Operator:

Good afternoon, welcome to Lights 1Q14 earnings conference call. Today with us we
have Mr. Paulo Roberto Ribeiro Pinto, CEO, and Mr. Joo Batista Zolini Carneiro, CFO
and Investor Relations Officer.

Todays live webcast and presentation may be accessed through Light website at:
http://ri.Light.com.br/

We would like to inform you that this event is recorded and all participants will be in a
listen-only mode during the companys presentation. After Lights remarks, there will be
a question and answer session. At that time further instructions will be given. Should
any participant need assistance during this call, please press *0 to reach the operator.

Before proceeding, let me mention that forward-looking statements are based on the
beliefs and assumptions of Light management and on information currently available to
the company. They involve risks and uncertainties because they relate to future events
and therefore depend on circumstances that may or may not occur.

Investors should understand that general economic conditions, industry conditions, and
other operating factors could also affect the future results of Light and could cause
results to differ materially from those expressed in such forward-looking statements.

Now, I will turn the conference over to Mr. Paulo Pinto, who will begin the conference.
Sir, you may proceed.

Paulo Roberto Ribeiro Pinto:

Good afternoon, everybody. First of all, let me refer to all of those who are here with us.
We have Mr. Zolini, Mr. Vasconcelos and Ricardo Rocha from distributions. We have
the superintendent, the second executive level, the operating areas, the corporate
areas. Briefly, before giving the floor to Zolini, so he can tell you about the results, let
me just say a few words.

Our results are very good, considering the situation we are living, we are going
through. The results are strongly impacted by the temperature at the beginning of the
year. Our market is very sensitive to temperature as you know, different from other
industries. Our residential market had an increase of 13% and these are very
expressive increases.

This has led to some losses and in spite of the fact that we have been working and we
are going to still go on working to remove losses, we have 0.8 vis--vis December, we
closed the year with 40.2 and the quarter was 42.4. This 0.2 increase represents not
only losses that were avoided, but also what we grew during the period.

Another very important result was the initiative of the Government itself to the
additional flows that I am sure you spread in the medias. Distributors have been facing
additional bills in voluntary exposure, the availability of thermal lands. In the 1Q we
accumulated something about R$1.25 billion and we were compensated with some
funds that were granted by the Government, a loan of R$1.161 billion, so we have a
non-recovered expense of R$85 million in the quarter.

In strict terms, the profit would be a loss if was not for the Government action that
unabled some recover of the expanses by the distributors in the case of Light was
R$1.161 billion.

Along the period our collections were also good, even though we dropped a little bit vis-
-vis the previous quarters, but we were around 94% and 95% of collections. We had
also an improvement in PCLD vis--vis de previous quarters. We could recover the
credit, we had installments not impacting the provision for past dues.

We have had an increase in billing. The beginning of the year, historically and real
vacation time, so the fall is higher, it skips a bit in this quarter and then payments follow
their course. There is a certain delay in this quarter, but then everything goes back in
track.

The investment is R$1 billion, consolidated investments in line with our investment
programs. Today there is a piece of news in Valor about this smart grid, which is a
great challenge for the next year. We closed this and the communication network, we
want all the technological support to fight losses.

We have a commitment with Aneel to reach 2018 with losses of 29%. We stated at
42% in December, so we are talking about a significant drop of around 13 p.p. in five
years, more than 2% a year and again, this is not only avoiding new losses, but also to
reduce the current losses. It is a huge challenge but we have set up a structure
prepared for that.

We have all the management in this effort of CMO. The leader in this area is an expert
in losses fighting against losses and we have people dedicated full time. We have
more than 1.000 people in the field, keeping track of works and new installations. We
should reach the end of this year with many intelligent terminals and as of next year
this meters will be connected to the new network, a cloud by Light with other meters.

We are very glad with the fact that we have finished the biting process, the company
that won the bit process is very experienced in this area. It used to be a Swiss
company, today they belong to Toshiba and the biting process was very strict. The
smart trade is something that makes a lot of sense, it is not nothing new in terms of
technology, but as far as Rio is concerned we are very happy with this, especially with
the zero loss.

We are going to consolidate this movement of efficiency, efficacy and the loss fight. We
are going to recover between R$300 million and R$500 million in five years. So there is
a commitment together with Aneel that was celebrated when we celebrated our tariff
review. There is a part of consumers in this program struggling or fighting against
losses.

Some funds are going to be input in the project by us. The energy loss in a great
challenge that we face. We were very much supported by the regulating agency, they
acknowledge our specific characteristics, what these losses means in our concession
area and they gave credit to our program, a program which, as I said, had already
started and as I said, we just finished our biting process.

Talking about quarterly results, an important piece of data is the way we are managing
our costs. We are really geared to holding down costs and attrition tariff cycles, we see
a new moment, strategic planning, economic and financial planning should see a rise in
five years. The reviews are usually every four because in each review we have a new
scenario for the next cycle.

As a remember, we changed with the tariff review. We have adjusted our strategic,
economic and financial planning for rising until 2018, when a new tariff cycle will start.
And within this the time limit is the program against losses and also a commitment to
arrive at a balance and to guarantee our shareholders and our stakeholders, the
desired results and efficient management focusing on holding down costs.

Not only we are going to hold down costs, but we have to do more with less. This is our
motto and the 1Q already showed a reduction of 2 p.p., and we are going further in
spite of the challenges we are facing right now. We have a huge agenda this year all
over Brazil, but Rio always has an additional demand which is not foreseen, but
anyway, we are concerned and we are moving ahead with the policy trying to hold
down our costs.

We also need to consider our financial results, which were way better than last quarter.
There is a penalty due to the interruptions, there is a very important, specific issue
which is the losses, which really contaminated aggressively and very strongly the
quality and the service provided to the consumers in spite of that.

We managed to prove our services in Rio, as a very serious problem of urban mobility,
so our teams need to meet all the demands in the shortest term possible, and in spite
of that this is a moment of important changes, important reflections, not only with the
support of technology, but our technicians, our professionals need to think out of the
box trying to find something that will work better for the new period.

All our management, with the board, we all have this commitment to make a Company
that is very good at distribution, that is to fight the losses. Today we have 40% of our
consumers located in risk areas, in areas which are difficult to provide services too, but
following the security policy we are sure that we are going to meet all that is required
from us. Of course it takes time, but the results are starting to come up.

I am going to stop now and I am going to ask my CFO, Zolini, to talk about results of
the 1Q and we are open for questions. We have here with us most of our management
and the technicians of the areas that are more important for us.

Joo Batista Zolini Carneiro:

Good afternoon. We are going to see the presentation that you have, starting with
operating highlights. The energy consumption and the 1Q14 vis--vis last quarter was
an increase of 7.8%. This was really a result of the high temperatures. The captive
market grew 9.7%, non-technical losses which were 42.4% last year and in the 1Q they
were at 0.2 p.p., slightly above.

If we compare March against March last year, we see a drop of 2.5 p.p. offsetting our
efforts fighting losses. We had in the 4Q13 the influence of extraordinary, reducing this
indicator in the 1Q14 is 1%. This is an area where we have been very successful in
terms of cross losses. The losses in terms of PCLD were only R$25 million which is
much better than what we did in the 1Q13.

In terms of financial results we grew 20% This was really due to high temperatures, we
reached R$200.1 million, in terms of 2013 we were 20.1% above and the net income,
we reached R$129.5 million above the 1Q13.

Our debt, we were at R$341.8 million, 1.8% vis--vis December 2013 and due to the
decrease that provided R$181 million, in February we have given R$527 million based
in another decreased, in March R$423 million and these amounts covered 93% of the
extraordinary costs that encouraged buying energy due to involuntary exposure or
availability contract. The total was R$1.1 billion in additional funding.

Next slide shows the evolution of energy, quarter against quarter, at 7.8; this gives us
an average in the last three years comparing the 1Q, a 5.4% growth per year.

Our consumption is basically in residential and captive commercial, where we grew
13.6% and 8.3%. Than we have the breakdown in the market, residential was 13.6%,
this was a record increase in the recent past and the commercial increase of 8.3% was
also very strong. The average was 7.8%.

Slide number five, we see the collections, but we closed the period with 94.6% of
collections. Last year we had the review of 3% in the 1Q and here we show a result of
1.8% in March this year, below figures in the past.

In the next slide, the fight against losses. We have made a progress as we have
already seen. If you compare March last year to March this year, you see that we
reached 42.4%, a little above due to the high expansion of the number of electronic
measures in March, we will reach 467,000, 109,000 in community areas.

Next slide, we have the breakdown of the results. Going straight to the bottom line, you
see that the losses were around 50.2 p.p. and at the end we reached 20.7 p.p. This
percentage variates due to the new EPVs in this sample, but the result is positive
thanks to the decrease and we went from 89.2% to 95.9% in payments.

The next slide shows the revenue evolution, 18.8% in growth. If we exclude
construction revenue, you see that the growth was 20.1%. Here you see the
breakdown of revenue according to the segment, so the distributor is 78%, generator
9%, as you see, commercialization 13% of the revenue. In terms of net revenue per
segment, the residential segment is about 50%. Actually, more precisely, 46.8%.

The next slide shows costs, city funds here, we highlight the decrease of 203, this was
actually an expansion of the decrease of last year because it provided for CD funds for
involuntary exposure with unfavorable hydrological scenario in PLD and due to the new
decrease. We also covered involuntary exposure due to new energy and also those for
availability.

On the right hand side, you see our energy accounts in spot, this is what is an
exception, was not covered by the tariff from these 246, 161 were covered. Now we
have a balance that will be incorporated in the tariff, when we have our next
adjustments in November.

The next slide shows the operating costs and expenses. Note what our CEO has
already said: on the right-hand side you see the evolution of our costs CMSO , we
see a good evolution vis--vis the previous quarters, with a variation of 2.1%. Then we
have provisions; some provisions that we have here, some provisions that were made
during the quarter, leading to a total increase of expenses of 10.6. But this is something
that should not repeat itself it is a one-off situation.

Next slide shows EBITDA per segment. Here you can see an increased participation of
generation and commercialization. In the 1Q13, they had a 33% share; this quarter
they have a 44% share. Here we see some issues the stock market, some conditions
in the environment and some losses in the distribution segment due to the fact that the
costs were not totally covered by the city.

The table below shows the EBITDA from the generator. In the 1Q13 it was 119 million
and now in the 1Q14 we have 182. The next slide, how we show the EBITDA. At the
end you have the EBITDA adjusted by CVA. So when you consider CVA-adjusted
EBITDA, we go from a value of R$452.9 million in 2014, which is up 2.5% vis--vis the
1Q13 the adjusted one is 4.7 below the 1Q.

The next slide: the net income already mentioned by our CEO, showing the evolution of
profits. In this net income we must highlight the conversion of our new value over the
basis. We had a very good revision last year with an incorporation of R$2.7 million in
the compensation base, and this is corrected constantly by IGP-M; and that adjustment
of the 1Q totaled R$46 million.

The next slide you see our situation vis--vis the debt. We see a slight growth in terms
of cost of debt in nominal terms because of higher Selic rates. But, anyway, our net
debt falls still within the thresholds of our covenant, with 2.90 as an indicator in a net
debt that is practically stable.

Next slide shows the investments. In 2014 we have the CAPEX of our budget for 2014.
You see that within this CAPEX there is an increase of 150 million due to our
agreement with Aneel that is linked to a higher tariff an amount that will be
incorporated in special obligations that we have to invest in our struggle against losses.
The expansion of generation also contributes with approximately 130 million in
investments for generations in 2014.

The next and last slide talks about the dividends. Here we see no news. Our general
shareholders meeting approved these figures, derived from the results of last year,
which are projected here until the end of the year. These were our considerations. We
will now open to questions.

Marco Severino, JP Morgan:

Good afternoon, Paulo, Aline. I have two questions. Would you tell us some more
about the collection rates for the 1Q. It dropped, and I do not know to what extent this
might be, perhaps, a reflex of the consumers. Maybe they have not stopped losing
energy, but they delayed payment. Did you feel any impact along these lines a
change in the average bill? Do you see this as the cause for lower collection rates?

And about non-manageable costs: you were talking about 1.2 billion from the
government packages. What are the expectations for the next quarters? Do you think
the government will go into giving new subsidies? What do you think? What do you
have to say from the government, from ABRATE? Do you think that these funds will still
be granted? Because they are going to be very relevant not only for you but to the
other distributors as well.

And one last question regarding losses: I was really glad to see a good control of
losses in the 1Q; we knew that this would impact consumption. If you had not
controlled it you could have had losses of 45%, more or less. For the next quarter, it is
reasonable to suppose a drop in consumption and a very material drop in losses. Could
you gives us some color on this issue? What do you expect in terms of losses for the
2Q and for the remainder of the year? What do you think is going to be your deliver in
terms of losses for 2014?

Light:

Thank you very much for your questions, Severino. I am going to tell you about the
collections and I will let Paulo talk about the inputs and everything that you asked about
in terms of losses.

In terms of collections, we said that the comparison this quarter vis--vis the previous
quarter is not really a reasonable one because of the reduction in tariff that we had last
year. This indicator suffered some distortions because we compare what is collected,
what enters in the company in a given month and so we see the sales which occurred
in the previous months.

We are very sensitive to temperatures, so when you have high temperatures you have
high sales. However, collections are still relative to the previous months, when lower
temperatures were recorder, so that indicator fluctuates a lot depending on the
seasonality, on the loads; and last year we also had to consider the 20% reduction in
the tariff. If you look to retail, you see a positive increase in terms of collection. So this
is an indicator that has to be seen with a grain of salt a little carefully.

Very high temperatures, especially in February, really distorted, or made the indicator
look a little bit strange. It is nothing to do with the payment capacity. We think that the
reduction in tariff is at a very reasonable level for the consumers, so it is more about
the seasonal issue than anything else.

Now, regarding your second question, the funds by the government due to the current
situation: well, first of all let me tell you that Light and I believe that the other
distributors also we are giving credit to the government and the government has been
trying to maintain the balance due to a situation which is not manageable.

A clear indication of that was 2013 and we have a repetition of that in 2014. We had
more than R$1 billion due to that. We would be totally off-balance if it were not for the
funds from the government. Things that we cannot control, especially involuntary
exposure, right? By the name itself we see that this is something not manageable.

Our expectation is that, since the government understands that it needs to generate
these funds from our sources other than the tariff, we believe that the government is
going to sustain is going to keep on with that policy, meeting the needs of Light and
other distributing companies for the end of the year, and during the tariff adjustments
they are going to give us an amount that is reasonable to generate cash and more on.

If it were not for those funds it would be very hard for light to sustain this until the end of
the year because we accept the tariffs and we keep on all year round maintaining the
burden of those unmanageable costs. This would make for an unfeasible situation, so
the government is concerned with these distributors and they have shown that they
understand and we expect this to go on until the end of this year.

And this can go from 200 to 800 million or 1 billion. This will be contingent upon the
behavior of the market, the auction also. Minimizing 360 million in this regulatory deficit
that we would have. So many things could happen along the year.

It is too early to give you a round number for December. What is really important is to
see that the government is willing not to let distributors take in the load of costs that are
not manageable.

Another topic that you tackled is the losses you mentioned the losses. We have a
commitment to reduce losses at 2 p.p. per year. And 2014 is one of those years. This is
our target: 2 p.p. in reduction in losses. This bidding which was in the media today
the material results will be seen as of 2015, when the technology will be deployed. But
we already have the capacity to store 200 thousand meters in the same technical
configurations.

The only thing we will not have will be the grit, which is really the framework that
supports all this technology, which will facilitate Lights interface with the consumers.
So this is going to be installed in the new technological configurations, everything will
be connected in 2015 we have already 400,000 in store, so by the end of the year we
will have 600,000 meters in store.

And it is worth highlighting that, as part of the fact that our losses are temperature-
sensitive, all those actions because now we are undergoing lower-temperature
periods, but temperature will be no longer the reason for the fluctuation in losses,
because the technology is here. We have some balances from areas where we can
show significant reductions, where we had 70% or 80% in losses; today we posting
15%, 10%, and we see a trend of decreasing these numbers even further.

We are sure that wherever we have IPC technology we will have to really generate
alternatives and work together with the consumer to make this a sustainable project,
not only in terms of investment, but also in terms of collections, reliability of services,
projects of energy efficiency. There are some areas where consumers pay their bills
with credit.

We do not believe that this is a one-off work, that whenever you regulate and normalize
things you will not have to work there anymore. We will have to keep on working with
the consumers, wherever we are responsible for the concession.

Marco Severino:

Thank you very much, and have a nice weekend.

Renato Assuno Campos, Banco Votorantim:

Good afternoon. Thank you for the opportunity. Could you tells us a little bit about net
debt, the net indebtedness? Because when you compare net debt with EBITDA you
see an increase, and this is something that made us a little bit unsure, the market was
a little afraid of an increase in indebtedness. Could you talk a little bit about this, about
the covenants and all?

Light:

Thank you very much. We point to a stability in our debt. Comparing to the covenant,
we went from 284 to 290, but we are still within the limits of the covenant. Remember
that our contracts with the banks and all provide for a covenant break if these things
occur for two consecutive quarters, so it is an indicator that we are always looking out
for, we are always monitoring, and we have to be within the limit of 3x net
debt/EBITDA.

The last fundings were already made at a little higher levels; we have three new
fundings with covenants at 3.5x, which is still a very reasonable limit. Of course the
industry is going through a very atypical situation, we have to monitor it closely. We are
not concerned, we can control it according to the limits setup in the contract.

Renato Assuno Campos:

So you are in constant contact with the government, you just talked about the
possibility of an additional package, but in case there is no other input from the
government, what is going to happen to the companies? Can you put up with this
additional cost?

Light:

We are not working with this hypothesis of not having this additional support. We will
not be only distributor company, all the distributor companies in the country will be in
the same situation.

It is important to discuss it. In all our discussions with Aneel, and all government
agencies, we see their concern with the Companys covenants. The importance of
bringing in these additional resources is also about recomposing the EBITDA, leaving
the covenant, and also generating cash so that we can honor our payment.

The hypothesis that the government will not bring any more funds will lead to a
situation similar to 1993, when there was a generalized default situation of the country.
It is not about debt or no debt, it is the fact that it will not be possible to make
payments.

I cannot work with this hypothesis. Being a Brazilian citizen, imagining the situation that
the energy industry will undergo through the same situation as 1993, this would be
unthinkable. This would extrapolate the system chain. Generators will not receive,
stakeholders will not be paid, services will not be paid; it would be general chaos.

Vis--vis volume of funds, we receive around R$120 billion. OK, R$161 million reals, if
we had to pay this, we would be totally in default, with a negative EBITDA. Although
CDI is contemplated for covenant purposes, it is not cash. So this would lead to a
situation of default. I will not pay any agency, any industry, and outside the industry.

In plain and simple terms, I do not work with this possibility. If this happens, we are all
broke; not only Light, but all the distributors.

Juliana, Ita BBA:

Good afternoon. I have three questions, two about the industry and one specific to
Light. First one, we see a government very sensitive to the needs of distributors, but in
case of generation, because when we see generation there is a problem of GSS. Some
loss tectonic in R$20 billion reals, and this would also lead to a default rate in the
industry. This is a risk that belongs to the generator, but do you see any possibility that
the government may help the generators? This is my first question.

The second one is about the reduction of use, because we have a very low rainfall, and
this might lead to a situation where we have to reduce our use in 2014 or 2015. In this
case, what would happen to Light?

Light:

Your first question is about the government agencys generation companies. Today,
according to what we see, usually the generators have the risk; the rainfall is a risk that
the generators have to put up with.

The cost that are not covered by the tariff will have to be passed on. This is a situation
that would be normal in the fact of the generating company, so they have to put up with
it until there is adjustments.

We also have a generator; it is not as large, but we have one also. But we have no
signs from the government, the government is not saying anything about that, because
the amounts are much higher in the distributors. This quarter we are talking about 1.6
billion sold, it is a very large amount.

The government is working according to priorities. Today, I cannot tell you what the
coverage would be like. The figures that we hear are about 20 billion or something, but
I think this is the next agenda. I think the government is doing it right. First, they are
trying to tackle the issue of the distributors, because the distributors are direct contact
with the consumers, and then, between the distributors and the generators, you have
the transmission, which is also an issue.

We have the MP 579, so I think the government is looking at everything, as they
always done. I rather believe that there is a consolidated vision, that they have an
agenda with certain priorities.

The other aspect is about rationing. Let me refrain from saying anything. I think we
have to keep track of what the authorities are saying, the authorities that are
conducting the process. The government there is still not the time to discuss power
rationing, so much so that they are dispatching all the thermos, we have a large
amount of MW of thermos being used, we are preserving our reservoirs trying to hold it,
and we hope that the dry period will stop at the right time, so by September or October
this year we will start to have normal rainfalls, and everything will go back to normal.

What is important is to follow the government guidance the government, after all is
the owner of the concessions, they are the regulating agency. And I think there is no
party more worried about that than the government, because this is the infrastructural
area, it is important for the country. If we have a lack of energy, we will have a huge
demand to different segments.

So we are very respectful of the governments position, and we are keeping our fingers
crossed, hoping that the path is right.

Juliana:

One last question: in case of a possible power rationing, what about your agreement
with Aneel regarding losses?

Light:

There is no such agreement, because we do not work with this hypothesis. In the last
six months, we never talked about rationing with Aneel. We said well, the situation is
generating exposure, and this bill is R$1.2 billion, and they foot the bill, so we still have
eventually to the issue of rationing, at least not Light and the government, not with us.

Vinicius Canheu, Credit Suisse:

Good afternoon. My question is about generation. We saw a significant gain in the 1Q,
because of a higher PIB, but I think there was a great role of energy allocation. This
higher allocation, was it seasonality, or was it also balanced by energy purchasing?

Light:

What we are selling in the spot market is equivalent to the hydrological hedge, 5% of
the typical guarantee of our plants. It is about 25 MW per year on average. So there
was no significant effect in this 1Q, because all the other companies that have reported
gains, we are talking not only about energy, but also about a higher volume in the
quarter, and this is the trend for the rest of the year.

Vinicius Canheu:

This is why I am asking. Whether it is a one-off thing, the allocation of your own
volumes, or if you have bought. So you have not bought anything, it is just a
hydrological hedging, right? There was no purchasing.

Light:

Yes, it is the rainfall hedge that is stronger in the 1Q.

Vinicius Canheu:

OK. Thanks.

Operator:

There are no more questions. I would like to give the floor to Mr. Paulo Pinto for his
final remarks. You have the floor.

Paulo Pinto:

Let us bring this conference call to an end saying that we do not need to spell out the
situation, because we are in a difficult situation, no rainfall, and the government is
doing the best it can not to harm the countrys development.

This has a very heavy impact on the economic financial situation in the country. At first,
the problem is the distributors, but the government itself has shown that they are
sensitive towards this problem; the economic and financial situation, and the
government is trying to take care of the non-manageable costs on the part of the
distributors. We believe that it is going to be the governments policy until the end of
this year at least, when probably the abnormality in the reservoirs will be reversed, and
then better days, all this chain in the industry will be better.

We have a huge challenge within the next 40 to 50 days, when will have the World
Cup, Rio de Janeiro stands out vis--vis the other states, because even though we
have seven games in Rio de Janeiro, we understand that due to our touristic tradition
and all, we are going to attract many tourist along the World Cup; many tourists who
are going to come to other host cities will definitely visit Rio de Janeiro. So Light has to
be ready to provide the most reliable service possible.

We have a contingency plan to the World Cup, we are following a differentiated rational
for fest support, we spend R$38 million in the last month just to be able to meet the
security and reliability of our system with regards to the World Cup.

Maracan is totally ensured, we ran a test at Confederations Cup, in Rio de Janeiro we
also ran a test with a much higher amount of people than we usually have. We are
happy with our support, our personal is totally ready to make everything run smoothly.

The power industry is very important. We have come through much worse situations in
the past, and we managed to work them out, so I do not think the situation that we see
today will last for a long period of time. There is sure to be a solution. Distributors and
generators will see better days in the near future.

Anyway, we are confident in our government, all of us, in our industry. This is a
regulated activity that we have, therefore we are highly dependent on our regulating
agency.

Thank you very much. We are available for any questions you may have, our IR area
will welcome you if you have any questions. Thank you very much.

Operator:

Thank you. Lights results teleconference now comes to an end. Please disconnect
now, and have a nice afternoon.