apr/2008 Apr/2013 R$ 4,688 million
(RAB)
Apr/2008 Apr/2013 Referency Company (RC) R$ 1,116 million
10 1) Source: ANEEL

11. The solidity achieved by CPFL reflects its operational efficiency and
the quality of the markets in which operates
Generation – 1H09
In operation
Installed Capacity (MW) 1,737 (e)
Assured Energy (MWmedium) 864 (e)
HPP (#) 7
SPP (#) 33
Under construction
Installed Capacity (MW) 465
Assured Energy (MWmedium) 229
HPP (#) 1
TPP Biomass (#) 1
Installed Capacity until 2010 (MW) 2,202
Campos Novos HPP Castro Alves HPP
11

12. Strong growth in the installed capacity and long term concessions
Installed Capacity (MW)
27%
Assurede Energy (MWmedium) 9% 2,202
Concession Term 48%
1,704 1,737
1,588
27%
1,072 8%
812 854 915 40%
862 864 1,093
800
434 472 525 571
2003 2004 2005 2006 2007 2008 2009(e) 2010(e)
SPP’s CPFL Geração Monte Claro Barra Grande Campos Novos Castro Alves Foz do Chapecó
2027 2036 2036 2035 2036 2036
Baldin Biomass
CPFL Energia Generation Business
Contracts Expiration Date
Serra da Mesa1 CPFL Sul2 Lajeado 14 de Julho
2028 2032 2036
After 2027 58%
SPP’s 2013 35%
CPFL Jaguariúna3
2012 7%
2015
12 1) CPFL has the right of 51.54% of the Assurede Energy until 2028
2) Hydroelectric projects with installed capacity <= 1,000 kW are not eligible to concession 3) Among the 9 SPP’s, 6 of them are in the situation mentioned in note 2

13. Expansion into biomass, CPFL Bioenergia’s constitution and its first deal
Expansion of ethanol plants Expansion Bioelectricity² (MWmedium)
151 new plants expected to be built in
the state of São Paulo by 20111
• Contract signed: Aug 2008
Baldin Project – 1st Deal
• Construction of a sugar cane CPFL
bagasse-fired thermoelectric generation plant Investmen CPFL will have the right to 24
t:
R$ 98 milli MW of energy exported during
• Location: Pirassununga – SP on
harvest season
• Expected operations: April 2010
1) Source: EPE
13 2) Source: Cogem - SP

15. The solidity achieved by CPFL reflects its operational efficiency and the quality of
the markets in which operates
Commercialization – 1H09
Free Costumers 72
Outside Concession Area 18
Inside Concession Area 54
Market Share (%) 21
Commercial expertise: competitive performance in
free market sales and Value-Added Services – VAS
Captive and Free Market’s Sales Evolution in Brazil (% of TWh)
14% 23% 27% 28% 26% 25%
86% 77% 73% 72% 74% 75%
2004 2005 2006 2007 2008 20091
Energy Commercialization Desk
ACR - Regulated Contracting Ambience ACL - Free Contracting Ambience Campinas - SP
15 1) LTM until Jun, 09

16. 16 1) Excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market)
2) Source: EPE

17. A CPFL apresentou forte crescimento de EBITDA e Lucro Líquido
nos últimos anos
EBITDA (R$ million)1 Net Income (R$ million)1
CAGR 4 years = 13.7% CAGR 4 years = 46.2%
3.345 1.641
2.789 2.808 1.404
1.276
2.120 1.021
1.681
1.349 572
279
2004 2005 2006 2007 2008 1H09 2004 2005 2006 2007 2008 1H09
EBITDA Breakdown²
Distribution
63%
Consolidated EBITDA
Margin of 28% and
Net Margin of 12%3
Commercialization
and Services Generation
10% 27%
1) 2007 and 2008 adjusted by the impact of Law 11,638 and PM 449/08 2) Reported values
17 3) Excluding main non-recurring effects and items that affect Revenue, but don’t affect EBITDA

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20. CPFL Energia´s Estimated Capex
Distribution – R$ million
1.012 934
588 483
Total Capex – R$ million 738 776 740
354 337 377
1.235 1.228
738 1.012 541
993 424 438
384 363
934
789 752
776 740 2009E 2010E 2011E 2012E 2013E
Maintenance Expansion
429
Generation – R$ million
191 497
57
68 24 2 12 1 12 0 260
2009E 2010E 2011E 2012E 2013E
Biomass Generation¹ Hydraulic Generation Distribution
215
236
156
Total: R$ 5 billion 59
59 13 12
39
2009E 2010E 2011E 2012E 2013E
Equity Debt
20 1) CPFL Bioenergia

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