Eletropaulo reported a loss of R$ 324.1 million in 3Q05 compared to a net income of R$ 136.8 million in 2Q05. Key factors included a tariff adjustment of 2.12% effective July 4, 2005, the issuance of R$ 800 million in debentures in September, and a significant increase in operating expenses including a R$ 346.4 million provision for doubtful debts. While revenues declined, expenses rose due to higher personnel costs, increased tariff quotas, and the amortization of regulatory assets, leading to a large quarterly loss despite an adjusted EBITDA of R$ 400.3 million.

1. 3rd quarter 2005 Results
November 9, 2005

2. • Highlights
• Market
• Tariff Adjustment • Tariff Adjustment
• Financial and Operating • Operating Performance
Performance
• Financial Performance
• Debt Profile
Conclusion

4. Highlights of the quarter
• Due to non-recurring events, Eletropaulo reported a loss of R$
324.1 million in 3Q05, compared to a net income of R$ 136.8
million in 2Q05
• Tariff Adjustment of 2.12%, effective as of July 4, 2005
• R$ 800 million debentures issued in September
4

5. Profile of Consumer Market
consumption
3Q04 - GWh 3Q05 - GWh
8.5% 14.3% Consumption- GWh
7.9%
33.0% 3000.0
32.8% 6.7%
2600.0
25.8% 2200.0
25.2%
1800.0
25.0%
20.8% 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05
3Q04 – R$ 3Q05 – R$
1.9% 3.7%
6.9%
Residential
6.2%
revenue
Industrial
40.8% 41.2%
Commercial
29.0%
Others
29.0%
TUSD
21.3% 19.9%
5

6. Comparison of Consumption in GWh
4.7% 4.1%
2,896 3,033 1.7% 9,194
-13.1%
2,204 2,281 2,320 8,831
1,915 74.9% -2.5%
-12.4% 1,312
750
700 613 8,081
7,882
s
SD
l
l
al
tia
ria
er
ci
Market Billed Market Billed
TU
en
th
st
er
O
du
id
m
with TUSD
es
om
In
R
C
3Q04 3Q05 3Q04 3Q05
NOTE: Charts do not consider own consumption
6

7. Retention of Potentially Free Consumers
Net Revenues with TUSD - R$ million
84
78
54
48
38
30
19
1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05
Captive Consumers X Free
% total load of concession area predicted to 2005 36,511 GWh
13.4%
83.5%
3.1%
Captive Consumers Free Consumers Potentially Free Consumers
7

8. Tariff Evolution
20% 18.6%
17.6%
13.8% 14.3%
15%
11.1% 11.6%
10% 7.6% 12.1% 16.9%
11.8% 6.4%
7.5% 7.3% 7.1%
5% 1.6%
6.3% 4.5% 4.8% Adjustment
3.7% 2.5% 3.6%
1.7%
0% 2.12%
-4.3%
-5%
-10%
1999 2000 2001 2002 2003 2004 2005
Parcel B Parcel A PIS/COFINS IGPM
X Factor = 2.43%
8

9. Completion of Tariff Review 2003
• Authorized increase in adjustment rate from 10.95% to 11.65%
• R$ 42 million added to the remuneration granted for tariff year 2003-2004
Item – R$ thousand Previous Present Variation
net remuneration base R$5,242 R$ 4,771
Remuneration rate 17.07% 17.07%
Remuneration R$ 895 R$ 814 (R$ 81)
Gross remuneration base R 8,275 R$ 9,885
Depreciation rate 3.95% 4.31%
Depreciation R$ 327 R$ 426 R$ 99
Additional O&M costs - R$ 24 R$ 24
TOTAL R$ 42
R$ 42
R$ 106.9
• Restated amounted total R$ 106.9 million, with an impact on 2Q05
results
• Recovery of resources will take place during tariff year 2005-2006
9

10. Results – 3Q04 x 3Q05
The deferral of the Pis/Cofins taxes increase during the
R$ milion 3Q04 3Q05 third quarter of 2004 resulted, at that time, in revenues
of R$ 117.7 million
The reversal of the revenue of the energy that was not
billed, amounting to R$ 17.8 million in 3Q05, compared to
a revenue of R$ 48.8 million in 3Q04, due to:
Net Revenue 2,050.3 1,977.1 -3.6% Migration of clients to the free market
Difference in the amount of un-billed days
Classification of non-billed TUSD of R$ 31.7 million
as “ use of the energy grid”
The start of the amortization of the regulatory asset of
R$ 106.9 million, resulting from the recognition of costs
and the remuneration base included in the Tariff Review –
2003
Operating Expenses (1,725.2) (2,079.0) 20.5% An allowance for doubtful debts of R$ 346.4 million,
based on an agreement signed with the MGSP
Increase of 10% in Personnel Expenses due to Collective
Bargaining Agreement that increased salaries by 8%
An increase of 12.2% in expenses for CCC due to the
increase in the tariff quota for the tariff adjustment of July-
392.3 (27.5) N.M. 2005 and the initiation of amortization of CVA for 2004-
EBITDA 2005
increase in operating expenses, coupled with the
Adjusted EBITDA 499.1 400.3 -19.8% reduction in net revenues.
reversal of the R$ 55.2 million adjustment in the
Financial Income (174.3) (136.2) -21.8% present value of the “other financial expenses” account
(Expenses)* in 3Q05, resulting from the provision of credits from
MGSP
Extraordinary Items Net
(85.0) (85.0) -0.1% CVM 371
Of Tax Effects
Net Income (Loss) (6.4) (324.1) -5,003.4% increase in operating expenses and reduction in net
revenues
10
(*) Considering consolidated results

11. Results – 2Q05 x 3Q05
R$ million 2Q05 3Q05 Completion of Tariff Review 2003, which generated an
additional revenue of R$ 106.9 million on 2Q05, whose
amortization started in 3Q05
Reversal of PIS/PASEP’s allowances in the amount of
R$ 72.0 million in 2Q05 which had an accounting and
Net Revenue 2,275.5 1,977.1 -13.1% non-recurring effect
A non-recurring allowance for doubtful debts of R$
346.4 million, based on an agreement signed with the
MGSP
Operating Expenses (1,777.8) (2,079.0) 17.0%
An increase of 13.2% in expenses for CCC and 10.6% in
expenses for CDE due to the increase in the tariff quota
on July-2005 tariff adjustment and to the initiation of
CVA 2004-2005 amortization
EBITDA 571.6 (27.5) N.M.
increase in operating expenses, coupled with the
reduction in net revenues
Adjusted EBITDA 599.3 400.3 -33.2%
smaller appreciation of the Real against the US dollar in
Financial Income (77.9) (136.2) 74.9% 3Q05, of 5.5% versus an appreciation of 11.8% during
the previous quarter reduced by 69% the 2Q05 positive
(Expenses)* impact in “monetary variations in foreign currency”
Reversal of PIS/PASEP’s accounting expense of R$ 98.0
million in 2Q05
Extraordinary Items Net (85.0) 0.0%
(85.0) CVM 371
Of Tax Effects
increase in operating expenses and reduction in net
Net Income (loss) 136.8 (324.1) N.M. revenues
Increase in financial expenses 11
(*) Considering consolidated results

12. Negative Impacts – 3Q05
Provision - Agreement signed with MGSP R$ thousand
MGSP debt balance provision (346.369)
Financial Expenses - Present Value Adjustment Reversal 55.227
Tax Effects (34%) - Credit 98.988
Reversal of Tax Credit (36.143)
Net Effect on the Result (228.297)
increase in Pis/Cofins' taxes - Agreement with AES Tietê R$ thousand
Pis/Cofins payment to AES Tietê (43.692)
Tax Effects (34%) - Credit 14.855
Net Effect on the Result (28.837)
Other impacts - 3Q05 R$ thousand
Allowance for doubtful debts - Other Municipal Governments (23.953)
Present Value Adjustment - Other Municipal Governments (9.102)
IPTU tax – MGSP – Monetary Correction (9.444)
Diferred Amortization - Debt downpayment (15.992)
Tax Effects (34%) - Credit 19.887
Reversal of Tax Credit (14.810)
Net Effect on the Result (53.414)
Total - Net Effect on the Result (310.548)
12

13. Adjusted EBITDA
R$ million
2Q05 3Q05
R$ 571.6 EBITDA R$ (27.5) EBITDA
R$ 84.0 RTE R$ 85.3 RTE
Debt Confession IIa Debt Confession IIa
R$ 15.7 (CESP Foundation) R$ 12.1 (CESP Foundation)
PIS – accounting PIS – accounting
R$ (72.0) reversal R$ 0 reversal
R$ 0 Provision - MGSP R$ 330.5 Provision - MGSP
R$ 599.3 Adjusted EBITDA R$ 400.3 Adjusted EBITDA
33.2% Decrease
13

14. CAPEX 3Q05
R$ million
Capex – 3Q05
Customer Service and
33
System Expansion
33 Maintenance 6
Loss Recovery 5
36
32 370 Personnel 17
297 Others 13
203
186 Total 73
Self Financed 21
Total Recorded 95
2003 2004 9 months 2005
Capex Self Financed
14

15. Consolidated Indebtedness
R$ million
ST vs LT Debt Evolution
5,278 5,284 5,280 5,278 5,284 5,280
100%
29%
2,402.7 2,338.6
3,090.8
77% 74%
50% 948.6
1,102.0
71% 762.5
1,778.8 1,992.6
26% 1,424.5
23%
0%
2003 2004 3Q05
2003 2004 3Q05
ST LT FCESP CVA/RTE Private Creditors
15

16. Hedging Strategy
million
R$3,473 R$4,490 R$5,902 R$5,278 R$5,284 R$5,280
100% 2%
8%
90% 18% 14% 42% 35% 17%
80%
70%
60% 3%
41% 86% of foreign
61% 4% currency debt is
50%
hedged,
40% considering the
financial costs
30%
20%
41% 25% 54% 62% 83% 90%
10%
0%
2000 2001 2002 2003 2004 3Q05
Local Currency Hedge Foreign Currency
16

17. Amortization Schedule
R$ million
132
Effective
payments
285
158 1,972
99
444 56
474 159
49
905
93
469 43 522 506
144 335 367
70
Downpayments** 9 months 4Q05 2006 2007 2008 2009 2010-17
R$ BNDES US$ *
* Conversion rate on 09/30/2005 US$ 1,00 = R$2,2222
** Amortization of debts with creditors included in the Company’s Debt Reprofile Agreement, paid on 01/12/2005 with the third tranche of the rationing loan
Amortization of debts with creditors included in the Company’s Debt Reprofile Agreement, paid in two installments: R$ 175.9 million on 06/29/2005, plus US$ 25.6 million on
07/28/2005 using 50% of the proceeds from the R$ 474.1 million bond issue
Amortization of debts with creditors included in the Company’s Debt Reprofile Agreement, paid in two installments: R$ 550.1 million paid on 09/27/2005, and US$ 75.2 million paid
on 10/27/2005 using 90% of the proceeds from the R$ 800.0 million issue of debentures.
17

18. 2005 Issues
BONDS (June 2005)
• Principal: R$ 474 million • Down payments made to
creditor banks:
• Tenor: 5 years
• Interest rate: 19.125% p.a.
• Bonds: 50%
R$237,030,000
• Interest and Amortization:
• Debentures: 90%
• bullet R$720,000,000
• semiannual interest
Debentures (September 2005) Basis: September 2005
• Principal: R$ 800 million Private Before After
• Tenor: 5 years Creditors issues issues
debt
• Interest rate: CDI +2.90% p.a.
Average 128% CDI 126% CDI
• Interest and Amortization: Cost
• Semiannual interest
Duration 1.58 years 2.75 years
• Grace period: 23 months
• Annual payments 18

19. Conclusion
• The R$ 324 million loss in 3Q05 is due mainly to non-recurring events
• The issue of R$ 800 million in debentures generated:
• A down payment to private creditors with 90% of the proceeds
• A reduction of debt’s average cost and an increase of debt’s
duration
• A reduction of foreign currency debt
• Completion of Tariff Review 2003 and PIS/COFINS taxes expunged
from the tariff adjustment’s formula.
Financial Strategy:
• Increase duration and decrease costs of debt by substitution of
existing debt for new attractive borrowings, considering
opportunities in the Stock Market.
19

20. 20

21. Highlights for the Quarter
Reversal of provision (PIS/Cofins)
On September 30, AES Eletropaulo paid R$ 43.7 million to AES Tietê regarding the increase of
PIS and Cofins tax rates incurring on the bilateral contract from July/2004 though June/2005.
AES Tietê reversed the provision recorded during this period
Payment of dividends
On September 27, AES Tietê distributed dividends in the amount of R$ 199.8 million,
representing a pay-out of 95.0% on net income for the first half of 2005
Reward – Human Resources
AES Tietê was considered by “Valor Econômico” newspaper, one of the leading companies in
“ Humans Management”
Reward – Environment
AES Tietê´s reforesting program of reservoir borders was rewarded in the “3rd Benchmarking
Brasileiro” organized by “Mais Projetos Sócio-Ambientais” as the 2nd best pogram
21

22. Tariff Adjustment
The Initial Contracts are readjusted annually according to the following pre-
established formula :
Tariff Readjustment Ratio = VPA + VPB x IGP-M
Revenue
The Bilateral Contract with Eletropaulo is adjusted each July according to the IGP-M
(general price index - market) variation
Average Tariff – R$/ MWh
Month of % of Tariff after adjustment 140
Company 119.2
Adjustment adjustment (R$ / MWh)
120
Initial Contracts
Bragantina February 12.4% 65.30 100 94.4
Nacional February 12.4% 69.42
80 73.6
CPFL April 10.6% 73.76
AES Eletropaulo July 9.0% 75.99 60 54.0
Elektro August 5.3% 61.68
Bandeirante October 1.4% 72.77 40
Piratininga October 1.5% 72.81 20
Bilateral 2002 2003 2004 9M05
AES Eletropaulo July 7.1% 132.73
22

23. Energy Balance – 9M05
Caconde 3.1%
305.2 5.1% CPFL
Euclides 4.2% Energy Generation x Billed Energy 421.0
410.2 in MWh 2.7% Bandeirante
Limoeiro 1.2% 222.6
119.8
4.4% Elektro
Água Vermelha 59.5% 360.8
5,870.1
Barra Bonita 4.1% 1.3% Bragantina
TOTAL BILLED 110.4
399.6
Bariri 4.5% 9,864.5 8,231.3 0.9% Nacional
442.3 71.6
Ibitinga 5.0%
1,633.3* 2.7% Piratininga
492.4
218.1
Promissão 7.8%
764.6 8.3% Eletropaulo - CI
Nova Avanhandava 10.5%
MRE / CCEE 686.1
1,031.4 Eletropaulo - Bilateral
74.6%
Mogi Guaçu 0.3% Tietê generated 19.5% above its 6,140.7
27.9 assured energy
*After deducting own consumption and transmission losses, the difference is addressed to the Energy Reallocation Mechanism – MRE
and Chamber of Energy Marketing – CCEE.
23

24. Assured Energy
AES Tietê has an Assured Energy of 1,275 MW average
During the last 20 years, AES Tietê has generated, in average, 18% above the
Assured Energy
The Assured Energy was expected to be revised in 2004, but this revision was
postponed to 2014 by the Ministry of Mines and Energy
Generation – MW Average
2,000
123% 120% 123%
117% 120%
109% 107%
1,500 98%
81%
1.275
1,000
500
0
1997 1998 1999 2000 2001 2002 2003 2004 9M05
Generation - MW Average Generation / Assured Energy
24

25. Stored Energy
The energy storage levels in the Southeast region are comfortable in comparison of
the risk aversion curve
Historical Risk-Averse Curve
80
80
% da Ener. Arm . Máx.
% da Ener. Arm. Máx.
60 60
40 40
20 20
0 0
Nov
Oct
Jun
Aug
Apr
Nov
O ct
Jul
May
Dec
Sept
Jan
Feb
Mar
Jul
Dec
Aug
Jan
Feb
Jun
Apr
May
Sept
Mar
2005
2005 2004 2003 Risk-averse curve - 2005
2002 2001 2000 Risk-averse curve* - 2006
Source: Operador Nacional do Sistema – Oct/05 Source: Operador Nacional do Sistema – Oct/05
Supply x Demand – GW Average
63.9 64.2 64.2 60,8
60.4 61.7 60.4 57,4 56,5
56.6 58.5 55,4 56,5 56,5
54.5 53.4 56.5 52,8 54,2
50.8 49,1 50,1 50,4 49,3 51,6
46.3 48.6 47,1
44,1
41,8
2005* 2006* 2007* 2008* 2009* 2010* 2011*
2003 2004 2005* 2006* 2007* 2008* 2009* 2010*
Demand Supply Demand Supply
Source: Apine *Forecast - Source: IBP – Insituto Brasileiro do Petróleo
25

26. Income Statement
in R$ million 9M04 9M05 Initial Contracts were adjusted in 8.1%, in average
larger volume of energy sold through the bilateral
contract –increase from 4,0 GWh to 6.1 GWh
21.4% R$ 50.5 mi = reversal of the provision regarding
Net Revenue 740.9 899.4 the bilateral contract and the recognition of
regulatory asset regarding losses on the initial
contracts (Pis/Cofins rate increase)
5.8% Increase in the Financial Compensation for Use of
Operating Expenses (201.6) (213.3)
Water Resources in 29.5%
Operating provisions – R$ 18.3 mi
Ebitda 587.0 734.1 25.1%
Ebitda Margin 79.2% 81.6%
Lower variation of the IGP-M index, from 10.3% in
Financial Expenses (221.1) (68.9) - 68.8% 9M04 to 0.2% in 9M05
Increase in financial income, due to a greater cash
balance and increased interest rates
Net Income 209.9 411.1
95.8% Net income increase due to better operating and
Net Margin 28.3% 45.7% financial performance
26

27. Operating Costs and Expenses
in R$ million 9M04 9M05
21.0 23.7 12.9% 8.25% in payroll increase resulting from the collective
Personnel
bargain
Outsourced Services 15.5 16.8
Increase of Reference Tariff – TAR, to R$ 52,67MW/h in
1Q05 (TAR x 6.75% x Generated Energy) Increase in the
Financial Compensation 27.0 34.9 29.3% volume of energy generated
34.0 37.9 11.5% Decrease in connection charges established by Aneel
Connection and Distrib. Increase in transmission costs due to greater volume of
Network Charges energy sold under the bilateral contract
Purchased Power 29.8 18.1 - 39.3% End of energy purchase from Itaipu
R$ 7.3 million relative to "Financial Surplus" MAE expense,
which was accounted in 1Q04
Depreciation and
47.7 48.0
Amortization
Provision for loss of financial investments held at Banco
Operating Provisions 0 18.3 n.a Santos ( R$16.9 mi recorded in 1Q05)
End of the obligation of payment of the Public Asset Tax
Others 26.8 15.5 - 42.0% (UBP) in 2004
Insurances
Total Waterways
201.6 213.3
R&D
27

28. Indebtedness
Amount -
Creditor Maturity Terms Collateral
R$ million
Eletrobras 1,472.7 May-13 IGP-M + 10% p.a. Receivables
FunCesp II 0.9 Nov-05 TR + 8% p.a. Receivables
FunCesp III 19.8 Nov-17 IGP-DI + 6% p.a. Receivables
Eletrobrás Debt – Flow of Payment – R$ million Net Debt – R$ billion
300 1.4
1.3
250 49 25 1.1
91 71 -11% 1.0
139 125 109 -12%
200 0.9
-18%
150
226 250 3
100 185 205
137 152 168
50 25 112
39
0
4Q05 2006 2007 2008 2009 2010 2011 2012 2013
2002 2003 2004 9M04 9M05
Principal Interest
28

29. Capital Expenditures
Capex 9M05: R$ 13.9 million for equipments modernization, enviromental and
waterway improvement
Main Capex destination:
Bariri - re-equipping and modernization of the Generating Unit 2
Reforestation of boarders – Ibitinga, Bariri, Barra Bonita and Promissão
Improvement of the waterway
Capex – R$ milhões Capex – 9M05
37,5
30,5 8%
25,0 14%
21,9
17,7
12,4 13,9
57%
21%
2000 2001 2002 2003 2004 9M05 2005
Forecast
Revised
Equipment
Waterway
Environmental
Others
29

30. Financial Investments
Financial investments are distributed as shown in the graphic below:
Foreign Bonds
(US$) - Aa3
8%
BR Federal
Bonds - Ba3 Foreign Bonds
84% (US$) - Aa1
7%
Private Bonds -
A3
1%
30

31. Capital Markets
In the last 12 months GETI4 shares rose 71.0%, while the GETI3 shares appreciated by 52.3% and
the Bovespa Index rose 32.8% in the same period.
After the conclusion of the secondary public offer, there was a significant increase in liquidity. The
average daily trading volume of GETI4 shares went from R$ 336 thousand in 3Q04 to R$ 2.223
million in 3Q05, representing an increase of 562%. GETI3 shares experienced a similar trend: from
an average daily trading volume of R$ 959 thousand in 3Q04, to R$ 1.949 million in 3Q05, a rise of
103%.
AES Tietê vs. Ibovespa - Out/04 a Set/05
(Base 100 = 10/01/04)
180 171
End of Secondary
Offer
160
152
140
133
120
100
80
Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05
GETI3 GETI4 Ibovespa
31

32. Capital Markets
Tietê’s Market Cap since the privatization:
5.000,0
R$ 546 million R$ 2.1 billion
4.000,0 Cesp spin-off – New Model Law was
Tietê was R$ 1.4 billion published
created Brasiliana was
created as part of
3.000,0 AES and BNDES
R$ 846 million agreement
AES acquired
Tietê at
2.000,0 Privatization
Auction
R$ 3.6 billion
Secondary Offering
1.000,0 Santander/Banespa
e Nossa Caixa sold
their interest in Tietê
-
ju n -99
d e z-99
ju n -00
d e z-00
ju n -01
d e z-01
ju n -02
d e z-02
ju n -03
d e z-03
ju n -04
d e z-04
ju n -05
32

33. Conclusion
AES Tietê ended up the 9M05 with highly positive results, highlighting:
Ebitda of R$ 734.1 million, 25.1% above the 9M04, and Ebitda margin of
81.6%.
Net profit amounted to R$ 411.1 million, with a 95.8% increase due to the
better operating, financial results and the reversion of Pis/Cofins
provision.
Net margin increased from 28.3% in 9M4 to 45.7% in 9M05.
33

34. 3rd quarter 2005 Results
November 9, 2005
All statements contained in this presentation related to the outlook of
the Companies’ business, projections of operational and financial
results, and potential growth represent mere provisions and were based
on managements expectations in relation to the future of the Companies.
These expectations are highly dependent of market changes, Brazil’s
economic outcome, the energy sector and the international markets
behavior, being thus subject to change.