1

33rdrd QUARTER QUARTER 20072007

2

3

Highlights

10th Issue of Debentures (R$ 600.0 million) – October/07: CDI + 0.90% p.a., average life of 5.0 years and maturity of 6.0 years. Resources were used to pay in advance the balance of the 8th Issue of Debentures

Cost reduction plan: Voluntary Dismissal Program announced in October

Subsequent Subsequent EventsEvents

3Q073Q07

Adjusted EBITDA of R$ 558.9 million, 15.2% lower than 3Q06(R$ 1,452.9 million in 9M07)Net Profit of R$ 197.6 million, R$ 150.3 million higher than 3Q06 (R$ 703.1 million in 9M07)PIS/COFINS: reduction of approximately R$ 79.0 million per year of expenses on energy purchase due to the change in the taxation system by AES Tietê

2nd of Tariff Reset: average index of -8.43% applicable to the Company’s tariff since July 4th, 2007

Amendment of the 9th issue of debentures (R$ 250.0 million) – August/07:CDI + 1.75% p.a., average life of 9.4 years and maturity of 11.0 years

ANEEL did not approve the amendment to the bilateral contract with Tiete, that extended its maturity to 2028Dividends Payment (September/07): R$ 487.8 million relative to 1H07 earnings

4

3,195

1,6322,371

5921,658

7,790

9,448

636

8,150

1,870

3,455

1,6552,506

10,020

Residencial Industrial Commercial Public Sector andOthers

Free Clients Captive Market Total Market

3Q06 3Q07

1.4%1.4%8.1%8.1%

4.6%4.6%

12.8%12.8%

6.1%6.1%

7.4%7.4%1.4%1.4%

1.2%

80.1% 18.7%

Captive Consumers

Free Clients

Potentially Free Clients*

MarketConsumption Evolution (GWh) and Average Tariff

Consumption Evolution (GWh)**

(*) Aneel Resolution 247/07 (conventional sources)(**) Charts do not consider own consumption

% Total Market (3Q07) Average Tariff R$/MWh

- 6.6%267.3286.1TOTAL

- 5.4%223.6236.3Others

- 5.8%275.3292.3Commercial

- 5.4%240.0260.1Industrial

- 7.9%280.1304.0Residencial

V %3Q073Q06

5

99.299.199.097.5 99.2

2004 2005 2006 9M06 9M07

6.5

7.0 6.4 5.5 5.8 5.3

6.5 6.5 6.5 6.5

11.812.213.5 12.9 12.0

2004 2005 2006 3Q06 3Q07

Technical Losses Commercial Losses

40 b.p.40 b.p.

Operating Highlights

Collection Rate (% over Gross Revenue) Loss Reduction (%)

Collection Rate (9M07)

− Public Sector: 100.7%

− Private Sector: 99.0%

Cuts and Reconnections – Monthly average (3Q06 X 3Q07)

− Cuts – decrease from 126,000 to 115,000

− Reconnections - increase from 80,000 to 86,000

Fraud and Clandestine Connections (9M07)

− 223,000 inspections and 20,000 frauds detected

− 58,000 clandestine connections regularized

150 b.p.150 b.p.160 b.p.160 b.p.

Net growth of clients in 12 months: 172.7 thousand

(*) Current Technical Losses used retroactively as reference

6

48.8

41.4

416.5

256.6319.3

354.8

58.4

43.3377.7

403.6

459.8

298.0

2005 2006 9M07 2007 (e)Capex Self - Financed

Investments

3Q07: R$ 104.8 MillionInvestments (R$ Million)

13%

11%

9%

14%15%

38%

Costumer Service and System ExpansionInformation TechnologyMaintenanceSelf - FinancedOthersLoss Recovery

7

3.6% 1.7% 4.8% 1.6%

8.0%

-6.2%-4.3% -2.2%

9.9%

1.6%16.9%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

2003 2004 2005 2006 2007

PIS/COFINS

Part A

Part B

IGPM

Eletropaulo’s Tariff Evolution

Tariff Evolution

2.1%

18.6%

11.6%

-8.4%

11.5%

Pending Issues – Tariff Reset

Provisory Reference Company

Administrative Appeal:

− Exclude all assets fully depreciated from the Gross RAB

− Depreciation between Oct/06 and Jun/07 by Replacement Value – increased accumulated depreciation and consequently reduced Net RAB

− X Factor – adjustment may change it from 2.42% to 1.57%

8

873.0 830.1363.3 242.8

2,269.2 2,431.2

883.6 866.5

687.7 544.0

201.8173.5

3,829.9 3,805.3

1,420.4 1,311.1

9M06 9M07 3Q06 3Q07

Other Operating Expenses Energy Purchase Transport

Results

5,160.1 5,258.2

1,803.5 1,767.9

3,138.9 3,190.5

1,102.9 957.5

8,299.0 8,448.7

2,906.4 2,725.4

9M06 9M07 3Q06 3Q07

Net Revenue Deduction of Operating Revenue

Operating Expenses* (R$ Million)Gross Revenue (R$ Million)

0.6%0.6%

9M06 x 9M07:

− Total market increased (captive + free

consumers): 4.6%

3Q06 x 3QT07:

− Increase of 6.1% in the total market

− Tariff reset of -8.43% applied since July 4th, 2007

Energy Purchase Expense (3Q06 x 3Q07): − Increase of 1.1%

− Amortization of Liability CVA’s Basic Grid in 3Q06, reverting R$ 20.3 million of transmission charges

− However, there was a reduction of R$ 11.5 million related to energy purchase through Bilateral Contract with AES Tietê

Other Operating Expenses (3Q06 x 3Q07):− Reduction of 33.2%

− Extraordinary provision of R$ 120.9 million due to the final review of legal and administrative procedures in 3Q06

− Reduction of 51.7% of Private Pension Fund expenses motivated by actuarial surplus

7.7%7.7%

1.8%1.8%

6.2%6.2%

(*) Does not include depreciation

9

EBITDA

− 9M06 x 9M07: 9.2%

− 3Q06 x 3Q07: 19.2%

1,330.2 1,452.9

383.2 456.7

582.2 400.3

275.7

658.9558.9102.2

1,912.4 1,853.1

9M06 9M07 3Q06 3Q07

EBITDA Adjusts

EBITDA

(*) Adjusted EBITDA = EBITDA + Pension Fund + RTE + Contingency Provisions + Judicial Deposits

Adjusted EBITDA* (R$ Million)

3.1%3.1%

15.2%15.2%

37.1%

35.2%

36.5%

31.6%

Adjusted EBITDA Margin

10

(300.7)

(52.9)(36.2)

9M06 9M07 3Q06 3Q07

197.6

47.3

274.4

703.1

9M06 9M07 3Q06 3Q07

317.6%317.6%31.6%31.6%

Results

Financial Result (R$ Million) Net Profit (R$ Million)

Improvement of financial result:

– Decrease in Financial Expenses:

- Reduction of R$ 695.2 million on gross debt

- Lower average cost (14.2 % p.a. in Sep/06 to

12.7 % p.a. in Sep/07)

- Reduction of Selic rate from 14.6% in 3Q06 to

11.5% in 3Q07

Market increase

− 3Q06 x 3Q07: 6.1%

− 9M06 x 9M07: 4.6%

Reduction of operational costs and

expenses

End of the recognition in the balance

sheet of the debt with the Pension Fund

27.2

156.3%156.3%

11

3,838

597523

1,023523

3,5823,777

2,9793,276

4,030

3,276

3,582

2Q07 3Q07 3Q06 3Q07

Long Term Short Term

Consolidated Debt

Short Term x Long Term (R$ Million)

Net Debt

4,4354,105

4,800

4,105

+10.0%- 18.7%

Quarterly Highlights - Debt

Gross Debt:

− Reduction of 14.5% (R$ 695.2 million)

Net Debt:

− Reduction of 18.7% (R$ 754.5 million)

Amendment of the 9th Issue of Debentures

Subsequent Events:

− 10th and 11th Issues of Debentures replacing the 8th

Issue

New terms and conditions

9th Issue 10th Issue 11th Issue*Date 20/8/2007 23/10/2007 23/10/2007Amount (R$ million) 250.0 600.0 200.0Interest Rate CDI + 1.75% CDI + 0.90% CDI + 1.75%Maturity (years) 11.0 6.0 11.0Average Life (years) 9.4 5.0 10.0(*) Approved by Board of Directors and being registered at CVM

12

Fixed Rate

12.1%

Libor 1.3%

CDI/Selic 29.3%

IGP-DI 57.3%

15.2% 14.2%

11.1%11.9%

30-Jun-06 30-Sep-06 30-Jun-07 30-Sep-07

CDI

Consolidated Debt

Average Cost and Average Life1

04

.3%

10

2.6

%

10

5.3

%

11

3.0

%

97

.3%

10

9.9

%

5.4 5.5 5.5 5.5 5.9 6.4

3Q06 4Q06 1Q07 2Q07 3Q07 3Q07*

CDI Avg. Life - years

CDI Evolution**

*Including the 10th Issue of Debentures** Daily CDI

Pension Fund R$ 2,351 millionPrivate Creditors R$ 1,754 millionTOTAL R$ 4,105 million

Gross Debt – 3Q07

13

R$ million 3Q06 4Q06 1Q07 2Q07 3Q07

Initial Cash 619 767 1.166 1.301 1.457 Operating Cash Flow 725 741 634 738 519 Investments (75) (85) (95) (94) (93) Net Financial Expenses (176) (91) (187) (130) (133) Net Amortization (158) (111) (71) (83) (225) Pension Fund Expenses (85) (55) (48) (48) (49) Income Tax (83) - (97) (99) (161) Dividends - - - (130) (485) Free Cash Flow 148 399 135 155 (627) Final Cash 767 1.166 1.301 1.457 830

Managerial Cash Flow

Operating Cash Flow: reduction in the 3Q07 is due to the average tariff review index of -8.43% applicable since July 4th, 2007

Financial Expenses: semi-annual payments of interest of the 8th issue of debentures (R$ 59.0 million) and the Bond denominated in Reais (R$ 45.3 million)

Net amortization: R$ 200.0 million regarding the 8th issue of debentures

Dividends: payment of R$ 487.8 million on September 3rd, 2007 relative to 1H07 results

Income Tax: increase due to net profit of R$ 340.0 million in 2Q07

14

Conclusion

Total Market increased 6.1% compared to 3Q06, amounting 10,020.1 GWh

Net Profit of R$ 197.6 million in 3Q07 and R$ 703.1 million in 9M07, compared to R$ 274.4 million in 9M06

Reduction of 18.7% in the consolidated net debt in the last 12 months

Extension of total debt’s average life from 5.4 years in 3Q06 to 6.4 years in 3Q07, considering the new issues of debentures

R$ 487.8 million of dividends paid on September 3rd, 2007 relative to 1H07 results

15

16

Highlights

On November 12th, the Board of Directors approved the payment of R$ 141.1 million in dividends, which correspond to 100% of 3Q07 net earnings

− R$ 1.41 per 1,000 common shares− R$ 1.55 per 1,000 preferred shares

Approval from the United Nations of its Clean Development Methodology (CDM) - the proposal will allow reforesting 5,700 km of bordering lands

EBITDA of R$ 276.7 million in the 3Q07, stable when compared to 3Q06 (R$ 796.5 million in 9M07)

Net profit of R$ 141.1 million in the 3Q07, 1.6% lower than 3Q06 (R$ 443.7 million in 9M07)

Aneel did not approve the Amendment to the bilateral contract with Eletropaulo, that extended its expiration to 2028

Incorporation of Tietê Participações S.A. by AES Tietê effective as of September 30th, 2007

SubsequentSubsequentEventsEvents

3Q073Q07

17

Energy Balance

Generation – MW Average Billed Energy – GWh

Increase of 7.2% in energy generated (9M07 x 9M06)

Generation was 25.9% higher than the assured energy (1,275 MW average)

Growth of 47.7% in the volume sold through CCEE/MRE

Current Price – Bilateral Contract with Eletropaulo: R$ 131.98/MWh

− July/07 - adjustment of 3.89% based on IGP-M’s variation

Tariff MRE – R$ 7.47/MWh

CCEE Tariff* – R$ 103.80/MWh* Average 3Q07

9,81810,520

8,311 8,296

1,308 1,583198

641

9M06 9M07

Eletropaulo MRE CCEE/Losses

1,0401,258 1,392 1,363 1,467 1,424 1,606

81%

98%109% 107%

115%112%

126%

2001 2002 2003 2004 2005 2006 9M07Generation - MW Average Generation / Assured Energy

18

Capex

R$ Million

Capex – 9M07: R$ 31.0 million

− Restoration and upgrade in equipments – R$ 19.2 million

− Environment (reforestation) – R$ 6.7 million

− Small Hydropower Plants – R$ 3.6 million

− Others (SAP, Hidroway etc.) – R$ 15 million

2007 Capex estimate was revised to R$ 52.5 million

− Postponement of investments in construction of three SHPPs located on the Jaguari Mirim River in the interior of the state of São Paulo, which together total 8MW of installed capacity

Investment in Small Hydropower Plants

− Acquisition of License to build three small hydropower plants in the State of Rio de Janeiro, with a total installed capacity of 52 MW and average 28.97 MW of assured energy, approved by ANEEL – forecasted investments of R$ 257 million in 2 years, from which R$ 18.2 million were already invested

− Environmental licenses already obtained

9M07

11.6%

62.3%

21.4%

2.3%2.4%

Equip. Environment. Hidroway IT SHPPs

12.4

21.927.5

46.5

31.0

52.5

2003 2004 2005 2006 9M07 2007 (E)

19

Expansion Requirement

Requirement: increase installed capacity by at least 15% (400 MW), until December 2007:− Increase the installed capacity in São Paulo State; or

− Purchase energy from new plants, located in São Paulo, through long term agreements (at least 5 years)

Restrictions to increase the capacity:− State of São Paulo – no hydro resources and environmental restrictions to thermal plants

− Gas supply

− “New Model of the Electric Sector” (Law # 10,848/04)

Proposal from AES Tietê to the State Government of São Paulo:− To be supported by a specialized consulting company to produce a report in 12 months regarding

technical, financial, regulatory and environmental aspects of the expansion possibilities in the State of São Paulo and in compliance with the “New Model of the Electric Sector”

Neither ANEEL nor the State Government of São Paulo have sent a formal reply to AES Tietê with regard to this issue so far

20

50.6 48.8

113.4

32,3

108.1231.9

33.9

16.2 16.231.0

76.1 56.4

9M06 9M07 3Q06 3Q07

Results

Net Revenues R$ Million

Costs and Operation ExpensesR$ Million

3.9% price adjustment granted in July/07 for the energy sold under the bilateral contract

Higher energy volume sold to CCEE / MRE

Reversal of the provision taken for COFINS litigations in the amount of R$ 5.4 million –3Q07

Sector Charges - increase of the transmission charge (TUSDgeneration) for the 2007/2008 cycle, since July/07, approximately R$ 11.0 million per quarter

103.682.4

356.8

272.1

Power Purchase and sector charges

Operational ExpensesDepreciation

+25.8%+25.8%

+31.1%+31.1%

+6.3%+6.3%

+6.1%+6.1%

1,040.61,104.5

342.6 364.1

9M06 9M07 3Q06 3Q07

21

EBITDA Margin

+0.1%

-- 2.7%

818.9 796.5

276.4 276.7

76.0%

78.7%

72.1%

80.7%

9M06 9M07 3Q06 3Q07

Results

EBITDA – R$ Million

22

(76.0)(66.0)

(28.9)

(47.1)

9M06 9M07 3Q06 3Q07

--13.2%13.2%

Results

Financial Results – R$ Million Net Income – R$ Million

9M06 x 9M07

− Positive impact, explained by the monetary gains accounting on PIS/Cofins, which totaled R$ 36.6 million in 2Q07

3Q06 x 3Q07

− Increase in the average IGP-M from 0.84% in 3Q06 to 2.57% in 3Q07

Payment of R$ 141.1 million in dividends, which correspond to 100% of 3Q07 net earnings

− R$ 1.41 per 1,000 common shares

− R$ 1.55 per 1,000 preferred shares

Ex-Dividends: November 22nd, 2007

Payment: November 30th, 2007

+63.0%+63.0%

--1.2%1.2%

--1.6%1.6%

141.1143.5

443.7449.0

38.8%

43.1% 40.2%

41.9%

9M06 9M07 3Q06 3Q07Net income Net Margin

23

1,405.8

1,096.3

681.9

1,253.5

703.6676.5

0.7x

3.2x

2.0x

1.4x

0.7x 0.6x

2002 2003 2004 2005 2006 9M07

Net Debt (R $ million) Net Debt / EBITDA

Debt

Net Debt – R$ Million

Cash availability = R$ 596.3 million (September, 2007)− Marketable securities with maturities lower than 90 days− Average rates around 100% of CDI

in R$ million

Amount Creditor Maturity Cost Collateral

1,296.2 Eletrobrás May, 2013 IGP-M + 10% p.a. Receivables

3.7 FunCesp III Sep, 2027 IGP-DI + 6% p.a. Receivables

24

Managerial Cash Flow*

R$ Million 3Q06 4Q06 1Q07 2Q07 3Q07

Initial cash 777.2 673.6 691.0 686.6 574.3

Operating Cash Flow 289.9 279.6 287.9 307.9 248.9

Investments (7.7) (23.6) (9.7) (11.9) (9.3)

Net Financial Expenses (14.6) (18.8) (16.1) (18.0) (19.3)

Net Amortization (50.1) (44.8) (46.4) (48.3) (50.8)

Income Tax (15.9) (31.7) (220.1) (16.6) (9.8)

Dividends and Interests on Equity (305.3) (143.4) - (325.4) (141.9)

Free Cash Flow (103.6) 17.4 (4.4) (112.3) 17.8

Final Cash 673.6 691.0 686.6 574.3 592.1

(*) Parent Company

25

Conclusion

Generation was 26% higher than assured energy in 9M07

Accumulated Net Revenues of R$ 1,104.5 million in 2007, 6.1% lower than those of the same period of 2006 (R$ 364.1 million in the 3Q07)

EBITDA of R$ 796.5 million in 9M07, decrease of 2.7% compared to 9M06 (R$ 276.7 million in 3Q07)

Net Income of R$ 443.7 million accumulated in 2007, reduction of 1.2% when compared to 9M06 (R$ 141.1 million in 3Q07)

Dividends payment of R$ 443.7 million, corresponding to 100% of 9M07* net earnings

– R$ 141.1 million, refer to 3Q07, to be paid on November 30th, 2007

* R$ 160.5 million refer to 1Q07 net earnings distributed in June, 2007 and R$ 142.1 million refer to 2Q07 net earnings distributed in September, 2007

26

The statements contained in this document with regard to the business

prospects, projected operating and financial results, and growth potential are

merely forecasts based on the expectations of the Company’s

Management in relation to its future performance. Such estimates are highly

dependent on market behavior and on the conditions affecting Brazil‘s

macroeconomic performance as well as the electric sector and international

market, and they are therefore subject to changes.