Rio de Janeiro, May 13, 2011 IR Contacts Joo Batista Zolini Carneiro CFO and IRO Renato Rocha

Planning and IR Superintendent Gustavo Werneck IR Manager Phone: +55 (21) 2211-2650/ 2660 Fax: +55 (21) 2211-2787 [Link] Email: ri@[Link] Conference Call Date: May 16, 2011 Time: 4:00 p.m. (Brazil) 3:00 p.m. (US ET) Phone numbers: Brazil: +55 (11) 4688-6361 USA: +1 (888) 700 0802 Other countries: +1 (786) 924 6977 Simultaneous translation into English Webcast: [Link] (Portuguese and English)

Consumption in the concession area increases by 3.4% in the quarter Net revenue totals R$1,835 million, EBITDA reaches R$435 million and net income amounts to R$166 million in 1Q11

Total energy consumption in 1Q11 was 3.4% higher than in the

same quarter last year, totaling 6,291 GWh. Residential consumption increased by 3.0% despite the 1C decline in the average temperature.

Consolidated net revenue came to R$1,834.7 million, 7.4% above

the 1Q10 figure, primarily driven by the 3.4% period increase in total energy consumption. 1

Consolidated EBITDA amounted to R$434.9 million in 1Q11,

8.9% below the 1Q10 figure, with an EBITDA margin of 25.8%, versus 29.9% in 1Q10.

Net income totaled R$166.3 million, 26.0% down on the R$224.8

million reported in 1Q10.

Due to our continued efforts, energy losses fell for the fourth
consecutive quarter, closing the first quarter at 21.2% of the grid load, while non-technical losses represented 41.4% of billed energy in the low-voltage market (Aneel criterion).

At the end of 1Q11, the Companys net debt totaled R$2,134.9

million, 9.6% and 40.0% up on the close 2010 and 1Q10, respectively. The net debt/EBITDA ratio stood at 1.4x.

Collections in the last 12 months reached 97.3% of billed

consumption, 0.8 p.p. below March 2010, respectively.
Operational Highlights (GWh) Grid Load* Billed Energy - Captive Market Consumption in the concession area 1 Transported Energy - TUSD 1 Sold Energy - Generation Commercializated Energy (Esco) Financial Highlights (R$ MM) Net Revenue EBITDA EBITDA Margin** Net Income Net Debt***
* Captive market + losses + network use ** It Doesn't consider construction revenue *** Financial Debt - Cash

1Q11 9,856 5,533 6,291 1,500 1,471 366 1,835 435 25.8% 166 2,135

1Q10 9,637 5,430 6,087 1,477 1,685 923 1,709 477 29.9% 225 1,524

Var. % 2.3% 1.9% 3.4% 1.6% -12.7% -60.4% 7.4% -8.9% -26.0% 40.1%

To preserve comparability with the market approved by Aneel in the tariff adjustment process, the billed energy of the free consumers Valesul, CSN and CSA was excluded, in view of these customers planned migration to the core network. Energy consumption by these clients totaled 601 GWh in 1Q11 and 422 GWh in 1Q10.

Table of Contents Table of Contents...........................................................................................................................................2 Initial adoption of the new accounting procedures........................................................................................2 Operating Performance..................................................................................................................................4 Financial Performance.................................................................................................................................11 Corporate Governance .................................................................................................................................22 Capital Market.............................................................................................................................................22 .....................................................................................................................................................................24 Recent Events...............................................................................................................................................25 Disclosure Program......................................................................................................................................25 BOARD OF DIRECTORS..........................................................................................................................82 FISCAL COUNCIL.....................................................................................................................................82 BOARD OF EXECUTIVE OFFICERS......................................................................................................83 CONTROLLERSHIP SUPERINTENDENCE ...........................................................................................83 Initial adoption of the new accounting procedures Laws 11,638/07 and 11,941/09 determined that the accounting practices of Brazilian publicly-held companies would converge with International Financial Reporting Standards (IFRS) through the issue of various accounting pronouncements, interpretations and guidelines by the Accounting Pronouncements Committee (CPC) and approval of the Brazilian accounting regulatory bodies. This process took place in two stages: the first involved the 2008 implementation of technical pronouncements CPC00 to 14 (revoked as of 2010), and the second consisted of the 2009 introduction of CPC15 to 43 (except CPC34) for mandatory adoption in 2010 and retroactive application to 2009 for comparative purposes. The adoption of the CPCs caused the following impacts on the 1Q10 results of the Company and its subsidiaries:
Net Incom before ajustm e ents Regulatory Assets and Liabilities Net Revenue Operating Expenses Financial Result Net Fixed Assets Depreciation Other Operating Expenses Construction Revenue Net Revenue Operating Expenses Social Contributions and Income Tax Net Impact Net Incom after ajustm e ents 1Q11 120.6 167.4 3.3 164.1 0.0 Company

Light SESA Light SESA Light SESA

(9.4) (9.3) Light Energia (0.2) Lightger and Itaocara 0.0 111.3 (111.3) (53.8) 104.2 224.8 Light SESA Light SESA Light S.A. Light S.A.

The reconciliation of the results for the first quarter of 2010 is shown in Appendix V of this release. Release Segmentation Light S.A. is a holding company that controls wholly-owned subsidiaries pertaining to three business segments: electricity distribution (Light SESA), electricity generation (Light Energia) and electricity commercialization/services (Light Esco and Lightcom). In order to improve the transparency of its results and to provide investors with a better basis for evaluation, Light also presents its results by business segment.

Operating Performance Distribution Total SESAs customers energy + consumption area transport in of Light free
3,0% 2,416 2,488 4,6% 1,815 1,8% 949 499 450 966 541 426 1,702 1,730 114 1,899 170 3,5% 906 44 862 938 47 890 5,430 5,533 TOTAL ENERGY CONSUMPTION (GWh) (CAPTIVE + FREE) 3,4%

concession

(captive

6,087
657

6,291
758

customers) came to 6,291 GWh in 1Q11, a 3.4% increase over 1Q10, thanks to growth in both markets. If the consumption of the free clients CSN, Valesul and CSA is taken into account, total consumption came to 6,893 GWh in 1Q11, versus 6,508 GWh in 1Q10. Performance was mainly fueled by

1Q10

1Q11

1Q10

1Q11

1Q10

1Q11

1Q10

1Q11

1Q10 Total

1Q11

Residential

Industrial

Commercial Captive Free

Others

expansion of the residential and commercial segments, which moved up by 3.0% and 4.6%, respectively, in turn driven by structural economic growth in Lights concession area. Residential consumption totaled 2,488 GWh, accounting for 39.5% of the market total, primarily due to the economic improvement in the state of Rio de Janeiro, and, consequently, the municipalities in Lights concession area. This growth was exemplified by the greater number of people migrating from the D/E income groups to the C income group, leading to an increase in the acquisition of home appliances and other products in 2010, which are now in use. In January 2011, the average income of those in work in the Rio de Janeiro metropolitan region increased by 18.9% year-on-year. This favorable scenario offset the lower average temperature, which fell from 28.3C, in 1Q10, to 27C. The number of billed residential clients grew by 1.0%, totaling 3.8 million in March 2011, with an average monthly consumption of 220.5 kWh, compared to 217.3 kWh in 1Q10. The commercial segment, which consumed 1,889 GWh in 1Q11, accounted for 30.2% of total energy consumption, 4.6% more than the same period in 2010, due to the upturn in economic activity in Lights concession area. Free-market consumption increased by 56 GWh, due to the migration of 19 clients from the captive market and the addition of one new client in May 2010. Industrial consumption came to 966 GWh, 1.8% up on 1Q10 and accounting for 15.4% of the total market. The metallurgy sector did particularly well, representing 50.6% of the industrial segment and moving up by 10.5% year-on-year. Five clients migrated from the captive to the free market in this segment.

The other consumption categories, which accounted for 14.9% of the total market, posted growth of 3.5% over 1Q10. The rural, government and public utilities categories, which represented 0.2%, 6.5% and 2.7% of the total market, respectively, all recorded positive performances. Energy Balance
DISTRIBUTION ENERGETIC BALANCE - GWh
Position: January - March 2011 PROINFA Balance (GWh) Energy = Grid Load 111.1

- Energy transported to utilities - Energy transported to free customers* CCEAR Light Energia Load = Own 94.3 Captive market consumption Low Voltage Market ITAIPUMedium Voltage Market (CCEE)Losses + Non Billed Energy Required E. 1,323.0 (CCEE) *Including CSN, Valesul and CSA 8,000.6 AUCTIONS (CCEE) 4,330.4 NORTE FLU (CCEE) 1,566.7 OTHERS(*) (CCEE) 575.0
(*) Others = Purchase in Spot - Sale in Spot.

Own load Light 7,852.3

1Q11 1Q10 9,856 9,637 743 820 1,262 Billed 1,068 7,851 Energy 7,750 5,533 5,533.4 5,430 3,722 3,589 1,811 1,841 2,318Losses + 2,320
Non Billed Energy 2,318.9

Var.% Residential 2.3% 2,487.7 -9.5% 18.2%Industrial 1.3% 425.6 1.9% Commercial 3.7% -1.6% 1,729.6 -0.1%
Others 890.5

Basic netw. losses Adjustment

148.3 (0.0)

Note: 1) At Light S.A., there is intercompany power purchase/sale elimination 2) Power purchase data on 04 / 12 / 2011.

Energy Losses Light SESAs total energy losses amounted to 7,523 GWh, or 21.24% of the grid load, in the 12 months ended March 2011, 0.74 p.p. and 0.05 p.p. down on the March and December 2010 ratios, respectively. In March 2011, non-technical losses totaled 5,285 GWh, representing 41.4% of billed energy in the low-voltage market, or 14.92% of the grid load, 1.3 p.p. and 0.4 p.p. down in relation to March and December 2010, respectively.
21.98% 15.56% 7,504

Light Losses Evolution 12 months 21.70% 15.39% 7,549 21.48% 15.18% 7,544 21.29% 15.00% 7,493 21.24% 14.92% 7,523 Mar-11
41.4% 5,285 Mar-11

Mar-10

Jun-10

Sep-10

Dec-10

Losses (GWh) Losses / Grid Load % Non-technical losses % Grid Load

For the fourth consecutive quarter, Light recorded a reduction in its non-technical losses/low-voltage market ratio. These consecutive reductions reflect the continuing effort to combat irregular practice of energy theft by the company. Conventional energy recovery processes, such as the negotiation of amounts owed by customers where fraud has been detected, resulted in the recovery of 50 GWh in 1Q11, 39.5% higher than in the same period last year. Fraud regularization programs yielded a total of 24,467 normalized clients, 26.0% up on 1Q10. At the close of March 2011, there were 128,000 electronic meters installed and 163,000 clients had network
19,415

Non tecnical losses / Low Voltage market 12 months 42.7% 5,313 42.4% 5,352 42.1% 5,330 41.8% 5,278 Dec-10
24,467 1Q11
50.0 1Q11

Mar-10

Jun-10

Sep-10

Non Tecnincal Losses (GW) Non tecnical Losses % Low Voltage Mkt

Norm a liz e d Cos t um e rs

26.0%

protection. By the end of 2011, Light plans to have 240,000 electronic meters installed.

1Q10

R e cov e re d Ene rgy (GW)

39.5%

35.9

1Q10

The smart grid R&D program continued to move ahead. The first prototypes of the intelligent metering devices, developed by Light, have already been finalized and three manufacturers have been hired: General Electric, Eletra Energy (FAE) and Elster. Other companies have also shown an interest in manufacturing the meter and are in the process of being contracted. In the second quarter, the prototypes will be subject to laboratory testing and approval.

Communities The low-income community loss-reduction program has advanced each quarter. In 2011, Light plans to reach another 50,000 clients, moving into 11 pacified communities: Ladeira dos Tabajaras, Morro dos Cabritos, Pavo-Pavozinho, Morro da Providncia, Borel, Novo Rio, Morro do Salgueiro, Complexo do Alemo (part 1), Morro dos Macacos (part 1), Cidade de Deus (part 2) and Batan (part 2). The Company hired another two contractors in 1Q11 to carry out this work, giving three in all. In order to speed up the process, the Company is currently negotiating with another two contractors.

Collection The 1Q11 collection rate stood at 94.0%, 1.7 p.p. down on 1Q10. The collection rate for the past 12 months was 94.0% of billed consumption, 1.2 p.p. down on March 2010 and 1.3 p.p. above March 2009. The year-on-year reduction can be explained by the following factors: (i) the prioritizing of expenditure on the part of consumers, due to seasonal factors such as the payment of IPVA (vehicle tax) and expenses with school materials, vacations and Carnival, (ii) consumer debt, as a result of easy access to credit in recent years, which resulted in the increase in default in Brazil in 2011. In 1Q11, Provisions for Past Due Accounts (PPD) totaled R$64.4 million, representing 2.8% of gross billed energy, 0.1 p.p. up on 1Q10.

Colletion rate R$ MN Billing Collection Collection Tax

1Q11 2,518 2,366 94.0%

1Q10 2,305 2,206 95.7%

Collection rate 12 months moving average 98.5% 97.3% 96.6%

Mar-09

Mar-10

Mar-11

Collection Rate per Segment 12 months moving average

107.9%107.0% 100.0%

101.4% 94.7% 93.6%

Retail Large Customers Public PDD/Gross Revenue (Billed Sales) Sec tor
2.9%
Mar-102.9% Mar-11

2.8%

7
1Q09 1Q10 1Q11

R$ MM PDD

1Q11 64.4

1Q10 63.5

Operating Quality Ensuring high levels of quality in the supply of electricity is an essential part of establishing good relations between the distribution company and its clients. In 2010, a series of incidents jeopardized supply, due to substantially-higher-than-average summer temperatures that caused a much-biggerthan-expected surge in energy demand, leading Light to intensify its distribution improvement investment plan. In 1Q11, the Company invested R$39.0 million in efforts to improve the quality of its electricity supply business and increase the capacity of its distribution network, 62.0% more than the R$24.1 million invested in 1Q10. In the distribution network, 38 km of low-voltage cable were replaced by multiplex cable, and 39 km of medium-voltage open network were replaced with spacer cable. A total of 304 medium-voltage circuits were inspected, 2,304 transformers were replaced and 75,608 trees were pruned. In the underground distribution network, 3,019 transformer vaults and 4,521 manholes were inspected. In addition, 115 transformers and 1,170 underground reticulated system protectors were maintained and inspected. At the end of March, the equivalent length of interruption indicator (DEC), expressed in hours, registered 13.65 hours, in the last twelve months, while the equivalent frequency of interruption indicator (FEC), expressed in occurrences, stood at 6.59 times. The methodology for calculating these indicators permits the removal of occurrences in the so-called critical days, when the number of emergency occurrences exceed the mean plus three standard deviations of the values in the previous two years. As in 2010, there were more removals, this caused the increase in the indicators recorded in 2011.

ELC / EFC - 12 Months

ELC EFC
6.22 6.19 6.59

9.71

11.16

13.65

Mar-11

Mar/10*

Mar-09

E L C E q u iva le n t L e n g th o f In te rru p tio n p e r C o n s u mp tio n U n it (h s ) E FC E q u iva le n t Fre q u e n cy o f In te rru p tio n p e r C o n s u mp tio n U n it (n .)

* D o e s n o t co n sid e r the e ffe cts o f 11 /10 /20 0 9 o cc u rre n ce in the na tio n a l inte rco n e c te d s y ste m .

Generation Energy sold on the captive market (ACR) totaled 1,055.6 GWh in 1Q11, in line with 1Q10 due to the maintenance of contracts already effective in 2010, while energy sold on the free market (ACL) amounted to 131.0 GWh, 53.2% up year-on-year due to the higher number of contracts, mainly as a result of the greater short term energy sales. Spot market sales fell by 48.8%, due to the nondeduction of energy consumed by pumps in 1Q10, increasing spot market sales volume in that period. The energy consumed by the pumps has already being adjusted by the CCEE. If 1Q10 is adjusted for the definitive CCEE numbers, the period reduction in spot market sales would have come to only 17.3%, primarily due to higher contracting on the free market in 2011, resulting in a smaller amount of energy to be settled on the spot market. LIGHT ENERGIA (GWh) Regulated Contracting Environment Sales Free Contracting Environment Sales Spot Sales (CCEE) Total Commercialization and Services 1Q11 1,055.6 131.0 284.1 1,470.7 1Q10 1,044.5 85.5 555.3 1,685.3 % 1.1% 53.2% -48.8% -12.7%

In 1Q11, direct energy sales by Light Esco and LightCom, from conventional and subsidized sources, totaled 306.9 GWh, 48.5% up on the 206.7 GWh recorded in 1Q10, due to important long-term energy sale transactions with clients such as Gerdau, Owens Illinois and Metalisul. In addition to direct sales, Light Esco continued to provide consulting services and represent free customers before the CCEE (broker), with operations totaling 58.7 GWh in 1Q11.

Volum e (GW h) Trading Broker Total

1Q11 306.9 58.7 365.6

1Q10 206.7 715.9 922.6

Var.% 48.5% -91.8% -60.4%

10

Financial Performance

Net Revenue Consolidated Consolidated net operating revenue totaled R$1,834.7 million in 1Q11, 7.4% up on 1Q10, mainly impacted by the distribution and commercialization segments, which increased by 7.0% and 13.7%, respectively.
Net Revenue (R$ MM) Distribution Billed consumption Non billed energy Network use (TUSD) Short-Term (Spot) Others Construction Revenue Subtotal (a) Generation Generation Sale(ACR+ACL) Short-Term1 Others Subtotal (b) Commercialization Energy Sales Others Subtotal (c) Others and Eliminations (d) Total (a+b+c+d) 1Q11 1,422.9 13.5 135.3 3.0 11.6 147.0 1,733.3 1Q10 1,376.9 (3.5) 125.4 - 10.6 111.3 1,620.6 Var. % 3.3% 7.9% 9.6% 32.2% 7.0%

78.8 4.3 1.7 84.8 36.5 4.6 41.1 (24.5) 1,834.7

67.4 5.9 1.3 74.6 21.9 10.9 32.8 (19.1) 1,708.9

16.9% -26.6% 28.5% 13.7% 66.8% -57.7% 25.3% 28.0% 7.4%

Balance of the settlement on the CCEE The subsidiary Light SESA counts revenues and costs, with zero margin,
related to services of construction or improvement in infrastructure used in services of electricity distribution.

Distribution Net revenue from distribution came to R$1,733.3 million in 1Q11, 7.0% more than the same quarter last year. Excluding revenue from construction, net revenue from distribution totaled R$1,586.3 million, 5.1% up on 1Q10, primarily due to the 3.4% upturn in total market consumption. In the captive market, residential and commercial consumption grew by 3.0% and 1.6%, respectively. These segments account for 79% of captive market revenue.

Electric Energy Consumption (GWh) - Captive 1Q11 Others 16% 890 1,730 426 Commerc ial 31% Industrial 8% 2,488 Residential 45%

Net Revenue by Class- Captive R$ MM - 1Q11 Others 13% 181.3 421.9 117.4 Commercial 30% Industrial 8% 694.7 Residential 49%

11

Generation Net revenue from generation totaled R$84.8 million, 13.7% higher than in 1Q10, chiefly due to the 16.9% increase in free and captive market revenue, in turn reflecting the adjustments to captive market energy sale contracts and the greater number of contracts negotiated on the free market. Commercialization and Services Net revenue from commercialization and services totaled R$41.1 million, 25.3% up on 1Q10, primarily due to the 66.8% upturn in revenue from electricity trading.

Costs and Expenses Consolidated Consolidated Operating Costs and Expenses In 1Q11, operating costs and expenses grew by 13.2%, mainly driven by costs and expenses incurred by the distribution and commercialization business, which increased by 14.1% and 26.4% year-onyear, respectively. Operating Costs and Expenses (R$ MM) Distribution Generation Commercialization Others and Eliminations Consolidated Distribution In 1Q11, distribution costs and expenses moved up by 14.1% over 1Q10, as shown in the table below. Excluding construction costs, total costs and expenses grew by 12.3%, mainly due to the 15.9% increase in non-manageable costs and expenses.
LIGHT SESA Costs and Expenses (R$ MM) Non-Manageable Costs and Expenses Energy Purchase costs Costs with Charges and Transmission Others (Mandatory Costs) Manageable Costs and Expenses PMSO Personnel Material Outsourced Services Others Provisions Depreciation and Amortization Construction Revenue Total Costs

1Q11 (1,437.0) (36.5) (39.0) 22.0 (1,490.6)

1Q10

(%)

(1,259.9) 14.1% (43.1) -15.2% (30.9) 26.4% 16.5 33.0% (1,317.3) 13.2%

1Q11 1Q10 (%) (985.3) (850.3) 15.9% (799.4) (672.3) 18.9% (181.5) (174.7) 3.9% (4.3) (3.3) 30.1% (304.7) (298.4) 2.1% (168.5) (134.8) 25.0% (54.4) (46.6) 16.5% (5.7) (5.0) 14.2% (95.7) (72.7) 31.6% Purchased Energy - - GWh Purchased Energy R$ MM (12.8) (10.5) 22.3% 1st Quarter 1st Quarter (60.3) (93.3) -35.4% 799.4 8,148 (75.9) 1% (70.2) 8.1% 7,818 9% 672.3 (147.0) (111.3) 32.2% 9% 16% 2% 16% (1,437.0) (1,259.9) 14.1% 17%
21% 29%

1%

5%

20%

27% 19%

52%

48%

54% 52%

1Q10 1Q10
LEILES IONS AUCT NORTE FLU NORTEITAIPU FLU

12 1Q11
SPOT ITAIPU

1Q11
PROINFA SPOT

Non-Manageable Costs and Expenses In 1Q11, non-manageable costs and expenses totaled R$985.3 million, 15.9% up on 1Q10. Energy purchase costs moved up by 18.9% year-on-year, primarily reflecting adjustments to existing contracts, the entry of new products contracted between the two periods, and the increase in the volume of energy purchased to meet market demand. Costs for charges and transmission grew by 3.9%, mainly driven by charges, particularly the System Service Charges (ESS), thanks to the higher dispatch of thermoelectric plants in 1Q11 compared to 1Q10. The average purchased energy cost, excluding spot market purchases, amounted to R$103.6/MWh in 1Q11, 7.0% up on the R$96.8/MWh recorded in 1Q10. Manageable Costs and Expenses In 1Q11, manageable operating costs and expenses (personnel, materials, outsourced services, provisions, depreciation and others) totaled R$304.7 million, R$6.3 million, or 2.1%, up on 1Q10, primarily driven by expenses with personnel and outsourced services, which increased by R$30.8 million, and depreciation and amortization, which climbed by R$5.7 million, partially offset by the R$33.0 million reduction in provisions. PMSO costs and expenses (materials, services and others) came to R$168.5 million in 1Q11, 25.0% more than the same period last year, largely due to higher expenses from personnel and outsourced services, which increased by 16.5% and 31.6%, respectively. The upturn in the personnel line was mainly due to the positive effect in 1Q10 from the anticipation of the long-term incentive plan, which generated a reversal of provisions totaling R$7.4 million. The increase in expenses with outsourced services was mainly a reflection of higher expenses from energy disconnections of bad debtors and reconnection services, totaling R$7.0 million, and tree pruning, totaling R$3.5 million. The 35.4% reduction in the provisions line was mainly due to two reversals in 1Q11 related to: (i) municipal property tax (IPTU) levied on expropriated areas, properties sold to the state of Rio de Janeiro and properties not owned by Light, in the amount of R$18 million, and (ii) the peremption of charges related to the Contribution on Economic Activity (CIDE) for periods prior to 2004, in the amount of R$5 million. Generation In 1Q11, Light Energys costs and expenses amounted to R$36.5 million, a reduction of 15.2% in relation to 1Q10, mainly due to the provisioning of R$8.2 million for the non-recurring increase in the provisions line in 1Q10, due to the judicial settlement with the Barra do Pira municipal government related to the dredging of the Pira river.

13

Costs and expenses in 1Q11 were broken down as follows: CUSD/CUST distribution/transmission system usage (11.6%), personnel (15.8%), materials and outsourced services (9.7%), and depreciation and others (62.9%). PMSO per MWh in the quarter came to R$15.10/MWh, compared to R$20.98/MWh in 1Q10.
Operating Costs and Expenses - R$ MM Personnel Material and Outsourced Services Purchased Energy (CUSD) Depreciation Others (includes provisions) Total Commercialization and Services 1Q11 (5.8) (3.5) (4.2) (14.8) (8.2) (36.5) 1Q10 Var. % (4.7) 23.9% (3.8) -5.8% (3.5) 22.3% (15.3) -3.4% (15.9) -48.5% (43.1) -15.2%

In 1Q11, commercialization costs and expenses totaled R$39.0 million, 26.4% higher than in 1Q10, mainly driven by the cost of purchased energy, which grew by 75.6% between the quarters, due to the strong growth in the volume of resold energy.
Operating Costs and Expenses - R$ MM Personnel Material and Outsourced Services Purchased Energy Depreciation Others (includes provisions) Total 1Q11 (1.0) (3.3) (34.2) (0.2) (0.3) (39.0) 1Q10 (0.7) (10.4) (19.5) (0.2) (0.1) (30.9) Var. % 47% -68% 76% 0% 195% 26%

14

EBITDA Consolidated Consolidated EBITDA totaled R$434.9 million in 1Q11, 8.9% down on 1Q10, primarily reflecting the upturn in energy purchase costs as a result of adjustments to existing contracts, partially offset by the 5.6% increase in net revenue (excluding revenue from construction), mainly due to the growth of the distributors market.

EBITDA - 1Q11/1Q10 - R$ Million

The

90 477

(143) (30) 40

EBITDA per segment* 1Q11 435

Distribution 85.1%

EBITDA - 1Q10

Net Revenue

Purchased Energy

Manageable Costs (PMSO)

Provisions EBITDA - 1Q11 Generation Commercialization 14.4% 0.5%

*Does not consider eliminations

EBITDA margin stood at 25.8%. The distribution segment accounted for 85.1% of the total, followed by the generation and commercialization segments, with 14.4% and 0.5%, respectively.

Consolidated EBITDA- R$ MM Distribution Generation Commercialization Others and eliminations Total Margem EBITDA (%)

1Q11 372.1 63.0 2.3 (2.5) 434.9 25.8%

1Q10 430.9 46.6 2.1 (2.2) 477.2 29.9%

Var.% -13.6% 35.3% 8.4% 13.4% -8.9% -

Distribution The distribution companys EBITDA came to R$372.1 million in 1Q11, 13.6% down year-on-year, primarily due to the 18.9% increase in energy purchase costs, as a result of the adjustments to existing contracts, partially offset by the 5.1% increase in net revenue (excluding revenue from

Revenue from construction was not considered in the calculation of the consolidated and distribution EBITDA margins, due to the booking of revenues and costs with zero margin.

15

construction), in turn primarily caused by the 3.4% upturn in total market consumption. The EBITDA margin3 stood at 23.5%, 5.0 p.p. down on 1Q10.

Generation Light Energias EBITDA increased by 35.3% over 1Q10 to R$63.0 million, primarily due to the 16.9% upturn in revenue from energy sales, impacted by contractual adjustments. The EBITDA margin came to 74.4%.

Commercialization and Services Commercialization and services EBITDA amounted to R$2.3 million in 1Q11, 8.4% higher than the 1Q10 figure, mainly due to direct energy sales, accompanied by an EBITDA margin of 5.5%

Revenue from construction was not considered in the calculation of the consolidated and distribution EBITDA margins, due to the booking of revenues and costs with zero margin.

16

Consolidated Financial Result Financial Result - R$ MM Financial Revenues Income - financial investments Monetary and Exchange variation Swap Operations Others Financial Revenues Financial Expenses Interest over loans and financing Monetary and Exchange variation Braslight (private pension fund) Swap Operations Others Financial Expenses Total 1Q11 36.5 10.9 1.0 0.0 24.6 (133.1) (65.8) (16.6) (38.0) (1.5) (11.2) (96.6) 1Q10 44.4 16.4 2.8 0.1 25.2 (142.3) (56.8) (21.7) (32.3) 0.3 (31.5) (97.8) (%) -17.9% -33.6% -63.7% -72.7% -2.4% -6.5% 15.7% -23.6% 17.8% -64.5% -1.3%

The result

1Q11 was with

financial a the R$97.8 reported in negative in million,

R$96.6 line million 1Q10. Financial negative

revenue

totaled R$36.5 million, 17.9% down on 1Q10, mainly impacted by reduced returns on financial investments, primarily due to the lower volume of cash available for investing. Financial expenses came to R$133.1 million, 6.5% less than in 1Q10, largely due to the payment of R$ 13.9 million in IOF (financial operations tax) in connection with the winding up of the offshore company LIR.

17

Indebtedness
R$ MM Brazilian Currency Debenture 4th Issue Debenture 5th Issue Debenture 6th Issue BNDES FINEM (CAPEX) CCB Bradesco Working Capital - ABN Amro Financial operations "Swap" Others Foreing Currency National Treasury Import Financing Gross Debt Cash Net Debt (a) Braslight (b) Adjusted Net Debt (a+b-c) Short Term 615.5 0.0 108.9 311.6 158.1 25.8 4.9 5.0 1.1 14.5 14.5 % 24.4% 0.0% 4.3% 12.4% 6.3% 1.0% 0.2% 0.2% 0.0% 0.6% 0.6% Long Term 1,826.5 0.1 682.9 609.8 450.0 80.0 1.9 1.9 60.9 60.9 1,523.8 1,887.4 % Total % 72.6% 2,442.0 97.0% 0.0% 0.1 0.0% 27.1% 791.8 31.5% 311.6 12.4% Net Debt (ex-Braslight) 24.2% 767.9 30.5% million) 17.9% (R$475.8 18.9% 3.2% 84.9 3.4% 0.1% 6.9 0.3% 0.1% 3.0 0.1% 2,134.9 2.4% 75.5 3.0% 1,947.4 2.4% 75.5 3.0%

The

630.0

25.0%

102.0

926.9 Mar-10

75.0% 2,517.4 382.5 2,134.9 1,029.0 Dec -10 3,163.9

100.0%

Mar-11

Company closed 1Q11 with gross debt of R$2,517.4 million, 1.8% more than at the end of 2010, due to the increase in long-term Real-denominated debt, in turn caused by the contracting of loans worth R$50.0 million from the BNDES to finance 2009-10 CAPEX. Net debt totaled R$2,134.9 million, 9.6% up on the close of December 2010, mainly due to the period reduction in cash flow and the contracting of loans. At the end of March 2011, the net debt/EBITDA ratio came to 1.4x. The Companys debt remains at a comfortable level, with an average term to maturity of 2.9 years. The average cost of Real-denominated debt was 11.8% p.a., 0.7 p.p. up on the close-of-2010 figure, while the average cost of foreign-currency debt (US$ + 5.4% p.a.) remained flat. At the end of March, only 3.0% of total debt was denominated in foreign currency and, considering the FX hedge horizon, only 1.8% of this total was exposed to foreign currency risk, in line with
Mar-10 Dec-10 Moeda Nacional Moeda Estrangeira Mar-11 95.7% 97.0% 97.0% 4.3% Endividamento (Moeda Nacional x Estrangeira) 3.0% 3.0%

the end of 2010. Lights hedge policy consists of protecting cash flow falling due within the next 24 months (principal and interest) through the use of non-cash swap instruments with premier financial institutions.

18

Net Income Light posted net income of R$166.3 million in 1Q11, 26.0% down on 1Q10, reflecting the reduction in EBITDA due to the increase in purchased energy costs, as well as lower taxes in 1Q10, due to the impact of the exchange variation on LIRs loan, which reduced SESAs taxable income by R$82 million and its income and social contribution taxes by R$28 million.

Net Income - 1Q11 R$ Million 225 1 -42 166 -14 -4

1Q10

EBITDA

Financ ial Result

Taxes

Others

1Q11

Capital Expenditures The Company invested R$149.5 million in 1Q11, R$45.4 million of which in the development of distribution and transmission increases and networks repairs); (new connections, million in capacity quality R$31.4
115.3 15.8 2.5

CAPEX (R$ MM)

29.7% 149.5 17.8 3.7 1.3

improvements and preventive maintenance; and R$26.7 million in network protection, electronic meters and fraud regularization. Generation existing generating facilities. Generation Capacity Expansion Projects investments totaled R$17.8 million, of which R$3.1 million went to the maintenance of

126.7 97.0

1Q10
Distribution Administration

1Q11
Generation Commercial

1Q11 was marked by the following events related to projects for expanding Lights generating capacity: Construction of the Paracambi SHP, which began in November 2009, is well under way. The current

stage includes: final preparations for the beginning of river diversion, lowering of the 1 and 2 suction cofferdams, launching and compacting of the dam embankment, cleaning of the tailrace channel,

19

conclusion of the concreting of the rotor housing columns, and the mechanical assembly of the suction pipe. The signing of a BNDES financing contract is expected in the second quarter of 2011. The Construction of the New Feeder 1, part of the Lajes SHP water channeling system, is under

way and scheduled for completion in the third quarter of 2011. The projects completion was rescheduled due to construction delays chiefly as a result of the need to recalculate the anchor blocks for a flow of thirteen cubic meters from the previous six cubic meters. In April 2011, IBAMA accepted the check list of the environmental impact study and report

(EIA/RIMA) for the Itaocara I and II hydroelectric plants. The Company expects to begin the public hearings in June. These hearings are an essential condition for the environmental licensing process and the subsequent issue of preliminary and installation licenses. The public hearings on the two wind energy projects acquired in 2010, located in Aracati (CE),

were held on March 1 in Fontainha (CE), and the Company is currently waiting for the installation license to be issued by SEMACE. With a joint installed capacity of 30 MW, both projects will participate in two energy auctions to be held in the second half of 2011 (A-3 and Reserve Energy Auctions). In addition to these projects, the Company is considering participating in several other generation

undertakings, aiming to increase its installed generating capacity.

20

Cash Flow R$ MM Cash in the Beginning of the P eriod (1 ) N et I ncom e Social Contributions & Income Tax N et I ncom e Social Contributions & I ncom e Tax Provision for Delinquency Depreciation and Amortization Loss (gain) on intangible sales / Residual value of disposals fixed asset Losses (gains) on financing exchange activities Net Interests and Monetary Variations Braslight Atualization / provisions reversal Others Earning Before Tax es - Cash Basis Working Capital Contingencies Taxes Interests Others Cash from Operating Activities (2) Finance Obtained loans and financing payments Financing Activities (3) Disposal of Assets Shares buyback Concession Investments I nvestm ent Activities (4 ) Cash in the End of the P eriod (1+2 +3 +4) Cash Generation (2+ 3+4) Company closed 1Q11 with a cash position of R$372.7 million. In 1Q11, cash flow was negative by R$141.4 million, versus the positive R$124.1 million reported in 1Q10, due to: (i) the reduction in operating cash flow, primarily impacted by the variations in working capital and taxes caused by the non-recurring decrease in collections, and (ii) the R$6.2 million increase in investing activities, partially offset by (iii) the R$64.7 million upturn in financing activities, excluding period dividend payments. 03/31/2011 03/31/2010 514.1 760.3 166.3 224.8 82.2 68.7 248.6 293.5 64.4 63.5 90.8 85.7 (1.0) 1.1 65.1 38.0 (3.9) 8.5 511.5 (196.3) (18.9) (211.1) (39.4) (39.2) 6.6 55.0 (37.0) 17.9 3.1 (169.1) (166.0) 372.7 (141.4) (0.2) (3.6) 67.2 32.3 (22.5) (1.7) 514.2 (110.2) 38.0 (78.8) (43.2) 11.2 331.1 750.0 (796.7) (46.8) 1.6 (12.2) (149.5) (160.2) 884.4 124.1

The

21

Corporate Governance

On March 31, 2011, the capital stock of Light S.A. comprised 203,934,060 common shares, 97,629,463 of which outstanding. The following chart shows Lights shareholding structure on the same date:
Controlling Shareholders 52.13% Free Float 47.87%

The of
CEMIG Companhia Energtica de MG 26.06% LEPSA LUCE Empreendimentos Participaes S.A. 13.03% RME Rio Minas Energia BNDESPAR MINORITY EDFI

Board

13.03%

15.02%

32.85%

LIGHT S.A (Holding) (Holding)

LIGHT S.A

100%
LIGHT Servios de Eletricidade S.A

100%
LIGHT Energia S.A.

100%
LIGHT ESCO Prestao de Servios S.A.

51%
LIGHTGER S.A.

100%
ITAOCARA Energia Ltda

100%
LIGHTCOM Comercializ. de Energia S.A.

100%
LIGHT SOLUTIONS Ltda

51%
AXXIOM Solues Tecnolgicas

Directors Meeting of March 25, 2011, approved and recommended a favorable vote by the Companys representatives at the Extraordinary Shareholders Meeting of the subsidiaries Light Energia S.A. and Light Servios de Eletricidade S.A., in regard to the 1st and 7th issues, respectively, of simple, nonconvertible, unsecured debentures, totaling up to one hundred and seventy million reais (R$170,000,000.00) in the first case and six hundred and fifty million reais (R$650,000,000.00) in the second case, which will be object of a public offering with restricted placement efforts, under the terms of the Instruction 456 of January 16, 2009 issued by the Brazilian Securities and Exchange Commission (CVM) under a firm commitment basis.

Capital Market Lights shares have been listed on Bovespas Novo Mercado trading segment since July 2005, therefore adhering to the best corporate governance practices and the principles of transparency and equity, in addition to granting special rights to minority shareholders. Light S.A. shares are included in the following indices: Ibovespa (BM&FBOVESPA Index), IGC (Corporate Governance Index), IEE (Electric Power Index), IBrX (Brazil Index) and ISE (Corporate Sustainability Index). At the end of March, Light S.A.s stock (LIGT3) was quoted at R$26.49 (adjusted for shareholder payments), having appreciated by 10.9% in 1Q11, outperforming the -1.0% recorded by the Ibovespa

22

and the 9.7% posted by the IEE in the same period. The Companys market capitalization (number of shares X share price) closed the quarter at R$5,404 million.
BM&F BOVESPA (spot market) - LIGT3 Daily Average 1Q11 4Q10 1Q10 Number of shares traded (Thousand) 954.5 877.4 857.2 Number of Transactions 2,478 2,071 1,785 Traded Volume (R$ Million) R$ 25.8 R$ 19.7 R$ 21.8 Quotation per shares: (Closing)* R$ 26.49 R$ 23.88 R$ 20.93 10.9% 17.7% 0.5% Share Valuing (Quarter) 9.7% 6.8% -0.4% IEE Valuing (Quarter) -1.0% -0.2% 2.6% Ibovespa Valuing (Quarter) *Ajusted by earnings

The chart below gives a breakdown of the Companys free float. Free Float Structure Composio do Free Float Foreign
OCEANIA 3.85% ASIA 13,11% NORTH AMERICA 2.94% SOUTH AMERICA 1.07% EUROPE 41.24% CENTRAL AMERICA 0.02%

NATIONAL LEGAL ENTITIES 25.80%

INDIVIDUAL 13,72%

USA 37,78%

FOREIGN 60.49%

The chart below shows the performance of Lights stock between January 1, 2010 and March 31, 2011.
Light x Ibovespa x IEE Base jan/10 = 100 until 03/31/2011

140 130 120 110 100 90 80 70 60 50

2010 IEE IBOV LIGT3

12% 1% 15%

2011 IEE IBOV LIGT3

10% -1% 11% 27% Light 23% IEE

0% Ibovespa

R$/ao 01/04/10 03/31/11

20.53 26.49

Dividends 40
Nov-10 Jan-10 Jun-10 Jul-10 Dec-09 Feb-10 Mar-10 Oct-10 Dec-10 Jan-11 Apr-10 Feb-11 May-10 Aug-10

Lights dividend payment policy establishes the payment of minimum dividends equivalent to 50% of adjusted net income, calculated in compliance with Article 189 of Brazilian Corporation Law and

Sep-10

Mar-11

23

pursuant to Brazilian accounting practices and the regulations of the Brazilian Securities and Exchange Commission (CVM). On April 28, 2011, the Companys Annual and Extraordinary Shareholders Meeting approved the payment of dividends in the amount of three hundred and fifty million, nine hundred and seventy-nine thousand, three hundred and six reais and thirty-six centavos (R$350,979,306.36) for fiscal year 2010, corresponding to R$1.721043 per share and equivalent to a payout of 64.2% of adjusted net income and a dividend yield of 6.1% on the closing price on March 24, 2011. Shares were traded ex-dividends as of April 29, 2011 and payment will be effected on May 18, 2011. Dividends paid, dividend yield and payout

100%

100% 76.3% 64.2% 50%

2007

2008 Payout

2009*

2010

Minimum Dividends Policy

8.2% 4.2%

9.9% 1.7% 408

8.1%

8.1% 6.1%

432 363 351

351

203

187

1S08

2S08

1S09

2S09

1S10
Dividend Yeld*

2S10

1S11

Dividends

*Based on the closing price of the day

before of the announcement.

24

Recent Events The Companys Annual and Extraordinary Shareholders Meeting of April 28, 2011,

approved: (i) the payment of dividends by Light S.A., in the amount of R$351 million, related to fiscal year 2010; (ii) the amendment of the Companys Bylaws to create a legal department and define its duties and responsibilities; (iii) the substitution of three Board of Directors members, all of whom with a mandate until the Annual Shareholders Meeting to approve the accounts for the fiscal year ending December 31, 2011. The Board of Directors Meeting of April 28, 2011, elected Ana Silvia Corso Matte as Human Resources and Legal Officer. On May 12th of 2011 happened the closure, of the First Issue of Non-Convertible Debentures of Light Energia S.A., through public distribution with restricted placement efforts. The issuance was comprised by seventeen thousand (17,000) non-convertible, unsecured debentures, in a single series, on April 10, 2011, at the unit face value of ten thousand reais (R$10,000.00), for a total of one hundred seventy million reais (R$170,000,000.00). The debentures will have a term of five (5) years from the date of issue, thus maturing on April 10, 2016. On May 5th, 2011 happened the closure, of the Seventh Issue of Non-Convertible

Debentures of Light Servios de Eletricidade S.A., through public distribution with restricted placement efforts. The issuance was comprised by sixty five thousand (65,000) nonconvertible, unsecured debentures, in a single series, on May 2, 2011, at the unit face value of ten thousand reais (R$10,000.00), for a total of six hundred fifty million reais (R$650,000,000.00). The debentures will have a term of five (5) years from the date of issue, thus maturing on May 2, 2016. The Company announced, through Material Fact disclosed on May 13, 2011, the acquisition by Parati S.A. Participaes em Ativos de Energia Eltrica (Parati), a closed corporation, from Fundo de Investimento em Participaes PCP (FIP PCP), 58,671,565 common shares representing 54.08% of the capital of Redentor Energia S.A. (Redentor), an indirect shareholder of the Company. Disclosure Program Schedule Teleconference 05/16/2010, Monday, at 4:00 p.m. (Brazilian Time) and at 3:00 p.m. (NY Time), with simultaneous translation to English Access conditions: Webcast: link on site [Link] (portuguese and english) Conference Call - Dial number: Brazil: (55) 11 - 4688-6361 Other countries: +1 (786) 924 6977 Access code: Light

25

Disclaimer The information on the Companys operations and its Managements expectations regarding its future performance has not been revised by independent auditors. Forward-looking statements are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our Management and on information currently available to the Company. Statements about future events include information about our intentions, beliefs or current expectations, as well as those of the Company's Board of Directors and Officers. Reservations related to statements and information about the future also include information about operating results, likely or presumed, as well as statements that are preceded by, followed by, or including words such as "believes," "might," "will," "continues," "expects," "estimates," "intends," "anticipates," or similar expressions. Statements and information about the future are not a guarantee of performance. They involve risks, uncertainties and assumptions because they refer to future events, thus depending on circumstances that may or may not occur. Future results and creation of value to shareholders might significantly differ from those expressed or suggested by forward-looking statements. Many of the factors that will determine these results and values are beyond LIGHT S.A.'s control or forecast capacity.

26

APPENDIX I Statement of Income by Company - R$ million

LIGHT SESA Net operating revenue Operating expense Operating result EBITDA Financial Result Other Operating Incomes/Expenses Result before taxes and interest Net Income EBITDA Margin LIGHT ENERGIA Net operating revenue Operating expense Operating result EBITDA Financial Result Other Operating Incomes/Expenses Result before taxes and interest Net Income EBITDA Margin COMMERCIALIZATION Net operating revenue Operating expense Operating result EBITDA Financial Result Other Operating Incomes/Expenses Result before taxes and interest Net Income EBITDA Margin 1Q11 1,733.3 (1,437.0) 296.2 372.1 (90.3) 0.1 206.0 139.1 23.5% 1Q11 84.8 (36.5) 48.3 63.0 (7.2) 0.9 42.0 27.5 74.4% 1Q11 41.1 (39.0) 2.1 2.3 0.0 2.2 1.4 5.5% 1Q10 1,620.6 (1,259.9) 360.7 430.9 (87.8) (0.2) 272.7 211.9 28.5% 1Q10 74.6 (43.1) 31.5 46.6 (10.8) 20.7 13.5 62.5% 1Q10 32.8 (30.9) 2.0 2.1 0.4 2.4 1.5 6.5% % 7.0% 14.1% -17.9% -13.6% 2.9% -24.4% -34.3% % 13.7% -15.2% 53.2% 35.3% -33.4% 103.1% 103.8% % 25.3% 26.4% 8.1% 6.6% -89.4% -9.3% -5.0% -

27

APPENDIX II Statement of Consolidated Income

Consolidated - R$ MM NET OPERATING REVENUE OPERATING EXPENSE Personnel Material Outsourced Services Purchased Energy Depreciation Provisions Others OPERATING RESULT() EBITDA () FINANCIAL RESULT Financial Income Financial Expenses Other Operating Incomes/Expenses RESULT BEFORE TAXES AND INTEREST SOCIAL CONTRIBUTIONS & INCOME TAX DEFERRED INCOME TAX NET INCOME

1Q11 1,834.7 (1,490.6) (61.9) (6.3) (103.6) (993.6) (90.8) (61.3) (173.2) 344.1 434.9 (96.6) 36.5 (133.1) 1.0 248.6 (69.0) (13.1) 166.3

1Q10 1,708.9 (1,317.3) (53.4) (8.8) (83.9) (850.9) (85.6) (101.5) (133.1) 391.6 477.2 (97.8) 44.4 (142.3)

% 7.4% 13.2% 15.8% -28.8% 23.5% 16.8% 6.0% -39.6% 30.1% -12.1% -8.9% -17.9% -6.5%

(0.2) -521.3% 293.5 -15.3%

(49.4) 39.7% (19.3) -31.9% 224.8 -26.0%

() Operation Result, Administration vision = Operating Result, accounting norms (Item 1.9.7 of Notice CVM 01/2007) + financials (net financial expenses + equity pick-up). () EBITDA = Operating Result, Administration vision + depreciation and amortization. Not reviewable by the external audit. (*) The consolidated financial statements include the Light S.A. and its subsidiaries and affiliates. These financial statements were eliminated from equity consolidated companies, the balances of receivables and payables, revenues and expenses between the companies.

28

APPENDIX III Consolidated Balance Sheet

Consolidated Balance Sheet - R$ MM ASSETS Circulating Cash & Cash Equivalents Receivable Accounts Inventories Recoverable Taxes Prepaid Expenses Other Current Assets Non Circulating Receivable Accounts Deferred Taxes Prepaid Expenses OPERATING INDICATORS N of Others Non-current Assets Consumers (thousand) N of Investiments Employees Fixed Assets Average provision tariff - R$/MWh Intangible Average provision tariff - R$/MWh (w/out taxes)
Average energy purchase cost - R$/MWh Total Assets Installed generation capacity (MW) Assured energy (Average MW)) Pumping and internal losses (Average MW) LIABILITIES Available energy (Average MW) Circulating Net Generation (GWh) Suppliers Load Factor obligations Fiscal Includes purchase on spot Loans and Financing

IV

03/31/2011 03/31/2010 2,305.9 2,378.2 382.5 525.2 1,412.5 1,338.7 20.6 20.5 233.5 278.9 16.3 2.1 240.5 212.7 7,322.9 309.9 905.7 1Q11 0.6 789.2 4,070 21.5 3,825 1,631.8 418.8 3,664.4 287.1
103.6 855 9,628.9 637 87 3/31/2011 550 2,072.9 1,351 614.5 63.8% 161.1 209.4 420.5 667.4 0.0

APPENDIX

Light by

7,216.8 Numbers 296.3 899.3 0.7 % 1Q10 Var. 760.3 1.9% 3,996 3,744 17.6 2.2% 1,628.9 3.1% 406.3 3,613.8 3.9% 276.3
96.8 7.0% 855 9,594.9 637 100 -13.0% 12/31/2010 537 2,186.8 2.4% 1,517 -11.0% 658.4 64.0% 350.2

Debentures Others Obligations Provisions Non Circulating Loans and Financing Debentures Others Obligations Deferred Taxes Provisions Shareholders' Equity Realized Joint Stock Profit Reserves Legal Reserve Profits Retention Additional Proposed Dividend Asset valuation adjustments Accumulated Profit/Loss of Exercise Total Liabilities

165.9 381.3 631.0 0.0 4,078.0 1,197.5 727.9 1,325.0 275.8 551.9 3,330.1 2,225.8 610.2 162.8 233.1 214.4 494.1 0.0 9,594.9

4,059.5 1,204.5 682.9 1,333.0 295.0 544.1 3,496.5 2,225.8 616.0 162.8 238.9 214.4 488.3 166.3 9,628.9

29

APPENDIX V

Reconciliation of the results for the first quarter of 2010, based on the adoption of accounting pronouncements (CPC), due to the process of convergence to the International Financial Reporting Standards (IFRS).

1Q11

Before Ajustments 2,488.6 (894.3) 1,594.3 (1,358.3) 236.0 (76.4) 312.4

Ajustments 114.3 0.3 114.6 41.0 155.6 (9.3) 164.8

After Ajustments 2,602.9 (894.0) 1,708.9 (1,317.3) 391.6 (85.6) 477.2

OPERATING REVENUE DEDUCTIONS FROM THE OPERATING REVENUE NET OPERATING REVENUE OPERATING EXPENSE OPERATING RESULT Depreciation EBITDA FINANCIAL RESULT Financial Income Financial Expenses Total Other Operating Incomes/Expenses RESULT BEFORE TAXES AND INTEREST SOCIAL CONTRIBUTIONS & INCOME TAX + DEFERRED PLR NET INCOME

44.4 (142.3) (97.8) (0.2) 137.9 (14.9) (2.4) 120.6

155.6 (53.8) 2.4 104.3

44.4 (142.3) (97.8) (0.2) 293.5 (68.6) 224.8

30

Review report on Quarterly Information

(A free translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange Commission (CVM), prepared in accordance with the accounting practices adopted in Brazil, rules of the CVM and the International Financial Reporting Standards - IFRS) To The Board of Directors and Shareholders of Light S.A. Rio de Janeiro - RJ Introduction We have reviewed the individual and consolidated interim accounting information of Light S.A. (Company), contained in the quarterly information form - ITR for the quarter ended March 31, 2011, which comprises the balance sheet and the respective statements of operations, of changes in shareholders equity and of cash flows for the quarter then ended, as well as the explanatory notes to the quarterly information. Management is responsible for the preparation of the individual interim accounting information in accordance with the Accounting Pronouncement CPC 21 - Interim Statement and consolidated interim accounting information in accordance with CPC 21 and the international accounting rule IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as the presentation of this information in accordance with the standards issued by the Brazilian Securities and Exchange Commission, applicable to the preparation of quarterly information - ITR. Our responsibility is to express our conclusion on these interim accounting information based on our review. Scope of the review We conducted our review in accordance with Brazilian and International Interim Information Review Standards (NBC TR 2410 - Reviso de Informaes Intermedirias Executada pelo Auditor da Entidade and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries primarily of the management responsible for financial and accounting matters and applying analytical procedures and other review procedures. The scope of a review is significantly less than an audit conducted in accordance with auditing standards and, accordingly, it did not enable us to obtain assurance that we were aware of all the material matters that would have been identified in an audit. Therefore, we do not express an audit opinion.

31

Conclusion on the individual interim accounting information Based on our review, we are not aware of any fact that might lead us to believe that the individual interim accounting information included in the aforementioned quarterly information was not prepared, in all material respects, in accordance with CPC 21, applicable to the preparation of the quarterly review - ITR, and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission. Conclusion on the consolidated interim accounting information Based on our review, we are not aware of any fact that might lead us to believe that the consolidated interim accounting information included in the aforementioned quarterly information was not prepared, in all material respects, in accordance with CPC 21 and IAS 34, applicable to the preparation of the quarterly review - ITR, and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission. Other matters Interim information of added value We also reviewed the individual and consolidated interim information of added value for the quarter ended March 31, 2011, for which presentation is required in the interim information in accordance with the standards issued by the Brazilian Securities and Exchange Commission applicable to the preparation of quarterly information - ITR, and considered as supplementary information by IFRS which does not require the presentation of the statements of added value. These statements were submitted to the same review procedures described previously and, based on our review, we are not aware of any fact that might lead us to believe that they were not prepared, in all material respects, in accordance with the individual and consolidated interim accounting information, taken as a whole.

Rio de Janeiro, May 13, 2011 KPMG Auditores Independentes CRC SP-014428/O-6 F-RJ Original in Portuguese signed by Vnia Andrade de Souza Accountant CRC RJ-057497/O-2

32

LIGHT S.A.
BALANCE SHEETS (In Thousands of Reais)

Notes ASSETS Cash and cash equivalents Securities Consumers, concessionaires and permissionaires Taxes and contributions Inventories Dividends receivable Services Prepaid expenses Other receivables TOTAL CURRENT ASSETS Consumers, concessionaires and permissionaires Taxes and contributions Deferred taxes Financial assets from concessions Receivables from swap transactions Escrow deposits Prepaid expenses Other receivables Investments Property, plant and equipment Intangible assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS 6 7 8 9 31 10 11 12 13 14 4 5 6 7

Parent Company 03/31/2011 12/31/2010 19,939 1,349 48,054 146 108 31,876 101,472 197 3,535,199 672 3,536,068 3,637,540 38,295 1,080 48,054 146 159 23,860 111,594 194 3,356,788 678 3,357,660 3,469,254

Consolidated 03/31/2011 12/31/2010 372,683 9,821 1,412,548 233,475 20,622 65,859 16,310 174,612 2,305,930 309,917 57,908 905,653 491,818 226 231,192 601 8,011 19,439 1,631,782 3,666,396 7,322,943 9,628,873 514,109 11,122 1,338,704 278,885 20,537 59,724 2,114 152,973 2,378,168 296,261 57,908 899,265 469,030 211 225,251 714 7,865 17,586 1,628,893 3,613,772 7,216,756 9,594,924

10 11

The notes are an integral part of the financial statements.

33

LIGHT S.A.
BALANCE SHEETS

(In Thousands of Reais)

Parent Company 03/31/2011 12/31/2010 Consolidated 03/31/2011 12/31/2010

Notes LIABILITIES Suppliers Taxes and contributions Loans, Financing and Financial Charges Debentures and Financial Charges Dividends Payable Estimated Liabilities Sector charges Post-employment benefits Other Liabilities TOTAL CURRENT LIABILITIES Loans, Financing and Financial Charges Debentures and Financial Charges Taxes and contributions Deferred Taxes Provision for contingencies Post-employment benefits Other Liabilities TOTAL NON-CURRENT LIABILITIES SHAREHOLDERS' EQUITY Capital stock Capital reserves Legal reserve Profit retention Proposed additional dividends Asset valuation adjustments Retained Earnings/Accumulated Losses TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 24 16 17 7 19 21 22

15 7 16 17 25 18 21 22

1,166 53 136,598 240 3,014 141,071 -

280 31 136,598 220 1,981 139,110 -

614,461 161,068 209,436 420,549 136,598 53,861 119,083 102,045 255,802 2,072,903 1,204,485 682,932 179,650 295,029 544,072 926,913 226,420 4,059,501

658,421 350,169 165,878 381,332 136,598 45,264 117,218 95,555 236,318 2,186,753 1,197,500 727,891 177,699 275,755 551,897 920,630 226,655 4,078,027

2,225,822 162,756 238,863 214,381 488,322 166,325 3,496,469 3,637,540

2,225,822 162,756 233,083 214,381 494,102 3,330,144 3,469,254

2,225,822 162,756 238,863 214,381 488,322 166,325 3,496,469 9,628,873

2,225,822 162,756 233,083 214,381 494,102 3,330,144 9,594,924

The notes are an integral part of the financial statements.

34

LIGHT S.A. INCOME STATEMENT FOR THE FISCAL YEARS ENDED MARCH 31

Notes OPERATING REVENUE Provision of electric power Supply of electric power Construction Revenue Other revenue 27 27 26 26

01/01/2011 to 03/31/2011

Parent Company 01/01/2010 to 03/31/2010 -

01/01/2011 to 03/31/2011

Consolidated 01/01/2010 to 03/31/2010 2,198,302 96,687 111,250 196,633 2,602,872

2,315,204 118,785 147,033 226,496 2,807,518

Deductions to operating revenue State Goods and Services Tax - ICMS Consumer Charges PIS/ COFINS Other

26

(2,546)

(2,183) (2,183) (2,183) 189 187 2 226,773

(650,019) (164,178) (158,095) (547) (972,839) 1,834,679 (1,168,075) (993,550) (39,184) (5,145) (45,133) (80,167) (4,896) 666,604 (321,449) (92,535) (229,942) 1,028 345,155 (96,598) 36,498 (133,096) -

(611,046) (138,956) (142,541) (1,475) (894,018) 1,708,854 (1,121,471) (850,911) (34,569) (7,229) (36,539) (76,712) (111,250) (4,261) 587,383 (196,066) (86,673) (109,149) (244) 391,317 (97,846) 44,430 (142,276) -

NET OPERATING REVENUE COST OF OPERATIONS Electric Power Purchased for Resale Personnel Material Outsourced services Depreciation and amortization Construction costs Other GROSS PROFIT OPERATING EXPENSES Selling expenses General and administrative expenses Other revenues / expenses OPERATING INCOME FINANCIAL RESULT Revenues Expenses EQUITY IN THE EARNINGS OF SUBSIDIARIES NET INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION Current income and social contribution taxes Deferred income and social contribution taxes

26 29 28 28 28 28 28 28

28 28

(2,546) (2,546) 1,480

30 30

1,614 (134) 167,391

166,325 8 8 -

224,779 -

248,557 (69,030) (13,202)

293,471 (49,416) (19,276)

NET INCOME IN FISCAL YEAR

166,325

224,779

166,325

224,779

The notes are an integral part of the financial statements.

35

LIGHT - S.A. CASH FLOW STATEMENTS FOR THE FISCAL YEARS ENDED MARCH 31 ( In Thousands of Reais )
Parent Company 01/01/2011 to 03/31/2011 01/01/2010 to 03/31/2010 Net income before income and social contribution taxes Adjustments of expenses/ (revenues) not affecting cash Allowance for doubtful accounts Depreciation and amortization Amortization of intangible assets Loss (gain) from the sale of intangible assets / Residual value of derecognized property, plant and equipment Exchange losses (gains) from financial activities Restatement of contingencies Adjustment of receivables to present value Interest expenses on loans Charges and monetary variation on post-employment liabilities Provision for / (Reversal of ) contingencies - liabilities Equity income Dividends to be paid Other (Increase)/Reduction in Assets Securities Consumers, concessionaires and permissionaires Dividends received Taxes and contributions Inventories Receivables from services rendered Prepaid Expenses Escrow deposits Other Increase/(Reduction) in liabilities Suppliers Estimated liabilities Taxes and contributions Sector charges - Consumer Contributions Contingencies Post-employment benefits Other liabilities Interests paid Income and social contribution taxes paid Net cash from operating activities Cash flow from investment activities Share acquisition Receivables related to shares Receivables from the sale of property, plant and equipment Receivables from the sale of financial asset / investment Capital increase - mergers Acquisition of property, plant and equipment Acquisition of intangible assets Consumer contributions Acquisition of financial assets (concession) Additions to/acquisition of investment Shareholding Net cash used in investment activities Cash flow from financing activities Dividends and interest on equity paid Loans and financing Amortization of loans and financing Net cash used in financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of fiscal year Cash and cash equivalents at close of fiscal year Changes in cash and cash equivalents
The notes are an integral part of the financial statements.
LIGHT - S.A. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - CONSOLIDATED YEARS ENDED MARCH 31 ( In thousand of Reais )

Consolidated 01/01/2011 to 03/31/2011 01/01/2010 to 03/31/2010 248,557 293,471

166,325

224,779

(167,391) -

(226,773) -

64,351 19,119 71,670 (1,028) 1,127 14,919 (4,418) 69,577 38,041 (3,877) 1,865

63,535 20,320 65,397 (224) (3,607) 2,880 (4,621) 67,192 32,296 (22,452) -

(269) 51 (8,019)

432,340 (77) 56 (28) 18,654

1,301 (147,433) 66,512 (85) (6,135) (14,083) (5,941) (21,800)

37,059 (100,538) 119,320 (20,823) (11,608) (930) (3,355) 9,662

886 22 16 1,043 (7,336)

(6,100) (21) 77 1,187 444,094

(43,960) 8,595 (183,029) (18,867) (25,268) 15,374 (40,457) (94,569) 10,058

(14,302) 1,084 (137,647) 12,990 37,978 (22,728) 14,446 (43,244) (60,473) 331,078

(11,020) (11,020)

(45,358) 33,115 (12,000) (24,243)

3,099 (22,332) (123,788) (23,007) (166,028)

(45,358) 33,115 453 1,131 (24,319) (115,021) 1,282 (11,487) (160,204)

(18,356) 38,295 19,939 (18,356)

419,851 14,584 434,435 419,851

51,572 (37,028) 14,544 (141,426) 514,109 372,683 (141,426)

749,969 (796,738) (46,769) 124,105 760,313 884,418 124,105

PROFIT RESERVES CAPITAL STOCK 2,225,822 2,225,822 CAPITAL RESERVES 0 TREASURY SHARES 0 LEGAL RESERVE 162,756 162,756 RETAINED EARNINGS 233,083 5,780 238,863 PROPOSED ADDITIONAL DIVIDENDS 214,381 214,381 ASSET VALUATION ADJUSTMENTS 494,102 (5,780) 488,322 RETAINED EARNINGS / (ACCUMULATED) LOSSES TOTAL

BALANCE ON 12/31/2010 Realization of asset valuation adjustment Capital Increase Recognized granted options Exercised granted options Treasury Shares Dividends paid - profits reserve Payment of additional proposed dividends Realization of re-evaluation reserve Net income in fiscal year Allocation of net income for the year: Legal reserve Proposed dividends Additional proposed dividends Profit retention reserve BALANCE ON 03/31/2011 The notes are an integral part of the financial statements.

3,330,144 166,325 3,496,469

166,325 -

166,325

36

LIGHT - S.A. STATEMENTS OF VALUE ADDED FOR THE FISCAL YEARS ENDED MARCH 31, 2011 AND 2010 ( In thousands of reais )
Parent Company 01/01/2011 to 03/31/2011 Revenues Sales of goods, products and services Allowance/Reversal of allowance for doubtful accounts Input acquired from third parties Costs of Products, Goods and Services Sold Material Energy Outsourced services Other Gross value added Retentions Depreciation, amortization and depletion Net added value produced Added value received in transfers Equity income Financial income Total added value to distribute Distribution of added value Personnel Direct compensation Benefits Government Severance Fund for Employees (FGTS) Other Taxes, fees and contributions Federal State Municipal Third party capital remuneration Interest Rental Other Remuneration of own capital Dividends Retained earnings / accumulated losses for the year The notes are an integral part of the financial statements. 166,325 224,779 166,325 (1,859) (1,859) (1,859) (1,859) 169,005 167,391 1,614 167,146 167,146 646 534 29 83 39 39 136 134 2 224,779 01/01/2010 to 03/31/2010 (935) (935) (935) (935) 226,960 226,773 187 226,025 226,025 1,196 1,098 67 31 52 52 (2) (2) Consolidated 01/01/2011 to 03/31/2011 2,743,167 2,807,518 01/01/2010 to 03/31/2010 2,539,337

(64,351)
(1,254,560) (1,140,583) (113,977) 1,488,607 (90,789) (90,789) 1,397,818 36,498 36,498 1,434,316 1,434,316 52,895 40,641 8,583 3,072 599 1,070,237 418,149 650,290 1,798 144,859 132,485 6,637 5,737 166,325 166,325

2,602,872 (63,535)
(1,093,749) (850,911) (242,838) 1,445,588 (85,647) (85,647) 1,359,941 44,430 44,430 1,404,371 1,404,371 44,855 32,597 8,164 3,854 240 991,845 377,193 611,583 3,069 142,892 127,497 9,125 6,270 224,779 224,779

37

TABLE OF CONTENTS 1. OPERATIONS 2. PRESENTATION OF THE QUARTERLY FINANCIAL INFORMATION 3. SUMMARY OF ACCOUNTING PRACTICES CASH AND CASH EQUIVALENTS MARKETABLE SECURITIES 4. CONSUMERS, CONCESSIONAIRES AND PERMISSIONAIRES (CLIENTS) 5. TAXES AND CONTRIBUTIONS 6. DEFERRED TAXES 7. CONCESSION FINANCIAL ASSETS 8. PREPAID EXPENSES 9. OTHER RECEIVABLES 10. INVESTMENTS 11. PROPERTY, PLANT AND EQUIPMENT 12. INTANGIBLE ASSETS 13. SUPPLIERS 14. LOANS, FINANCING AND FINANCIAL CHARGES 15. DEBENTURES AND FINANCIAL CHARGES 16. REGULATORY CHARGES CONSUMER CONTRIBUTIONS 17. PROVISIONS 18. CONTINGENCIES 19. POST-EMPLOYMENT BENEFITS 20. OTHER PAYABLES 21. RELATED-PARTY TRANSACTIONS 22. SHAREHOLDERS EQUITY 23. EARNINGS PER SHARE 24. NET OPERATING REVENUE BREAKDOWN 25. ELECTRIC POWER SUPPLY 26. OPERATING COSTS AND EXPENSES 27. ELECTRIC POWER PURCHASED FOR RESALE 28. FINANCIAL INCOME 29. FINANCIAL INSTRUMENTS 30. INSURANCE 31. INFORMATION BY SEGMENT 32. TARIFF ADJUSTMENT 33. LONG-TERM INCENTIVE PLAN 34. LONG-TERM CONTRACTS

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OPERATIONS The corporate purpose of Light S.A. (Company) and its subsidiaries, headquartered in the City and State of Rio de Janeiro, 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. The Company is listed in the New Market (Novo Mercado) of the So Paulo Stock Exchange (BM&F Bovespa under LIGT3). Light S.A. is a direct parent company of the following companies: Light Servios de Eletricidade S.A. (Light SESA) - Publicly-held corporation engaged in the distribution of electric power, with a concession area comprising 31 cities in the State of Rio de Janeiro, including its capital. Light Energia S.A. - (Light Energia) - Privately -held corporation, headquartered in the city of Rio de Janeiro, whose main activity is to study, plan, construct, operate and exploit systems of electric power generation, transmission, sales, and related services. It comprises the Pereira Passos, Nilo Peanha, Ilha dos Pombos, Santa Branca and Fontes Novas plants, with a total installed capacity of 855 MW. Light Energia holds interest in the following subsidiaries: Central Elica So Judas Tadeu Ltda. - Company at a pre-operating stage whose main activity is the generation and sale of electric power through an wind power plant located in the state of Cear, with an 18 MW nominal power. Central Elica Fontainha Ltda. - Company at a pre-operating stage whose main activity is the generation and sale of electric through an wind power plant located in the state of Cear, with an 16 MW nominal power. Light Esco Prestao de Servios S.A. - (Light Esco) Privately-held corporation , headquartered in the city of Rio de Janeiro, whose main activity is the purchase, sale, import, export and provision of advisory services in the energy sector. Lightcom Comercializadora de Energia S.A. (Lightcom) Privately-held corporation, headquartered in the city of So Paulo, whose purpose is the purchase, sale, import, export and provision of advisory services in the energy sector. 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. Light Solues em Eletricidade Ltda., former Lighthidro Ltda. (Light Hidro), now has a new corporate name according to its articles of association dated January 27, 2011, whose

39

main activity is to provide service to low voltage clients, including assembly, improvement and maintenance of installations in general. 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. The subsidiaries jointly-controlled by the Company are: Lightger S.A. (Lightger) - Company in the pre-operating stage that participates in auctions for concession, authorization and permission for new plants. On December 24, 2008, Lightger obtained the installation license that authorizes the start of implementation works of Paracambi small hydroelectric power plant (PCH). Jointly-controlled by Light S.A (51%) and Companhia Energtica de Minas Gerais - CEMIG (49%). Axxiom Solues Tecnolgicas S.A. (Axxiom) Privately-held corporation, headquartered in the city of Belo Horizonte, state of Minas Gerais, whose purpose is to offer technology solutions and systems for operating management of 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%). Grupo Lights concessions and authorizations: Concessions / Authorizations
Generation, transmission and distribution PCH Paracambi Itaocara Hydroelectric Plant

Date of Signature Jul/1996 Feb/2001 Mar/2001

Maturity Date Jun/2026 Feb/2031 Mar/2036

PRESENTATION OF THE QUARTERLY FINANCIAL INFORMATION Consolidated Quarterly Financial Information The consolidated quarterly financial information was prepared according to the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) and also according to accounting practices adopted in Brazil (BR GAAP). Individual Quarterly Financial Information The individual quarterly financial information is presented according to the accounting practices adopted in Brazil, in compliance with the provisions of the Corporation Law, and comprise the changes introduced by Laws no. 11,638/07 and 11,941/09, complemented by new pronouncements, interpretations and guidance from CPC, issued in 2009 and 2010, approved by CFC Resolutions, and in accordance with CVM rules.

40

The Company did not calculate comprehensive income, which is the reason why it is not presenting the Comprehensive Income Statement. Quarterly Financial Information and Financial Statements 2010 In 2010, the Company adopted the option given by the CVM to present information related to the first quarter of 2010 according to previous accounting practices, effective up to December 31, 2009. The companies using this option were obliged to present again this information up to the presentation date of the 1st quarterly financial information of 2011, adjusted to the new rules issued by the Accounting Pronouncements Committee (CPC) and approved by the Brazilian Securities and Exchange Commission (CVM). The authorization to conclude this quarterly financial information was given by the Companys Management at May 13, 2011. Basis of measurement The quarterly financial information was prepared based at historical cost, except for the following items: Financial instruments measured by fair value through profit and loss; The defined benefit actuarial asset is recognized as the net total of plan assets, adding the unrecognized past service cost and unrecognized actuarial losses, deducing the unrecognized actuarial gains and the present value of the defined benefit liability; and Fixed assets of the generation plants, measured at fair value as deemed cost. Functional currency and presentation currency This individual and consolidated Quarterly Financial Information is presented in Real, which is the Companys functional currency. All financial information presented in Real was rounded up to the next thousand figure, except when indicated otherwise. Use of estimates and judgment The preparation of the quarterly financial information according to the IFRS and CPC standards demand the Management to make certain judgments, estimates and premises that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates. Estimates and premises are continuously reviewed. Reviews regarding accounting estimates are recognized in the period when the estimates are effectively reviewed and in any affected future periods.

41

Information about premises and estimates that may result in adjustments within the financial year is included in the following Notes: Note 08 Deferred taxes Note 19 Provisions Note 21 Post Employment Benefits Note 26 Net operating revenue breakdown Consolidated Group Consolidated quarterly financial information includes Light S.A. and its direct subsidiaries and joint ventures listed below and there was no change to this structure in relation to December 31, 2010.
Interest %

Light Servios de Eletricidade S.A. Light Energia S.A Light Esco Prestao de Servios S.A. Lightcom Comercializadora de Energia S.A Light Solues em Eletricidade Ltda. Instituto Light para o Desenvolvimento Urbano e Social Itaocara Energia Ltda. Lightger S.A. Axxiom Solues Tecnolgicas S.A.

100 100 100 100 100 100 100 51 51

SUMMARY OF ACCOUNTING PRACTICES Accounting practices used are in compliance with those described in Note 4 of the financial statements for the year ended on December 31, 2010 and were consistently applied in the preparation of this quarterly financial information. New IFRS and IFRIC interpretations (Financial Reporting Interpretations Committee of IASB) Some rules and amendments to interpretations issued by IASB are not yet effective for the period ended March 31, 2011; therefore, said rules were not applied in the preparation of this quarterly financial information. The Companys Management does not expect the adoption of these new pronouncements and interpretations to have a relevant impact on the Company's financial statements for the period of first-time adoption.

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Rules that are not effective yet: IFRS 9 Financial Instruments Classification and Measurement IFRS 9 Financial Instruments concludes the first phase of the project to replace the IAS 39 - Financial Instruments: Recognition and Measurement. IFRS 9 uses a simple approach to determine whether a financial asset is measured at amortized cost or at fair value. The new approach is based on the way the entity manages its financial instruments (its business model) and the financial assets contractual cash flow. The standard also requires the adoption of only one method to determine the impairment of assets. This rule shall be effective for the fiscal years starting as from January 1, 2013. CASH AND CASH EQUIVALENTS
Parent Company 03/31/2011 12/31/2010 Cash Financial investments of immediate liquidity Certificate of deposit (CDB) Total 49 19,890 19,939 386 37,909 38,295 Consolidated 03/31/2011 12/31/2010 34,546 338,137 372,683 36,028 478,081 514,109

Financial investments are represented by transactions purchased from organizations trading in the domestic financial market, at regular market terms and rates. These investments are highly liquid, have a daily repurchase commitment by the counterparty financial institution (the repurchase rate is previously agreed upon by the parties), involve low credit exposures, and yield according to the variation of the interbank deposit rate (CDI), without yield loss in case of early redemption. MARKETABLE SECURITIES These papers involve bank deposit certificates (CDB) in the amount of R$9,821 (R$11,122 as of December 31, 2010) forming the underlying assets of certain surety bonds pledged in power auctions, and also other proceeds from the sale of assets that were held for re-investment in the electric grid system or have maturities of 3 months or longer.

43

CONSUMERS, CONCESSIONAIRES AND PERMISSIONAIRES (CLIENTS)

Consolidated 03/31/2011 12/31/2010 CURRENT Billed sales Unbilled sales Debt payment by installments (a) Other receivables 2,027,793 291,789 157,365 898 2,477,845 10,792 45,115 55,907 (1,121,204) 1,412,548 1,912,492 277,339 154,896 489 2,345,216 5,546 46,444 51,990 (1,058,502) 1,338,704

Sales within the scope of CCEE Supply and charges related to the use of electric network

(-) Allowance for doubtful accounts (b)

NON-CURRENT Debt payment by installments (a) Other receivables

288,251 21,666 309,917

276,092 20,169 296,261

a) The balances of debt repayment facilities were adjusted to their present value, as applicable, pursuant to Law No. 11,638/07. The present value is determined for each relevant consumer debt renegotiation (debt repayment facilities) based on such interest rate as will reflect the term and risk associated with each individual transaction, on average 1% per month. The balance includes the present value of repayment agreements with installment acceleration options (these options, once exercised, give customers a discount on any accelerated installment). It is estimated that an aggregate amount of R$21,007 (R$16,216 were exercised in the year of 2010) in options will be exercised in 2011. b) An allowance for doubtful accounts was set up based on certain premises and in an amount deemed sufficient by the Management to meet any asset realization losses, in accordance with the ANEEL guidelines summarized as follows: Customers with significant debts (large accounts): - Outstanding balances of customer accounts are reviewed on a case-by-case basis and per consumer class. In all other instances: - Residential consumers over 90 days past due. - Business consumers over 180 days past due. - Industrial, rural, public sector , public lighting, utility, and other accounts over 360 days past due. Outstanding balances and receivables in connection with invoiced electric power sales and also debt repayment programs are summarized as follows:

44

Billed sales and renegotiated debts Residential Industrial Commercial Rural Public sector Public lighting Public utility Total - current and non-current

Maturing balance 241,237 23,282 139,917 672 46,688 12,392 216,934 681,123

Matured balances Overdue up to Overdue over 90 days 90 days 213,736 11,582 48,328 355 30,206 2,137 898 307,243 861,710 154,132 310,195 655 120,748 27,228 10,375 1,485,044

TOTAL 03/31/2011 1,316,683 188,997 498,440 1,683 197,642 41,757 228,207 2,473,409 12/31/2010 1,208,691 202,264 485,408 1,568 172,723 39,666 233,160 2,343,480

Allowance for bad debts (PCLD) 03/31/2011 (844,847) (39,738) (229,078) (532) (5,895) (1,108) (8) (1,121,204) 12/31/2010 (787,040) (39,998) (223,865) (499) (4,920) (1,635) (546) (1,058,502)

TAXES AND CONTRIBUTIONS

Parent Company Assets Liabilities 03/31/2011 12/31/2010 03/31/2011 12/31/2010 CURRENT Tax credits IRPJ and CSLL (a) IRRF (Withholding Income Tax) recoverable ICMS payable Prepaid IRPJ/CSLL Other TOTAL 1,334 15 1,349 1,080 1,080 1 13 39 53 1 13 17 31

Consolidated Assets Liabilities 03/31/2011 12/31/2010 03/31/2011 12/31/2010 CURRENT Tax credits IRPJ and CSLL (a) IRRF (Withholding Income Tax) payable ICMS recoverable ICMS payable Installment Payments - Law 11,941/09 (b) PIS/COFINS recoverable (c) PIS/COFINS payable Prepaid IRPJ/CSLL Provision for IRPJ/CSLL Other TOTAL NON-CURRENT Installment Payment - Law 11,941/09 (b) ICMS recoverable TOTAL 12,132 134,211 17,839 52,174 17,119 233,475 6,838 80,080 17,935 156,795 17,237 278,885 553 4,385 22,676 54,253 72,027 7,174 161,068 523 23,833 21,633 61,234 230,408 12,538 350,169

57,908 57,908

57,908 57,908

179,650 179,650

177,699 177,699

)a The balance refers to tax credits recoverable arising from negative balance withholdings of financial investments and government agencies in the amount of R$12,132. The variation of the amounts for the quarter arises from the adjustment based on the Selic rate in the amount of R$894, including new credits in the amount of R$9,162, net of offsets in the period, amounting to R$4,762. )b 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 amount for the quarter of R$1,752. The

45

installment balance is restated by SELIC rate and the restatement amount recorded in the period is R$4,746. )c The balance of offsetable PIS and COFINS relates to charges withheld by government agencies and instrumentalities in connection with service sales. DEFERRED TAXES
Consolidated 03/31/2011 12/31/2010 Deferred Deferred Tax Base tax Tax Base tax 776,649 1,874,117 825,457 1,874,117 194,162 468,529 74,291 168,671 905,653 844,992 1,786,984 893,800 1,786,984 211,248 446,746 80,442 160,829 899,265

ASSETS Income Tax Tax Losses Temporary Differences Social Contribution Negative Base Temporary Differences Total

LIABILITIES Income Tax Temporary Differences Social Contribution Temporary Differences

Consolidated 03/31/2011 12/31/2010 Deferred Deferred Tax Base tax Tax Base tax 867,731 867,731 216,933 78,096 811,043 811,043 202,761 72,994

Total

295,029

275,755

The interim difference taxable basis breakdown is as follows:

46

Consolidated 03/31/2011 IR ASSETS Allowance for doubtful debtors Provision for profit sharing Provision for labor contingencies Provision for tax contingencies Provision for civil contingencies Impacts resulting from the adoption of the new CPCs Other provisions TOTAL - ASSETS LIABILITIES Deemed cost - Light Energia Other provisions 1,115,813 25,908 164,288 185,599 180,980 30,103 171,426 1,874,117 CSLL 1,115,813 25,908 164,288 185,599 180,980 30,103 171,426 1,874,117 IR 1,051,462 19,270 169,886 167,657 196,095 34,754 147,860 1,786,984 12/31/2010 CSLL 1,051,462 19,270 169,886 167,657 196,095 34,754 147,860 1,786,984

739,882 127,849 867,731

739,882 127,849 867,731

748,637 62,406 811,043

748,637 62,406 811,043

Reconciliation of effective and nominal rates in the provision for income tax and social contribution:
Consolidated 03/31/2011 03/31/2010 248,557 293,471 34% 34% (84,509) (99,780) 2,688 (63) 31,933 (558) (753) 510 (363) 33 (82,232) (68,630) (69,030) (13,202) (82,232) (49,416) (19,214) (68,630)

Earnings before Income and Social Contribution Taxes (LAIR) 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 Deferred tax credits not recognized CVM 371/02 - Light S.A. Tax incentives Others Income and social contribution tax on income Current IRPJ and CSLL on income Deferred IRPJ and CSLL on income

CONCESSION FINANCIAL ASSETS Owing to its utility nature, distribution of electric power is governed by certain Utility Concession Agreements and any subsequent amendments thereto, entered into by the Union (Granting Authority - Grantor) and the subsidiary Light Servios de Eletricidade S.A. (Concessionare Operator). These agreements generally contain provisions governing matters such as follows: Which services the Operator must provide and to whom (i.e. consumer classes) such services must be provided. These concession agreements contain a service level clause or provisions establishing performance standards applicable to utility services, usually addressing quality maintenance and improvement in connection with any services provided to the public. Additionally, the Operator is required, upon expiration of the concession, to return infrastructure assets in the same operating conditions as they were handed over when the agreement was executed. In order to satisfy and meet these obligations, investments are made on an ongoing basis over the term of the concession. Therefore, some assets associated with the

47

concession contract may be replaced a number of times before the concession expires. Once the concession expires, infrastructure assets are return to the granting authority upon payment of a certain compensation. Concession prices are fixed through a rate methodology set forth in each concession agreement that is based on a parametric formula (Portions A and B), and includes a review mechanism to ensure that the tariff will be sufficient to cover any costs, repay investments made and provide return on the capital invested. Based on the features of the electric power distribution agreement of the subsidiary, management is of the opinion that the requirements for application of Accounting Interpretation ICPC 01 - Concession Contracts, which provides guidelines addressing how to account for public to private service concession arrangement, have been successfully met in order to reflect the electric power distribution business, comprising: a) An estimated portion of any investments made and not repaid or amortized before the concession expires, net of special obligations classified as financial assets due to their nature as an unqualified right to receive cash or any other financial asset directly from the granting authority. b) A portion remaining after the financial asset was determined, net of any special obligations classified as intangible assets because its recovery of the same is contingent upon the utility service being used. The infrastructure handed over or built in connection with the power distribution business, originally represented by power, plant and equipment and other intangible asset items of the subsidiary, is recovered through two distinct cash flows, as follows: a) a portion of the infrastructure is recovered through selling power distribution services to consumers (monthly billing of power consumed/sold) during the term of the concession; and b) another portion is recovered by way of the compensation payable for revertible assets upon expiration of the concession, which compensation will be paid directly by the Granting Authority or any of its agents. Management estimates that the compensation payable for the financial assets will be made based on the not yet amortized portions of investments in revertible concession infrastructure assets, determined at the cost of acquisition/construction, made for the purpose of ensuring stable, continuously improved provision of utility services, net of any special obligations. Below is a summary of transactions in the quarter related to the balances of revertible assets (concession assets):

48

Balance as of December 31, 2010 Additions Write-offs Balance as of March 31, 2011

469,030 23,007 (219) 491,818

PREPAID EXPENSES
Parent Company 03/31/2011 12/31/2010 CURRENT Current municipal property tax (IPTU) SAP use licenses PROINFA Other Total NON-CURRENT Other Total 108 108 159 159 Consolidated 03/31/2011 12/31/2010 2,630 3,779 8,819 1,082 16,310 2,114 2,114

601 601

714 714

OTHER RECEIVABLES
Parent Company 03/31/2011 12/31/2010 CIRCULANTE Advances to suppliers and employees Property rental Account receivable from the sale of property Public lighting fee Expenditures to refund Subsidy to low-income segment (a) Other Total NON-CURRENT Assets and rights for disposal Other Total 35 31,841 31,876 18 23,842 23,860 Consolidated 03/31/2011 12/31/2010 36,352 332 12,130 55,444 13,447 19,473 37,434 174,612 38,065 302 12,130 48,399 8,111 19,584 26,382 152,973

7,226 785 8,011

7,226 639 7,865

a) Out of the amount stated, a total of R$5,149 (R$5,489 as of December 31, 2010) was acknowledged (however yet unpaid) by ANEEL, and the amount of R$2,598 in March 2011 and R$2,551 in April 2011, while R$14,324 (R$14,095 as of December 31, 2010) are pending acknowledgment.

49

INVESTMENTS
Parent Company 03/31/2011 12/31/2010 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. Light Solues Ltda (a) Subtotal Goodwill from future profitability Other permanent investments SubTotal Total 2,581,560 843,086 48,084 35,940 3,842 16,107 3,476 50 3,532,145 2,034 1,020 3,054 3,535,199 2,442,433 815,593 37,787 36,767 2,733 16,067 2,304 50 3,353,734 2,034 1,020 3,054 3,356,788 19,439 19,439 19,439 17,586 17,586 17,586 Consolidated 03/31/2011 12/31/2010

(a) Pre-operational Company INFORMATION ON SUBSIDIARY COMPANIES AND JOINT VENTURES

03/31/2011 Light SESA Light Energia Light Esco LightCom Light Solues Instituto Light Itaocara Energia Light Ger Axxiom Ownership interest (%) 100 100 100 100 100 100 100 51 51 Paid-up capital 2,082,365 77,422 17,584 1,000 50 300 22,294 35,743 4,692 Shareholders' equity 2,581,560 843,086 48,084 3,842 50 16,107 35,940 3,476 Dividends proposed (23,346) (21,066) (3,102) (540) Income / loss for the period 139,127 27,493 299 1,108 39 (827) 152

12/31/2010 Light SESA Light Energia Light Esco LightCom Light Solues Instituto Light Itaocara Energia Light Ger Axxiom

Ownership interest (%) 100 100 100 100 100 100 100 51 51

Paid-up capital 2,082,365 77,422 7,584 1,000 50 300 22,294 35,473 3,672

Shareholders' equity 2,442,433 815,593 37,787 2,733 50 16,067 36,767 2,304

Dividends proposed (23,346) (21,066) (3,102) (540) -

Dividends paid (89,544) -

Income for the year 475,316 88,697 13,064 2,273 (47) 13 78

INVESTMENTS IN SUBSIDIARIES AND JOINT VENTURES FOR THE QUARTER

12/31/2010 Light SESA Light Energia Light Esco LightCom Light Ger Light Solues Instituto Light Itaocara Energia Axxiom 2,442,433 815,593 37,787 2,733 36,767 50 16,067 2,304 Capital increase 10,000 1,020 Other (2) 1 1 Equity method 139,127 27,493 299 1,108 (827) 39 152 03/31/2011 2,581,560 843,086 48,084 3,842 35,940 50 16,107 3,476

50

PROPERTY, PLANT AND EQUIPMENT

Consolidated 03/31/2011 Accumulated depreciation Net value (1,450,509) (41,838) (37,928) (170,469) (7,633) (1,708,377) (1,708,377) 1,211,010 15,763 9,551 70,247 2,145 1,308,716 204,411 118,655 323,066 1,631,782 12/31/2010 Net value 1,225,621 16,097 10,572 73,380 2,266 1,327,936 185,964 114,993 300,957 1,628,893

Historical cost Generation Transmission Distribution Administration Sales In service Generation Administration In progress Total 2,661,519 57,601 47,479 240,716 9,778 3,017,093 204,411 118,655 323,066 3,340,159

The statement below summarizes the changes in property, plant and equipment in the quarter:
Consolidated Balance as of 12/31/2010 PROPERTY, PLANT AND EQUIPMENT IN SERVICE Cost Land Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Total Property, Plant and Equipment in Service - Cost (-) Depreciation Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Total Property, Plant and Equipment in Service - Depreciation PROPERTY, PLANT AND EQUIPMENT IN PROGRESS Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Studies and frojects Total Property, Plant and Equipment in Progress TOTAL PROPERTY, PLANT AND EQUIPMENT 77,614 44,511 118,790 10,055 13,589 36,398 300,957 1,628,893 8,782 1,469 5,718 50 6,202 111 22,332 3,435 (323) (54) (123) (29) (17) (223) (223) 86,396 45,926 124,385 10,076 19,791 36,492 323,066 1,631,782 105,026 1,250,703 255,954 1,245,946 32,491 127,073 3,017,193 54 140 29 223 (323) (323) 104,703 1,250,703 256,008 1,246,086 32,491 127,102 3,017,093 Additions Write offs Inter-account transfers Balance as of 03/31/2011

(756,181) (149,576) (654,084) (27,898) (101,518) (1,689,257)

(5,478) (1,733) (9,084) (616) (2,209) (19,120)

(761,659) (151,309) (663,168) (28,514) (103,727) (1,708,377)

(i) Subsidiary Light SESA does not hold any Union-owned resources and rights in its assets.

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INTANGIBLE ASSETS
Consolidated 03/31/2011 Accumulated amortization Net Value (3,280,299) (377,493) (3,657,792) (3,657,792) 2,679,087 2,034 73,309 2,754,430 846,963 65,003 911,966 3,666,396 12/31/2010 Net Value 2,678,328 2,034 82,771 2,763,133 788,111 62,528 850,639 3,613,772

Historic cost Intangible Concession right of use Goodwill from future profitability Other In Use Concession right of use Other In progress TOTAL INTANGIBLE (1) 5,959,386 2,034 450,802 6,412,222 846,963 65,003 911,966 7,324,188

(1) Net of special obligations comprising (i) contributions made by the Union, states, municipalities and consumers, (ii) any unqualified donations (i.e. not subject to any consideration in benefit of the donor), and assistance intended as investments to be made toward concession of the electric power distribution utility. In progress intangible includes inventories of project materials in the amount of R$46,607 as of March 31, 2011 (R$43,808 as of March 31, 2010), as well as a provision for inventory devaluation in the amount of R$5,749 (R$5,749 as of December 31, 2010). A total amount of R$1,884 (R$9,183 as of December 31, 2010) was carried over to intangible assets in the first quarter of 2011 by way of interest capitalization and as a counterparty to the financial income. The infrastructure used by subsidiary Light SESA is associated with the distribution service, and therefore cannot be removed, disposed of, assigned, conveyed, or encumbered as mortgage collateral without the prior written authorization of the Granting Authority, which authorization, if given, is regulated by Resolution ANEEL No. 20/99. It is the responsibility of ANEEL in its capacity as regulatory agency to determine the estimated economic useful lives of each piece of distribution infrastructure assets for pricing purposes, as well as for the purpose of calculating the amount of the relevant compensation payable upon expiration of the concession term. This estimate is revised from time to time, represents the best estimate concerning the assets' useful lives, and is accepted in the market as appropriate for accounting and regulatory purposes. The management of Light SESA is of the opinion that amortization of intangible assets must be consistent with the return expected on each infrastructure asset, via the applicable rates. Thus, intangible assets are amortized over the expected length of such return, limited to the term of the concession. As a result of this amortization method, the total amount of intangible assets will be amortized at all times in a non-linear fashion. Below is a summary of changes in the intangible assets in the quarter:

52

Consolidated Balances as of 12/31/2010 In Service Concession right of use Goodwill from future profitability Other Total Intangible in Service (-) Depreciation Concession right of use Other Total Intangible in Service - Depreciation In Progress Concession right of use Other Total Intangible in Progress TOTAL INTANGIBLE ASSETS (I) 5,897,129 2,034 450,714 6,349,877 Additions 86,745 88 86,833 Write offs (1,698) (1,698) Inter-account transfers (22,790) (22,790) Balances as of 03/31/2011 5,959,386 2,034 450,802 6,412,222

(3,218,801) (367,943) (3,586,744)

(62,499) (9,550) (72,049)

1,001 1,001

(3,280,299) (377,493) (3,657,792)

788,111 62,528 850,639 3,613,772

145,959 2,563 148,522 163,306

(697)

(87,107) (88) (87,195) (109,985)

846,963 65,003 911,966 3,666,396

SUPPLIERS

a) Free Energy Reimbursement to Power Generation Companies Resolution No. 387 as of December 15, 2009, published January 12, 2010, concluded the process of computing the Revenue Loss and Free Energy closing balances, following expiration of the Extraordinary Tarift Review (RTE), and also determined the amounts of any reimbursement operators should pay each other, with payments estimated to April 9, 2011 but said reimbursements are suspended according to injunction required by ABRADEE (Brazilian Association of Distribution Companies), on April 7, 2011. Balance ratified was R$48,985, which generated a counter entry in the income for the 1st quarter of 2011, in the amount of R$5,200. Energy supply, electric network usage charge, materials and service balances have an average settlement period of up to 90 days.

53

LOANS, FINANCING AND FINANCIAL CHARGES

Principal Current Non-current 63,389 (37,258) 44,230 (26,199) 5,388 13,470 6,035 3,017 196 294 11,619 60,943 563 82,616 27,176 27,176 11,621 119 230 51 58 321 86 54 710 187 150,968 162,587 1,891 450,000 206,539 150,729 150,729 95,101 80,000 308 710 161 183 1,258 335 210 2,782 734 1,141,670 1,202,613 Consolidated Charges Current Non-current 1,801 310 709 66 2 2,888 1 25,844 1,264 2,597 2,889 945 4,865 2 3 1 5 1 1 12 3 246 304 38,983 4,978 46,849 1,872 1,872 Total 03/31/2011 12/31/2010 65,190 65,686 (37,258) (38,844) 44,540 45,395 (26,199) (27,276) 19,567 19,622 9,118 9,292 492 612 75,450 74,487 2,455 475,844 290,419 180,502 180,794 107,667 84,865 429 943 213 241 1,584 422 265 3,504 924 246 304 1,331,621 6,850 1,413,921 2,598 461,340 311,162 155,265 155,528 105,831 82,646 459 1,002 481 2,051 4,778 246 209 1,283,596 5,295 1,363,378

Financing Entity TN - Par Bond TN - Collateral - Par Bond TN - Discount Bond TN - Collateral - Discount Bond TN - C. Bond TN - Conv. Debit TN - Bib TOTAL FOREIGN CURRENCY Eletrobrs CCB Bradesco BNDES - FINEM BNDES - FINEM direct BNDES - FINEM + 1 BNDES - FINEM direct PSI Working capital- Santander BNDES - PROESCO 1st funding BNDES - PROESCO 2nd funding BNDES - PROESCO 3rd funding BNDES - PROESCO 4th funding BNDES - PROESCO 5th funding BNDES - PROESCO 6th funding BNDES - PROESCO 7th funding BNDES - PROESCO 8th funding BNDES - PROESCO 9th funding RGR Sundry banking warranties TOTAL DOMESTIC CURRENCY SWAP OVERALL TOTAL

The statement below summarizes the contractual terms and conditions applicable to our loans and borrowings as of March 31, 2011:
Principal Amortization Financing Entity TN - Par Bond TN - Collateral - Par Bond TN - Discount Bond TN - Collateral - Discount Bond TN - C. Bond TN - Conv. Debit TN - Bib Eletrobrs CCB Bradesco BNDES - FINEM BNDES - FINEM direct BNDES - FINEM + 1 BNDES - FINEM direct PSI Working capital - Santander BNDES - PROESCO 1st funding BNDES - PROESCO 2nd funding BNDES - PROESCO 3rd funding BNDES - PROESCO 4th funding BNDES - PROESCO 5th funding BNDES - PROESCO 6th funding BNDES - PROESCO 7th funding BNDES - PROESCO 8th funding BNDES - PROESCO 9th funding Date of signature 04/29/1996 04/29/1996 04/29/1996 04/29/1996 04/29/1996 04/29/1996 04/26/1996 sundry 10/18/2007 11/05/2007 11/30/2009 11/30/2009 11/30/2009 09/03/2010 12/12/2008 06/15/2009 06/15/2010 09/15/2010 12/16/2010 09/16/2010 11/16/2010 11/16/2010 11/16/2010 Currency US$ US$ US$ US$ US$ US$ US$ UFIR CDI TJLP TJLP TJLP CDI TJLP TJLP TJLP TJLP TJLP R$ R$ TJLP TJLP Interest Rate p.a. 6% U$ Treasury Libor + 13/16 U$ Treasury 8% Libor + 7/8 6% 5% CDI + 0.85% TJLP + 4.3% TJLP + 2.58% TJLP + 1% + 2.58% 4.5% CDI + 1.4% TJLP + 2.5% TJLP + 2.51% TJLP + 2.18% and 4.5% TJLP + 2.05% and 5.5% TJLP + 2.05% and 5.5% 5.5% 5.5% TJLP + 2.05% TJLP + 2.05% Beginning 2024 2024 2024 2024 2004 2004 1999 2012 2009 2011 2011 2011 2010 2009 2009 2010 2010 2010 2011 2011 2011 2011 Payment Lump sum Lump sum Lump sum Lump sum Half-yearly Half-yearly Half-yearly Monthly and quarterly Yearly Monthly Monthly Monthly Monthly Yearly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Remaining Installments 1 1 1 1 7 3 5 between 2 and 120 6 42 72 72 101 1 43 43 50 50 59 59 59 59 59 End 2024 2024 2024 2024 2014 2012 2013 2013 to 2017 2017 2014 2017 2017 2019 2014 2014 2015 2015 2016 2016 2016 2016 2016 2016

54

In March 2011, a total of R$49,940 was received from the finacing signed with BNDES in connection with the investment plan of Light SESA, while R$1,632 were drawn down for Light Energia. In addition to the collaterals indicated above, loans are guaranteed by receivables in the approximate amount of R$44,757. The principal of long-term loans and financing matures as follows (excluding financial charges) on March 31, 2011:
Consolidated 2012 2013 2014 2015 after 2015 TOTAL Local Currency 192,734 231,965 291,073 148,670 277,228 1,141,670 Foreign Currency 8,503 5,584 2,694 44,162 60,943 Total 201,237 237,549 293,767 148,670 321,390 1,202,613

Loans and financings in the period are broken down as follows:

Balance as of December 31, 2010 Loans and Financings obtained Monetary restatement and foreign exchange variation Financial charges provisioned Financial charges paid Capitalization Amortization of financings Amortization of costs Balance as of March 31, 2011 Principal 1,335,183 51,572 (469) (21,122) 36 1,365,200 Charges 28,195 1,596 37,469 (16,655) (1,884) 48,721

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 years:
Variation % 03/31/2011 USD EUR UMBNDES IGP-M CDI SELIC (2.25) 3.81 (1.85) 2.43 2.64 2.65 03/31/2010 2.29 (3.98) 3.09 2.78 2.02 2.03

Covenants

55

The funding of CCB Bradesco, the loans with Banco Santander and with BNDES FINEM, classified as current and non-current, requires that the Company maintain certain debt ratios and interest coverage (covenants). In the first quarter of 2011, the Company and its subsidiaries are in compliance with all required debt covenants. DEBENTURES AND FINANCIAL CHARGES

Financing Entity Debentures 4th Issue Debentures 5th Issue Debntures 6th Issue LOCAL CURRENCY - TOTAL

Principal Current Non Current 19 91,322 299,331 390,672 62 682,870 682,932

Consolidated Charges Current 17,594 12,283 29,877

Total 03/31/2011 81 791,786 311,614 1,103,481 12/31/2010 86 807,406 301,731 1,109,223

Contractual conditions of debentures on March 31, 2011 are as follows:

Date of Signature 06/30/2005 01/22/2007 06/01/2009 Interest Rate p.a. TJLP + 4% CDI + 1.50% 115% of CDI Principal Amortization Remaining Payment Installments Mensal 51 Trimestral 12 nica 1

Financing Entity Debentures 4th Issue Debentures 5th Issue Debentures 6th Issue

Currency TJLP CDI CDI

Beginning 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:
Incurred value 7,449 7,540 4,622 19,611 03/31/2011 Value to be recognized 19 4,908 669 5,596 Total Cost 7,468 12,448 5,291 25,207 12/31/2010 Total Cost 7,468 12,448 5,291 25,207

Issue Debentures 4th Issue Debentures 5th Issue Debentures 6th Issue TOTAL

Installments related to principal of long-term debentures are due (financial charges not included) on March 31, 2011:
Consolidated 03/31/2011 2012 2013 2014 2015 TOTAL 134,881 243,438 304,605 8 682,932

56

Changes in debentures in the period are as follows:

Principal 1,088,402 (15,906) 1,108 1,073,604 Charges 20,821 32,857 (23,801) 29,877

Balance as of December 31, 2010 Financial charges provisioned Financial charges paid Amortization of financings Amortization of transaction costs Balance as of March 31, 2011

Covenants The 5th and 6th Issues of Debentures require the maintenance of indebtedness indexes and coverage of interest rates. In the first quarter of 2011, the Company and its subsidiaries complied with all the covenants required. REGULATORY CHARGES
Consolidated 03/31/2011 12/31/2010 CURRENT Fuel usage account quota CCC Energy development account quota CDE Reversal global reserve quota RGR Charges for capacity and emergency acquisition 25,472 19,266 1,173 73,172 119,083 25,472 17,182 1,394 73,170 117,218

PROVISIONS The Company 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 comprise the following:
NON-CURRENT Balance as of December 31, 2010 Additions Adjustments Write-offs / payments Write-offs / reversals Balance as of March 31, 2011 Deposits in court Balance as of March 31, 2011 Labor 167,656 5,588 (5,177) (2,299) 165,768 Civil 155,582 17,948 4,295 (11,153) 166,672 Consolidated Tax 180,342 8,936 (2,515) 186,763 Other 48,317 1,687 (2,536) (22,599) 24,869 Total 551,897 23,536 14,918 (18,866) (27,413) 544,072

31,267

7,002

15,001

1,655

54,925

Provision for labor proceedings:

57

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. Provision for civil proceedings:
Civil Accrued Value (probable loss) 03/31/2011 Civil proceedings (a) Special civil court (b) "Cruzado" Plan Total 96,166 26,457 44,049 166,672 12/31/2010 87,842 25,138 42,602 155,582

a) The Provision for civil proceedings comprises lawsuits in which the Company 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 due to the Companys ostensive behavior fighting irregularities in the network, as well as consumers challenging the amounts paid. 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 average of the last 12 months of condemnation amount. Provision for tax proceedings:
Tax Accrued Value (probable loss) 03/31/2011 PIS/COFINS RGR and CCC INSS tax deficiency notice 8,561 41,434 22,887 104,938 8,943 186,763 12/31/2010 8,561 40,964 22,579 94,400 4,988 8,850 180,342

INSS quarterly
ICMS CIDE (c) Other Total

b) CIDE The Company has a Writ of Mandamus that was filed to ensure the right of not collecting Economic Intervention Contribution Credit (CIDE). Contribution amounts related to the period from January 2001 to January 2004 were not collected by the Company, which started to collect it as from February 2004 only. Amounts related to the period from January 2001 to January 2004 were not collected by the Company, and a provision of R$5,000 was recorded. In February 2011, considering

58

the term of debits elapsed, the Company recorded a reversal of the provision of R$4,988 in the income for the quarter. Provisions for Administrative Regulatory proceedings The Company will now discuss regulatory contingencies in connection with administrative issues pending with ANEEL. Notice of Infringement ANEEL No. 007/2010-SFE This notice was issued on February 17, 2010 and a fine was imposed in the amount of R$9,544 as a result of an inspection carried out in December 2009 by ANEEL officials to verify and review the causes of power shortages occurred in the Operator's underground distribution system. The Company challenged this notice of infringement on March 5, 2010 and moved for dismissal of any alleged noncompliances, as well as for reduction of the fines applied. Alternatively, the Company moved that the fine was converted in an memorandum of agreement (TAC). The executive board of ANEEL did not consent to the TAC and the Company then filed an internal appeal against this decision by ANEEL. On April 19, 2011, the executive board of ANEEL decided to approve the TAC execution as an alternative to the application of the R$9,544 fine. Notice of Infringement ANEEL No. 071/2010-SFF This notice was issued on March 17, 2010, and a fine was imposed in the amount of R$448 on account of alleged nonconformities determined in economic, financial and accounting audits performed in subsidiary Light SESA. The subsidiary filed an appeal on April 1, 2010 and requested the fines were converted in admonitions. This appeal is currently pending a decision by ANEEL. In Order No. 1665/2010 dated June 10, 2010, ANEEL reduced the amount of the fine to R$419. On February 15, 2011, the executive board of ANEEL decided to partially approve Lights appeal, reducing the fine to R$257, which has already been settled. Notice of Infringement ANEEL No. 013/2010-SFG This notice was issued on March 4, 2010, and a fine was imposed in the amount of R$1,120 on account of alleged failures determined by the regulator in connection with blackstart procedures at the UHE generation plants of Fontes Nova, Nilo Peanha e Pereira Passos, which failures occurred in resuming the National Interconnected System (SIN Sistema Integrado Nacional) following the anomaly experienced on November 10, 2009. Light Energia appealed the notice on May 9, 2010 to request the fines were reduced. The Bureau of Generation Service Inspection (SFG) upheld the decision challenged, and the case is pending a decision by the executive board of ANEEL. On December 14, 2010, the executive board of ANEEL decided to reconsider the decision of the Superintendence and cancelled the fine applied to UHE generation plant of Nilo Peanha, reducing the fine to R$289, which has already been settled. Notice of Infringement ANEEL No. 061/2010-SFE This notice was issued on May 19, 2010, and a fine was imposed in the amount of R$5,049 on account of alleged nonconformities determined in economic, financial and accounting audits performed by ANEEL in May 2009. Subsidiary Light SESA filed an appeal against the notice on June 3, 2010, seeking cancellation of all fines

59

imposed or, alternatively, that they were reduced. The Bureau of Generation Service Inspection (SFG) upheld the decision challenged, and the case is pending a decision by the executive board of ANEEL. On March 1, 2011 the executive board of ANEEL decided to understand and partially accept Lights claims regarding the dosimetry used in the AI, reducing the fine to R$1,796, which has already been settled. Notice of Infringement ANEEL No. 082/2010-SFE This notice was issued on June 18, 2010, and a fine was imposed in the amount of R$16,052 on account that subsidiary Light SESA allegedly failed to comply with continuity metrics DEC and FEC for 65 groups during 2009. The incident occurred on November 10, 2009 (the Furnas Blackout) was taken into consideration for computation of the relevant metrics. The Company filed an appeal on July 8, 2010, and moved for a mitigation so that the shortage experienced on November 10, 2009 is not considered for the purpose of computing the DEC and FEC metrics. Currently this appeal is pending review by ANEEL. A provision in the amount of R$4,110 was set up based on the opinion of the Company's legal counsels, which opinion also indicates that ANEEL is likely to reduce the amount of the fine imposed based on the subsidiary's allegations that the Furnas' transmission line downtime should be disregarded in the computation of continuity metrics on account of their nature as force majeure/act of God events and thus capable of defeating the liability of Light SESA in the incident. CONTINGENCIES Contingencies with possible loss are broken down as follows:
03/31/2011
Nature Civil Labor Tax Total Balance 152,842 331,535 906,400 1,390,777 Number of proceedings 12,211 1,125 1,006 14,342 Balance 159,200 345,850 858,400 1,363,450

12/31/2010
Number of proceedings 11,831 1,137 982 13,950

a)

Civil

The Company is 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 as of March 31, 2011, in these proceedings is R$152,842. Main reasons for litigations are listed below. They are: Irregularities Light SESA has several lawsuits where Irregularities are discussed. Irregularities are commercial losses due to irregular connections, clandestine connections, meters alteration and equipment theft, known in Portuguese as gatos. Most of the litigations are based on the evidence of irregularity and amounts charged by the concessionaire in view of such evidence. The amount currently assessed represented by these claims is R$64,405.

60

 Amounts Charged and Bills Many litigations are currently in progress and discuss amounts charged by Light for services provided, such as demand amounts, consumption amounts, financial charges, rates, insurances, among other. The amount currently assessed represented by these claims is R$26,951. Accidents - Light SESA is defendant in lawsuits filed by victims and/or their successors, regarding accidents with Lights electricity grid and/or service provision for several causes. The amount currently assessed represented by these claims is R$26,265. Discontinuance and Suspension There are several lawsuits in progress to discuss service discontinuance, whether by fortuitous cases or events of force majeure, or for purposes of intervention in the electrical system, among other reasons, and also service suspension, whether for indebtedness, denied access or meters replacement, among other facts for suspension. Relative to claims in question, assessed amount is R$15,891.

Equipment and Network Light SESA has litigations due to meters used to measure energy consumption. Litigations address several themes, such as meter functionality, approval by meteorological agency, among others and, also, litigations about its Network, due to its extension, removal or even financial contribution of the client to install the network. Relative to claims in question, assessed amount is R$12,125. b) Tax

LIR/LOI - IRPJ/CSLL - Income vs. Equity Pickup Proceeding 16682.720216/2010-83) - Light filed writ of mandamus No. 2003.51.01.005514-8 to challenge an assessment of corporate income tax (IRPJ) and social contribution (CSL) on income earned by its subsidiaries LIR e LOI since 1996 that was allegedly not offered to taxation, as well as the demand for including equity pickup income in the assessment of the IRPJ and CSLL for calendar years up to 2002 and subsequent years. Light SESA attempted to move for a partial withdrawal in this writ of mandamus to include the tax debts in the repayment program created by Law No. 11,941/09, and proceed against the assessment in connection with the equity accounting method. However, the Treasury attorney did not accept this partial withdrawal, nor did the competent court. As a result, Light SESA withdrew its writ completely and changed the assessment methodology for the IRPJ/CSLL, which had previously been done based on the income, to use the equity method of accounting. The tax authorities disallowed this change and assessed Light SESA in the amount of R$131,550. Light SESA filed a challenge in response to this assessment. Amount involved in this claim as of March 31, 2011 is R$133,700.

IRRF - Disallowance of tax offset - LIR/LOI (Proceeding 10768.002.435/200411) There is no confirmation of tax offsets related to withholding income tax credits on financial investments and withholding income tax credits on the payment of energy accounts by public bodies, offset due to negative balance of Corporate Income Tax in the reference year of 2002. The motion to disagree filed

61

by Light was deemed groundless. The voluntary appeal lodged by Light is pending judgment. Amount involved in this claim as of March 31, 2011 is R$190,300. Normative Instruction (NI) No. 86 (Proceeding 10707000751/2007-15 - (2003 through 2005) - This notice of infringement was issued to assess a fine on the Company for alleged failure to make electronic file submissions, as required by NI. No. 86/2001, for calendar years 2003 through 2005. The appeal of the Company was dismissed, upon which a special appeal was filed and still pending judgment. Amount involved in this claim as of March 31, 2011 is R$263,000.

ICMS on low-income subsidy (Proceeding E-34/059.150/2004) Tax Deficiency Notice drawn up to charge ICMS on amounts of economic subsidy to low-income consumers of electricity arising from Global Reversion Reserve Funding. The appeal was deemed groundless. An appeal was lodged with the Taxpayers Council, which decided this appeal shall return to the administrative lower court for due diligence. The amount involved in this lawsuit is R$77,200 on March 31,2011. POST-EMPLOYMENT 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 four plans - A, B, C and D established in 1975, 1984, 1998 and 2010, respectively, with about 96% of the active participants of plans A and B. Current plans in effect include defined-benefit- (Plans A and B), mixed-benefit- (Plan C), and defined-contribution plans (Plan D). Such plans are detailed in Note 21 of the financial statements referring to year ended December 31, 2010. a) Below is a summary of the Company's liabilities involving pension plan benefits as stated on its balance sheet:
Current Contractual debt with pension fund Other Total 101,505 540 102,045 03/31/2011 Non-current 926,913 926,913 Total 1,028,418 540 1,028,958 Current 95,048 507.00 95,555 12/31/2010 Non-current 920,630 920,630 Total 1,015,678 507 1,016,185

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The statement below summarizes the changes in agreement liabilities in the first quarter of 2011:
Total Consolidated Contractual liabilities on 12/31/2010 Amortization in the quarter Restatements in the quarter Transfer to current Contractual liabilities on 03/31/2011 1,015,678 (25,302) 38,042 1,028,418 Current 95,048 (25,302) 17,183 14,576 101,505 Non-current 920,630 20,859 (14,576) 926,913

OTHER DEBTS
Parent Company 03/31/2011 12/31/2010 CURRENT Advances from clients 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 Ex-isolated charges Public lighting fee Provision for voluntary redundancy Other Total NON-CURRENT Provision for success fees Reversal reserve Use of Public Asset - UBP (a) Other Total 1,603 1,411 3,014 1,981 1,981 Consolidated 03/31/2011 12/31/2010 3,400 4,264 822 1,643 53,657 37,526 9,605 79,940 18,041 46,904 255,802 3,491 4,000 503 1,007 48,925 37,445 10,966 69,243 23,113 37,625 236,318

14,306 69,933 131,873 10,308 226,420

14,306 69,933 128,746 13,670 226,655

a) In accordance with Concession Agreement No. 12/2001 dated March 15, 2001, which governs the development of the hydroelectric potential of the Paraba do Sul river in the municipalities of Itaocara and Aperib, subsidiary Itaocara Energia Ltda. shall pay to the Unio, by way of a fee owing to use of a public asset, as of the start-up date (scheduled for 2013) and until the concession expires or while the hydroelectric potential is being exploited, monthly installments equal to 1/12 (one twelfth) of the proposed annual payment of R$2,017, duly escalated against the variation of the IGP-M, or any other index as shall replace the former. The contra-entry to liability escalation is being recognized as an intangible asset during the construction phase, without any impact on the income. Following start-up, the escalation will be recognized directly in the income for the year (see note 14).

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RELATED-PARTY TRANSACTIONS Light S.A. belongs to the Controlling Group Companhia Energtica de Minas Gerais CEMIG, Luce Empreendimentos e Participaes S.A. and Rio Minas Energia Participaes S.A (RME) company controlled by Redentor Energia. Interest in operating subsidiaries is outlined in the Note 1. Below, a summary of related-party transactions occurred in the first quarter of 2011 and the year ended in 2010:
Contracts with the same group Relationship with Light S.A. Item (Agreement objectives and characteristics) Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Sale agreement of electric power between Light Energia and CEMIG Strategic agreement Collection of distribution system usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light Energia and CEMIG Loans Loan with Light S.A., which holds 50.9% Lightger, in order to honor financial commitments related to the implantation of the Paracambi small hydroelectric plant (PHC). Pension Plan 8 Fundao de Seguridade Social (Social Security Foundation) BRASLIGHT BRASLIGHT (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) 03/31/2011 Assets 12/31/2010 Consolidated Liabilities Revenue 03/31/2011 12/31/2010 03/31/2011 03/31/2010 Expenses 03/31/2011 03/31/2010

2,025 381

2,561 381 -

8,687 170 1,620

8,653 166 1,634 -

4,630 567 30

5,028 572 30

19,175 374 3,668 -

21,297 362 4,975 -

10

10

Lightger S.A (jointly-owned subsidiary)

14,007

11,156

320

1,028,958

1,016,185

38,041

32,296

Below, a summary of agreements executed with related parties:

Item

Contracts with the same group (Agreement objectives and characteristics) Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Sale agreement of electric power between Light Energia and CEMIG Strategic agreement Collection of distribution system usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light Energia and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light Energia and CEMIG

Relationship with Light S.A.

Original amount

Date

Maturity date or term

Conditions for termination or end Remaining balance 03/31/2011

Agreement Conditions

CEMIG (party of the controlling group)

Jan/2006

Dec/2038

614,049
Jan/2010 Dec/2039

30% of remaining balance

450,606 37,863 43,829 381 1,620

Price established in the regulated market

CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group)

37,600 156,239 Jan/2005 Dez/2013

30% of remaining balance N/A

Price established in the regulated market Price established in the regulated market Price established in the regulated market Price established in the regulated market

Nov/2003

Undetermined

N/A

Dec/2002

Undetermined

N/A

Dec/2002

Undetermined

N/A

10

Price established in the regulated market

Loans Loan with Light S.A., which holds 50.9% Lightger, in order to honor financial commitments related to the implantation of the Paracambi small hydroelectric plant (PHC) Pension Plan Fundao de Seguridade Social (Social Security Foundation) BRASLIGHT

Lightger S.A (jointly-owned subsidiary)

Oct/2010

Oct/2011

N/A

CDI + 0,9% p.a.

11,042
BRASLIGHT (party of the controlling group) Jun/2001 Jun/2026 N/A

14,007
IPCA+ 6% p.a.

535,052

1,028,958
e t I m 1 2 4 3 5 6 7 8 0 1 9 E S i Ci Ca S e nr oe n l Ah ae rm t c aa rn t p cg o t t tri e dr m oc c C a r te s E m t ad M r pL g g a G I m o t c i s i o s e d o d a ne E r Ca CL ni og rv ee n l i ge ar rn t e a r a td c a ot t ta m oc e di a o d c r tn s C m t aa M E r pi g g I m oh c i G s i o s et d e d Ci E a S Cd m S s bi od n i rs t pt A nr ae a c rd tu m ob cs aB e ti g s i s m di e u oa s C a e r ta oL c E nd t aa M m r ao gL G I ni e ot gh c i a c e g d g r u o s e d o e t a d m R d Ct Cr E h S l ma op S L n i rg pa Aa a g ra ti n m o ce ta s i e m e oE s E r C a r tt e de M t a g vi G I g a np e o c i a d e d e r e n l c i r I F E C N p m M E M A r t s R m i s o E p m r t s m i s o E i L p m h n r d a t s e m i r C s o d o t i ri n P o Eo Di d p o m b C e se E c ri c n a o d c tn st i rv u t a m i e e ss r f P o s om r 1 n e j v m o E t s i e dd s E o i c i f N n o o i c E m o g s e uI F l S P aA S T n a t o nH d s S o aG r P D o v e m u d d i n o S e n e t L g i c r u i r d o e d a c a i l R B

O (d e) j o b v i t c s o e a c a r e t c s r c i t s a n o a r t o t

Related-party transactions have been executed under usual market conditions.

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MANAGEMENT REMUNERATION Policy regarding remuneration of the Board of Directors, Executive Board, Supervisory Board and board committees. (i) Pro-rata share of each component to the aggregate remuneration for the period of 2011.
Board of Directors Fixed Remuneration: Variable Remuneration: Board of Executive Officers Fixed Remuneration: Variable Remuneration: Outros Fiscal Committee Fixed Remuneration: Variable Remuneration: 100% 100% 100% -

Remuneration paid by the Company to the Board of Directors, Executive Board, and Supervisory Board in the first quarter of 2011:
Consolidated Board of Directors 22 290 290 290 Board of Executive Offcers 7 92 92 92 973 900 73 973

2011 Number of members Annual fixed compensation Salary or pro-labore Direct and indirect benefits Compensation for participation in Committee Other Variable compensation Bonus Profit sharing Compensation for attending meetings Commissions Other (ILP) Post-employment benefits Benefits from the assignment of office Share-based compensation Total compensation per body

Fiscal Council 5

Total 34 1,356 1,283 73 1,356

Average quarterly compensation due to the Board of Directors, Executive Board, and Supervisory Board in the first quarter of 2011:
Parent Company Board of Executive Fiscal Committee Offcers 5 24 12 18 18 18 18 7 144 126 129

2011 Number of members Highest individual compensation Lowest individual compensation Average individual compensation

Board of Directors 22

Total 34 186 156 165

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SHAREHOLDERS EQUITY Capital Stock There are 203,934,060 non-par and book-entry common shares of Light S.A. (203,934,060 on December 31, 2010) as of March 31, 2011 recorded as Capital Stock in the total amount of R$2,225,822 (R$2,225,822 on December 31, 2010), as follows:
SHAREHOLDERS Controlling Group RME Rio Minas Energia Participaes S.A. Companhia Energtica de Minas Gerais S.A. Luce Empreendimentos e Participaes S.A. Other BNDES Participaes S.A. - BNDESPAR Public Overall Total 03/31/2011 Number of Shares 106,304,597 26,576,150 53,152,298 26,576,149 97,629,463 30,631,782 66,997,681 203,934,060 % Interest 52.12 13.03 26.06 13.03 47.88 15.03 32.85 100 12/31/2010 Number of Shares 106,304,597 26,576,150 53,152,298 26,576,149 97,629,463 30,631,782 66,997,681 203,934,060 % Interest 52.12 13.03 26.06 13.03 47.88 15.03 32.85 100

Light S.A. is authorized to increase its capital up to the limit of R$203,965,072 through resolution of the Board of Directors, regardless of amendments to the bylaws. However, this increase is to occur exclusively upon the exercise of the warrants issued, strictly pursuant to the conditions of the warrants (Bylaws, Article 5, paragraph 2). EARNINGS PER SHARE Pursuant to the requirements of CPC 41 and the IAS 33 (Earnings per Share), the statement below reconciles the period's earnings per share with the amounts used to determine the basic and diluted earnings per share.
Consolidated 3/31/2011 3/31/2010 NUMERATOR Net income for the period (R$) DENOMINATOR Weighted average number of common shares BASIC AND DILUTED EARNINGS PER COMMON SHARE 166,325 203,934,060 0.816 224,779 203,934,060 1.102

There were no significant differences between the basic and diluted earnings per share as of March 31, 2010 and 2011.

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NET OPERATING REVENUE BREAKDOWN

Consolidated 1.01 to 3.31 Supply to consumers/distributors (note 27) Leases, rentals and other Revenue from network usage Revenue from consrtruction Revenue from services rendered Taxed servicefee GROSS REVENUE Billed supply -ICMS PIS / COFINS Other REVENUE TAXES 2011 2,433,989 14,260 196,606 147,033 14,996 634 2,807,518 (650,019) (158,095) (547) (808,661) 2010 2,294,989 10,772 172,824 111,250 12,571 466 2,602,872 (611,046) (142,541) (1,475) (755,062)

Fuel Consumption Account - CCC Energy Development Account - CDE Global Reveral Reserve - RGR Energy Research Company - EPE National Technological Development Fund - FNDCT Energy Efficiency Program - PEE Research and Development -R&D Other charges CONSUMER CHARGES TOTAL DEDUCTIONS NET REVENUE

(76,416) (57,798) (3,519) (1,762) (3,524) (7,962) (3,524) (9,673) (164,178) (972,839) 1,834,679

(53,774) (51,546) (17,945) (1,645) (3,286) (7,474) (3,286) (138,956) (894,018) 1,708,854

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ELECTRIC POWER SUPPLY

Consolidated 1.01 to 3.31 Number of billed sales 2011 2010 3,758,343 11,219 275,509 11,178 10,521 727 1,302 344 4,069,143 4,069,143 4,069,143
(1) (2)

GWh 2011 2,487 426 1,730 14 410 168 276 22 5,533 5,533 1,187 1,985 3,172 8,705

(1)

R$ 2010 2,416 450 1,702 13 391 167 274 17 5,430 5,430 1,130 468 1,598 7,028 2011 836,349 98,719 508,735 2,930 128,488 26,148 55,786 1,657,155 643,598 14,451 2,315,204 110,866 7,919 118,785 2,433,989 2010 802,693 90,341 502,957 2,530 116,532 25,257 54,523 1,594,833 607,279 (3,810) 2,198,302 89,765 6,922 96,687 2,294,989

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)

3,719,861 11,700 273,347 11,116 10,216 703 1,313 288 4,028,544 4,028,544 4,028,544

Electric power auction Short-term energy TOTAL SUPPLY OVERALL TOTAL

(1) Not revised by the independent auditors (2) Number of billed sales in March 2011, with and without consumption (3) Light SESA

OPERATING COSTS AND EXPENSES

1.01 to 3.31 Cost of Service Electric Power Nature of the expense Personnel and management Material Outsourced services Electricity purchased for resale (Note 29) Depreciation and amortization Allowance for doubtful accounts Provision for contingencies Cost of Construction Other (993,550) (993,550) Operation (39,184) (5,145) (45,133) (80,167) (4,896) (174,525) Selling (4,108) (410) (23,079) (300) (64,351) (287) (92,535) Consolidated Operating Expenses General and Adm (18,580) (722) (35,422) (10,323) 3,081 (147,033) (20,943) (229,942) Other Operating Revenues (Expenses) 1,028 1,028 2011 2010 Restated

(61,872) (6,277) (103,634) (993,550) (90,790) (64,351) 3,081 (147,033) (25,098) (1,489,524)

(53,410) (8,819) (83,902) (850,911) (85,647) (63,535) (37,989) (111,250) (22,074) (1,317,537)

ENERGY PURCHASED FOR RESALE

Consolidated 1.01 to 3.31 2011 Connection charges Spot market energy Network usage charges UTE Norte Fluminense Itaipu National Electric System Operator (O.N.S.) PROINFA ESS Other contracts and electric power auctions 722 1,567 1,323 4,536 8,148 GWh 2010 827 1,567 1,334 4,164 7,892 2011 (7,053) (86,318) (104,953) (213,873) (128,590) (4,239) (21,562) (43,143) (383,819) (993,550) R$ 2010 (4,649) (11,798) (105,211) (196,305) (140,696) (4,699) (33,838) (25,172) (328,543) (850,911)

68

FINANCIAL INCOME
Consolidated 1.01 to 3.31 REVENUES Interest and variation on debts paid by installments Income from investments Swap operations Other financial income EXPENSES Restatement of provision for contingencies Expenses with tax liabilities Debt charges Swap operations Other financial expenses 2011 19,754 10,890 15 5,839 36,498 (14,918) (7,717) (105,752) (1,543) (3,166) (133,096) (96,598) 2010 19,889 16,411 55 8,075 44,430 (17,080) (7,182) (91,314) 270 (26,970) (142,276) (97,846)

TOTAL

FINANCIAL INSTRUMENTS The statement below reconciles the carrying and fair values of assets and liabilities related to our financial instruments:
Parent Company 03/31/2011 12/31/2010 Book value Fair Value Book value Fair Value ASSETS Cash and cash equivalents (note 4) Other credits (note 11) 19,939 31,876 51,815 19,939 31,876 51,815 38,295 23,860 62,155 38,295 23,860 62,155

LIABILITIES Suppliers (Note 15)

1,166 1,166

1,166 1,166

280 280

280 280

Consolidated 03/31/2011 12/31/2010 Book value Fair Value Book value Fair Value ASSETS Cash and cash equivalents (note 4) Marketable securities (note 5) Concessionaires and permissionaires (note 6) Swaps Concession financial assets (note 9) Other credits (note 11) 372,683 9,821 1,722,465 226 491,818 182,623 2,779,636 372,683 9,821 1,722,465 226 491,818 182,623 2,779,636 514,109 11,122 1,634,965 211 469,030 160,838 2,790,275 514,109 11,122 1,634,965 211 469,030 160,838 2,790,275

LIABILITIES Suppliers (Note 15) Loans and financing (Note 16) Debentures (Note 17) Swaps (Note 16)

614,461 1,365,200 1,073,604 6,850 3,060,115

614,461 1,367,437 1,073,604 6,850 3,062,352

658,421 1,335,183 1,088,402 5,295 3,087,301

658,421 1,342,054 1,095,106 5,295 3,100,876

69

In compliance with CVM Rule No. 475/2008 and CVM Resolution No. 604/2009, which revoked Resolution No. 566/2008, the description of accounting balances and fair value of financial instruments stated in the balance sheet as of March 31, 2011 are identified as follows:

Financial investments
Financial investments in bank deposit certificates are measures at their acquisition cost duly escalated at the balance sheet date, which value is proximate to their fair value, as determined by the management.

Marketable securities
Financial investments in bank deposit certificates are measures at their acquisition cost duly escalated at the balance sheet date, which value corresponds to their fair value.

Consumers, concessionaries and permissionaries (clients)

These are classified as loans and receivables, being recorded at their original values and subject to a provision for losses and adjustments to their present values, where applicable.

Financial concession assets

These are classified as loans and receivables, being recorded at their original values and subject to a provision for losses and adjustments to their present values, where applicable.

Suppliers
Accounts payable to suppliers of materials and services required in the operations of the Company and its subsidiaries, the amounts of which are known or easily determinable, added, where applicable, of relevant charges, escalation and/or exchange costs incurred as of the balance sheet date. These balances are classified as financial liability not measured at fair value and were recognized at their amortized cost, which is not significantly different from their fair value.

Loans, financing and debentures These are measured by the restated amortized cost method. Fair value was calculated at interest rates applicable to instruments with similar nature, maturities and risks, or based on market quotations of these securities. The fair value 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 fair 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.

70

 Swaps
These are measured by the fair value. A the determination of fair 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 fair 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 fair value estimate. As a result, estimates used and presented below do not necessarily indicate the amounts that may be realized in current exchange market. a) Financial Instruments by category:
Parent Company 03/31/2011 Fair value Loans though and receivables profit and loss ASSETS Cash and cash equivalent (note 4) Marketable securities (note 5) Consumers, concessionaries and permissionaries (clients) (note 6) Swaps Financial concession assets (note 9) Other Credits (note 11) 49 31,876 31,925 19,890 19,890 Fair value though profit and loss Consolidated 03/31/2011 Fair value Loans through and receivables profit and loss 34,546 1,722,465 491,818 182,623 2,431,452 338,137 9,821 226 348,184 Fair value though profit and loss 6,850 6,850

Total 19,939 31,876 51,815

Total 372,683 9,821 1,722,465 226 491,818 182,623 2,779,636

Amortized Cost LIABILITIES Suppliers (Note 15) Loans and financing (Note 16) Debentures (Note 17) Swaps (Note 16) 1,166 1,166

Total 1,166 1,166

Amortized Cost 614,461 1,365,200 1,073,604 3,053,265

Total 614,461 1,365,200 1,073,604 6,850 3,060,115

b) Policy concerning derivative instruments The Company has a policy of using derivative instruments which has been approved by its Board of Directors. According to this policy, the debt service (principal plus interest and charges) denominated in foreign currency maturing within 24 months is to be hedged, except no speculative transaction is allowed, whether using derivatives or any other risky asset. In line with the policy standards, the Company and its subsidiaries do not have any forward contracts, options, swaptions, callable swaps, flexible options, derivatives embedded in other products, derivative-structured transactions and so-called exotic derivatives. Furthermore, the statement above denotes that the Company and its subsidiaries use cashless exchange rate swaps (US$ vs. CDI), of which the Notional Contract Value is equal to the amount of the debt service denominated in foreign currency maturing in 24 months.

71

Additionally, in October 2010 certain swap transactions were performed for interest rates in connection with the maturity of the CCB Bradesco, in the amount of R$150,000. c) Risk management and goals achieved Management of derivative instruments is achieved through operating strategies with a view to liquidity, profitability and safety. Our control policy consists of ongoing enforcement of policy standards concerning the use of derivative instruments, as well as continued monitoring of agreed upon rates versus market rates. d) Risk Factors During the normal course of its businesses, the Company and its subsidiaries are exposed to the market risks related to currency variations and interest rates, as evidenced in the chart below: Debt breakdown (excluding financial charges):
Consolidated 03/31/2011 USD Foreign currency (current and noncurrent) CDI TJLP Other Local currency (current and noncurrent) Overall total (current and noncurrent) R$ 72,562 72,562 1,603,523 652,858 109,861 2,366,242 2,438,804 % 3.0 3.0 65.8 26.8 4.5 97.0 100.0 12/31/2010 R$ 73,131 73,131 1,618,316 624,457 107,681 2,350,454 2,423,585 % 3.0 3.0 66.8 25.8 4.4 97.0 100

On March 31, 2011, according to the chart above, the foreign currency-denominated debt is R$72,562, or 3.00% 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 March 31, 2011 stood at US$19,184, 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 1.76% 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 in addition to the swap of previously mentioned rates. Derivative operations resulted in an R$1,543 loss in the first quarter of 2011 (loss of R$315 in the first quarter of 2010). The net amount of swap operations as of March 31, 2011,

72

considering the fair amount, is a negative R$6,850 (negative by R$5,227 on March 31, 2010), as shown below:
Currency Swap
Institution Light's Receivable US$+2.33% US$+2.30% US$+2.79% US$+3.20% US$+2.82% US$+2.50% US$+2.20% US$+2.72% Light's Payable Starting Date Maturity Date Notional Value Contracted (US$ thousand) 5,435 67 5,273 64 5,010 63 3,211 61 Fair Value Mar/11 (R$) Assets Fair Value Mar/11 (R$) Liabilities (3,338) (28) (1,593) (19) (1,410) (12) (447) (3) Fair Value Mar/11 (R$) Balance (3,338) (28) (1,593) (19) (1,410) (12) (447) (3)

Citibank Banco Itau Banco Itau Citibank Banco Itau Bradesco HSBC Bradesco

100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI

06/18/2009 09/10/2009 10/09/2009 03/10/2010 04/12/2010 09/10/2010 10/11/2010 03/10/2011

04/12/2011 09/12/2011 10/11/2011 03/12/2012 04/11/2012 09/10/2012 10/09/2012 03/12/2012

Total

19,184

(6,850)

(6,850)

The amount recorded was measured by its fair value on March 31, 2011. 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 March 31, 2011 until the end of 2011, maintaining steady liabilities, derivatives and temporary cash investments then verified. It is worth highlighting that, as this refers to a sensitivity analysis of the impact on the 2011 financial result, realized amounts of financial expenses and/or income up to the first quarter of 2011 are considered, and charges projection and/or compensation for the next nine months on the balance of debt and/or investments as of March 31, 2011. 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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Risk of Exchange Rate Depreciation:

Operation FINANCIAL LIABILITIES
Par Bond Discount Bond C. Bond Debit. Conv. Bib DERIVATIVES Swaps

Risk

Scenario (I): Probable (5,025) (3,174) (682) (1,076) (73) (20)

R$ Scenario (II) (23,920) (10,103) (5,354) (5,948) (2,370) (145)

Scenario (III) (42,815) (17,031) (10,026) (10,820) (4,667) (271)

USD USD USD USD USD USD

(1,050)

7,118 +25%

15,286 +50% 2.4431

Reference for financial assets and liabilities Financial R$/US$ exchange rate (end of the period)

1.6287

2.0359

Risk of Exchange Rate Appreciation:

Operation FINANCIAL LIABILITIES
Par Bond Discount Bond C. Bond Debit. Conv. Bib DERIVATIVES Swaps

Risk

Scenario (I): Probable (5,025) (3,174) (682) (1,076) (73) (20)

R$ Scenario (II) 13,871 3,755 3,990 3,795 2,225 106

Scenario (III) 32,766 10,683 8,662 8,667 4,522 231

USD USD USD USD USD USD

(1,050)

(9,218) -25%

(17,386) -50% 0.8144

Reference for financial assets and liabilities Financial R$/US$ exchange rate (end of the period)

1.6287

1.2215

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 continuously monitor interest rates so that to evaluate eventual need of contracting derivatives to hedge against interest rates volatility risk.

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As of March 31, 2011, the swap operation of interest rate associated to the maturity of the CCB Bradesco, with notional value of R$150,000 represented a R$226 gain, considering the fair value, as follows:
Interest rate swap
Institution Light's Receivable Light's Payable Starting Date Maturity Date Notional Value Contracted (US$ thousand) 150,000 Fair Value Fair Value Mar/11 Mar/11 (R$) Assets (R$) Liabilities 226 Fair Value Mar/11 (R$) Balance 226

HSBC

CDI+0.85%

101.9%CDI +(TJLP-6%)

10/11/2010

09/10/11

Total

150,000

226

226

See below the sensitivity analysis of interest rate risk, evidencing the effects on scenarios variation results: Risk of Interest Rate Increase:
Operation Risk Scenario (I): Probable 41,631 R$ Scenario (II) Scenario (III)

FINANCIAL ASSETS Temporary cash investments FINANCIAL LIABILITIES Debentures 5th issue CCB Bradesco CCB Bco Santander Debentures 4th issue FINEM BNDES 2006-2008 FINEM BNDES 2009-2010 FINEM BNDES 2009-2010 TJLP+1 PROESCO Debentures 6th issue DERIVATIVES Currency swaps Interest rate swaps Interest rate swaps Reference for FINANCIAL ASSETS CDI (% YTD) Reference for FINANCIAL LIABILITIES CDI (% YTD) TJLP (% YTD)

CDI

49,189

56,698

CDI CDI CDI TJLP TJLP TJLP TJLP TJLP CDI

(269,841) (100,744) (56,695) (10,073) (10) (30,421) (13,329) (18,618) (625) (39,326)

(314,116) (117,823) (66,513) (11,825) (11) (33,819) (15,108) (20,994) (713) (47,310)

(358,583) (134,903) (76,331) (13,578) (13) (37,217) (16,886) (23,369) (800) (55,486)

CDI CDI TJLP

(1,050) 260 260

(1,739) 222 (924) +25% 13.67% +25% 13.67% 7.23%

(2,430) 184 (2,102) +50% 15.83% +50% 15.83% 8.37%

11.50%

11.50% 6.08%

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Risk of Interest Rate Decrease:

Operation Risk Scenario (I): Probable 41,631 R$ Scenario (IV) Scenario (V)

FINANCIAL ASSETS Temporary cash investments FINANCIAL LIABILITIES Debentures 5th issue CCB Bradesco CCB Bco Santander Debentures 4th issue FINEM BNDES 2006-2008 FINEM BNDES 2009-2010 FINEM BNDES 2009-2010 TJLP+1 PROESCO Debentures 6th issue DERIVATIVES Currency swaps Interest rate swaps Interest rate swaps Reference for FINANCIAL ASSETS CDI (% YTD) Reference for FINANCIAL LIABILITIES CDI (% YTD) TJLP (% YTD)

CDI

34,024

26,366

CDI CDI CDI TJLP TJLP TJLP TJLP TJLP CDI

(269,841) (100,744) (56,695) (10,073) (10) (30,421) (13,329) (18,618) (625) (39,326)

(225,754) (83,664) (46,877) (8,320) (9) (27,023) (11,551) (16,243) (537) (31,530)

(181,850) (66,585) (37,058) (6,568) (8) (23,625) (9,772) (13,868) (450) (23,916)

CDI CDI TJLP

(1,050) 260 260

(363) 298 1,452 -25% 9.31% -25% 9.31% 4.94%

323 336 2,651 -50% 7.10% -50% 7.10% 3.78%

11.50%

11.50% 6.08%

Credit risk It refers to the Company eventually suffering losses deriving from default of counterparties or financial institutions depositary of funds or temporary cash investments. To mitigate these risks, the Company uses all collection tools allowed by the regulatory body, such as disconnection for delinquency, debit losses and permanent monitoring and negotiation of outstanding positions. Concerning financial institutions, the Company only carries out operations with low-risk financial institutions classified by rating agencies.

Liquidity risk Liquidity risk relates to the Company's ability to settle its liabilities. In order to determine the Company's ability to satisfactorily meet its financial liabilities, the streams of maturities for funds raised and other liabilities are reported with the Company's statements. Further information on the Company's loans can be found in detail in notes 16 and 17. The Company has raised funds through its operations, from financial market transactions and from affiliate companies. These funds are allocated primarily to support its investment plan and in managing its cash for working capital and liability management purposes.

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Management of financial investments focuses on short-term instruments in an attempt to achieve maximum liquidity and satisfy our expenditure requirements. The Company's cash-generation ability and low volatility concerning receivables and accounts payable over the year provide cash flow stability and thus reduce its liquidity exposure. The realization flow concerning future liabilities as per the relevant terms and conditions is summarized in the statement below:
1 to 3 months 397,138 3 months to 1 year 788,530 Consolidated 1 to 5 years More than 5 years 290,440 Total

Interest rate instruments Floating Loans, financings and debentures Interest rate instruments Fixed rate Loans, financings and debentures

1,481,324

2,957,432

8,657

30,181

100,219

82,960

222,017

a)

Capital Management

The Company manages its capital with the purpose of safeguarding its capacity to continuously offer return to shareholders and benefits to other stakeholders, in addition to maintaining the ideal capital structure to reduce costs. In order to maintain or adjust its capital structure, the Company either reviews the dividend payment policy, returns capital to shareholders or issues new shares and sells assets to reduce the indebtedness level, for instance. b) Hierarchical Fair Value There are three types of classification levels for the fair value of financial instruments. This hierarchy prioritizes unadjusted prices quoted in an active market for financial assets or liabilities. The classification of hierarchical levels can be presented as follows: Level 1 - Data originating from an active market (unadjusted quoted price) that can be accessed on a daily basis, including at the date of fair value measurement. Level 2 - Different data originating from the active market (unadjusted quoted price) included in Level 1, extracted from a pricing model based on data observable in the market. Level 3 - Data extracted from a pricing model based on data that are not observable in the market.

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03/31/2011 ASSETS Cash and cash equivalent (note 4) Marketable Securities (note 5) Swaps 338,137 9,821 226 348,184

Consolidated Measurement of Fair Value Identical Similar markets markets Level 1 Level 2 338,137 9,821 226 348,184

Without active market Level 3 -

LIABILITIES Swaps (note 16)

6,850 6,850

6,850 6,850

No financial instrument classified as Level 1 or 3 was observed in the analysis period, and there was no transfer from one level to another in the same period. INSURANCE On March 31, 2011, Grupo Light had insurances covering its main assets, including: Operational Risk Insurance - it covers material damages caused to buildings, machinery, equipment, furniture and fixtures as a result of fires, explosions, dumping, floods, earthquakes, machinery breakdown and electrical damage. All assets of Grupo Light are insured under the Operational Risks modality, with an All Risks coverage, except for transmission and distribution lines. Directors and Officers Liability Insurance (D&O) - It has the purpose of protecting Executives from losses and damages resulting from their activities as Directors, Officers and Managers of the Company. General and Civil Liability Insurance - focuses on the payment of indemnity if the Company is deemed civilly liable by a final and unappealable sentence or deal authorized by the insurance company, in relation to remedies for collateral damage, physical damage to people and/or material damage caused to third parties and related to pollution, contamination and sudden leakage. International Transport Insurance cargo/equipment shipping, Financial Guarantee Insurance Energy Trading (8 policies) and Fire Insurance Leased Properties. The assumptions of risks adopted, given their nature, are not included in the scope of an audit firm, accordingly, they were not revised by independent auditors.

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Insurance coverage as of March 31, 2011 is considered sufficient by Management, as summarized below:
RISKS Directors & Officers (D&O) Civil and general liabilities Operating risks* Effective Term From To 08/10/2010 09/25/2010 10/31/2010 08/10/2010 09/25/2011 10/31/2011 Amount Insured US$20.000 R$20,000 R$ 3,664,000 Premium US$ 76 R$448 R$1,482

*The Maximum Limit of Indemnification (MLI) is R$300,000.

SEGMENT REPORTING

Segment reporting was prepared according to CPC 22 (Segment Information), equivalent to IFRS 8, and is reported in relation to the business of the Company and its subsidiaries, identified based on their management structure and internal management information. The Company's Management considers the following segments: power distribution, power generation, power trading and others (including the holding). The Company is segmented according to its operation, which has different risks and compensation. Segment information for the quarter ended March 31, 2011 and year ended December 31, 2010 are presented below:
Distribution Current assets Non-current assets Investments Property, plant and equipment Intangible assets Current liabilities Non-current liabilities Shareholders' equity 2,159,018 2,191,628 16,374 188,862 3,529,957 1,881,220 3,623,059 2,581,560 Generation 150,487 1,606 2,001 1,437,025 133,005 189,231 639,759 895,133 Trading 56,945 21,762 4,906 25,007 6,680 51,926 Other 104,151 343 3,535,203 990 1,399 142,116 16 3,499,955 Eliminations (164,671) (210,013) (3,532,105) (164,671) (210,013) (3,532,105) Consolidated 03/31/2011 2,305,930 2,005,326 21,473 1,631,783 3,664,361 2,072,903 4,059,501 3,496,469

Distribution Current assets Non-current assets Investments Property, plant and equipment Intangible assets Current liabilities Non-current liabilities Shareholders' equity 2,200,937 2,152,886 16,374 189,015 3,478,653 1,954,713 3,640,719 2,442,433

Generation 166,428 1,017 149 1,433,849 131,766 217,644 647,138 868,427

Trading 61,605 20,409 5,039 39,398 7,134 40,521

Other 114,245 195 3,356,792 990 1,319 140,045 1,038 3,332,458

Eliminations (165,047) (218,002) (3,355,729) 2,034 (165,047) (218,002) (3,353,695)

Consolidated 12/31/2010 2,378,168 1,956,505 17,586 1,628,893 3,613,772 2,186,753 4,078,027 3,330,144

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Income segment reporting:

Consolidated Consolidated 2010 Restated 2,602,872 2,202,112 (3,810) 99,736 111,250 193,584 (894,018) (611,046) (138,956) (26,439) (116,102) (1,475) 1,708,854 (1,317,537) (53,410) (8,819) (83,902) (850,911) (85,647) (101,524) (111,250) (22,074) (97,846) 44,430 (142,276) 293,471 (49,416) (19,214) 224,841

01.01 a 31.03
OPERATIONAL REVENUE Billed supplies Unbilled supplies Supply - Electric Power Construction revenue Other DEDUCTIONS TO REVENUE Billed sales - ICMS (State VAT) Consumer charges PIS (Tax on Revenues) COFINS (Tax on Revenues) Other NET OPERATIONAL REVENUE OPERATING EXPENSES AND COSTS Personnel Material Outsourced services Energy purchased Depreciation Provisions Construction cost Other Equity in the earnings of subsidiaries FINANCIAL INCOME Financial revenue Financial expenses INCOME BEFORE TAXES Social Contribution Income tax NET INCOME

Distribution 2,688,044 2,300,753 14,451 3,178 147,033 222,629 (954,784) (643,598) (161,651) (26,607) (122,557) (371) 1,733,260 (1,436,942) (54,358) (5,707) (95,680) (980,928) (75,884) (60,305) (147,033) (17,047) (90,313) 40,279 (130,592) 206,005 (18,568) (48,310) 139,127

Generation 95,506 93,614 1,892 (10,724) (2,527) (1,461) (6,726) (10) 84,782 (35,689) (5,871) (117) (3,451) (4,232) (14,752) (965) (6,301) (7,845) 2,169 (10,014) 41,248 (4,746) (9,797) 26,705

Trading 48,423 43,585 4,838 (7,227) (6,421) (121) (550) (135) 41,196 (39,083) (958) (453) (2,833) (34,323) (153) (363) 45 236 (191) 2,158 (199) (553) 1,406

Other 1,568 1,568 (104) (26) (47) (31) 1,464 (3,833) (685) (1,670) (1,478) 167,391 1,515 1,649 (134) 166,537 (17) (42) 166,478

Eliminations (26,023) (21,592) (4,431) (26,023) 26,023 25,933 90 (167,391) (7,835) 7,835 (167,391) (167,391)

2011 2,807,518 2,300,753 14,451 118,785 147,033 226,496 (972,839) (650,019) (164,178) (28,215) (129,880) (547) 1,834,679 (1,489,524) (61,872) (6,277) (103,634) (993,550) (90,789) (61,270) (147,033) (25,099) (96,598) 36,498 (133,096) 248,557 (23,530) (58,702) 166,325

LONG-TERM INCENTIVE PLAN Incentive Plan in Phantom Options The phantom Options modality was offered to eligible executives appointed by the Board of Directors and is directly linked to Light's value creation, measured by the variation in Light's Value Unit (LVU). The calculation of LVU is based on the weighing of the following factors: 1. Market value of shares issued by Light S.A; 2. Economic value (a multiple of EBITDA); 3. Amount of dividends distributed. The difference between the LVU provided in the Program for the grant year and the LVU verified in the exercise year multiplied by the amount of shares exercised by the participant will amount to the total long-term bonus to be paid to each participant. The Company did not record any provision for the 1st quarter of 2011, due to the fact that UVL estimated up to the end of 2011 is lower than in 2010.

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SUBSEQUENT EVENTS a) Approved dividends At the Extraordinary General Meeting held on April 28, 2011, the payment of dividends was approved based on income determined on December 31, 2010, in the amount of R$350,979, and payment scheduled to May 18, 2011. b) Issue of Debentures In May 2011, Light SESA completed its 7th issue of simple, non-convertible into shares, unsecured debentures, totaling R$650,000, through public offering with restricted placement efforts, under the terms of CVM Rule 476, under a firm commitment basis. Debentures were issued on May 2, 2011, and funds were included in the cash on May 5, 2011. The remuneration was fixed at 100% of CDI rate + 1.35% annual spread, defined in a bookbuilding process, and interest will be paid in half-yearly installments and final maturity scheduled for May 2, 2016. In May 2011, Light Energia concluded its 1st issue of simple, non-convertible into shares, unsecured debentures, totaling R$170,000, through public offering with restricted placement efforts, under the terms of CVM Rule 476, under a firm commitment basis. Debentures were issued on April 10, 2011, and funds were included in the cash on May 12, 2011. The remuneration was fixed at 100% of CDI rate + 1.45% annual spread, and interest will be paid in half-yearly installments and final maturity scheduled to April 10, 2016. c) Management remuneration At the Extraordinary General Meeting held on April 28, 2011, the overall amount of annual remuneration of the Companys Board of Directors and Board of the Executive Officers was approved to R$14,915 to be paid in 2011. d) Redentor Operation The Company announced through a Material Fact published on May 13, 2011 that Parati S.A. Participaes em Ativos de Energia Eltrica (Parati), a closely-held company, acquired 58,671,565 common shares, representing 54.08% of the total capital stock of Redentor Energia S.A. (Redentor), an indirect shareholder of the Company. Said shares were held by Fundo de Investimento em Participaes PCP (FIP PCP).

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BOARD OF DIRECTORS MEMBERS Aldo Floris Ana Marta Horta Veloso Djalma Bastos de Morais Raul Belens Jungmann Pinto 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 Csar Vaz de Melo Fernandes Wilson Borrajo Cid 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 Eduardo Grande Bittencourt (Chairman) Isabel da Silva Ramos Kemmelmeier (Member) Marcelo Lignani Siqueira (Member) Victor Adler (Member) Aristteles Luiz Menezes Vasconcellos Drummond (Member) ALTERNATES Ricardo Genton Peixoto Ronald Gasto Andrade Reis Eduardo Gomes Santos Gabriel Agostini Ari Barcelos da Silva

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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 Energy Officer

Paulo Carvalho Filho Corporate Management Officer Ana Silvia Corso Matte Personnel and Legal Officer Jos Humberto Castro Distribution Officer Paulo Roberto Ribeiro Pinto New Business and Institutional Officer

CONTROLLERSHIP SUPERINTENDENCE Luciana Maximino Maia Controllership Superintendent CPF 144.021.098-50 CRC-RJ 091476/O-0 Suzanne Lloyd Gasparini Accountant Accounting Manager CPF 081.425.517-56 CRC-RJ 107359-0

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