FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of December, 2006

Commission File Number 1-15224

Energy Company of Minas Gerais
(Translation of Registrant’s Name Into English)

Avenida Barbacena, 1200
30190-131 Belo Horizonte, Minas Gerais, Brazil
(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x  Form 40-F  o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  o  No  x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  N/A

Index

Item		Description of Item
1.		Summary Minutes of the 386th Meeting of the Board of Directors, June 29, 2006
2.		Summary Minutes of the 388th Meeting of the Board of Directors, August 9, 2006
3.		Summary of Decisions of the 397th Meeting of the Board of Directors, November 30, 2006
4.		Market Announcement, November 30, 2006
5.		Notice to Stockholders, December 12, 2006
6.		Acquisitions – New Companies Add Value, 2006 Earnings Report – 3rd Quarter
7.		Earnings Forecast Review 2006-2010
8.		Guidance Revision 2006-2010

 

1

 

COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
Listed company – CNPJ 17.155.730/0001-64 - NIRE 31300040127

Summary minutes of the 386th meeting of the Board of Directors.

Date, time and place: June 29, 2006, at 10 a.m., at the company’s head office, Av. Barbacena 1200, 18th Floor, Belo Horizonte, Minas Gerais, Brazil.

Meeting committee: Chairman: Wilson Nélio Brumer. Secretary: Anamaria Pugedo Frade Barros.

Summary of business:

I -                                  The Board approved the minutes of this meeting.

II -                              The Board approved:

a)                 Concession of a corporate guarantee by the company for the Promissory Notes (“commercial paper”) to be issued by Cemig GT, in the amount of up to R$ 900 million, and by Cemig D, in the amount of R$ 300 million, structured and placed by BB Banco de Investimento S.A., and for all the instruments to be signed in the loan transactions, via Bank Credit Notes and or Working Capital Notes, to be contracted by Cemig GT, in the amount of up to R$ 900 million, and by Cemig D, in the amount of R$ 300 million, with Banco do Brasil S.A. (and other financial institutions, if the transaction is syndicated by the Bank), to be used for redemption of the said promissory notes, and the proceeds to be used solely to rollover existing debt and not in new investments; and

b)                filing of appropriate legal actions, with or without deposit of amounts registered in the Federal Debt, plus fees of Counsel and procedural costs, against the State of Minas Gerais, for suspension of the demandability of the tax credits found by the Finance Secretariat of the State of Minas Gerais (SEF/MG), and consequent issuance of a tax liability release certificate.

III -                          The Board granted annual paid leave to the Chief Corporate Management Officer, from July 17 to 28, 2006.

IV -         The Board re-ratified CRCA-012/2006, altering the dates of calculation of the stockholding base for payment of interim dividend from: 10 June 2004, 9 September 2004, 10 December 2004 and 10 January 2005; to: 11 July 2006; so as to ensure that stockholders whose names are in the Nominal Share Registry on that date shall receive the minimum obligatory dividends regularly, as approved by the Ordinary General Meeting of Stockholders of April 29, 2005, in the amount of R$ 76,500,000, authorizing the actual payment of this amount on August 10, 2006. The other terms of that CRCA remain unchanged.

V -          The following matters were withdrawn from the agenda:

a)                 contracting of services for modeling of the services site within the company’s premises; and

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b)            entering into an agreement with the Minas Gerais Integrated Development Institute (INDI) for assignment of personnel.

VI -                          The Board Member Wilson Nélio Brumer abstained from voting on the matter relating to the taking of legal actions against the State of Minas Gerais for suspension of demandability of tax credits found by the State’s Finance Secretariat and obtaining of a tax release certificate, mentioned in item II, sub-item “b”, above.

VII -                      The following spoke on general subjects and matters of interest to the company:

·                     The Vice-Chairman;

·                     the Board Members Andréa Paula Fernandes Pansa, Carlos Augusto Leite Brandão, Evandro Veiga Negrão de Lima, Haroldo Guimarães Brasil, José Augusto Pimentel Pessôa and Wilton de Medeiros Daher;

·                     Flávio Decat de Moura, Director; and

·                     Manoel Bernardino Soares and Pedro Carlos Hosken, Superintendents.

The following were present:

·                     The Board Members Wilson Nélio Brumer, Djalma Bastos de Morais, Andréa Paula Fernandes Pansa, Alexandre Heringer Lisboa, Antônio Adriano Silva, Carlos Augusto Leite Brandão, Evandro Veiga Negrão de Lima, Francelino Pereira dos Santos, Haroldo Guimarães Brasil, José Augusto Pimentel Pessôa, Nilo Barroso Neto, Wilton de Medeiros Daher, Eduardo Lery Vieira, Luiz Henrique de Castro Carvalho, Fernando Lage de Melo and Lauro Sérgio Vasconcelos David;

·                     Flávio Decat de Moura, Director;

·                     Manoel Bernardino Soares and Pedro Carlos Hosken Vieira, Superintendents; and

·                     Anamaria Pugedo Frade Barros, Secretary.

Anamaria Pugedo Frade Barros

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COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
Listed company – CNPJ 17.155.730/0001-64 – NIRE 31300040127

Summary minutes of the 388th meeting of the Board of Directors.

Date, time and place: August 9, 2006, at 3:00 p.m., at the company’s head office, Av. Barbacena 1200, 18th Floor, Belo Horizonte, Minas Gerais, Brazil.

Meeting Committee: Chairman: Wilson Nélio Brumer. Secretary: Anamaria Pugedo Frade Barros.

Summary of business:

I -           The Board approved the minutes of this meeting.

II -          The Board authorized signing of the First Amendment to the Stock Purchase Agreement between Rio Minas Energia Participações S.A. – RME, as purchaser, and EDF Internacional S.A. – EDFI, as vendor, and, as consenting parties: Cemig; Andrade Gutierrez Concessões S.A.; Luce Brasil Fundo de Investimento em Participações, successor of J.L.A. Participações S.A.; and Pactual Energia Participações S.A.

III -         The following spoke on general subjects and matters of interest to the company:

·                     The Vice-Chairman:

·                     the Board Members Andréa Paula Fernandes Pansa, Carlos Augusto Leite Brandão, Evandro Veiga Negrão de Lima, Haroldo Guimarães Brasil and José Augusto Pimentel Pessôa; and

·                     Flávio Decat de Moura, Director.

The following were present:

·                     the Board Members Wilson Nélio Brumer, Djalma Bastos de Morais, Aécio Ferreira da Cunha, Andréa Paula Fernandes Pansa, Alexandre Heringer Lisboa, Antônio Adriano Silva, Carlos Augusto Leite Brandão, Evandro Veiga Negrão de Lima, Francelino Pereira dos Santos, Haroldo Guimarães Brasil, José Augusto Pimentel Pessôa, Nilo Barroso Neto, Wilton de Medeiros Daher and Luiz Henrique de Castro Carvalho;

·                     Flávio Decat de Moura, Director; and

·                     Anamaria Pugedo Frade Barros, Secretary.

Anamaria Pugedo Frade Barros

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COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
Listed company
CNPJ 17.155.730/0001-64
NIRE 31300040127

SUMMARY OF DECISIONS OF THE 397TH MEETING OF THE BOARD OF DIRECTORS

At its meeting held on November 30, 2006, the Board of Directors of Companhia Energética de Minas Gerais made the following decisions:

1)           Timetable of planned meetings of the Board of Directors for 2007. Approved.

2)           Concession of annual paid leave to the Chief Corporate Management Officer. Approved.

3)           Signature of electricity sales contract and amendments with Sá Carvalho S.A. Approved.

4)           Signature of contracts for use of the distribution system, connection to the distribution system and constitution of guarantees, with the Capim Branco Energia Consortium and Cemig D. Approved.

5)           Contracting of corporate digital mobile phone services. Approved.

6)           Contracting of advertising services. Approved.

7)           Private issue of non-convertible debentures. Approved.

8)           Gathering of proposals to serve as a base for contracting of the stockholder services function. Withdrawn from the agenda.

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COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG

LISTED COMPANY

CNPJ 17.155.730/0001-64

Market announcement

In accordance with its commitment to best corporate governance practices, Cemig (Companhia Energética de Minas Gerais), a listed company holding public service concessions, with share securities traded on the stock exchanges of New York, Madrid and São Paulo, is pleased to report that for the second year running it was selected for inclusion in the Corporate Sustainability Index (“the ISE”) of the São Paulo Stock Exchange (Bovespa).

This index selects the Brazilian listed companies with significant liquidity that are most highly rated in terms of social responsibility and sustainability.

More information on the ISE can be found on the Bovespa website, www.bovespa.com.br.

Inclusion in this index represents confirmation by the Brazilian financial market of Cemig’s excellent reputation in actions related to sustainability. Cemig is also recognized internationally as a leading company in sustainability, evidenced by its inclusion in the Dow Jones Sustainability World Index for all of the last 7 years.

Belo Horizonte, November 30, 2006


Flávio Decat de Moura
Chief Financial and Investor Relations Officer

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COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG

LISTED COMPANY

CNPJ 17.155.730/0001-64

NOTICE TO STOCKHOLDERS

We hereby inform stockholders that the payments of Interest on Equity approved by the meetings of the Board of Directors on June 29, 2005, October 27, 2005 and December 12, 2005, and the dividend approved by the Annual General Meeting held on April 28, 2006, will be paid on December 28, 2006.

The payment will be made automatically to all stockholders whose registration data are up-to-date with Banco Itaú S/A.

Belo Horizonte, December 12, 2006.

Flávio Decat de Moura

Chief Financial and Investor Relations Officer

7

Aquisitions
New companies add value

2006 Earnings Report - 3rd Quarter

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Disclaimer

 

·                  Some statements in this presentation are regarded under U.S. Securities law as forward-looking statements, i.e., statements that are subject to risks and uncertainties. Forward-looking statements are forecasts which may differ materially from the final figures and which are not under our control. For further information on the risks and uncertainties as they relate to us, please see our 20-F form for 2005, in particular, item 3 which contains “Basic Information – Risk Factors.”

All figures are expressed in Brazilian GAAP.

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Agenda

1.             Strategy and Results

·                  Wilson Brumer

2.                                       Growth: new projects add new capacity

·                  Djalma Morais

3.                                       Acquisitions as an avenue for growth in the short-term

·                  Flávio Decat

4.                                       Cemig Corporation

·                  Wilson Brumer

5.                                       Financial strategy and results analysis

·                  Flávio Decat

10

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Agenda

1.             Strategy and Results

·                  Wilson Brumer

2.                                       Growth: new projects add new capacity

·                  Djalma Morais

3.                                       Acquisitions as an avenue for growth in the short-term

·                  Flávio Decat

4.                                       Cemig Corporation

·                  Wilson Brumer

5.                                       Financial strategy and results analysis

·                  Flávio Decat

11

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Growth through Acquisition:
Synergies Strengthen Fundamentals.

·                  Acquisitions added significant value though only partially reflected in the third quarter results:

·                  We serve more than 10 million clients as of today;

·                  EBITDA reached R$ 905 million in the third quarter 2006, 30% higher than the 3Q05;

·                  Record sales of 38,057 GWh in the first nine months of 2006, including 752 GWh of Light.

·                  New projects added more operational capacity:

·                  Generation capacity increased by 169 MW;

·                  New lines increased network by 8,839 km, with 468 Km of LT’s and 8,371 Km of RD’s;

·                  3.8 million more consumers in 31 municipalities in the state of Rio de Janeiro.

·                  Third quarter operating performance demonstrates strengthening of Cemig’s fundamentals:

·                  Cemig GT revenue increased 22% compared with the same period of 2005;

·                  Cemig D energy sales demonstrate consistent growth throughout 2006;

·                  22% growth of network revenues compared to the same period of 2005.

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Growth of Adjusted Income and EBITDA confirm solid fundamentals

·                  Non-recurring factors impacted profitability growth as outlined on slide 43.

·                  For the nine months ending in September 2006, net income reached R$ 1,113 million, or R$ 6.87 per thousand shares:

·                  adjusted net income was R$ 1,217 million – a 13% increase compared to the first nine months of 2005

·                  For the same period, EBITDA was R$ 2,102 million:

·                  Adjusted EBITDA increased 21%, to R$ 2,307 million versus the same period of 2005

R$ millions

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Excluding non-recurring items...

(R$ millions)

... Fundamentals assure positive results for the quarter

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Consolidated Results -R$ thousands -

Company		Net Income		EBITDA
Cemig Geração/Transmissâo		487,590		1,010,103
Cemig Distribuição		552,606		926,044
Cemig Holding		(55,781	)	(60,878	)
Gasmig		28,207		39,909
Infovias		3,469		33,941
Sá Carvalho		16,586		23,110
Efficientia		217		249
Ipatinga		5,127		8,602
Horizontes		8,974		10,173
Pai Joaquim		204		(95	)
Transleste		2,193		3,205
Cogeração		1,599		1,687
Rosal Energia		15,359		16,549
Capim Branco		13,578		15,378
Cemig PCH		8,597		8,815
UTE Barreiro		81		1,080
RME Light		14,799		46,848
TBE		9,862		17,514
Cemig Consolidated		1,113,267		2,102,234

 

·                  Acquisitions accountable for 2.2% of net income and 3.1% of cash generation

Earnings per share
R$ lots of one thousand shares

Consolidated EBITDA Margin (%)

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Agenda

1.             Strategy and Results

·                  Wilson Brumer

2.                                      Growth: new projects add new capacity

·                  Djalma Morais

3.                                       Acquisitions as an avenue for growth in the short-term

·                  Flávio Decat

4.                                       Cemig Corporation

·                  Wilson Brumer

5.                                       Financial strategy and results analysis

·                  Flávio Decat

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New projects undergo strict evaluation process

Our strategy to expand installed capacity includes generation efficiency requirements:

·                  Fair economic-financial balance

·                  Installed capacity expansion on three performance levels to contribute to efforts to generate economic development

·                  Improve financial capacity to finance own projects

·                  Protect the interests of shareholders, employees, clients and suppliers

Through

·                  Thorough investment selection with returns always above WACC

·                  Technological and operational improvements

·                  Superior management practices

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New projects add installed capacity in order to meet increasing demand for electricity

Projects		2005		Through 06		2006		Growth (%)		After 2006
Installed capacity
Generation (em MW)		6.113				6.736		10	%
UHE Irapé – 100%				360		360
UHE Capim Branco I* - 21,0526%				50		50
UHE Capim Branco II* - 21,0526%						44
UHE Baguari* - 34%										48
PCH’s * - 49%										23
RME – LIGHT – 25%				169		169
Network reach
Transmission (km)		4.892		468		5.360		10	%	236	*
Distribution		379.400		18.569		397.969		5	%
Sub-transmission (km)		16.040		452		16.492		3	%
Total		400.332				419.821		5	%
Consumers		6.009.987		4.008.920		10.018.907		67	%

 

*      Investments made in partnerships with diverse investors

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Preparing for the future...

·                  Investment in Chile:

·	Charrúa transmission line – Nueva Temuco, 220 kV, 190 km
·	Concession period:	20 years
·	Partner:	Alusa (51%)
·	Investment:	US$60 millions
·	Annual Revenue:	US$6.5 millions
·	Financing:	70% the investment
·	Investment up to date:	US$6 millions
·	Start of implantation:	June/2005
·	Environmental license:	February/2007
·	Start of work:	March/2007
·	Start of operation:	July/2008

 

·                  Development of administrative capacity to operate in the regulatory environments in other countries.

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Energy sales exceeded expectations

Projects		Through 3Q06		Through 3Q05		3Q06		3Q05
Cemig GT		22.147		18.628		7.881		7.497
Supply to distributors		8.629		6.310		3.321		2.882
Free Market		13.518		12.318		4.560		4.615
CEMIG Supply		-763		-5.615		-315		-2.539
Cemig D		14.911		15.244		5.069		5.004
Other companies		1.010		920		338		340
Total		37.305		29.177		12.973		10.302

 

Does not include acquisitions made during 2006

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Cemig Generation and Transmission Sales — GWh

Quarterly Evolution

Through Sept. 2006

·                  Third quarter sales increased 5% compared with 3Q05

·                  Volume of energy sold in 2006 was 19% higher than in the same period of 2005

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Cemig Distribution Sales — GWh

Quarterly Evolution

Through Sept 2006

·                  After the migration of free clients, the evolution of sales return to natural seasonality

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Cemig Distribution Market Composition

(9M06)

·                  New consolidated market profile after the migration of free clients

23

Cemig energy sales Increased 28% in the first nine months of 2006

		9 Months (MWh)
		2006		2005		Var. %
Residential		4,962,046		4,927,351		0.7	%
Industrial		17,950,748		17,157,542		4.6	%
·  captive		3,617,649		4,113,285		-12.0	%
·  free		14,333,099		13,044,257		9.9	%
Commercial		2,858,594		2,785,455		2.6	%
Rural		1,461,706		1,412,153		3.5	%
Others		2,011,402		1,936,501		3.9	%
Supply		8,060,257		958,353		741.1	%
TOTAL		37,304,753		29,177,355		27.9	%

 

·                  Results reflect increases in the industrial class, the end of initial contracts, and a strong migration of consumers to the free market

·                  Continued growth for the past 7 quarters

·                  Cemig commercializes the most energy volume in the free market in the country

Does not include acquisitions made during 2006

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Investment Program

Business ( * )		2005		2006		9M06		2007
CONSOLIDATED		1.356		1.399		1.029		1.531
Segmentation		1.165		1.399		1.029		1.531
GENERATION		397		130		77		98
TRANSMISSION		20		93		51		16
DISTRIBUTOR		691		1.136		874		1.335
Distribution		665		1.009		831		1.005
Extension and reinforcement of existing networks		276		288		162		544
Light for All		291		711		655		461
Others		98		10		14
Sub- transmission		26		127		43		330
HOLDING		57		40		27		82
Other businesses		—		—				—
Reconciliation to Cash Flow ( ** )		191		—		—		—
INVESTMENT IN ACQUISITIONS		—		523		523		—
LIGHT(20%) US$80 milion		—		175		175		—
TBE(21%)		—		348		348		—
TOTAL		1.356		1.922		1.552		1.531

 

( * ) Values in millions of reais

( ** ) Includes advancement of suppliers and warehouse

We added the last turbine of Irapé in operation: plant sold energy at R$125/MWh for 30 years

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Agenda

1.             Strategy and results

·                  Wilson Brumer

2.             Growth: new projects add new capacity

·                  Djalma Morais

3.             Acquisitions as an avenue for growth in the short-term

·                  Flávio Decat

4.             Cemig Corporation

·                  Wilson Brumer

5.             Financial strategy and results analysis

·                  Flávio Decat

26

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Accelerated growth from acquisitions

·                  Focus on electricity business

·                  Expansion opportunities evaluated using strict profitability criteria

·                  Low risk business portfolio

·                  Adequate structural balance of the electric energy business segments : generation, transmission, and distribution

·                  Strong presence in all of the segments that create value

·                  Financial stability

·                  Clear objectives guarantee sustainability for the long-term

·                  Indebtedness

·                  Cash flow

·                  Credit quality

·                  Higher standards of Corporate governance and integrity

·                  Incorporation of practices that add value for the shareholder

·                  Code of ethics

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Accelerated growth from acquisitions

·                  We look for partners that add value through:

·                  Reducing the necessity of using own resources

·                  Transparency of the economic-financial evaluation of projects

·                  Access to financing at low costs

·                  Maximization of cash generation:

·                  Surplus generation

·                  Rolling debt maturity

·                  Look for the best opportunities for financial funding

·                  Continued improvement in our credit risk classification

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Novas empresas agregam valor significativo ao grupo

Values in millions of reais

		Gross Revenue				Energy Sales		Number of		EBITDA		Debt
		R$ million		Consumer		GWh		employees		R$ million		R$ million
Cemig GT		1.724		171		22.147		2.255		1.010		3.630
Cemig D		5.916		6.167.752		14.911		8.062		926		2.446
Light		289		3.850.984		752		4.174		47		826
TBE		—		—				54		18		222
Others		79		—		247				101		1.092
Consolidated total		8.008		10.018.907		38.057		14.891	*	2.102		8.216

 

* Included employees of Cemig Holding

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Acquisitions stimulate sales to end consumers GWh

·                  750 GWh in addition from Light increase 2% of sales in the 3th quarter.

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Consolidated Sales for Distribution Business – GWh

Quarterly evolution

Nine months 2006

·                  Cemig Corporation is a leader in the Brazilian market for sales to end consumers

·                  Acquisition of Light increased sales by 12%

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Consolidated Position of energy generation assets

 

·                  Cemig Corporation is the fifth largest Generator in the country

·                  Light acquisition increased installed capacity by 4%

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Consolidated Sales for Generation Business + Light – GWh

Quartely evolution

Nine months 2006

·                  Cemig corporation is the fifth largest Generator in the country

·                  With generation from Light, Generation sales increased 2.0%

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Consolidated Posisiton of energy Transmission assets

Extension of Transmission Network - Km

 

·                  Incorporation of TBE increased installed capacity for transmission lines for Cemig by xx%

·                  Cemig Corporation is the sixth largest Transmitor of energy in the country

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Agenda

1.             Strategy and results

·                  Wilson Brumer

2.             Growth: new projects add new capacity

·                  Djalma Morais

3.             Acquisitions as an avenue for growth in the short-term

·                  Flávio Decat

4.             Cemig Corporation

·                  Wilson Brumer

5.             Financial strategy and results analysis

·                  Flávio Decat

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International class company in performance

·	Total assest :	R$ 24.5 billion
·	Shareholders’ equity :	R$ 8.1 billion
·	Consolidated debt:	R$ 8.2 billion
·	Consolidated net earnings:	R$ 7.0 billion
·	Energy sales to the principal states of Brazil
·	Initiating foreign investments

 

36

Quality growth ensures sustainability

Obligations to diverse “stakeholders”

·                  Shareholders:

·                  Corporate Governance

·                  Conform with Sarbanes-Oxley Law: section 404

·                  Minimize cost of investments

·                  Guarantee adequate returns

·                  Employees:

·                  Human capital development

·                  Best company to work for: included in the top 100 best companies by Exame magazine

·                  Clients

·                  Assets with superior operational performance

·                  Qualification of activities through the ISO 9000

·                  Community

·                  For the seventh consecutive time, Cemig was selected to be part of the Dow Jones World Sustainability index

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New map of Cemig in the country

38

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Acknowledging the market

39

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Agenda

1.               Strategy and results

·                  Wilson Brumer

2.               Growth: new projects add new capacity

·                  Djalma Morais

3.               Acquisitions as an avenue for growth in the short-term

·                  Flávio Decat

4.               Cemig Corporation

·                  Wilson Brumer

5.              Financial strategy and results analysis

·                 Flávio Decat

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Financial management in line with Strategic Plan

·                  Long-Term Strategic Plan Commitment:

·                  Debt/ EBITDA     

·                  Debt/(Debt+ stockholders’ equity)  

·                  Adequate cash flow to Cemig desverticalizada and by expansion

·                  Projects initiated only with guaranteed resources

·                  Expansion financing structure that allows for average cost reduction considering capital

·                  Extension of debt maturity for the long-term

·                  Optimization of foreign exchange risk

·                  Combined with a natural hedge (energy sales contracts are indexed to the dollar)

·                        Expectation of improving credit quality evaluation by risk classiciation agencies

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Consolidated indebtedness - September 2006 R$ million

Principal Indexes

Principal Creditors

Banco ItaúBBA		R$               1.290 milhões		(22	%)
Debenturistas		R$               1.287 milhões		(22	%)
Unibanco		R$                  701 milhões		(12	%)
Bradesco		R$                  616 milhões		(11	%)
Banco do Brasil		R$                  592 milhões		(10	%)
Eletrobrás		R$                  274 milhões		(5	%)
BNDES		R$                  234 milhões		(4	%)

 

Average cost of debt is 9.89% p.a., with constant prices (as of September 2006) without considering Light and TBE debts.

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Lengthened Debt Maturity Profile

2006 considers R$1,200 million regarded to Commercial Papers from 90 day period raised in July.

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Debt matured schedule with subsequent events

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Forecast values to 2006

Net Debt
Net Debt + PL
Debt
EBITDA
Debt
EBITDA ajusted

 

A		B		C
Debt = Total Debt — Regulatory Assets		A - FIDC		Covenants Banks

 

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Strong cash flow guarantees expansion

Statement of Cash Flows (consolidated)
Values in millions of reais

		9M06		9M05		2005
Cash at start of period		1.469		896		896
Cash from operations		1.542		1.224		1.657
Net income		1.113		1.487		2.003
Depreciation and amortization		479		444		595
Suppliers		(39	)	(41	)	91
Deferred tariff adjustment		—		(591	)	(591	)
Other adjustments		(11	)	146		(220	)
ICMS on TUSD		—		(221	)	(221	)
Financing Activity		433		117		147
Financing obtained		2.204		1.031		1.556
Payment of loans and financing		(216	)	(598	)	(818	)
Others		(1.555	)	(316	)	(591	)
Investment Activity		(1.412	)	(940	)	(1.356	)
Investments outside concession area		(507	)	(49	)	(69	)
Investments in concession area		(1.060	)	(935	)	(1.360	)
Special obligations - consumer contributions		159		44		73
Others		(4	)
Cash at end of period		2.032		1.297		1.344

 

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Evolution of Consolidated Results

Statement of Results (Consolidated)

Value in millions of reais

		9M06		3Q06		9M05		3Q05		FY2005
Net Revenue		6.970		2.599		6.148		2.063		8.236
Operating Expenses		(5.347	)	(1.918	)	(4.198	)	(1.503	)	(6.342	)
EBIT		1.623		681		1.950		560		1.894
EBITDA		2.102		905		2.363		699		2.489
Financial Result		(208	)	(38	)	(43	)	124		(3	)
Non-operating result		(13	)	7		(39	)	(19	)	(53	)
Provision for Income taxes, Social Cont. and Deferred income tax		(456	)	(200	)	(665	)	(219	)	(471	)
Interest on own capital reversal		169		—		283		—		635
Minority shareholders		(2	)	(2	)	1		—		1
Net income		1.113		448		1.487		446		2.003

 

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Net revenues

Consolidated Operating Revenues
Value in millions of reais

		9M06		3Q06		9M05		3Q05		FY2005
Sales to end consumers		7,316		2,729		6,538		2,382		8,919
TUSD		907		319		864		292		1,201
Subtotal		8,223		3,048		7,402		2,674		10,120
Supplies		692		318		160		52		237
Network transmission revenue		458		172		285		107		322
Gas supply		220		80		195		64		265
Others		149		55		114		36		168
Subtotal		9,742		3,673		8,156		2,933		11,112
Deferred tariff readjustment		—		—		591		—		591
Deductions		(2,772	)	(1,074	)	(2,599	)	(870	)	(3,467	)
Net Revenues		6,970		2,599		6,148		2,063		8,236

 

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Operating Expenses impacted by non-controllable costs

Consolidated Operating Expenses (Values in millions of reais)

		9M06		3Q06		9M05		3Q05		FY2005
Purchased Energy		1,578		590		1,053		397		1,455
Personnel/Managers/Board/Profit Shares		908		255		694		213		1,106
Depreciation and Amortization		479		176		444		149		595
Fuel Consumption Account - CCC		363		141		305		109		416
Energy Development Account - CDE		244		93		220		74		296
Charges for the use of Basic Transmission Network		621		199		506		149		641
Third Party Services		344		127		290		114		423
Pension Fund (Forluz)		116		41		115		38		153
Materials		59		21		66		24		96
Production Materials		36		36		—		—		—
Royalties		94		39		110		31		145
Purchased Gas for Resale		119		43		116		40		156
Operational Provisions		117		37		116		101		127
PROINFA		31		16		—		—		—
Energy Efficiency and R&D		67		22		17		7		—
Other expenses		171		82		146		57		733
Total		5,347		1,918		4,198		1,503		6,342

 

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Non-recurring items: Adjusted results show sustainable growth

Values in thousands		9M06		9M05
Net Income		1,113,267		1,487,200
(a) Deferred Tariff adjustment		—		(412,597	)
(b) CVA Recomposition of TUST		61,555		—
(c) Annual Salary Increase		117,040
(d) Reversal of Provision for RGR		(43,402	)
(e) Income from overdue bills Inc. cl		(31,869	)
Adjusted net income		1,216,591		1,074,603

 

EBITDA		2,102,234		2,394,124
(a) Deferred Tariff Adjustment -		—		(487,576	)
(b) CVA Recomposition of TUST		93,265		—
(c) Annual Salary Increase		177,425
(d) Reversal of Provision for RGR		(65,760	)
Adjusted EBITDA		2,307,164		1,906,548

 

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Integrated business structure benefits results

Statement of Consolidated Results Values in millions of reais - 9M06

		Cemig H		Cemig D		Cemig GT
Net Revenue		6,970		4,660		1,765
Operating Expenses		(5,347	)	(4,009	)	(901	)
EBIT		1,623		651		864
EBITDA		2,102		926		1,010
Financial Result		(208	)	19		(368	)
Non-Operating Result		(13	)	(21	)	(1	)
Provision for Income taxes, Social Cont. and Deferred Income taxes		(456	)	(222	)	(167	)
Interest of Own Capital Reversal		169		126		160
Minority Shareholders		(2	)	—		—
Net Income		1,113		553		488

 

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Results

Cemig Generation and Transmission

Statement of Results - Cemig Generation and Transmission
Values in millions of Reais

		9M06		3Q06		9M05		3Q05		FY2005
Net Revenue		1,765		651		1,462		534		1,964
Operating Expenses		(901	)	(342	)	(606	)	(218	)	(1,154	)
EBIT		864		309		856		316		810
EBITDA		1,010		365		991		361		988
EBITDA Margin		57.2	%	56.1	%	67.8	%	67.6	%	50.3	%
Financial Result		(368	)	(132	)	(282	)	17		(526	)
Non-Operating Result		(1	)	1		(4	)	(3	)	(5	)
Provision for Income taxes, Social Cont. and Deferred Income taxes		(167	)	(59	)	(194	)	(112	)	(93	)
Interest of Own Capital Reversal		160		76		137		—		282
Net Income		488		195		513		218		468
Net margin		27.6	%	30.0	%	35.1	%	40.8	%	23.8	%

 

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Cemig Generation and Transmission

Operating Revenues
Values in millions of reais

		9M06		3Q06		9M05		3Q05		FY2005
Sales to end consumers		1,075		384		1,105		388		1,489
Wholesale supply		649		276		442		163		597
Network transmission revenue		437		151		285		107		396
Others		8		3		7		2		11
Subtotal		2,169		814		1,839		660		2,493
Deductions		(404	)	(163	)	(377	)	(126	)	(529	)
Net revenue		1,765		651		1,462		534		1,964

 

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Cemig Generation and Transmission

Operating Expenses
Values in millions of reais

		9M06		3Q06		9M05		3Q05		FY2005
Personnel/ management/Board/Profit Share		207		57		141		46		235
Depreciation and Amortization		146		56		136		45		181
Fuel Consumption Account - CCC		50		19		22		7		29
Energy Development Account - CDE		32		12		13		5		17
Charges for Use of the Basic Transmission Network		171		63		84		31		157
Third Party Services		61		26		47		20		78
Pension Fund - Forluz		26		9		26		9		35
Materials		12		4		10		4		17
Royalties		91		32		83		27		109
Operational Provisions		3		1		2		1		200
Other Expenses		102		38		42		23		95
Total		901		317		606		218		1,153

 

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Results

Cemig Distribution

Statement of Results - Cemig Distribution
Values in millions of reais

		9M06		3Q06		9M05		3Q05		FY2005
Net Revenue		4.660		1.597		4.755		1.565		6.397
Operating Expenses		(4.009	)	(1.316	)	(3.672	)	(1.317	)	(5.225	)
EBIT		651		281		1.083		248		1.172
EBITDA		926		370		1.354		339		1.454
EBITDA Margin		19,9	%	23,2	%	28,5	%	21,7	%	22,7	%
Financial Result		19		(56	)	161		81		26
Non-Operating Result		(21	)	(7	)	(23	)	(10	)	(31	)
Provision for Income taxes, Social Cont. and Deferred Income taxes		(222	)	(75	)	(417	)	(108	)	(398	)
Interest of Own Capital Reversal		126		60		107		—		221
Net Income		553		203		911		211		990
Net Margin		11,9	%	12,7	%	19,2	%	13,5	%	15,5	%

 

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Cemig Distribution

Operating Revenue
Values in millions of reais

		9M06		3Q06		9M05		3Q05		FY2005
Sales to End Consumers		5,887		2,044		5,366		1,968		7,335
TUSD		885		297		864		292		1,201
Subtotal		6,772		2,341		6,230		2,260		8,536
Wholesale Supply		30		24		44		14		95
Others		39		13		40		10		53
Subtotal		6,841		2,378		6,314		2,284		8,684
Deferred Tariff Adjustment		—		—		591		—		591
Deductions		(2,181	)	(781	)	(2,150	)	(719	)	(2,878	)
Net Revenue		4,660		1,597		4,755		1,565		6,397

 

·                     Revenue from industrial consumers declined 12% as a result of the migration of consumers from capitive to free.

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Cemig Distribution

Operating Expenses - Values in millions of reais

		9M06		3Q06		9M05		3Q05		FY2005
Personnel		587		151		445		137		595
Profit Shares		43		14		45		15		188
Obrigações Pós-Emprego		81		27		83		28		111
Materiais		44		15		52		18		74
Third Party Services		233		77		210		81		312
Electric Energy Purchased for Resale		1.544		524		1.400		529		1.890
Depreciation and Amortization		275		91		271		91		364
Operating Provisions		90		33		113		66		133
Fuel Consumption Account - CCC		304		113		283		102		387
Charges for Use of the Basic Transmission Network		422		112		420		116		554
Energy Development Account - CDE		205		74		207		69		279
Efficient Energy and R&D		51		15		12		5		173
PROINFA		28		15		—		—		—
Other Expenses		102		55		131		60		165
Total		4.009		1.316		3.672		1.317		5.225

 

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Glossário

Average outage frequency (FEC): Average number of outages suffered in a given period per consumer, in a given group of consumers.

Debt coverage index: Ebitda divided by total financial expenses in the year. This gives a figure for the company’s capacity to pay debt servicing.

Deferred Tariff Adjustment (RTD): Every four years Aneel decides on a “periodic” tariff review for each electricity distributor, to adjust the level of annual adjustments to preserve the financial equilibrium of the concession contracts, coverage of efficient operational costs and adequate remuneration of investment. On April 8, 2003, this adjustment for Cemig was set provisionally at 31.53%, but the final adjustment decided was 44.41%, and the percentage difference of 12.88% will be applied to Cemig’s tariffs in “deferred” format: i.e., as an addition to each of the annual tariff adjustments decided for the years 2004 through 2007, cumulatively. The difference between the adjustment to which Cemig Distribuição is entitled and the tariff in fact charged to consumers has been recognized in Cemig’s financial reporting as a Regulatory Asset.

Ebitda: Earnings before interest, tax, depreciation and amortization – a measure of a company’s operational cash flow, providing an indicator of the cash flow generated by a company’s principal business.

Ebitda margin: Ebitda/net operating revenue. This provides a view of the company’s cash generation capacity.

Hedge: Financial mechanism for protection against fluctuations in prices – e.g. of commodities -, or variables such as interest rates or exchange rates.

Hydroelectric power plant: A generating plant that uses the mechanical energy of falling water to operate electricity generators.

Manageable costs: Costs that essentially depend on the efficacy of corporate management, such as personnel expenses, materials, outsourced services, etc. – also referred to as controllable costs.

Net margin: Net income / Net operating revenue – an indication of a business’s profitability.

Outage time per consumer (DEC): Average service outage time per consumer in a given group of consumers over the specified period.

The Extraordinary Tariff Recomposition (RTE): This was a tariff adjustment granted by the government in December 2001 to the distributors and generators of the regions where rationing was imposed. It was one of the conditions of the General Accord for the Electricity Sector: an increase of 2.9% in the tariff of residential consumers (with the exception of Low-Income Residential Consumers), and an increase of 7.9% for other consumers. Its purpose was to make good the losses suffered by distributors and generators as a result of the reduction of consumption imposed by the government. The duration of the adjustment varies in accordance with the time necessary to recover the loss of each concession holder.

The CCC (Fuel Consumption Account): This account was created to accumulate funds to cover the increase in costs associated with greater use of thermal generation plants in the event of drought – since the marginal operating costs of thermal plants are greater than those of hydroelectric plants. All Brazil’s electricity companies are obliged to make an annual contribution to the CCC, calculated on the basis of estimates of the amount of fuel likely to be required by the thermal plants in the following year.

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The CDE (Energy Development) Account: This is a source of subsidies to make alternative energy sources such as wind and biomass more competitive, and promote universalization of electricity services. It is funded by annual payments made by the concession holders for the use of public assets, and also from penalty payments imposed by Aneel for infringements.

The CRC (Results Compensation Account): Before 1993, electricity concession holders in Brazil were given a guarantee of a rate of return on their investment in the assets used in the provision of electricity to clients, and the tariffs charged to clients were uniform over the whole country. Profits generated by the more profitable concession holders were reallocated to the less profitable concession holders, in such a way that the rate of return on assets was equal to the national average for all of the companies. Though the results for the majority of Brazil’s electricity concession holders were deficits, these were posted by the federal government as assets in the “CRC account” of each company. When the CRC Account, and the concept of guaranteed return, were abolished, concession holders that had positive balances in their “CRC accounts” were able to offset these balances against any liabilities owed to the federal government.

The CVA – the Offsetting Account for Variations of “Portion A” items: “Portion A” is the list, used in the calculation of the electricity distributors’ annual tariff adjustments, of the utility’s cost items that are not under its own control. The CVA mechanism compensates for changes in the list’s total over the year to the new tariff date. The variation – positive or negative – is passed on in the tariff adjustment.

The Global Reversion Reserve (RGR): This is an annual amount included in the costs of concession holders to generate a fund for expansion and improvement of public electricity services. The amounts are paid monthly to Eletrobrás, which is responsible for the management of the resulting fund, and are to be employed in the Procel mechanism.

Thermal power plant: A generating plant that converts chemical energy contained in fossil fuels into electricity.

Total return to stockholders: Sum of the dividend yield and the percentage appreciation in the stock price.

TUSD – Toll for Use of the Distribution System: This is paid by generation companies, and by Free Consumers, for the use of the distribution system belonging to the distribution concession holder to which the generator or Free Consumer is connected, and is revised annually in accordance with inflation and the investments made by the distributor in the previous year for maintenance and expansion of its network. The amount is: the quantity of energy contracted with the distribution concession holder for each link point, in kW, multiplied by a tariff in R$/kW set by Aneel.

Volt: Unit of the electrical potential at which energy is supplied.

Voltage: For the purposes of efficient transport of electrical energy over transmission lines from the generating plant to the consumer, there are various levels of transmission voltage. Similarly, electricity is used by consumers at various different voltage levels.

Watt (W): Unit of power required for a device to operate. 1,000 watts is a kilowatt (kW), 1 million watts is a Megawatt (MW), and 1 billion watts is a Gigawatt (GW).

Watt-hour: Measure of energy (work done by electric power): The kilowatt hour, Megawatt hour, Gigawatt hour and Terawatt hour (KWh, MWh, GWh, TWh) respectively represent 1,000, 1 million, 1 billion and 1 trillion watt-hours.

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