2010 sustainability report...message from the ceo 4 sustainability report 2010 message from the ceo...
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2010 Sustainability Report
About the reportMessage from the CEOProfileCorporate governanceStrategy and management Safety Economic-financial performance Operating performanceCommercial performanceEmployeesSuppliersCustomersSocietyEnvironmentIndexAcknowledgments
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2010 Sustainability Report
IGRI 2.1; 3.1; 3.2; 3.3; 3.4; 3.5; 3.8
n this Sustainability Report, Eletropaulo Metropolitana
Eletricidade de São Paulo S.A. (AES Eletropaulo) presents its
initiatives to guarantee the development of its businesses
by describing the company’s economic and socio-environmental
issues. Published for the fifth consecutive year under the Global
Reporting Initiative (GRI) guidelines, the document complies with
level B of the GRI guidelines, including the indicators specific to
the electric sector.
Published annually, this report covers the period between
January 1 and December 31, 2010. The information refers to AES
Eletropaulo’s operations within its concession area, which covers
24 municipalities in the metropolitan region of São Paulo.
The content of this report was jointly defined by all areas of the
company and through consultation with the stakeholders during
the second cycle of dialogue, an AES Brasil process of engagement
which involves employees, suppliers, customers (corporate and
residential) together with representatives from the varied segments
of society (such as public authorities, NGO’s and other institutions).
Queries and suggestions regarding this report should be
forwarded to the Office of Investor Relations or the Office of
Communication and Social Responsibility
[email protected] ou [email protected]
letterRua Lourenço Marques 158, Vila Olímpia – São Paulo (SP), Brazil
CEP 04547-100.
ReportApplication level
G3 Profile Disclosures
G3 Management approach disclosures
G3 performance indicators e sector supplement
performance indicators
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Report on:1.1; 2.1 - 2.10; 3.1 - 3.8; 3.10 - 3.12; 4.1 - 4.4; 4.14 - 4.15.
C
Not required
* Sector supplement in final version
Report on a minimum of 20 performance indicators, at least one from each os economic, environmental, human rights, labor, society, product responsibility.
Report on each core G3 and sector supplement* indicator with due regard to the materiality principle by either: a) reporting on the indicator or b) explaining the reason for its omission.
Same as requiriment for level B
C+ B+ A+B A
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REPO
RT E
xTE
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uRE
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REPO
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Report on all criteria listed for level C plus: 1.2; 3.9; 3.13; 4.5 - 4.13; 4.16 - 4.17
Management approach disclosures for each indicator category
Management approach disclosures for each indicator cattegory
Report on a minimum of 10 performance indicators, including at least one from each of: economic, social and environmental.
3 2010 Sustainability Report
about the report
MeSSaGe FroM the Ceo
4 Sustainability Report 2010
Messagefrom the CEO
IGRI 1.1; 1.2
n 2010 the AES Brasil Group invested R$ 1.1 billion, 42%
more than in 2009. Our investments were channeled toward
the continuous improvements in the quality of customer
service, the maintenance of our assets and also in technology and
modernization. For 2011, we have defined an investment program
of R$ 1.2 billion.
At AES Eletropaulo – the largest electric power distributor in
Latin America –we invested in 2010, R$ 682.3 million (32.3%
more than in 2009) in preventive maintenance, automation,
expansion of the electric system capacity and in connections for
new customers. Over the course of 2010, we have taken a series
of initiatives with a view to reduce the frequency and duration
of power outages, specifically with the addition of 212 new work
teams, giving AES Eletropaulo the ability to deploy up to 2,200
professionals to serve our customers in emergency situations and
to prune the 320 thousand trees in the company’s concession
area. We closed 2010 with a 10% reduction in the frequency and
duration of power outages compared to 2009. The DEC (average
number of hours a customer is without power) was reduced by
1.18 hours, closing the year at 10.60 hours, a rate lower than the
average in the Southeastern region (11.43 hours according to the
National Electric Power Agency - Aneel). The FEC (average number
of times a customer is without power) was 5.42 times, whereas
the average for the region was 6.6 times. In 2011, AES Eletropaulo
will invest R$ 720 million, aiming for continual improvement in
the quality of customer services.
AES Sul closed 2010 with investments totaling R$ 265.2
million, an increase of 86.7% compared to 2009. These funds
have been channeled to improve the reliability of the grid, to
expand the company’s capacity to satisfy consumption demand
and to increase the safety of the system. The result was a
reduction of 14% and 15% in DEC and FEC, to 18.05 hours and
10.11 times, respectively.
In generation, AES Tietê invested about R$ 82.2 million in
maintenance, modernization and expansion of its hydroelectric
plants, 45% higher than the amount invested in 2009. In 2011,
we plan to invest R$ 158 million. With the goal of expanding
the installed power generating capacity in the State of São
Paulo, we are proceeding with the development of a natural
gas thermoelectric project - Termo São Paulo – with a capacity
equivalent to 550 MW. We have acquired the land necessary for
the project’s implementation in the municipality of Canas, The
environmental licensing process is in progress and we expect to
participate in new energy futures auctions (A-5) this very year.
In the telecommunications segment, AES Atimus, the new brand
of the companies, AES Eletropaulo Telecom and AES Com Rio,
expanded its operations in the corporate sector. We invested R$
70 million in the expansion and capillarity of our fiber optics
network, 21% above that applied in 2009. We increased our
customer base by 70% and by 2015 our investment forecast is in
the region of R$ 400 million.
The AES uruguaiana thermoelectric facility with a generating
capacity of 639.9 MW, remains deactivated – due to the lack
of gas supply from Argentina – and we continue studying
alternatives for the future of this undertaking.
In 2010, we defined our new platform of sustainability,
contemplating five strategic themes: safety, generation of
sustainable energy; efficient use of resources; innovation in
products and services; development and respect for employees,
suppliers and the community. All will have a plan of action and
established targets for the period between 2011 and 2015.
Safety – our Top Priority is one of the strategic themes. In
2010, we reduced accidents among our contracted employees
by 25% - with or without days lost - and among the
population by 9%. Among our own co-workers there was an
increase of 11% in the number of accidents – with or without
MeSSaGe FroM the Ceo
5 Relatório de Sustentabilidade 2010
days lost – a result that shows we have room for improvement,
We invested R$ 7 million in the training and qualification of our
teams and leaders. We closed the year with 7,568 professionals,
up 29% in relation to 2009, having transferred meter reading and
bill delivery in-house at both AES Eletropaulo and AES Sul, with a
view to improve our customer service.
We have intensified our social activities in the communities,
inaugurating another Casa da Cultura e Cidadania in Rio de
Janeiro. The Project, now implemented in seven towns and cities
directly benefits more than 6.8 thousand people. In 2011, we will
open a new unit in Novo Hamburgo, Rio Grande do Sul within the
AES Sul concession area.
In 2010 the AES Brasil Group, posted net income of R$ 2.2
billion, 2.7% more than 2009. EBITDA (income before interest,
taxes depreciation and amortization) was R$ 4.2 billion, up
21.8%compared to the previous year.
In 2011, the third tariff review cycle will be held for AES
Eletropaulo, the methodology of which is being defined by
Aneel. We have contributed to the advancement of this
methodology, through our provision of favorable conditions to
enable the electric power distribution sector to develop with
an equilibrium that responds adequately to the necessities for
investment in view of the country’s continued economic growth
perspective, thus attaining continual improvements in the
quality of services.
In 2010, we received several acknowledgments. Here are some
of the highlights:
- AES Eletropaulo received the Íbero-americano Qualidade
Award, conferred by the Íbero-americano Quality Foundation;
won the Modern Consumer Award for Excellence in Customer
Service, from the Modern Consumer Magazine; was elected
once again the most admired company in Brazil in the category,
Supply of Electric Power by the magazine Carta Capital; and has
maintained its listing on the BM&FBovespa Index of Corporate
Sustainability (ISE).
- AES Sul won the National Quality Prize conferred by the
National Quality Foundation and the Gaúcho Quality Awards
Gold Trophy.
- AES Tietê was considered the Sixth Best Company to Invest
in, according to the 2010 Agência Estado Empresas Awards; and
maintains its listing on the BM&FBovespa Index of Corporate
Sustainability (ISE).
- AES Atimus-SP was awarded the Silver Medal at the Paulista
Quality Management Awards and was the first operator in Latin
America to receive the MEF Certificate (Metro Ethernet Fórum),
classifying its network among the highest standards of quality.
We thank our customers for the trust they place in us, our
employees for their dedication and commitment, and we thank
our suppliers, shareholders, the community, regulatory bodies,
public authorities and investors for their support.
Britaldo Soares
AES Brasil Group Chief Executive Officer
Profile
A Company for all
The biggest energy distributor in Latin America, AES Eletropauloserves 6,1 million customers in a concession area of 4,526 km²in the metropolitan region of São Paulo.
b GRI 2.2; 2.3 ; 2.4; 2.5; 2.6; 2.7;
y consumption and billing
AES Eletropaulo is the largest
distributor of electric power in
Latin America, and in 2010, served 6,1
million customers in 24 municipalities
in the metropolitan region of São
Paulo including the capital, where it is
headquartered. The concession area covers
4,526 Km² with 16.5 million people.
The company distributes electric power
to residential, industrial, commercial
and public authority customers. In
2010, 43,345 GWh* of energy was
commercialized generating net income of
R$ 1.3 billion.
AES Eletropaulo is a publicly-held
company, which participates in Level 2
of Corporate Governance Differentiated
Practices on the BM&FBovespa (Bolsa de
Valores, Mercadorias e Futuros de São
Paulo). Since 2005 the company has
also been listed on Bovespa’s Corporate
Sustainability Index (ISE), a portfolio
of companies acknowledged for social
responsibility, corporate sustainability
and for encouraging best practices in the
Brazilian market.
As of January 2011, the company
has been listed on the ICO2, a rating
developed by BM&FBovespa jointly with
BNDES (The National Development Bank),
whose portfolio only considers companies
that adopt transparent practices in
relation to greenhouse gas emissions. AES
Eletropaulo monitors and measures its
*�According to data from the National Program of Electric Power (Procel), 1 MW is equivalent to 3.6 GJ and is sufficient to power 22,448 refrigerators with a capacity of 300 liters for a month.
**�Free float (or shares in circulation): means all shares issued by the company, except shares held by the controlling shareholder, by associated parties, by company administrators, those in treasury and special preferred class with the purpose of guaranteeing differentiated political rights, both non-transferable and the exclusive property of the privatized entity.
43,345 GWhWas the total of electric Power commercialized by AES Eletropaulo in 2010, an amount 5% higher than 2009.
AES Eletropaulo in numbers GRI 2.8
5,663 own employees and 7,847 outsourced
6.1 million customers
24 towns and cities served
149 substations
40,697 km of overhead distribution grid
3,038 km of subterranean distribution grid
R$ 1.3 billion net income
R$ 682.3 million invested
43,345 GWh of energy distributed to captive and free
customers
R$ 1,057,629,316.47 of share capital
62 thousand shareholders
56.18% Free float**
7 2010 Sustainability Report
proFIle
emissions, reinforcing its commitment to
climatic and environmental issues.
The controlling shareholder is AES Elpa
S.A., a publicly-held company whose
controlling shareholder is Companhia
Brasiliana de Energia. The share capital
of the Companhia Brasiliana de Energia
is currently held by the Banco Nacional
de Desenvolvimento Econômico e Social
(BNDES), by means of the fully owned
subsidiary, BNDES Participações S.A.
(BNDESPAR), and the North American AES
Corp.,one of the largest generation and
energy distribution groups in the world.
The corporation is based in Arlington uSA
and through other directly or indirectly
controlled companies, controls AES
Holdings Brasil Ltda.
To satisfy market demand and to raise
the quality of its services, AES Eletropaulo
invested R$ 682.3 million in 2010, mainly
on the expansion and maintenance of
its system, as well as customer service
improvements.
AES Corp.
AES Corp. is a global company that operates in the energy
sector with businesses in generation and distribution which
includes a diversified portfolio of thermal and renewable
fuel sources. With a presence in 29 countries, the global
workforce of AES is 27 thousand people, who are committed
to operational excellence and to meet the world’s constantly
changing energy needs. Founded in 1981, the company built
its first plant in 1985 in Texas (uSA) and in the early 90s was
already running three other plants in the country. In the early
90s, as markets opened globally, AES began generating energy
in the united Kingdom, and soon expanded to Argentina,
Pakistan, China, Hungary and Brazil. In 1998 the company
acquired a minority stake in a power plant in the first and only
generation privatization in India. In West Africa and Central
America, AES brought electricity to places that never knew
reliable power, while electrifying urban centers.
AES HAS helped pioneer new pollution control technologies
and biomass conversions while expanding — to Qatar, Oman,
Sri Lanka, Cameroon—and more recently to Bulgaria.
8 2010 Sustainability Report
TECHNICAL DATA (INPuT, PRODuCTION CAPACITy, SALES, LOSSES) 2008 2009 2010
Number of consumers served - loyal consumers 5,832,093 5,999,506 6,142,064
Number of consumers served - free consumers 214 213 273
Number of municipalities served 24 24 24
Number of own employees 4,141 4,360 5,663
Number of outsourced service providers 6,368 7,191 7,847
Number of business offices 60 75 75
Energy generated (GWh) NA NA NA
Energy purchased (GWh) 38,886 41,131 41,337
Itaipu 10,614 10,436 10,079
Initial contracts 0 0 0
Bilateral contracts 11,762 11,339 11,316
with third parties 220 204 208
with related party 11,542 11,135 11,108
Auction 0 0 0
Proinfa (Alternative Energy Sources Incentive Program) 598 873 984
CCEAR (Energy Purchase Agreements in Regulated Market) 15,912 18,482 18,960
MCSD (Energy Surplus/Deficit Compensation Mechanism) 31 123 849
Global Electric Losses (GWh) 5,433 5,548 5,373
Electric losses - total (%) on the energy requirement 11.58 11.81 10.92
Technical losses - (%) on the energy requirement 6.49 6.49 6.49
Non-technical losses - (%) on the energy requirement 5,09 5,32 4.43
Energy sold (GWh) - loyal market 33,906 34,483 35,480
Residential 13,843 14,433 14,890
Residential - Low Income 583 581 655
Commercial 10,301 10,752 11,081
Industrial 6,559 6,032 6,137
Rural 27 26 28
Government 1,100 1,148 1,200
Operational and Productivity Indicators GRI 2.7; 2.8, Eu1; Eu2; Eu3; Eu4; Eu10 Eu28; Eu29
9 2010 Sustainability Report
TECHNICAL DATA (INPuT, PRODuCTION CAPACITy, SALES, LOSSES) 2008 2009 2010
Public Lighting 878 899 861
Public services 568 565 582
Own consumption 46 47 46
Substations (in units) 148 149 149
Installed capacity (MVA) 12,952 13,118 13,361
Transmission lines - km NA NA NA
Subtransmission lines - km 1,743 1,737 1,735
Distribution network - km 42,794 43,251 43,735
Distribution transformers (in units) 195,580 196,453 197,793
Sale of energy per installed capacity (GWh/MVA*no. hours/year) 0.00030� 0.00030� 0.00030
Energy sold by employee (GWh) 8.2� 7.9 6.3�
Number of consumers per employee 1,408 1,376 1,085
Value added/GWh sold (R$ 000) 179 193 206�
DEC1 (Equivalent Duration of Interruption per Consumer unit) 9.20 11.86 10.68
FEC2(Equivalent Frequency of Interruption per Consumer unit) 5.20 6.17 5.43
1. Number of hours a customer is without power over a given period 2. Number of times a customer is without power over a given period
10 2010 Sustainability Report
01 Barueri 02 Cajamar03 Carapicuiba 04 Diadema05 Cotia06 Embu07 Embu-Guaçu08 Itapecerica da Serra 09 Itapevi10 Jandira11 Juquitiba12 Mauá
13 Osasco 14 Pirapora do Bom Jesus15 Ribeirão Pires16 Rio Grande da Serra17 Santana do Parnaíba18 Santo André19 São Bernardo do Campo20 São Caetano do Sul21 São Lourenço da Serra22 São Paulo23 Taboão da Serra24 Vargem Grande Paulista
The company’sconcession area GRI 2.7
Vision GRI 4.8
To be the best energy distribution
concessionaire in Brazil by 2012
MissionTo serve society through the provision
of energy services and solutions by
adopting a safe and socially responsible
approach
Values• Safety first
• Act with integrity
• Honor commitments
• Seek excellence
• Fulfillment at work
Vision, Mission and Values GRI 4.8
In 2007, AES Eletropaulo’s vision
was defined as being an instrument of
challenge for its employees and leaders
which would also describe the ambition of
the company. To quantify this, the Abradee
Award has been adopted as a reference,
with its five criteria of verification and
methodology to annually acknowledge
the best companies in the electric
energy distribution sector. There are 28
distributors, each with over 500 thousand
customers competing for the award. In
2007, AES Eletropaulo came in 20th place in
the Abradee ranking (Brazilian Association
of Electric Power Distributors) and the
current standing is 9th. The 2011 rankings
will be released in June.
Awards and Acknowledgments GRI 2.10
After winning the National Quality Award
in 2009, in 2010 AES Eletropaulo became the
first company in the sector to win the Ibero-
American Gold Award for Quality, which
acknowledges management excellence
among participating companies and
organizations. The company was winner in
the category Large Publicly-Held Company.
Coordinated by SEGIB (Ibero-American
General Secretary) and administered by
FuNDIBEQ (Ibero-American Foundation
for Quality Management), the award
is a project associated with the Ibero-
American summit of Heads of State
and the Government which recognizes
the excellence of the award-winning
Other Acknowledgments in 2010 GRI 2.10
• Modern Consumer magazine Excellence
in Customer Service Award in the Electric
Power Category.
• Best Electric Power Company in the
category “Companies that most respect
the Consumer in Brazil” (Modern
Consumer Magazine).
• 10th ABT Award for social networks
– AES Eletropaulo was recognized as a
success story through its use of social
networks in customer service.
• Best Customer Experience (BCx) -
Energy Segment and utilities - ranking
sponsored by the Magazine Consumidor
Moderno and Izo Brasil Consultoria.
• Award for Best Company-Customer
Relations - Energy category by the
Associação Ibero-americana de Relações
Empresa-Cliente - Aiarec (Ibero-American
Company Relations Association).
organizations. Since 1999, over 70
companies have received the accolade.
The company has also been included
in the 13th edition listing of the Most
Admired Companies in Brazil, sponsored
in partnership with the magazine Carta
Capital and the consultancy Officina
Sophia. Between June and August 2010,
over 1,100 executives chose the best
companies in ten sectors. AES Eletropaulo
received the most votes in the Energy
Supply category.
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11 2010 Sustainability Report
History
AES Eletropaulo came into being from
the split up in 1997, and the privatization
in 1998, of AES Eletropaulo by the State
Government of São Paulo. On December
31, 1997, the company was restructured,
resulting in the creation of Eletropaulo –
Eletricidade de São Paulo S.A. and three other
companies. AES Eletropaulo was privatized on
April 15, 1998 by public auction.
In 1999, AES Corporation (AES Corp.)
purchased another 4.4% of the company’s
share capital through its subsidiaries,
and through further acquisitions and
reorganizations, the company became
2003The holding company, Companhia Brasiliana de Energia S.A. is created with the shareholders, AES Holdings Brasil Ltda., with 50% plus one voting stock and BNDES Participações S.A. – BNDESPAR, holding 50% less one voting stock.
1899The founding of The São Paulo Railway Light and Power Company Limited.
1923 Brazilian Traction Light and Power Co. Ltd. assumes control of the São Paulo Railway Light and Power Company Limited.
1956Restructuring of the holding company which is thereafter known as Brascan Limited.
1979The Brazilian government acquires from Brascan the shareholding control of Light – Serviços de Eletricidade S.A.
1981The State Government of São Paulo assumes control of Light Serviços de Eletricidade S.A. and change the company’s name to Eletropaulo – Eletricidade de São Paulo S.A.
1997The privatization process results in new restructuring, creating four companies; two distribution companies, Eletropaulo – Eletricidade de São Paulo S.A., the current AES Eletropaulo and EBE - Empresa Bandeirante de Energia S.A.; a transmission company – a EPTE - Empresa Paulista de Transmissão de Energia Elétrica, now Companhia de Transmissão de Energia Elétrica Paulista (CTEEP); and a generating company – EMAE - Empresa Metropolitana de Águas e Energia S.A.
1998AES Eletropaulo is acquired, through public auction, by Lightgás, a consortium comprising AES Corp., Companhia Siderúrgica Nacional (CSN), Électricité de France (EDF) and Reliant Energy.
2001After a new reorganization process, the entire indirect control of the company is held by AES Corp.
the main indirect controller in 2001. The
present shareholding composition is the
consequence of the corporate reorganization
process implemented by Companhia
Brasiliana de Energia, AES Corp. and the
Banco Nacional de Desenvolvimento
Econômico e Social (BNDES) in 2003.
12 2010 Sustainability Report
Corporate Governance
Transparencyadds value
AES Eletropaulo practices guarantee fairness between shareholders and stakeholders
aGRI 4.12
ES Eletropaulo’s corporate
governance is aimed at
creating value for both its
shareholders and stakeholders. Its main
practices are established in the bylaws
and the corporate governance manual,
which indicate the regulations and norms
on which the governance is based and the
entities responsible for its maintenance:
Executive Officers, Audit Committee, Board
of Directors and the General Meeting. The
adoption of good practices is essential
for strategic and efficient business
management and, therefore, serves as the
base for the creation of value. This is why
AES Eletropaulo continuously strives to
improve its corporate governance practices.
For the sixth consecutive year, AES
Eletropaulo has been listed in the portfolio
of the Corporate Sustainability Index (ISE)
of the Securities, Commodities and Futures
Exchange (BM&FBOVESPA), which selects
companies with the best performance
in sustainability. The 2010/2011 index is
composed of preferred shares (ELPL4).
As a company that is indirectly controlled
by the AES Corporation, a publicly-held
company trading securities on the New
york Stock Exchange, the controls at AES
Eletropaulo are adjusted to meet the
requirements of the Sarbanes-Oxley act
(SOx), which aims to ensure reliability of
financial statements of companies trading
stocks on the uS market.
AES Eletropaulo participates in level 2 of
the BM&FBOVESPA Corporate Governance
Differentiated Practices, through which
the company, its administrators, audit
committee and controllers adopt a wide-
reaching set of governance practices and
additional rights for minority shareholders,
thus increasing transparency through the
release of a greater volume and better
quality of information, facilitating the
tracking of its performance.
The total number of AES Eletropaulo
shares is 167,343,887 of which 66,604,817
are common shares and 100,739,070
are preferred shares. The company’s
common shares confer to the holder
the right to vote at the company’s
Annual and Extraordinary Meetings, at
which decisions are made based on the
majority of votes. On the other hand, the
company’s preferred shares give priority
on capital reimbursements (based on
integrated capital without premium rights
in an eventual winding-up), confers to
the holder the right to dividends 10%
higher than those of common shares and
the right to a restricted vote, exclusively
on pre-determined topics stipulated in
the second paragraph, article 5 of the
For the sixth consecutive year, AES Eletropaulo is listed on the BM&FBOVESPA CorporateSustainability Index (ISE)
*�Both can be accessed by the public on the AES Eletropaulo investor relations site (www.aeseletropaulo.com.br/ri).
14 2010 Sustainability Report
CorporateGovernanCe
company’s bylaws. Preferred shares also
bear full voting rights if the company
fails to pay, for three consecutive years,
rightful dividends. Finally, in any eventual
divestiture of the company, the holders of
the common and preferred shares will have
the right to receive an amount per share
corresponding to at least 100% of the
amount paid to controlling shareholders,
holders of the common shares. (Tag-along)
MANAGEMENT 2008� 2009 2010
Total compensation and/or fees (R$ 000) (A) 9.983,00 7.341,00 7.860,76
Number of Officers (B) 8 6 6
Average compensation and/or fees A/B (R$ 000) 1.130,00 1.160,00 1.310,13
Board of Directors compensation (R$ 000) (C) 361,00 346,00 1.007,40
Number of Directors (D) 11 11 10
Average compensation C/D (R$ 000) (considering only the directors who receive compensation) 54,00 56,00 100,74
Governance structure GRI 4.1
AES Eletropaulo is managed by a Board
of Directors – which in turn is advised by
the Investment and Operational Policy
Management Committee – and the Board
of Executive Officers. Since 2010, it has
had the support of an audit committee,
installed in the General Meetings at the
request of shareholders. The current
members of the Audit Committee were
elected at the behest of shareholders at
the Annual and Extraordinary General
Meeting held on April 30.
15 2010 Sustainability Report
Board of DirectorsGRI 4.3; 4.5; 4.7; 4.9
The Board of Directors of AES Eletropaulo
is responsible for defining the strategy for
conducting the distributors business and
the approval of the most relevant matters.
The Board comprises 10 active members, 2
of which are independent and 8 alternates.
One active member and his respective
alternate were elected by the minority
shareholders and one member and his
respective alternate were elected by the
company employees. The term of office
for all members is 2 years, reelection being
permitted. The mandate of the current
Board Members will reach its conclusion at
the Annual General Meeting which will be
held in 2011 to discuss the financial and
social statements.
The members of the company’s Board
of Directors are qualified and have
recognized professional experience in the
energy, finance, stock market and public
administration sectors. The compensation
payable to the Members of the Board of
Directors, as well as any benefits of any
nature and representation fees, is approved
by the Annual Shareholders’ Meetings.
The Board of Directors met 13 times
over the year. At these meetings the Board
deliberated on the company’s economic,
environmental and social performance,
including material risks and opportunities,
by analyzing its financial statements,
operational and business performance
indicators and primary lawsuits (including
environmental litigation), overseeing new
projects and businesses, among other
strategic themes, as well as approving
subject matter over which it has exclusive
powers under the terms of the Company
Bylaws. Having access to such information,
the members identify the relevant matters
and propose recommendations to the
company’s Executive Officers.
Composition of the Board of Directors* GRI 4.2
Chairman
Andrew Martin Vesey
active Members
Britaldo Pedrosa Soares
Berned Raymond Da Santos Ávila
Francisco Jose Morandi Lopéz
Helena Kerr do Amaral
Luis Felipe Alfonso Céron Céron
Lucio da Silva Santos
Luiz Gonzaga de Mello Belluzzo
Sergio Canuto da Silva
Sergio Silva do Amaral
alternate Members
Airton Ribeiro de Matos
Arminio Francisco Borjas Herrera
Fernando Simões Paes
Marcelo de Carvalho Lopes
Patricia Rosa de Oliveira
Pedro de Freitas Almeida Bueno Vieira
Rinaldo Pecchio Junior
Roberto Mario Di Nardo
*At December 31, 2010
16 2010 Sustainability Report
Audit Committee
The Audit Committee is made up of five
active members and five alternates, and
is responsible for auditing the company,
especially company accounts and the
correctness and legality of management
acts practiced by the administrators. It is a
non-permanent entity whose members are
elected from the shareholders’ indication
for a one-year term, which terminates at
the first Ordinary General Meeting after
its installation. Of the ten active and
alternate members of the Audit Committee
elected at the Ordinary and Extraordinary
General Meeting held on April 30, 2010,
six were put forward by the Companhia
Brasiliana de Energia by designation of
BNDESPAR. This indication complies with
item 4.11 of the Companhia Brasiliana de
Energia shareholder agreement, entered
into on December 22, 2003 and filed at
the company head office together with
posterior amendments. Furthermore, an
active member and respective alternate
were elected by the minority shareholders
holding ordinary shares and another active
member and respective alternate were
elected by the minority shareholders
holding preferred shares.
Composition of the Audit Committee* GRI 4.2
president
Ricardo Berer
active members
Marcio Luciano Mancini
Marcus Pereira Aucélio
Roberto Lamb
Sebastião Bergamini Júnior
alternate members
Charles Carvalho Guedes
Kurt Janos Toth
Luiz Ferreira xavier Borges
Manuel Jeremias Leite Caldas
Mauro Thomaz de Oliveira Gomes
Composition of the Board of Executive Officers*
Chief executive officer
Britaldo Pedrosa Soares
vice president and head of
Investor relations
Rinaldo Pecchio Junior
vice presidents
Cibele Castro
Jorge Luiz Busato
Pedro de Freitas Almeida Bueno Vieira
Sheilly Caden Contente
* At December 31, 2010
Board of Executive Officers
The Board of Executive Officers is
responsible for the management of
business and the execution of strategic
decisions made by the Board of Directors
and the resolutions made at the Ordinary
General Meeting, performing its functions
in accordance with the corporate
objective and in strict observance with
the provisions of the company Bylaws. It
is composed of a Chief Executive Officer,
a Vice President and Head of Investor
Relations and four Vice Presidents, with a
three-year term of office, reelection being
permitted. The mandate of the current
members of the Executive Board will end
at the Annual General Meeting which will
discuss the financial and social statements
for the year ending 2012.
The compensation payable to the
members of the Board of Executive
Officers, as well as any benefits of
any nature and representation fees, is
determined by the Annual Shareholders’
Meeting.
The AES Eletropaulo Board of Directors is responsible for the definition of the distributor’s business strategy
17 2010 Sustainability Report
Shareholding composition
Since 2003, the share capital of AES
Eletropaulo has been mostly held by the
direct equity interest of AES Elpa S.A., a
publicly-held company whose controlling
shareholder is the Companhia Brasiliana
de Energia. The total share capital of
the Companhia Brasiliana de Energia is
currently held by the Banco Nacional de
Desenvolvimento Econômico e Social
(BNDES), through its wholly owned
subsidiary BNDES Participações S.A.
(BNDESPAR), and the North American
Company AES Corp., one of the largest
energy generation and distribution groups
in the world, based in Arlington uSA,
which through other directly and indirectly
controlled companies, controls AES
Holdings Brasil Ltda.
SHAREHOLDERS ON % PN % TOTAL %
AES ELPA 51,825,798 77.8% 0 0.0% 51,825,798 31.0%
união Federal 13,342,384 20.0% 258 0.0% 13,342,642 8.0%
Cia. Brasiliana de Energia
0 0.0% 7,434,388 7.4% 7,434,388 4.4%
BNDESPAR 1 0.0% 734,576 0.7% 734,577 0.4%
Others (free float) 1,436,634 2.2% 92,569,848 91.9% 94,006,482 56.2%
TOTAL 66,604,817 100.0% 100,739,070 100.0% 167,343,887 100.0%
Net worth: R$ 3.3 billionCapital stock: R$ 1,057,629,316.47 Number of shareholders: 62,472
Shareholding Composition
AES Corp (USA)
BNDESPAR
AES International Holdings II, Ltd.
AES Cayman Guaiba, Ltd.
AES Guaiba II Empreendimentos
Ltda.
AES Sul
Cia. Brasiliana de Energia
O Common sharesP Preferred sharesT Total
AES Infoenergy
AES Atimus-RJAES
TietêAES
Atimus-SPAES
EletropauloAES Uruguaiana
Inc.
AES Uruguaiana Empreendimentos
S.A.
AES Rio PCH
AES Minas PCH
AES Elpa
AES Holdings Brasil Ltda.
T 99.70%
T 99.99999996%O 99.99999996%
T 99.999989%O 99.999989%
O 98.26%T 98.26% O 77.81%
P 0.00%T 30.97%
O 50.00% -1açãoP 100.00%T 53.85%
O 50.00% +1açãoP 0.00%T 46.15%
O 71.35%P 32.34%T 52.55%
O 99.99%T 99.99%
O 99.99%T 99.99%
O 99.99%T 99.99%
O 99.00%T 99.00%
O 99.99%T 99.99%
O 99.99999992%T 99.99999992%
T 100.00%O 100.00%
T 100.00%O 100.00%
18 2010 Sustainability Report
Ethics and Compliance GRI 4.8
The aim of the Ethics and Compliance
program is to establish the highest possible
ethical standards to AES Group decision-
making, disseminating a culture of best
practices among all the employees and
stakeholders. The activities of the AES
Brasil companies are infused with the
Guia de Valores, (Values Guide) known as
“The AES Values – From Words to Action”,
a document based on the AES Corp.
guidelines which sustains the company’s
corporate governance practices.
As a signatory to the united Nations
Global Compact, which holds among its
principles the fight against corruption, AES
Eletropaulo is committed to do business
with companies and people who adopt
high ethical standards. For this reason
the company needs to know its business
partners through investigations aimed at
identifying their image and reputation as
well as compliance with current national
and international anticorruption legislation.
In 2010, World Ethics Day was promoted
in all the Group companies, under the
concept Ética: quando falta faz falta
(Ethics: when it’s missing you miss it) The
initiative sought to stimulate reflection
on the topic by means of talks, as well
as a message from the AES Brasil CEO,
Britaldo Soares.
Another highlight was the consolidation
of the Ethics Committee, which brings
together top management on a monthly
Commitments GRI 4.12
AES Eletropaulo is signatory to the Corporate Compact for
Integrity and Anti-Corruption, a joint initiative with the Instituto
Ethos, uniethos, Patri, the united Nations Development Program
(uNDP), the united Nations Office on Drugs and Crime
(uNODC) and the Brazilian Global Compact Committee.
The company is also a member of the National Quality
Foundation Ethics Committee (FNQ), whose purpose is to
contribute, together with other organizations in the joint
development of best practices and in the production of material
to assist other companies who wish to make their practices
transparent and trustworthy.
The FNQ bank of best practices includes four initiatives in
the AES Brasil Group ethics and compliance area: the Values
Guide, ethics and compliance training structure, AES Helpline
and the compliance revision process. The Group is considered
a benchmark for including initiatives that go beyond Brazilian
market practices.
19 2010 Sustainability Report
basis to discuss the results of the more
sensitive denouncement investigations,
among other activities.
Training was offered to the employees
(in person or via intranet) with a view
to reinforcing company Values and the
responsibility of each and every one to
encourage and practice these Values.
Some of the policies contained in the
Values Guide were expanded on, gaining a
broader discourse.
All the ethics and compliance initiatives
are based on four pillars:
1. Values Guide – from Words to Action
2. Helpline
3. Training and Education
4. Contractual Compliance Review
Helpline GRI 4.4; SO4
The Helpline is a communication
channel directed at employees and other
stakeholders to clear up doubts, conflicts
and ethical dilemmas as well as denouncing
anti-ethical behavior and illegal or corrupt
business practices. The channel can be
accessed by telephone (toll-free) or by
Internet with service available 24/7.
Queries, suggestions and denouncements
- made anonymously – are treated with
confidentiality, and secrecy is guaranteed
by an outsourced company located in the
uSA, thus ensuring fairness, transparency
and trustworthiness with regard to the
process under inquiry.
All denouncements are analyzed and
investigated by the AES Brasil Ethics
Compliance area, and the most sensitive
cases are taken before the Ethics
Committee. AES Corp. oversees the results
of the investigations and may reopen the
cases if deemed necessary.
In 2010, the Group received a total of
419 calls of which 105 were related to
clarifications and 314 to allegations that
could infringe on the company Values.
Compared to 2009, there was an increase
of 25% in calls, a result of the wide-
reaching efforts of divulgation and training
carried out by the area.
At AES Eletropaulo, of the 324 calls
received, 244 referred to allegations and
80 were requests for guidance. Of the
allegations, 84% referred to behavioral
or policy matters, 9% corresponded to
topics related to business interaction,
5% to workplace safety and 2% to
company property and assets. Of the
requests for guidance, 40% were general
concerns, 30% conflict of interests, 20%
invitations from suppliers and 10% gift
and entertainment policy.
As a Signatory of the uN Global Compact, AES Eletropaulo holds the principle of only dealing with companies that adopt the highest ethical standards
20 2010 Sustainability Report
Training and education 4.6; LA10; SO3
In 2010, the AES Brasil companies carried
out six training initiatives prepared by the
ethics and compliance area. As well as
being part of the new employee induction
process, this training is also present in
specific initiatives that involve not only
employees in all group levels, but also
suppliers. These are:
ethics Disseminators: developed
by AES Corp. along with university of
Virginia – Darden School of Business – this
training stimulates the debate on ethical
dilemmas between employees of all the
company’s areas in order to encourage
open discussion on the theme and support
employees in their decision-making
process, based on the highest ethical
standards. In 2010, 3,599 employees were
trained at AES Eletropaulo.
positive behavior: situations where there
is possibility of conflict of interest and may
be contrary to the company’s Values are
presented in a clear manner. The purpose is
to train every employee every year.
World ethics Day: all AES Group
companies throughout the world
annually promote the World Ethics Day,
in order to strengthen the Group’s Values
practices through discussions, lectures
and educational videos. In 2010, 2,650
employees were trained at AES Brasil.
Induction of new employees: is aimed at
ensuring that new employees know the AES
Values Guide and practice it in their daily
activities, as well as the AES Helpline service.
Contractual compliance review
All low-risk agreements and operations
of the AES Brasil group companies
above the amount of uS$ 100,000
or those that may jeopardize the
company’s image or activities, are
analyzed with regard to the group’s
ethical stance and Values by the Ethics
and Compliance area of the company.
It is a mechanism that seeks to ensure
the integrity of business, monitor the
legal and ethical conduct of business
partners and protect the company
from unethical or illegal situations.
Read more in Suppliers (page 76).
values Guide and aeS helpline: is a
reflection on AES Values and discussion of
some cases. The AES Helpline process is
explained and guidance on its adequate
use is detailed. At AES Eletropaulo, 697
employees were trained.
Certification of the values Guide: in
2010, 100% of AES Eletropaulo employees
formally received the AES Values Guide
and agreed to act in accordance with its
precepts.
anticorruption: the content complies
with the North American Law against
foreign corrupt practices (FCPA – Foreign
Corrupt Practices Act), adopted by the AES
Corp. in all its subsidiaries.
lectures on ethics: held monthly,
encourages debate among employees
at operational bases on situations which
could interfere in ethical behavior and the
company’s Values practices.
21 2010 Sustainability Report
Disclosure Policy
The AES Eletropaulo Disclosure Policy on
Material Information and Securities Trading
provides for the broad and transparent
dissemination of information, in accordance
with the rules issued by the regulatory
agencies of the financial market, such
as the Brazilian Securities and Exchange
Commission (CVM) and BM&FBovespa. The
company’s material facts are disclosed in
order to offer investors the time necessary
to make decisions, as stipulated in CVM
Instruction 358/02.
However, the purpose of the Trading Policy
is to prevent the use of confidential and
inside information in the trading of securities,
thus inhibiting insider trading, also in
compliance with CVM Instruction 358/02.
AES Eletropaulo annually releases its
financial statements in widely-circulated
newspapers containing the analysis of its
operational, economic, environmental and
social performance. This information is also
disclosed in this sustainability report.
Company administrators are prohibited
to intervene in any social operation
involving a conflict of interest with the
company as well as with any deliberations
taken on the matter by the other
administrators, and must agree to advise
of any impediment in the minutes of a
general or executive meeting, the nature
and extent of the interest.
All information of interest to investors,
such as quarterly results, annual results,
material information, press releases,
teleconferences, corporate policies
and other institutional information is
permanently available on the site: www.
aeseletropaulo.com.br/ri.
Audits
Independent Auditors
Ernst&young Terco Auditores
Independentes S.S. is the audit firm
responsible for carrying out the
independent audit of the financial
statements. Pursuant to the provisions set
forth in CVM Instruction 381/03, the audit
firm does not provide any other services,
other than external audit services. The
2010 Ibase Social Report was also audited
by Ernst&young Terco.
Internal Audits
AES Eletropaulo has an internal audit
department which operates in both the
operational and financial areas with the
principal objective of revising and assessing
effectiveness, sufficiency and the application
of accountancy, regulatory, financial, and
operational controls of the company.
Shareholders and Investors GRI 4.4
To communicate with the investors,
AES Eletropaulo uses mainly the Investor
Relations Site (www.aeseletropaulo.com.
br/ri), which brings together the most
relevant information, news results and
company share prices.
In addition, the company also provides
its shareholders with an email (ri.
[email protected]), access to the
site by means of cell phone, an update
alert system sent directly to the e-mail of
the requesting shareholder, an RI page on
Twitter, which also communicates with
diverse sectors of the institution, besides
the quarterly videoconferences open to all
shareholders.
Material information is disclosed opportunely to give investors the necessary time to make decisions, and information of interest is permanently available on the site www.eletropaulo.com.br/ri
22 2010 Sustainability Report
Risk Management GRI 4.11
In 2010 the AES Brasil Group consolidated
the Integrated Risk Management (GIR) with
the introduction of the Risks Management
Committee, the valuation of the main
risks identified by the company and the
management of risks in a single systemic
CATEGORy RISK ACTION
Strategy
Socio-cultural (Image)
The Communication and Social Responsibility area periodically monitors AES Eletropaulo’s image through the consideration of comments from potential opinion makers, which could affect the business and actions plans are prepared to minimize or neutralize impacts.
Ethics and Compliance (reputation)
The Compliance area applies due diligence with respect to proposed business partners, including appropriate compliance terms in agreements, in order to ensure the integrity of the company’s business and the protection of its image.
FinancialEconomic-Financial
The Financial and Investor Relations area periodically monitor changes in the macroeconomic environment, reflected by the financial model adopted by the company, which allows the quantification of any potential impacts affecting the economic-financial equilibrium as well as the establishment of a plan of action aimed at neutralizing and/or minimizing the impact
Operational
TechnologyThe Distribution area proposes an investment plan (CAPEx), helped by the “Asset Management” program, which identifies and prioritizes electricity assets to be substituted and modernized, thus assuring continuity of energy distribution, as well as the establishment of an action plan aimed at neutralizing and/or minimizing the impact.
EnvironmentThe Workplace Safety and Environmental area establishes the strategy that permits the identification and treatment of environmental risks that could potentially affect AES Eletropaulo’s business, with the support of the Environmental Management System.
Regulatory
Regulatory and Political
The Regulatory Affairs area monitors changes in the regulatory and political environments that may affect the business, as well as establishing an action plan to neutralize and/or minimize the impact. As a Preventive measure the Regulatory Affairs area is active in public audiences and consultations, assisting in the evolution of standards that will affect the regulatory environment.
Legal The Legal Affairs area monitors the potential impact that could stem from customer relations, suppliers, the public sector and employees, observing studies relating to legislation, doctrine and applicable case law, whilst offering opinions regarding the situation, its risks and consequences and the legal steps to take.
base, with a vision of its impact on strategy.
The 117 risks that were evaluated were
prioritized according their degree of
exposure and probability of occurring. They
were grouped in four categories (Strategic,
Financial, Operational and Regulatory)
and 59 subcategories; the objective being,
after detailed analysis, to identify the most
relevant risks and to establish adequate
methods of dealing with them, with
oversight and control.
The Group companies are working on four
risk-monitoring indicators: Projects Follow-up,
Outsourcing, Legal and Human Resources.
Risks assumed by AES Eletropaulo in 2010
23 2010 Sustainability Report
Strategy and Management
Prepared for the future
Investment in the refinement of the strategic planning process and in management excellence is the foundation for growth and sustainable business
The starting point of planning is xtrategy: a method of formulating strategy developed by AES Corp. and adapted by AES Brasil.
aES Eletropaulo continually
invests in the refinement of the
strategic planning process and
management excellence. The
starting point of planning is xtrategy: a
method of formulating strategy developed
by AES Corp. and adapted by AES Brasil. The
process analyzes risks and opportunities in
seven stages:
Definition of the business: determines
the business’s field of operation and its
identity, serving to guide the other stages.
Interested parties: identify stakeholders
who can affect the company’s
performance and its expectations
and needs; its comparative references
(RCs) and requisites (RPIs); its level of
satisfaction and whether this is related to
the service attributes.
analysis of scenarios (external and
internal) and risks: qualify the corporate
risks of the business and set up scenarios
from the non-controllable drivers.
pillars of the strategy: define the
elements that will enable the attainment
of the outlined strategy.
analysis of alternatives: verifies the
outcome of each strategic pillar and tries
to visualize the new reality if each pillar
was improved.
high impact projects: actions that,
if executed successfully, fill in the gaps
between the current situation and the
desired situation.
Strategy summary: complements
the Mission and Vision to effectively
communicate the strategy to the
organization.
RPI – Stakeholders’ requisitesExpectations and necessities of the parties which will later be considered for the establishment of organizational targetsRC – Comparative referenceAn appropriate reference to evaluate the level of competitiveness above an attained result in the market, or in the sector of operation, always considering the organization’s strategy BSC – Balanced ScorecardIt can be viewed as a management method that helps companies transform their strategic planning into organized objectives, plans, targets and indicators that allow the periodic monitoring of their performance.
Xtrategy Methodology
1. Definition of the
business
2. Interested parties
(Expectations and Needs)
3. Scenarios and Risk Analyses
4. Pillars of Strategy
(Develop)
5. Analysis of alternative strategies
6. High impact projects
7. Strategy Summary
(Each business in Brazil
Field of operation and
identity
Shareholders, Customers, Employees, Community,
Suppliers, Regulatory Bodies
Qualify and quantify the risk profile
Elements to attain strategies,
including assets and intangibles
Study of probabilities and
parameters
Business levers
The strategy of each of AES Brasil’s different businesses is aligned with the Group’s general planning cycle. Strategic plans are drawn up annually with perspectives for the next five years. The planning cycle is annual and is structured in six steps, which are in turn
organized in two junctures (figure below): strategy formulation (steps 1 and 2) and strategy execution (steps 3 to 6). The process includes periodic evaluation of the performance and operational plan (steps 4 and 5), which defines the necessity for five-yearly adjustments.
RPIs RCs
25 2010 Sustainability Report
StrateGy anD ManaGeMent
In 2010, multidisciplinary working
groups were installed to assess risks and
opportunities of the Group’s different
businesses. Based on this analysis, the main
strategies of each business were validated
and the implementations carried out.
The deployment occurs at the
implementation of the strategies within
the short term, by means of a strategic
map, which is guided by the organizational
Mission, Vision and Values and contains the
objectives, targets, plans of action together
with the respective operational budgets
(Opex) and investment (Capex).
Learning Map
Adopted by AES Eletropaulo in 2008, the
concept of the Learning Map is aimed at
encouraging dialog and building a shared
understanding of strategy and how,
individually all employees contribute with
their respective efforts and achievements.
Thereupon, it became possible to maximize
communication and the understanding
of the strategy with the employees, in
line with the concepts of the Balanced
Scorecard. The solution consists of the
application of a clear methodology, which
translates the strategy into a common
language to all employees, from the
leadership to the workforce which interacts
with the customers.
Formalized Commitment
To involve employees in the company’s strategy is key to
ensuring everybody’s commitment and dedication. In this
way, as well as disseminating strategy through training
sessions, talks and staff meetings, AES Eletropaulo uses the
management agreement: a document signed by the company
and the employees which formalizes the commitments, and
links, together with the administration of performance, targets
for variable remuneration thus providing a high performance
workplace.
This project is currently being applied from executive positions
upwards. The forecast is that it will soon reach all the other
positions in the group.
1st Step
6th Step 3rd Step
5th Step
2nd Step
Group Strategy- Mission, Vision and Values- Xtrategy- Strategy Formation
learning and revision- Cause and Effect Analysis- New strategies- Key Process Improvements
organization alignment- Administrative Contracts- Communication to Employees
performance evaluation- Strategy Revision- Operational Plan Revision
business Strategy- Goals, Indicators- Projects and Strategic Initiatives
1st
3rd 5th
2nd
4th 6th
…..Where and What we will do!
…How, When, How much and Who will do it!
Strategy Formulation
Strategy Execution
4th Step
operational planning: allocation plan- OPEX and CAPEX- Objectives and Goals by Area
26 2010 Sustainability Report
The National Quality Foundation guidelines are used to diagnose and refine the AES Eletropaulo management model
Management Excellence
AES Eletropaulo has adopted the
Management Excellence Model (MEG),
from the National Quality Foundation,
as a tool to diagnose and enhance its
management model.
The culture of excellence is strengthened
through the following management
practices:
Dissemination of values
• Safety first
• Act with integrity
• Honor commitments
• Seek excellence
• Fulfillment at work
Management System
A series of monthly meetings, with
the purpose of evaluating the success of
strategies and plans, by promoting the
cultural changes necessary to achieve
the planned operational performance,
to accomplish the mission and fulfill
the vision. The system includes the
committees: human resources, safety,
ethics, customers, investment, R&D and
energy efficiency.
Cultura Apex (aeS performance
excellence)
The AES Excellence Program is a
structured set of quality methodologies
and tools that can be used to improve
business processes and identify solutions
for various kinds of problems through
projects. Apex tools are applied within
diverse contexts and situations relating
to operations, finance, customer services,
among others.
All projects developed within the scope
of Apex are evaluated annually at an
international event on recognition and
learning sponsored by AES Corp.
learning organization (Organização
que Aprende)
For AES Eletropaulo, the continual
learning process symbolizes the origin of
the concept of the creation, acquisition,
transfer and retention of relevant
knowledge and, at the same time,
offering people a learning experiences,
in particular the work groups: Apex,
round table, work management, asset
management, among others.
The company, through the consolidation
of such an approach, directs its actions
to the challenges represented by the
pillars of growth, financial and operational
excellence, brand and reputation, talent
and culture, in line with the prospects in
the strategic map: financial, customers
and society, internal processes, people
and culture.
Management tools
• balanced scorecard (bSC): a
methodology model which allows the
conversion of the strategy into strategic
and specific goals, and to monitor the
company’s performance.
• Management contracts: deployment
of the strategy at the level of the areas,
aligning the efforts and formalizing the
commitments by means of a document
that contemplates all strategic indicators
under the management of each
executive office.
• FnQ Management excellence Model:
systemic and structured management
diagnosis mechanism which allows the
verification of the level of maturity of
management and the adoption of the
principles of excellence found in world
class companies.
• benchmarking Model: a system of
comparison with the best companies
both within and outside the sector which
permits the adoption of best practices in
the business and support processes.
• Internal committees: aimed at defining
labor standards by identifying continuous
improvement and cost reduction
opportunities, prioritizing the quality and
exchange of experiences in the solution of
problems. The key processes involved refer
to the respect and development of people
and labor, asset and revenue management.
27 2010 Sustainability Report
Dialog with the Stakeholders GRI 4.14; 4.15; 4.16; 4.17
In order to establish an engagement
process with its stakeholders and improve
the sustainability process reporting, in
September 2010, AES Brasil held its II Cycle
of Dialog with its stakeholders. Present were
representatives from employees, residential
and corporate customers, public authorities
and society, totaling 130 people.
Mediated by the company with the
help of the the specialized consultancy
Lume, the participants analyzed the 2009,
sustainability report, expressing opinions
and proposing improvements for the
next editions. Among the main topics
covering this publication, the following
stand out: integration of the company’s
social responsibility projects; description of
the main challenges and impacts; putting
information in the correct context and the
inclusion of targets.
The event also proposes to align
and deepen knowledge of AES Brasil’s
sustainability, define material themes,
specifically the ones with the most relevance
to the business or the stakeholders – and
present opportunities for management
improvements within these themes.
Intangible Assets
In order to keep the non-accountable
intangible assets aligned with corporate
strategy, AES Eletropaulo has as its disposal
a series of mechanisms that permit the
renovation of knowledge, attraction and
retention of personnel and development
of communities, as well as product and
process innovation.
Non-accountable intangible assets are
identified and evaluated according to
the market (new services, demand and
integrated solutions), technological (new
equipment and business process) and
administrative trends (management model
and human resources demand). Based on
this analysis, intangible assets are classified
as follows:
• human: skill, experience and knowledge.
The development and retention of talented
people are decisive to the company’s growth.
AES Eletropaulo has plans and programs that
aim at providing employees with tools for
their professional development.
• Market: brand, customers and
relationships. The company’s reputation and
perception by customers are at the core of
work developed since 2009, involving the
repositioning of AES Brasil brand.
• Infrastructure: diverse systems and
customer database. Investments in
systems and tools aiming at improving
services are made on annual basis.
• technology: research and development,
processes and products, investments in
R&D projects and modernization of the
distribution grid and products on offer are
made on annual basis.
Public CommitmentsGRI 4.12; 4.13; HR7
AES Eletropaulo is a signatory of the
Global Compact and promotes the
eight Millennium Goals, both initiatives
of the united Nations (uN). The first
encourages the corporate community
to adopt, sponsor and promote the ten
basic and universal human rights, labor
practices, environmental, corruption and
bribery prevention principles. Signatories
are invited to adopt the ten principles in
the conduction of business and activities
and annually report their progress to
the uN and to society. The Millennium
Goals, known in Brazil as the Eight Ways
to Change the World, defined eight
measures targeted at hunger and poverty
eradication, universal education, gender
equality, child mortality reduction and
maternal health, the combat of AIDS
and other diseases and environmental
sustainability.
In 2010, the AES Brasil Group signed a
National Compact for the eradication
of slave labor in Brazil. In addition, new
suppliers can only be accredited on the
condition that they present documenta-
tion and attestations, as well as a consul-
tation with the Ministry of Labor, in order
28 2010 Sustainability Report
to certify that the supplier is not listed as
an employer of slave labor. The company
publicly demands the same posture from
its suppliers.
AES Eletropaulo adheres to the Corporate
Compact for Integrity and Anticorruption,
participates in discussions with civil socie-
ty regarding its operations and encourages
corporate citizenship. The company main-
tains relations with the following:
• Associação Brasileira de Distribuidores
de Energia Elétrica (the brazilian
association of electric power
Distributors) - abradee: contributes to
the operational and financial-economic
excellence of concessionaires, focused on
customer service.
• Sindicato da Indústria de Energia no
Estado de São Paulo (energy Industry
union of the State of São paulo) -
Siesp: studies, coordinates, protects and
represents the agents of the energy sectors
in the State of São Paulo.
• Grupo de Institutos, Fundações
e Empresas (Group of institutes,
Foundations and Companies) - Gife:
promotes private social investment, by
disseminating concepts and practices
relating to the use of private resources in
projects focused on the development of
the common good.
• Instituto Ethos de Empresas e
Responsabilidade Social: (ethos Institute
of Companies and Social responsibility):
assists companies in incorporating the
concept of social responsibility in their
management, through a process of
continual evaluation and improvement.
• Fundação Abrinq (abrinq Foundation):
aims at mobilizing society towards issues
related to child and adolescent rights.
AES Eletropaulo participates in the Child
Friendly Company Program (“Programa
Empresa Amiga da Criança”), which
encourages private social investment in
initiatives on behalf of the children and
adolescents.
• Grupo + Unidos: a partnership between
the u.S. Diplomatic Corps in Brazil and
u.S. companies established in Brazil,
whose objective is to showcase the
investment that member companies make
in environmental, social and economic
development projects and to promote
corporate social responsibility within
diverse segments of society.
29 2010 Sustainability Report
Safety
Our top priorityIn 2010, the re-structuring of the safety team and the implementation of new standard programs at AES Eletropaulo reduced the total number of accidents among employees and outsourced workers by 13%
IGRI LA6; LA7
n 2010, the re-structuring of the
safety team and the implementation
of new standard programs at AES
Eletropaulo reduced the total number
of accidents among employees and
outsourced workers by 13%
In 2010, AES Eletropaulo reduced by 13%
the number of accidents involving employees
and outsourced workers, registering 150
cases, compared to 173 in 2009. Besides
the statistical reduction it was noted that
gravity of the accidents was in general lower
than the previous year, albeit with one
company employee fatality in 2010. Such
data demonstrate that the safety strategy is
consolidated and is following the tendency
of continual improvement. The target for
2011 is to reduce the rate of accidents
by 10% among company employees and
outsourced workers.
This development is owed mainly to
the restructuring of the safety team and
the implementation of the AES Corp.
safety standards, from the qualification
of leaders, weekly safety training courses
and new procedures. The Occupational
Safety Management is charged with
dissemination knowledge on procedures
and rules and to offer all the technical
support and infrastructure. At the end of
2010, the 28th “Leader in Action” class
was held – with team leaders, in order
to exchange information on the results
obtained and their causes, sector trends
and proactive and reactive initiatives.
The safety strategy also includes
the search for references, tools and
technologies considered as safety
benchmarks in other sectors. An example
is the Task Card idea, inspired by an
obligatory practice in aviation, which
consists of a list of diverse safety items
that need to be observed before a task is
begun. All linemen carry out a check list.
There has also been growth in the number
of team inspections in the field, which
started at 1,200 per month in 2009 to
3,200 per month in 2010.
The organization also maintains two
formal safety committees: The AES Brasil
Committee on Occupational Safety and the
AES Eletropaulo Regional Committee, which
represent 100% of the employees’ interests.
Number of accidents with outsourced workers GRI LA7
35
2010
Number of accidents with own employees GRI LA7
201020092008
Fatal accidentsAccidents with loss
of working daysAccidents without los
of working days
OCCuPATIONAL SAFETy AND HEALTH 2008 2009 2010
Average overtime per employee/year 164 228 189
Total number of occupational accidents with employees 68 56 63
Total number of occupational accidents with outsourced workers 105 117 87
Average occupational accidents per employee/year 0.016 0.012 0.011
Accidents resulting in temporary absence of employees and/or outsourced workers (%) 21.38 26.58 38.93
Accidents that caused mutilation or other injuries to employees and/or outsourced workers, resulting in permanent absence of job (including RSI) (%)
0.57 0.00 0.67
Accidents that resulted in death of employees and/or outsourced workers (%) 0.57 1.73 0.67
Total company's Frequency Rate for the period - employees 7.71 6.22 6.55
Total company’s Frequence Rate for the period – outsourced employees 9.64 9.98 5.26
Company’s Severity Rate for the period - employees 71 51 672
Company’s Severity Rate for the period - employees - outsourced employees 1,025 1,649 349
Frequency rate: accidents resulting in time off per million man hours of risk exposure during a period of one year. Gravity rate: days lost due to accidents per million man hours of risk exposure during a period of one year.
2008
57
11
2009
43
1327
11326
78
33
81
56
31
31 2010 Sustainability Report
SaFety
Pro-active company
In 2010, AES Eletropaulo received the
results of the SMS (Safety Management
Systems) audit, carried out by the AES
Corp. team. The SMS measures the level
of adherence to the Safety Management
System, in which, on a scale of 0 to 100,
the company scored 68.95%. This means
that the company has a “pro-active”
system of safety, capable of applying
risk-prevention actions with efficiency.
A positive result but still leaves room for
improvement. The next step is to reach the
level of “safety promoter” which means,
more than a set of norms and procedures,
safety becomes a lifestyle.
Safety policy
Created in 2009, The Occupational
Health and Safety Management System
(SGSSO) is the tool that guides AES
Eletropaulo in the evaluation and
identification of risk situations and the
improvement of health and safety in
the workplace. It consists of a set of
procedures that guide and coordinate
the health and safety actions of the
employees, with the aim of identifying,
controlling and reducing situations that
could cause accidents. Its guidelines are
periodically updated to keep them aligned
with operational activities and conditions.
At AES Eletropaulo, the SGSSO
requisites are based on the OHSAS
18001 (Occupational Health and Safety
Assessment Series) and the AES Corp.
standards, both of which offer guidelines
for the implementation of a management
system which establishes and maintains
a methodology to identify, evaluate and
deal with risks. The commitments made by
the company in the Integrated Policy on
the Environment and Occupational Health
and Safety were also determinant. AES
Eletropaulo’s target is to certificate all the
company sectors with the OHSAS 18001,
by 2012.
*���The OHSAS 18001 is a Management System focused on occupational health and safety that allows the company to systematically control and improve the performance of its requirements.
C) SECuRITy IN THE CONSuMERS’ FINAL uSE OF ENERGy 2008 2009 2010
SR (Severity Rate) for accidents with third parties for electric shock on the concessionaire's network 126 134 85
Number of improvements implemented to offer safer products and services 3 4 5
The Occupational Health and Safety Management System is based on OHSAS 18001 specifications and AES Corp. standards
32 2010 Sustainability Report
Union Agreements GRI LA8; LA9
The organization maintains formal
agreements established with unions,
regarding employees’ health and safety,
which cover topics such as hazard pay; sick
pay and accident caused sick pay premium;
health and dental care assistance; special
indemnification (life insurance); and a two-
year job stability term, starting one year
after the termination of the mandate for
members of the Internal Commission for
PRACTICES METHODOLOGy OBJECTIVES
Risk and Hazard Identification Spreadsheet
Systemic analysis of all existing tasks, classifying them as to their severity and establishing controls to mitigate their risks.
Enable a global vision of existing hazards and risks in the company, strategically establishing the control actions to be adopted.
Preliminary Risk Assessment (APR)
Preliminary risk analysis technique involving personnel, equipment, materials and working environment.
Promote and encourage teamwork and personal responsibility.
Risk Assessment and Safety Measures (ARMS)
Preliminary critical risk analysis technique on activities (no procedures in place).
Analyze critical risks, procedures and adequate control measures.
Documented Planning Definition of the execution sequence for programmed disconnections. Control risks and divulge safety measures.
Preliminary Analysis of Occupational Hygiene (APRHO)
Draw up a survey on chemical, physical and biological risks to which employees are exposed to.
Control risks in a systemic manner.
Hazard Reports (RP) Identify damage potential in planned or unplanned situations. Reduce accidents and adopt control measures.
Accident Prevention (CIPA).
Some additions to the agreements are
also maintained, such as the Internal
Week for the Prevention of Work-Related
Accidents (Sipat), Pension Background
Profile (PPP), Environmental Risk-
Prevention Program (PPRA), Ergonomic
Reports, Occupational Health Medical
Control Program (PCMSO), Emergency
Brigade and the implementation of norms,
OHSAS 18001:2007.
Risk identification practices
the Safety Game
One of the tools for disseminating
risk-prevention concepts was a hit
in 2010: the game of safety. It is a
creative and pioneering tool which
uses the virtual environment in an
explicit way to provide the lineman
with an opportunity to test his own
knowledge on the importance of good
planning and to comply with the rules
and procedures in order to ensure
safe working conditions. Introduced
in 2009, the game has been played
by 7,600 own and outsourced
employees.
33 2010 Sustainability Report
Public safety GRI Eu24; Eu25
In 2010, AES Eletropaulo changed the
method of communication with the public,
seeking to reduce the number of accidents
and fatalities in its concession area.
In common with other energy sector
companies, AES Eletropaulo faces a major
social problem regarding accidents on
the power grid, inasmuch as most of
these accidents are the result of irregular
building work in low income communities,
which do not respect the safety zone of
the power grid.
To direct the publicity campaigns
with more appropriate messages to
this segment of the population, AES
Eletropaulo commissioned an ethnographic
survey with the purpose of identifying
habits, lifestyle and the relationship of this
segment of society with the electricity
network, evaluating their awareness of the
risks and verifying the effectiveness of the
publicity campaign.
Based on these results, the company
changed the focus of the mass media
safety campaigns, adopting a more
direct strategy with a stronger emotional
emphasis, showing the consequences of an
accident on the power grid.
As well as utilizing mass media
(especially TV, radio, and mass transit)
which reaches 16.5 million people,
the company offers talks in schools,
neighborhood associations, companies and
churches. In 2010, around 330 thousand
people participated in the talks.
Considering that the majority of accidents
are related to construction work (do-it-
yourself house building), in low-income
communities, AES Eletropaulo launched
Operation Zero Accidents, a safety blitz
consisting of site visits to disseminate
information on the risks of electric energy
and on safe procedures and the right
attitude when working close to power lines.
This initiative reached over 6.2 thousand
people and was renewed in January 2011.
Between 2007 and 2010, the number of
accidents among the population fell by
53%. In 2010 there were 23 fatalities. The
company’s target for 2011 is to reduce the
number of fatalities among the population
by 30%.
Other initiatives
Throughout the year, AES Eletropaulo
has maintained campaigns in the most
diverse media outlets, both traditional and
alternative, focusing on the safe use of
electricity. The following are some of the
main initiatives:
Two other stand-out social projects which
focus on awareness-raising on the safe use
of electric energy are AES Eletropaulo in
the Community and AES Eletropaulo in the
schools. Read more on page 90.
To watch the videos sponsored by AES
Eletropaulo in the media, log on
www.youtube.com/aeseletropaulo.
COMMuNICATION INITIATIVES COVERAGE
Stickers on posts with safety messages 10 thousand stickers glued to posts in the municipalities of Barueri, Embu-Guaçu, Embu, Jandira, Santo André and São Bernardo do Campo
Information on pizza boxes 30 thousand families
Pamphlets in company supplied food hampers 230 thousand families
Company communication channels The channels of communication and service are widely used throughout the year to divulge the risks of the electric grid (electricity bills, customer service stores and the franchised network. A Twitter page and videos on youtube)
34 2010 Sustainability Report
Economic and Financial Performance
Evolution by numbers
Bolstered by a 36% increase in cash flow generation in relationto 2009, net income rose by R$ 191.2 million in 2010,to a total R$ 1.3 billion.
In 2010, gross operating revenue was
R$ 14.7 billion, up 10.4% on the figure
for the same period in 2009, due to
an adjustment in the tariffs - made
annually in July – and to a 2.9% captive
market expansion.
Operating expenses grew 4.9% over
2009, which contributed towards the
strong 35.9% growth of in cash flow
generating capacity.
These factors likewise fostered the
16.5% increase in net profit reported by
AES Eletropaulo, to a total R$ 1,347.7
million in the year.
In 2010, the average impact of tariff adjustment perceived by consumers was 1.62% as against 13.03% in 2009
CONSOLIDATED IFRS (R$ THOuSANDS) 2009 2010 CHANGE
Gross revenues 13,331. 1 14,731.7 10.4%
Net revenues 8,785.6 9,697.2 10.4%
Operating costs and expenses 6,430.5 6,745.0 4.9%
EBITDA 1,775.4 2,412.8 35.9%
Financial income 270.4 103.0 - 61.9%
– Financial revenues 498.1 274.5 - 44.9%
– Financial expenses (227.7) (171.5) -24.7%
Pre-tax Income 1,477. 3 1,943.3 31.5%
Net profit 1,156.6 1,347.7 16.5%
Adoption of IFRS
AES Eletropaulo’s 2010 financial
statements have been drawn up using the
International Financial Reporting Standards
(IFRS) established by the International
Accounting Standards Board (IASB).
Among the resulting effects of applying
IFRS on taxable income, we highlight:
• Fair value was adopted as the initial fixed
assets measurement, which increased the
company’s depreciation costs. These are
now based on the economic life of the
assets instead of on their fiscal useful life;
• Amortization of intangible assets
representing the company’s right to
charge consumers for use of infrastructure,
improvement and expansions made in its
concession area up to 2028;
• Obligations and rights arising from
benefit plans (AES Corp. stock options)
extended to executive officers are being
recognized in shareholders’ equity.
Publication of financial statements
according to International Financial
Reporting Standards (IFRS) became
compulsory as of December 31, 2010.
2010 results - highlights
36 2010 Sustainability Report
eConoMIC anD FInanCIal perForManCe
Operating revenues
The 10.4% increase in gross revenues to
R$ 14.7 billion in 2010 is due to a year-
over-year 2.9% growth in the captive
market, the annual tariff adjustment made
in the month of July and an accretion of
R$ 177.5 million due to the recognition
of building revenues as established in
IFRS. These revenues are related to works
executed to meet customer demands
and have a counter entry to costs, which
means that they had no effect on the
company’s profit.
Operating revenue deductions rose by
10.4% in relation to 2009, to a total R$
5.0 billion. The rise is due to an increase in
charges resulting from the year-over year
stepping up of energy supply revenues,
as well as charges related to the Fuel
Consumption Account (CCC) and Energy
Development Account (CDE).
As a result of these changes, AES
Eletropaulo’s net operating revenues
amounted to R$ 9.7 billion in 2010, higher
by R$ 911.5 million than in 2009.
Operating Costs and Expenses
In 2010, operating expenses amounted
to R$ 6.7 billion, 4.9% or R$ 314.2 million
over the figure reported in 2009.
operating Costs: the cost of purchased
energy rose by 5.0% in 2010, due to a
greater volume and higher average price of
purchased energy. In 2010, disbursement
made to pay for the use of the power and
transmission grid was higher by 16.3%
over the level in 2009, particularly due to
increased System Service Charges (ESS).
personnel: personnel costs and expenses
fell by 7.5% as a result of a reduction in
payments into the private pension plan
and for labor settlements and awards.
This reduction more than made up for the
added personnel expenses and charges,
due mainly to the annual collective
bargaining agreement, the hiring of the
previously outsourced 1,200 bill deliverers
and meter readers, and the ending of
central management cost sharing and
of the recognition of post-terminations
medical health plans.
other operating expenses: this set of
expenses dropped by 34.9% to R$ 165.4
million in 2010, down R$ 88.7 million in
relation to 2009. The main highlight is the
reverse entry of R$ 86.9 million related to
the document signed with Fundação CESP,
recognizing the latter’s sole legal liability
for paying supplementary pension and
retirement benefits resulting from claims.
Other Revenues and Expenses
In 2010, other revenues and expenses
netted a total R$ 539.4 million in expenses,
as against a net expense of R$ 579.6 million
in 2009. The following four factors explain
the R$ 40.2 million decrease:
• the nonrecurring positive effect of
the settlement related to the transfer of
OPERATING ExPENSES (R$ MILLION) 2009 2010 CHANGE
Electric energy purchased for resale 4,148.0 4,353.8 5.0%
Transmission 976. 5 1,135.9 16.3%
Personnel 699.9 647.1 -7.5%
Outsourced services 321.5 406.9 26.6%
Materials 30.4 35.8 18.0%
Other 254.2 165.4 -34.9%
37 2010 Sustainability Report
Eletropaulo Telecomunicações Ltda. quotas
to Companhia Brasiliana for a total R$
265.4 million in June 2010;
• the nonrecurring negative effect
caused by the sales of assets prompted by
agreements made with SPTrans and EMTu
in 2010, totaling R$ 41.0 million;
• increased expenses related to execution
of works of R$ 177.5 million, which are
now posted to other operating expenses,
according to IFRS and CPC 17. This total
is offset by other receipts of equivalent
value; and
• an assets write-off of R$ 31.1 million
after the closing of the physical assets
inventory in 2010.
EBITDA – (acronym for income
before interest, taxes, depreciation and
amortization).
EBITDA in 2010 amounted to R$ 2.4 billion,
up 35.9% over the 2009 figure. The main
contributing factors to this increase were
market growth, increased tariffs, the positive
effect of the R$ 265.4 million financial
settlement of AES Eletropaulo Telecom
quotas and the reverse entry related to
additional retirement payment claims.
Financial Result
In 2010, the company posted R$ 103.0
million in financial income, down R$ 270.4
million on the figure recorded in 2009.
The main reasons for this change were:
the effect of the company’s adhesion to
the REFIS program (Federal Taxes Term
Payment Program) in 2009, which caused
a R$ 275.3 million impact to financial
income, partially offset by a total income
of R$ 106.3 million in 2010, resulting from
the end of discussions on the agreement
entered into with Banco Santos.
Net Income
In 2010, the company registered a net
income of R$ 1.3 billion, which represents
an increase of R$ 191.2 million. This
performance is mainly explained by the
positive effects of the R$ 175.1 million
settlement of the AES Eletropaulo Telecom
quotas and of the agreement made with
Banco Santos’ bankruptcy estate. The
adoption of IFRS accounted for the R$
161.5 million increase in net profit in 2010
and R$ 93.3 million in that of 2009.
Shareholder Remuneration
AES Eletropaulo’s management proposed
to pay out the full legally established 25%
dividend payment (R$ 1.5 billion) in 2010
by way of dividend payments and interest
on net equity, corresponding to 114.4% of
the year’s net profit. This distribution was
approved by the Ordinary General Meeting
(AGO) held on April 29, 2011, which also:
• Ratified intermediary dividend payments
related to the first half of 2010, which were
paid on September 15 and December 7,
2010, totaling R$ 625.5 million
• Ratified payment of interest on net
equity, as resolved at the Board of Directors’
meeting held on December 2, 2010
AES Eletropaulo’s net profit in 2010 was R$ 1.3 billion, surpassing the 2009 result by R$ 191.2 million
38 2010 Sustainability Report
• Approved the proposal on supplementary
dividend payments related to the net profit
posted in the second half of 2010
The company’s 2010 dividend payment
base was increased by R$ 322.6 million as
a result of the adoption of IFRS.
In 2010, total dividends proposed by
the company’s management came to R$
1,469.1 million and interest on net equity,
to R$ 72.8 million. Together this means R$
8.69 for every common share and R$ 9.56
for every preferred share.
Total Debt
In compliance with Law No. 11,638,
the Company included leasing and rental
contracts in the total debt balance under the
heading Leasing. These agreements stepped
up the debt balance by R$ 16.3 million in
2009 and R$ 15.4 million in 2010. However,
for assessment purposes, these figures were
not considered in the total debt.
The company’s gross debt at the end of
2010 amounted to R$ 4.1 billion, up 4.5%
on the level reported in December 31,
2009 (R$ 3,940.2 million). The R$176.0
million rise in gross debt was due to two
debenture issues in April and May 2010,
in the sum of R$ 800 million, with these
issues being designed to amortize Real-
denominated bonds worth R$ 474 million
and to finance part of the company’s
investments in that year.
At the closing of 2010, cash equivalents
totaled R$ 1.7 billion, higher by R$ 415.2
million than in the same period of 2009, due
mainly to the aforementioned debenture
issues and the settlement of the sale of AES
EP Telecom in the second quarter of 2010
for R$ 265.4 million. Net debt was R$ 2.4
billion at December 31, 2010, down 8.9% on
the prior end-of-year figure (R$ 2.7 billion).
The growth in cash equivalents more than
compensated for the increase in gross debt.
The average cost of AES Eletropaulo’s
total debt dropped from CDI + 1.35% p.a.
at December 31, 2009 to CDI + 1.10% p.a.
at year’s end in 2010. This drop is due to
the settlement of Real-denominated bonds
on June 28, 2010, totaling R$ 474 million
at the cost of 19.13% p.a., which was
partially offset by a higher IGP-DI reported
in the period (-0.26% on December 31,
2009 and 0.69% on December 31, 2010).
The debt owed to Fundação CESP is
adjusted for inflation based on the IGP-DI
(General Price Index-Domestic Availability).
The average debt maturity period was
extended from 7 years on December 31,
2009 to 7.2 years on December 31, 2010.
Investments
AES Eletropaulo invested a total R$ 682.3
million in 2010, 32.3% more than the
amount invested the year before. The sum
of R$ 28.1 million out of the year’s total
investments referred to projects financed
by consumers and R$ 654.1 million were
for projects financed by the company itself.
In 2011, the company estimates that it will
be investing R$ 739.7 million, R$ 35.9 million
of which will be funded by customers.
39 2010 Sustainability Report
Main Investments
System expansion and consumer
service: R$ 348.1 million, R$ 131.6 million
of which were allocated to meet the
needs of an additional 179 thousand new
consumers. The remaining R$ 216.6 million
were invested in the ongoing projects of
the Anhanguera–Casa Verde underground
Transmission Line and the Parque
Ibirapuera underground Distribution Line,
with a view to improving the quality of
energy supply, and services provided to
approximately 1.2 million inhabitants.
loss recovery: R$ 63.8 million were
invested to make 55.5 thousand connections
legally compliant and to correct 35.6
thousand irregularities identified as a result
of monitoring frauds and anomalies. In
addition, a total of 141.9 thousand obsolete
meters were replaced in 2010.
Maintenance: R$ 186.4 million were
invested in 3,265 km of network aimed at
upgrading subtransmission, automating
the power system, modernizing the
underground system and purchasing/
replacing field equipment.
INVESTMENTS (R$ MILLION) 2009 2010 CHANGE
Consumer service and system expansion 226.2 348.1 53.9%
Maintenance 120.7 186.4 54.4%
Loss recovery 76.1 63.8 -16.1%
Information technology 25.8 28.0 8.5%
Other 29.5 27.8 -5.5%
Total invested by company 478.3 654.1 36.8%
Total funded by customers 37.4 28.1 -24.7%
TOTAL 515.7 682.3 32.3%
AES Eletropaulo invested R$ 682.3 million in 2010 and the forecast for 2011 is R$ 739.7 million
40 2010 Sustainability Report
Capital Market
AES Eletropaulo’s preferred class B (ELPL6) shares were merged
with its preferred class A (ELPL5) shares and started to be traded
under ticker ELPL4, all under the single name of preferred shares, as
approved by the Extraordinary General Meeting held on December
20, 2010. Thus, in addressing the company’s preferred shares, the
history of the ELPL6 ticker has been taken into account.
In 2010, AES Eletropaulo’s common shares (ELPL3) closed the
year at R$ 30.01, down 9.0%, whereas its preferred shares (ELPL4)
closed the year at R$ 32.11, down 6.8%. In this same period,
IBOVESPA registered an appreciation of 1.0% and IEE of 12.0%.
The company’s preferred shares (ELPL6) were traded at all of the
BM&FBovespa’s trading sessions in 2010. Liquidity data showed a
total 503,158 transactions, involving 179.3 million preferred shares,
with a reported daily average trading volume of R$ 24.5 million on
the spot market in 2010. Its common shares were traded in 34 of
the 247 sessions, in which 67 transactions were conducted involving
some 10.1 thousand common shares with a reported daily average
trading volume of R$ 1.7 thousand In December 31, 2010, the
company’s market value was estimated at R$ 5.2
ECONOMIC - FINANCIAL OVERVIEW GRI EC1 2008 2009 2010
GENERATION OF WEALTHR$
THOuSANDS% CHANGE %
R$ THOuSANDS
% CHANGE %R$
THOuSANDS% CHANGE %
Gross operating revenue from energy sales and services
12,388,837 - 5.23% 13,069,761 - 5.50% 14,764,807 - 12.97%
Energy supply 4,983,813 100% 7.06% 5,404,254 100% 8.44% 6,006,228 100.00% 11.14%
Residential 4,960,602 99.53% 2.02% 5,536,582 102.45% 11.61% 6,111,628 101.75% 10.39%
Residential - low income - 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00%
Commercial 3,356,622 67.35% -0.42% 3,639,110 67.34% 8.42% 3,940,951 65.61% 8.29%
Industrial 1,978,433 39.70% 1.54% 1,922,232 35.57% -2.84% 2,046,940 34.08% 6.49%
Rural 3,695 0.07% 3.41% 2,209 0.04% -40.22% 3,297 0.05% 49.25%
Lighting 151,645 3.04% -3.68% 163,694 3.03% 7.95% 171,307 2.85% 4.65%
Services 144,563 2.90% 1.72% 150,641 2.79% 4.20% 164,035 2.73% 8.89%
Public Authorities 341,865 6.86% -2.14% 366,193 6.78% 7.12% 399,153 6.65% 9.00%
Other (Amortization of RTE - Extraordinary Tariff Recomposition, unbilled, etc.)
160,401 3.22% -134.85% 74,477 1.38% -53.57% 71,532 1.19% -3.95%
Transfer to the distribution activity
(6,114,013) -122.68% 6.92% (6,450,884) -119.37% 5.51% (6,902,615) -114.92% 7.00%
41 2010 Sustainability Report
ECONOMIC - FINANCIAL OVERVIEW GRI EC1 2008 2009 2010
GENERATION OF WEALTHR$
THOuSANDS% CHANGE %
R$ THOuSANDS
% CHANGE %R$
THOuSANDS% CHANGE %
Energy supply (short-term energy)
3,945 - -90.64% 30,019 - 660.94% 119,048 - 296.58%
Availability of the transmission and distribution system
6,676,315 - 6.07% 7,184,309 - 7.61% 7,674,591 - 6.82%
Other operating revenues 86,462 - -72.51% 122,416 - 41.58% 134,535 - 9.90%
(Provision) reversal for bad debt provision
(34,106) - 127.72% (261,337) - 666.25% 51,115 - 119.56%
Other revenues and (expenses)
131,323 - -245.14% - - - - - -
Remuneration of financial assets
- - - 58,930 - 0.00% 70,582 - 19.77%
Revenue for construction of own assets
541,085 - 24.44% 531,170 - -1.83% 708,708 - 33.42%
yEAR 2008 2009 2010
(-) INPuTS R$ thousands Change % R$ thousands Change % R$ thousands Change %
(-) INPuTS (inputs acquired from third parties: purchase of energy, materials, third party services, etc)
6,348,269 7.19% 6,514,384 2.62% 7,194,241 10.44%
Materials 37,194 21.15% 31,252 -15.98% 36,786 17.71%
Other operating costs 293,475 -55.13% (8,775) -102.99% (5,727) -34.74%
Cost of energy purchased and transmission
5,170,121 14.44% 5,628,849 8.87% 6,038,929 7.29%
Third party services 306,394 7.44% 331,888 8.32% 415,545 25.21%
Construction of own assets 541,085 24.44% 531,170 -1.83% 708,708 33.42%
Depreciation and amortization
369,096 11.69% 497,592 34.81% 499,725 0.43%
(=) Value added produced by the company, net
5,671,472 2.73% 6,057,785 6.81% 7,070,841 16.72%
(+) Value added received on transfer (financial revenues, equity in earnings/loss in subsidiaries)
403,998 41.47% 498,114 23.30% 274,469 -44.90%
Equity in earnings (losses) in subsidiaries
0 100.00% 0 0.00% 0 0.00%
Financial revenues/expenses 403,998 15.53% 498,114 23.30% 274,469 -44.90%
(=) Total value added to distribute
6,075,470 4.64% 6,555,899 7.91% 7,345,310 12.04%
Distribution of wealth - per stakeholder
R$ thousands Change % R$ thousands Change % R$ thousands Change %
Employees 427,339 7.03% 635,981 9.70% 566,207 7.71%
Government (taxes, fees and contributions and sector charges)
4,337,615 71.40% 4,525,508 69.03% 5,250,915 71.49%
Financing entities/third parties
211,667 3.48% 237,884 3.63% 180,500 2.46%
Shareholders/retained 1,098,849 18.09% 1,156,526 17.64% 1,347,688 18.35%
(=) Value added distributed 6,075,470 100.00% 6,555,899 100.00% 7,345,310 100.00%
42 2010 Sustainability Report
DISTRIBuTION OF WEALTH - GOVERNMENT AND SECTOR CHARGES
2008 2009 2010
TAxES, FEES AND CONTRIBuTIONS
R$ THOuSANDS
%R$
THOuSANDS%
R$ THOuSANDS
%
Taxes, fees and contributions
ICMS (state VAT) 2,178,530 35.86% 2,493,505 38.03% 2,634,081 35.86%
PIS/PASEP (taxes on revenues)
107,988 1.78% 116,909 1.78% 128,931 1.76%
Cofins (tax on revenues) 495,808 8.16% 527,183 8.04% 593,868 8.08%
INSS (social security contribution)
46,643 0.77% 51,262 0.78% 65,844 0.90%
ISS (service tax) 800 0.01% 690 0.01% 690 0.01%
IPTu (municipal real estate tax)
16,835 0.28% 16,761 0.26% 18,306 0.25%
Social charges - other 11,181 0.18% 12,669 0.19% 15,077 0.21%
Other 2,660 0.04% 5,194 0.08% 6,393 0.09%
IRPJ (income tax), CSSL (social contribution tax) and CPMF (financial transactions tax) payable for the year
497,964 8.20% 391,619 5.97% 668,347 9.10%
Sector charges R$ thousands Change % R$ thousands Change % R$ thousands Change %
RGR (Global Reversal Reserve)
56,186 0.92% 63,580 0.97% 73,161 1.00%
CCC (Fuel Consumption Account)
465,697 7.67% 333,167 5.08% 487,761 6.64%
CDE (Energy Development Account)
343,097 5.65% 386,920 5.90% 399,021 5.43%
Consumer charges - Proinfa 14,118 0.23% 25,248 0.39% 41,709 0.57%
CFuRH (tax for use of hydric resources)
NA NA NA NA NA NA
TFSEE (Energy Service Inspection Fee)
20,923 0.34% 17,906 0.27% 19,252 0.26%
Law nº 12.111 - 0.00% - 0.00% 26,031 0.35%
ECE (Emergency Capacity Charge) + EAEE (Emergency Energy Purchase Charge)
358 0.01% 18 0.00% 7 0.00%
P&D (Research and Development, Energy Efficiency, FNDCT (National Fund for Scientific and Technologic Development) and EPE (Energetic Research)
78,827 1.30% 82,877 1.26% 72,436 0.99%
Other 0 0.00% 0 0.00% 0 0.00%
(=) Amount distributed (total) 6,075,470 100.00% 6,555,899 100.00% 7,345,310 100.00%
Sector default R$ thousands Change % R$ thousands Change % R$ thousands Change %
Energy purchased (describe) NA - NA - NA -
sector charges R$ thousands Change % R$ thousands Change % R$ thousands Change %
RGR NA - NA - NA -
CCC NA - NA - NA -
CDE NA - NA - NA -
CFuRH NA - NA - NA -
TFSEE NA - NA - NA -
ESS NA - NA - NA -
P&D NA - NA - NA -
Total (A) NA - NA - NA -
Default percentage NA - NA - NA -
Total default (A)/operating income, net
NA -- NA -- NA --
43 2010 Sustainability Report
yEAR 2008 2009 2010
Investments R$ thousands Change % R$ thousands Change % R$ thousands Change %
Expansion of distribution / transmission (expansion, maintenance)
203,294 26.00% 226,239 11.00% 348,156 53.9%
Renovation of distribution/transmission
131,822 3.65% 187,329 42.00% 238,644 27.4%
Subtransmission 6,030 316.70% 9,463 156.93% 11,507 21.6%
IT and Operational Support 68,399 -7.93% 55,264 -19.20% 55,829 1.0%
Third Party Resources 47,125 -31.89% 37,380 -20.68% 28,144 -24.7%
Other indicators R$ thousands Change % R$ thousands Change % R$ thousands Change %
Gross operating revenue (R$) 11,750,535 3.93% 13,331,098 13.45% 14,713,692 10.37%
Deduction to Gross Revenue (R$ 000)
(4,220,675) 2.61% (4,545,461) 7.70% (5,016,535) 10.36%
Net operating revenue (R$ 000)
7,529,860 4.69% 8,785,637 16.68% 9,697,157 10.38%
Operating costs and expenses for services (R$ 000)
(6,262,570) 6.74% (7,507,903) 19.89% (7,784,125) 3.68%
unrecoverable revenues R$ 000)
104,941 6.49% 113,297 7.96% 123,127 8.68%
Income from service (R$ 000)
1,267,290 -4.40% 1,277,734 0.82% 1,913,032 49.72%
Financial (expenses) income (R$ 000)
129,387 -224.45% 270,411 108.99% 103,003 -61.91%
IRPJ/CSSL (R$ 000) (497,964) 17.95% (391,619) -21.36% (668,347) 70.66%
Earnings (loss), net (R$ 000) 1,027,109 44.13% 1,156,526 12.60% 1,347,688 16.53%
Interest on shareholders’ equity (R$ 000)
68,813 1.51% 70,799 2.89% 72,764 2.78%
Dividends (R$ 000) 974,162 50.51% 1,120,223 14.99% 1,469,139 31.15%
Operating costs and expenses per MWh sold (R$ 000)
(184,71) 2.69% (217,73) 17.87% (219,68) 0.90%
Wealth (value added, net) per employee (R$ 000)
1,370 5.21% 1,389 1.45% 1,249 -10.13%
Wealth (value added, net) per operating income/expenses (R$)
0.46 -2.37% 0.46 1.25% 0.48 3.32%
EBITDA or LAJIDA (R$ 000) 1,695,970 12.95% 1,775,326 4.68% 2,412,757 35.91%
EBITDA or LAJIDA margin (%)
22.5% 7.90% 20.2% -10.28% 24.9% 23.13%
Current liquidity (current assets/current liabilities)
1.1 -15.38% 1.1 0.00% 1.3 18.18%
General liquidity (current assets + long-term assets)/(current liabilities +long-term liabilities)
0.6 2.15% 0.7 11.51% 0.7 1.96%
Gross margin (net income /gross operating revenue) (%)
8.7% 38.68% 8.7% -0.75% 9.2% 5.58%
Net margin (net income/net operating revenue) (%)
13.6% 37.68% 13.2% -3.49% 13.9% 5.58%
Return on shareholders' equity (net income /shareholders' equity) (%)
31.1% 45.13% 31.1% -0.19% 36.1% 16.04%
Capital structure R$ thousands Change % R$ thousands Change % R$ thousands Change %
Own capital (R$ 000) 3,298,824 -0.69% 3,721,729 12.82% 3,737,357 0.42%
Onerous third party's capital (loans and financing) (R$ 000)
4,169,242 -3.32% 3,978,293 -4.58% 4,156,316 4.47%
Customers’ default (accounts overdue for more than 90 days/gross operating revenue for the past 12 months)
2.1 -4.55% 2.0 -4.76% 2.2 10.00%
44 2010 Sustainability Report
Operating Performance
Record investment
Aiming to be among the distributors with the best consumer service indicators, AES Eletropaulo invested over R$ 682.3 million in improvements in supply.
TGRI Eu6
o be one of the companies
with the best consumer service
indicators: it was with this
target in mind that AES Eletropaulo
invested R$ 682.3 million (of which R$
28.1 million was in resources financed by
customers) in 2010, the largest amount
since the company was privatized in
1998. The goal is to provide greater
reliability to electric energy supply in
the growing market of metropolitan São
Paulo, reduce the number of outages,
recover losses and achieve better
technical-operational indicators.
The investments were applied in
preventive and corrective maintenance,
and technological improvements – such
as replacing batteries in 40 substations,
installing cameras for remote monitoring
of company facilities and the replacement
of metallic cabling with digital radio,
increasing the reliability of supervision
systems and system control. Investments
were also allocated to expansion and
increasing energy distribution capacity to
serve the growing market demand.
New connections amounting to 179
thousand units, together with increased
consumption due to the resumption of
economic growth, resulted in growth to
the system’s maximum demand. Requests
for increased carrying capacity and new
customer connections accounted for
R$132 million of the investment in 2010.
Recovery of the indicators
The DEC (System Average Interruption
Duration Index – SAIDI) operating
indicator, relating to the average number
of hours each customer is without
power during a given period, and the FEC
(System Average Interruption Frequency
Index – SAIFI) indicator, relating to the
number of times a customer is without
power over a given period, suffered at the
end of 2009 and the beginning of 2010
due to the abnormal rainfall during the
period. AES Eletropaulo invested R$ 50
million in recovering these energy supply
quality indicators.
One of the central points in this plan was
to increase tree-pruning operations, aimed
at reducing the number of power outages
resulting from tree trunks and branches
falling on the power lines. In total, 320
thousand trees were pruned in 2010
almost double the amount in 2009.
Despite investments and improvements in
the indicators compared to 2009, the DEC
indicator did not reach the target stipulated
for the year by the regulatory agency.
Electric system assets
In order to provide customers with
quality and safety, AES Eletropaulo has a
distribution and sub-transmission network
totaling 43,735 kilometers of overhead
and underground lines, around 1,530
circuits and 1.1 million poles installed.
Since 1998, over R$4.8 billion has been
invested in network modernization,
expansion and maintenance, R$682.3
million in 2010 alone.
To maintain the reliability of the
distribution system and the quality of the
electric energy supply, AES Eletropaulo
continuously monitors its concession area
with 140 operators in its operating centers.
They track the lineman’s work in the field in
real time, especially during rain, storms and
other events that could cause power outages.
Speed in service is also ensured with
service personnel using motorbikes, able
to travel more easily through traffic,
making sure the site is safe and gathering
information for the operations center to
guide its teams in the field.
This year, the company also replaced
its remote terminal facilities at 20% of
its substations, increasing the quality
and quantity of information sent to AES
Eletropaulo Distribution Operations Center
(COD).
INDICATOR (By CONSuMER uNIT) GRI Eu28; Eu29
2008 2009 2010
DEC (Average Power Outage Duration per Consumer
unit) – score attained
9.20 11.86 10.60
DEC (Average Power Outage Duration per Consumer unit) – limit
10.92 10.09 9.32
FEC (Average Power Outage Frequency per Consumer unit) – score attained
5.20 6.17 5.42
FEC (Average Power Outage Frequency per Consumer unit) – limit
8.41 7.87 7.39
DEC – (SAIDI) System Average Interruption Duration IndexFEC – (SAIFI) System Average Interruption Frequency Index
46 2010 Sustainability Report
operatInG perForManCe
TyPE GRI EN1yEAR
2008 2009 2010
Meters (m)
Electric conductors – copper 2,188,807 3,077,206 2,012,731
Electric Conductors – aluminum 4,495,627 5,227,564 5,753,286
Steel strand 261,000 488,756 293,915
Total (m) 6,945,434 8,793,527 8,059,932
Units
Electricity meters 328,407 491,415 512,879
Overhead and underground distribution transformers 2,944 2,307 2,576
Concrete poles 13,301 15,577 15,396
Wooden poles 720 280 160
Iron poles 14,505 18,535 16,885
Wooden cross-arms 43,240 21,540 18,120
Lightning rods 30,462 25,074 30,416
Voltage and current transformers 16,791 21,291 23,125
Total (units) 450,370 596,019 619,557
Main Materials Used GRI EN1
47 2010 Sustainability Report
Expansion and improvement in sub-
transmission GRI EC8
In 2010, AES Eletropaulo invested in
a series of programs to maintain and
expand its sub-transmission systems,
aimed at increasing reliability in the
company’s energy distribution. R$ 217
million was invested in work expanding
the electric grid, resulting in the expansion
of nine substations and increased installed
capacity in the system to 13,361 MVA, an
increase of 2% over 2009.
In 2010, AES Eletropaulo installed a
complex underground transmission
line, the LTS Anhanguera (exit of the
Anhanguera terminal and connection to
the Anhanguera Transition Station (ETR)
Anhanguera). To mitigate environmental
impact, a structure of underground
cables was developed, passing beneath
the Anhanguera and Bandeirantes
highways, with a transmission load of
300 MVA and extending for 4.5 km, the
only one with this length in Brazil.
Communication between substations
To enhance communications with
substations and improve repair,
maintenance and inspection processes,
AES Eletropaulo is replacing its current
metallic network communication data
transmission technology with modern
systems that include 11 AES Atimus
links, which complement the fiber
optic and digital radio systems, thus,
increasing communication availability,
which will cover 99% of the system in
2011, the year in which the program is
expected to be completed.
More stable and with a wider
bandwidth, the new installations
enable broadband data traffic,
images via digital security cameras
(CFTV) and VoIP, expanding remote
monitoring and intervention in the
facilities.
Environmental improvements
During the year, the company also
continued with its plan to upgrade
substations, installing 10 oil-collection
sumps to mitigate potential environmental
and fire-risk problems.
An inspection is in progress to check
the generation and effect of noise in
150 substations. At the end of 2010, 46
substations had been inspected. In 2011,
locations requiring the construction of
sound insulation walls to minimize noise
impact will be mapped.
R$ 217 million was invested in the expansion of power grid and in the increase of installed capacity to 13,361 MVA
48 2010 Sustainability Report
Operation Summer
Since most of the AES Eletropaulo electric
system is above ground, the network
is greatly impacted by meteorological
phenomena such as storms, high winds,
atmospheric discharges and sudden
changes in temperature. During summer,
the season with the highest rainfall, there
is a considerable increase in the number
of occurrences, which can reach one
thousand in a single day.
The company puts its Operation Summer
into action during this period, covering
the last two months of the year and the
first three months of the following year. In
this period the number of distribution and
sub-transmission linemen is increased by
40%, 48 service personnel on motorbikes
operate in the streets and staff at call-
centers are increased by up to 40%, mainly
for emergencies.
One of the biggest challenges in
continuous supply at this time of year
is broken branches falling on the power
lines. To minimize this, AES Eletropaulo
expanded its tree-pruning program. Based
on compliance with current environmental
legislation, the program is approved by
EQuIPMENT INSTALLED/RENOVATED QuANTITy FuNCTION
Replacement of substation batteries 40 Ensure quality of feed to station supervision systems
Replacement of high-voltage sectioning switches 29upgrade sectioning device used to switch on/off, isolate and protect equipment
Replacement of high-voltage circuit breakers 5 Increase system safety
Replacement of gas relays 80 Increase substation reliability protection
Automatic re-connectors 560 Improve network protection and avoid disconnections
Replacement of Remote Terminal units 24 Improve availability and quality of information for the Operations Center
Computerization of ETDs (Station Distribution Transformers) 5Render information received remotely more accurate and increase the possibility of remote control
Installation of CCTV system (closed-circuit TV) in ETDs 9 Improve monitoring of operating facilities
Automatic switches 80 Speed up power grid operations
all 24 City Halls in its concession area. In
2008, 177 thousand trees were pruned,
in 2009, 145 thousand and in 2010, 320
thousand. This year, 240 thousand trees
are programmed to be pruned.
For the summer of 2011, the company
contracted 212 teams for emergency
work. It also expanded the use of teams
for this work: on normal summer days, up
to 536 teams are deployed to attend to
power outage complaints. On critical days,
the company can use up to 757 teams to
reduce outage times.
49 2010 Sustainability Report
PLM Project
The planned implementation of the
Product Lifecycle Management program
(PLM) was postponed until the fall of 2011,
as the program’s structure had to be re-
formulated to comply with the standards
set by the new Electric Sector Assets
Control Manual (MCPSE).
The PLM’s goal is to innovate, integrate
and undertake the management of assets
in technical-operating processes aimed at
the expansion and maintenance of electric
system assets. It aims to reformulate
technical-operating processes, replacing
the various systems and current tools with
solutions allowing asset management in
a synchronized manner, integrated with
other existing corporate systems, such as
the ERP (Integrated Business Management
System) and the GIS (Geo-referenced
Information System).
By the end of 2010, R$11.5 million had
been invested.
Geo-referenced Information Systems
In 2010, AES Eletropaulo expanded the functions of its
Geo-referenced Information System (GIS). Aiming to improve
the management of its assets, the company concluded a
certification quality project of the registry begun in 2009,
based on a field survey of all electric assets in its database,
in compliance with a decision by the Brazilian electric energy
agency, Aneel. With this information, the company database
will be continuously updated, speeding up processes such as
identification of the customer’s supply area and even which
power outlet is being used.
The GIS also supplies auxiliary information for operational
analysis, feasibility studies for new operations, new sources and
new customer connection studies, and studies on environmental
impacts resulting from the construction or reconstruction of
new distribution lines.
*� Georeferencing is a type of image cataloging or a map of a specific system of reference based on its coordinates or control points, location that offer identifiable physical characteristics, such as highway, crossroads, rivers, lakes, airport runaways, prominent structures, mountain peaks, among others. Such coordinates can be obtained in the field or by means of image digitalization or maps already digitalized.
For the summer of 2011, 212 teams were contracted to deal with any eventual power outages.
50 2010 Sustainability Report
Commercial Performance
The expanding market
“Continuous Improvements in Service” is the guideline at AES Eletropaulo for maintaining service quality in its concession area.
In 2010, the total market consumption in
the AES concession area, which includes
the consumption of both captive* and
non-captive customers, totaled 43,345
GWh, an increase of 5% over 2009 (41,269
GWh). For the captive market, 35,434 GWh
were distributed, up 2.9%. In the residential
and for the commercial categories, growth
was 3.5% and 3.1% respectively, while
industrial customers accounted for an
increase of 1.7%.
In 2010, 7,911 GWh was distributed to
free customers*, an increase of 15.8%
in comparison to the previous year. AES
Eletropaulo, being an energy distribution
company, does not sell energy in GWh on
the free market but only charges for the
use of the lines (TuSD - Tariff for the use
of the Electric Distribution System)
Compared to 2009, the performance of
the entire AES Eletropaulo market was
less that that presented by the domestic
market (Brazil) and by the Southeastern
region, due mainly to the share of each
consumer class
As in the other regions of the country,
the consumption of electric energy by
the industrial class negatively impacted
the AES Eletropaulo market in 2009.
The industrial class for most distributers
represents about 45% of the total market,
so any variation in this class would have
a greater impact on the national market
compared to the AES Eletropaulo market,
with an industrial class participation of
only 27%. This is why the distributors
*�Captive customer: a consumer who acquires electric energy from a concessionary utility or licenale whose network is connected in accordance with regulated tariffs
* Free customer: a consumer who chooses an electric
energy supplier (generator or trader) through free
bargaining according paragraph 5 art 26 of
Law nº 9.427, of 26/12/1996
whose share of industrial customers is
higher than that of AES Eletropaulo had
their consumption reduced even more in
2009 (the period when the industrial class
was negatively impacted by the global
financial crisis) and, as a consequence were
the ones with the greater growth in 2010
with the recovery of the economy.
The graphs below illustrate both the
market share by consumption class, and
the growth of the total electric energy
market in the country, the Southeastern
region, The State of São Paulo and AES
Eletropaulo.
52 2010 Sustainability Report
CoMMerCIal perForManCe
Residential
3.5%
1.7%
3.1%
1.2%
2.9%
15.8%
5%
15,01415,546
6,032 6,137
Industrial Captive Market
Commercial Non-CaptiveMarket
Public Authoroties and
Others
Total Market
2009
2010
Comparison of Consumption (GWH)
10,75211,081
1,148 1,200
34,43635,434
6,832 7,911
41,26943,345
Purchase of energy
AES Eletropaulo buys electric energy to
serve its captive consumers in accordance
with the Brazilian electric sector model
instituted in 2004, which only allows the
purchase of energy through energy on
the regulated market, auctions organized
by the government and the Câmara de
Comercialização de Energia Elétrica –
CCEE (Electric Power Commercialization
Chamber), authorized by Aneel.
Transforming consumers into customers GRI SO1
Since 2004, AES Eletropaulo has operated the Transformation of
Consumers into Customers program, which aims to improve the
conditions of power supply in low-income communities through
the regularization of electric connections and the donation of
more efficient appliances.
up until 2010, the company had regularized 411,039 connections,
benefiting 1.64 million people in 991 of the 2.2 thousand low-
income communities in its concession area. A further 80 thousand
connections are expected to be regularized by 2012.
In addition to this initiative, which functions as a tool for social
inclusion, the program has already substituted 18,226 refrigerators
in a poor state of conservation for refrigerators with the Procel seal,
880,000 incandescent light bulbs for compact fluorescent ones and
installed 3,101 lighting points in alleys. Residences also benefited
from 1,709 internal electrical renovations, with the installation of
new switches, sockets, circuit breakers, fuse boxes and shower heads.
In 2010 alone, 55,473 connections were regularized, benefiting
221,892 people. The average investment per customer was
R$327.55 and involved the construction and renovation of the
distribution network.
2008 2009 2010
4.435.09 5.32
6.49 6.496.49
Commercial losses
Technical losses
Losses
Brazil
7.8%8.4%
5.9%5.0%
-1.0% -2.4% -0.7% -0.1%
Southeast São Paulo State AES Eletropaulo
2009/2008
2010/2009
Total Evolution of the Market
2009 2010 GROWTH
AES Eletropaulo 41,269 GWh 43,345 GWh 5.0%
Brazil 388,688 GWh 419,016 GWh 7.8%
São Paulo State 118,061 GWh 125,029 GWh 5.9%
Comparison between the Brazilian and São Paulo markets
53 2010 Sustainability Report
Losses
Losses in the distribution network
represent the difference between the
energy required in the year (49,185
GWh) and the energy effectively sold
to customers in the same period. These
losses are calculated based on the “Criteria
of Physical Losses”, not taking into account
energy billed in terms of fraud recovery.
Based on this methodology, the losses
in 2010 were 10.92% (5,373.5 GWh),
divided into technical (6.49%) and
commercial losses (4.43%). Technical
losses refer to losses in the distribution
system, and commercial losses, which
are caused mainly by improper actions
by consumers on the distribution grid,
and equipment failure. The failures
are caused by: end of useful life, which
provokes errors in calibration; external
factors; such as atmospheric discharges
and flooding; the application of a
higher load than that informed by the
customer at the time of connection;
modification of the equipment by
the customer and, to a lesser degree,
fabrication defects of the equipment.
In 2010, AES Eletropaulo carried out
286,500 inspections in the fight against
fraud and anomalies, from which 40,800
irregularities were found in the metering.
Also regularized were 55,500 informal
connections (read more on page 53).
Consumption in Brazil
Consumption of electricity in
Brazil totaled 419,016 GWh in 2010,
representing an increase of 7.8% over
2009, according to figures released by
energy research company EPE.
Industrial consumption grew 10.6% over
the previous year, growth that was more
accentuated in the country’s Southeastern
region, which posted an increase of 12.1%.
In São Paulo, industrial consumption in
the state was up 7.6% compared to the
previous year.
Residential consumption grew by 6.3%
over 2009. The result reflects the increase
in the number of consumers and also
in average consumption per residence.
In 2010, 2.06 million consumer units
were incorporated into the electric grid,
a monthly average of 172 thousand
connections.
Commercial consumption posted growth
of 5.9% over the previous year. This was
due to increased income and greater
credit availability offered to stimulate
commerce and the services sector,
especially in the North and Northeast.
Other Customers
Commercial
Industrial
Residential
Brazil
44 46 44 27
36272526
16
14 12 11 917 18 28
Southeast São Paulo State AESEletropaulo
Total 2010 market share by consumer class – %
54 2010 Sustainability Report
Employees
An all-roundteam
Our employees are fundamental to the development of our continual improvement policy focused on ensuring service quality and customer satisfaction.
aGRI LA12
ES Eletropaulo’s challenge
in 2010 was to continue
integrating and developing
the AES Brasil Group culture among all
the employees. The focus is to make the
employee feel fulfilled in his work and
aware that this work brings benefits to the
population at large.
In the vision of the AES Brasil Group, a
good working environment is that which
encourages mutual respect and team
work and has a diversity of experience and
opinions. In this manner, the employee
develops together with other people,
integrating cultures, sharing knowledge
and working creatively.
The values of AES are multiplied by
means of management instruments such
as the Siga Livre (Moving Forward) –
Professional Growth Program, promoting
organization of the positions and careers
plan, and Performance Administration,
involving leadership and the employees
themselves in the analysis of the
performance of subordinates and peers.
With the use of both, the enhancement
of the employee’s profile has become more
evident. Those employees who attain the
expectations of alignment and commitment
with the common goal of the company –
expressed in the management contracts,
individual targets and collective targets
– are rewarded. Those employees whose
performance does not match expectations
assume a formal recovery commitment
with a development plan, clearly and
transparently setting out which points
need to be developed by the employee.
This evaluation is even used with executive
positions.
The company’s Strategic Map is
disseminated among all employees
through the Energy that Transforms
program – learning map, which encourages
dialog and the understanding of the
company’s main strategic points..
For AES Brasil, a good working environment is that which encourages mutual respect, team work and has a diversityof experience and opinions.
Pé na estrada (On the road)
Is a direct dialog between AES Brasil’s
top administration and employees,
presenting the yearly results from the
previous year, the company strategy,
the investment plan and the targets for
the year, in addition to responding to
questions from employees in an open
microphone session.
In its third year, 224 people were also
selected from all areas, distributed in
18 groups, to represent AES Eletropaulo
at the round tables held before the
event.
utilizing the APEx – AES Performance
Excellence Methodology, the
suggestions made by employees were
analyzed, classified and resulted in 159
action plans.
The implementation of these actions,
considered as pertinent and high
priority, was monitored to ensure
the improvement of any issues that
could interfere in the organizational
environment and the operating
performance. Of this total, 154 plans
were concluded in 2010 and five held
over until 2011..
56 2010 Sustainability Report
Employee profile GRI LA1
AES Eletropaulo ended the year with
5,663 company employees, an increase of
30% over 2009 as a result of transferring
the activity of meter reading and bill
delivery in-house. With an average age
of 35.65, the majority of the employees
(88%) have completed high school and
have been with the company for at least
10 years.
POSITION By CATEGORy 2010
Company officers 27
Managers 91
Administrative 2,444
Operational 3,095
TyPE OF CONTRACT 2010
Interns 68
Apprentices 91
Trainees 20
CLT 5,657
Internalization of meter readers
Since August the AES Eletropaulo
workforce has gained a further
1,084 employees: meter readers and
electricity bill delivery personnel
who were previously outsourced and
who have been contracted with the
aim of providing a higher quality bill
delivery service.
The advantage of this internalization
process is having employees working
in closer synergy with AES Brasil
Values and with an even higher level
of commitment.
In addition to improving the processes
of meter reading and bill delivery,
the internalization allowed the
training of all employees in using new
technology, such as photographic
registry for reducing errors in reading
and other impediments; transmission
of data collected from the reading via
Bluetooth and radio-frequency; use of
GPS for setting reading routes.
To further improve the quality of the bill delivery service, AES Eletropaulo has hired 1,084 formerly outsourced meter readers
57 2010 Sustainability Report
Diversity GRI LA13; LA14
AES Eletropaulo has adopted inclusion
policies in support of ethnic, age, gender
and social equality in its workforce,
through the performance of its Human
Resources department and upper
management, right from the hiring process.
In its work force, 19.83% of employees
are women. At the director level, the
proportion is 23.07% and at the vice-
presidential level, 40%.
Age groupsNote: Only direct company employees
2010
1,740
2,273
1,319
331
Employees up to 30Employees aged 31 to 40Employees aged 41 to 50Employees over 50
2010
Other indicatorsNote: Only direct company employees
Number of women in managerial positionsNumber of African-Brazilian female employeesNumber of African-Brazilian male employees
29122
994
91.31%108.94%
90.06%109.58%
140.79% 145.11%
2010
Company officersManagersLeadership/Coordination
Technical/SupervisionAdministrativeOperational
Ratio of average salary between men and women
2010
1,123
4,540
Diversity in the work force GenderNote: Only direct company employees
WomenMen
58 2010 Sustainability Report
Inclusion GRI LA13
AES Eletropaulo also runs the program,
Employing People with Disabilities, which
at its initial stages raises awareness among
the work force and prepares them to
welcome future employees, maps suitable
work activities and workplaces and then
the program chooses a disabled person.
The company contracts technical schools
to train them, which prepares them
for AES Eletropaulo’s selective process.
Management is encouraged to support the
inclusion of the disabled.
AES Eletropaulo maintains qualification
courses for the disabled at Senai (the
National Association of Industries) and
the Instituto Edison. The aim is to provide
training in preparation for the labor market
and internal opportunities.
At Senai, the courses offered are for
quality control analyst, administrative
assistant, supplies assistant and production
programmer, with the main focus being on
training qualified administrative assistants,
able to compete for the best positions on
the market.
The Instituto Edison offers a full electro-
technician’s course, in which subjects
such as electronics, technical design,
standardization and safety procedures,
electro-technical business management,
etc. are taught.
Internal survey on organizational climate
The AES Group, with the help of an outsourced specialized firm,
has conducted annual surveys on organizational climate, taking
into account six areas for analysis: competence, leadership,
communication and affiliation to company, safety and the code
of conduct.
In 2010, the general satisfaction index at the AES Group was
82% and at AES Eletropaulo, 79%.
Number of disabled employees
2009 20102008
59 60 62
59 2010 Sustainability Report
Attraction and retention of talent
It is an AES Brasil Group policy to
prioritize opportunities for vacancies
through the Internal Recruitment and
Selection Program, through which
vacancies are made available to all
employees from every region.
The goal is to show the requirements
and competencies needed for vacancies
transparently so that employees can
see whether they are qualified to fill
them, or prepare a career plan to fill
them in the future. These vacancies are
posted to all employees through internal
communication tools (intranet, mural
and bulletins) and in this way everyone
has the opportunity for development and
professional growth.
The Recruitment and Selection Program
is currently in its third year. In 2010, 317
places were offered and 1,318 candidates
from the whole Group applied.
When vacancies are not filled internally,
the process is opened up to external
selection, coordinated by the Human
Resources department with the active
participation of the leadership in the
vacancy’s area.
The recruitment and selection process
for interns at the technical and superior
levels is carried out in partnership with
a specialized consultancy to guarantee
quality in the selection process. For
places in the young apprentice and young
citizen programs, NGOs and schools are
contracted to manage the recruiting and
apprenticeship process. Both the young
apprentice and the young citizens programs
have proved effective in inserting young
people into the labor market. Proof of this
lies in the fact that, in 2010, the company
hired seven employees who had taken part
in these programs.
AES Brasil Group has also been running
its Trainees Program since 2010, the
aim of which is to prepare successors
for future key positions and at the same
time give these trainees the opportunity
for personal and professional
development. In the first class there
were 14,382 applications for 20 places
available in the various sectors of Grupo
AES Brasil. In the second class, also in
2010, there were 3,246 candidates for
nine engineering posts.
The program takes two years, split into
four semesters. At each stage, the trainee
learns about a specific company area and
hands in a project that will part of his
performance evaluation. To complement
the training, Grupo AES companies also
provide technical and behavioral training.
In addition, the AES management acts
as mentor for these trainees, helping
them on questions about their careers.
At the end of the program, trainees with
satisfactory evaluations are promoted to
senior positions.
60 2010 Sustainability Report
Employee turnover GRI LA2
Total employee turnover was 6.02%
in 2010. During the period 1,644 were
admitted and 341 left, of which 253
were men and 88 women. Of this rate,
1.97% was voluntary turnover, the target
for which at Group companies is 5%
maximum.
TOTAL LEAVING (By GENDER) 2010
Male 253 (74.19%)
Female 88 (25.81%)
Number leaving by age group
under 30 120 (35.19%)
Between 30 and 50 193 (56.60%)
Over 50 28 (8.21%)
Number leaving by region*
South-eastern region 341 (100%)
Management of employability and retirement GRI LA11
AES Eletropaulo runs a succession plan
to identify employees with the potential
to assume management and executive
positions in the short (12 to 18 months)
and long (18 to 24 months) terms.
These evaluations have been carried
out since 2009, at the managerial level.
The recommendations are made by
their immediate superiors and, after
detailed analysis at an executive officers’
meeting, undergo a vetting process.
In 2010, a Retirement Incentive
Program was set up for employees
about to retire, with social and financial
benefits. At the end of the year, 700
employees were facing retirement
within the next five to ten years.
61 2010 Sustainability Report
Professionaldevelopment GRI LA11; Eu14
AES Eletropaulo offers opportunities for its
employees to grow professionally, following
the Siga Livre program.
In addition to aiming to guarantee
conditions that make each employee feel
fulfilled, useful and motivated in the working
environment, the company also concerns
itself with quality of life in the employees’
personal life and offers social and cultural
activities – many extended to family
members. The company also runs continuous
education programs, internal recruitment,
and invests in the permanent upgrading of
its work force.
Siga livre (Free ahead)
Since 2009, employees have been
operating within new positions, careers
and recognition plans established by the
Siga Livre – Professional Growth Program,
with definitions of hierarchy, attributes,
knowledge, training and experience
needed to exercise the functions of each
position. In this way employees have
parameters to visualize the competencies,
skills and knowledge necessary for their
professional growth.
The program is also the basis for
defining the framework for salary levels
and promotion raises, as well as providing
the internal recruitment and selection
program with support for the succession,
training and development plan and
allocation of resources.
Since its implementation, 3,986
alterations have been made at AES
Eletropaulo, with 347 position adjustments
and 3,013 merits (salary alteration without
changes in position) and 626 promotions
(alteration to a higher position).
Performance management GRI LA12
The performance evaluation model
used at AES Brasil involves 100% of its
employees and is carried out integrally by
all companies. This allows employees and
leaders from different Group companies to
evaluate each other.
The performance evaluation process
PROFESSIONAL DEVELOPMENT 2008 2009 2010
Education level - describe the percentage in relation to the total employees % % %
Elementary school (%) 9.85 10.96 11.50
Secondary school (%) 47.56 53.58 59.53
High school (%) 37.89 30.39 24.64
Post-graduated (especialization, master degree, doctorate) (%) 4.70 5.07 4.33
Amount invested in professional development and education (%) 1.47 1.31 1.09
Number of professional development hours per employee/year 136 118 161
AES Eletropaulo guarantees its staff the conditions to feel fulfilled, useful and motivated within the working environment
62 2010 Sustainability Report
involves self-evaluation, analysis by peers
and subordinates (in the case of leaders) and
evaluation by the manager, supported by the
analysis and comments of others involved.
The evaluation model is structured on
eight competencies for non-executives:
technical and functional; guidelines for
results; problem solving; team work;
initiative; relations; safety; commitment to
the company and to the practice of AES
Brasil Group Values.
For those in executive positions, other
competencies inherent to the exercise
of leadership are added, related to
business vision, global thinking and people
management.
The general results of the evaluations are
also discussed, equalized and validated by
committees and also have the purpose of
identifying talents and validating successors
for the company’s key-positions and giving
support to individual development plans.
Recognition program GRI LA12
Structured in 2009, the recognition
program is an incentive for employees
that have stood out for their excellence on
the job. Since its launch, the program has
promoted the recognition of 556 people at
AES Eletropaulo, with 306 of them in 2010.
The program considers three types of
recognition:
Dynamic recognition:
rewards on a monthly basis, specific
employee actions that have had an impact
on the company and have generated results
beyond those expected for the position/team.
Each officer can recommend each month,
an employee or group of employees from
his area deserving of recognition. In 2010,
215 employees at AES Eletropaulo were
recognized, including individuals and teams.
Management recognition:
each quarter, leaders are rewarded for
achievements that surpass expectations
and that demonstrate their leadership
competencies and the AES Group Values. In
2010, 14 executives were recognized.
recognition for aeS values: recognizes
employees who are models in their
working areas and demonstrate the AES
Values (Safety, Commitment, Integrity,
Excellence and Fulfillment at Work). In
2010, the awards were presented by the
CEO to 77 AES Eletropaulo employees
during the Pé na Estrada event.
Training and qualification
GRI LA8; LA10; LA11
In 2010, to maintain its personnel updated
and working safely, AES Eletropaulo invested
an average of 161 hours of training per
employee, 40% more than the training given
the previous year. Among the main issues
debated were ethics and compliance, health
and safety and leadership development.
AES Eletropaulo divides its training and
qualification programs into four categories:
• leadership Development: prepares
leaders to respond quickly to the
organization’s challenges, to manage their
employees in reaching their targets and
publicize the company’s culture and Values.
TRAINING SESSIONS 2008 2009 2010
Man-hours of training 591,929 502,446 695,400
Average per employee 137 hours 118 hours 161 hours
Participations in courses, talks, seminars and training sessions
80.1 thousand 71 thousand 82 thousand
63 2010 Sustainability Report
In addition to regular programs, AES Corp.
maintains a partnership with the Darden
School of Business at the university of
Virginia (uSA), a renowned international
business management institution, with the
goal of training leaders with an emphasis
on corporate vision and global thinking,
AES business management, finance and
strategy. The programs are given on an
immersion basis and last two weeks. In
LEADERSHIP TRAINING 2010
Number of participants 677
Man-hour training 11,308
Average hours per employee 16
COuRSES, SEMINARS AND WORKSHOPS 2010
Number of participants 116
Man-hours of training 2,573
Average hours per employee 22
2010, two AES Eletropaulo company
officers took part in the program.
• Study Grants for Continued education
programs and languages: AES
Eletropaulo offers subsidized study grants
for postgraduate, Master’s and Doctorate
courses when the content is in accordance
with the organization’s strategy.
In addition to the formal program, a
partnership has operated since 2009 for
PROGRAM GOAL PARTICIPANTS IN 2010
Leader Development Program
Develops competencies in managers and coordinators that are considered essential for the management of the Group’s personnel. Customized by AES Brasil from AES leadership competencies, and given by consultants over the last five years.
32 leaders trained (managers and coordinators)
Executive Program for Company officers
Given by the Dom Cabral Foundation in two immersion modules over three days. The first module was taught in August 2010 with the aim of dealing with and upgrading knowledge of AES Brasil’s strategic vision and developing competencies in planning and execution. The next module is to be given in April 2011 and will have as its focus personnel management and innovation.
22 AES Eletropaulo employees
Development Program for Leadership Competencies - Coordinators
Aims to qualify AES Brasil coordinators, to upgrade practical and conceptual knowledge and to supply tools to broaden the vision of the impact of their performance. Two-day modules for each competence: Leadership, Communication, Change Management, Conflict Management and Negotiation.
602 AES Eletropaulo employees
Leadership development programs GRI LA11
64 2010 Sustainability Report
offering reduced fees at the Escola Superior
de Propaganda e Marketing - ESPM and with
the Fundação Instituto de Administração
- FIA/uSP, offering employees and their
families the opportunity to study for an
MBA in Business Management, Finances
and Energy Management at a cost well
below the market price. In 2010, 316
students took part in this partnership - in
wich there isn’t financial support by AES
Eletropaulo.
The company also runs a study grant
program for undergraduate and technical
courses aimed at helping employees in
their professional growth. It also subsidizes
language courses for employees in positions
that require proficiency in another language.
• Seminars and Workshops: AES
Eletropaulo sponsors employees’
participation in external seminars and
workshops, in addition to promoting
internal seminars, talks and workshops in-
class and IT courses, grammar reviews and
self-development via e-learning.
technical-operational training: for
the operational levels, there are three
groups of training: the first aims to comply
with specific legislation regulating the
electric power sector and accounts for
35% of the annual amount of technical-
operational training; the second is
aimed at offering basic, minimal and
obligatory training for employees in the
operational, administrative, technical
and commercial areas (approximately
400 courses accounting for 50% of total
technical training); the third concerns
specialization in management and
processes control functions, principles of
PROGRAM GOAL GRANTEES IN 2010
Study grants for postgraduate studies (MBA, Master’s and Doctorate)1
updating of knowledge and upgrading of functional competencies for employees who perform well, preparing them to take on greater challenges and increasing their potential for retention by the organization.
50
LanguagesTeaching of language courses for employees whose positions require proficiency in a foreign language.
30
Study grants for undergraduate and technical courses
Monthly grant to subsidize employees wishing to take part in courses compatible with business strategy.
50
1. It counts with financial support by AES Eletropaulo.
Programs for Continued Education and Languages GRI LA11
At AES Eletropaulo, the performance evaluation model involves 100% of its employees
65 2010 Sustainability Report
basic people management and integration
activities. At this level, specific training
was given for regulatory standards NR-
10, NR 33 and to the emergency brigade
and in the procedures of the company’s
Sistema de Gestão de Saúde e Segurança
do Trabalho – Occupational Health and
Safety Management System (SGSST) to all
company newcomers.
PROGRAM GOAL PARTICIPATIONS IN 2010
Internal Knowledge Management
Provide suitable and updated theoretical content by offering programs of training/instruction through corporate events, talks and workshops, directed mainly to the administrative area with the more relevant topics involving their work, both at the basic “day-to-day” management level and as well as more complex subjects aimed at supporting increased intellectual capacity at the company.
3,453
Education/training
Project for operational
employees for the
labor market
Train workers for activities as assistants/linemen in the AES Eletropaulo Electric Power System and in contracted companies through the “Electricians Pool project” consisting of identifying professionals on the market and training them for work in the overhead power lines.
1,500
Technical training Qualify employees, in compliance with legal requirements, supplying basic compulsory training, so they can work in the electric power system and in commercial and customer service positions.
77 thousand
electricians pool
The Electricians Pool is an AES Eletropaulo
initiative in partnership with Senai. The
project is aimed at providing the community
with training opportunities, expanding
opportunities for hiring professionals and
ensuring that the labor force is qualified. The
candidates, chosen after a rigorous selection,
can work in various company areas, such as
emergency, underground, sub-transmission
and loss recovery work.
Technical-operational training programs GRI LA11
66 2010 Sustainability Report
Our Way, Our Attitude
The launch of the new brand of AES
Brasil, in 2009, went beyond a mere
change in the logo: it represented
a cultural transformation aimed
at strengthening the integration
of Group companies. To align the
behavior of company workers with the
essence and pillars of this new culture,
training was begun in Our Way, Our
Attitude in May, aimed at all AES
Brasil employees.
With the slogan “you too are part of
this team”, the behavioral training
encourages employees to reflect
on how they can contribute to this
stage of the Group companies’
transformation, as well as
disseminating knowledge on the brand
among all the organization’s teams.
The work is being developed in
stages: from April to November 2010,
training was carried out in the energy
distributors; in 2011, it will be the
turn of employees at the generation
and telecommunications companies.
The final result of this training will be
the AES Brasil Behavior Manual, put
together from employees’ opinions.
Occupational Health andQuality of Life GRI LA8
AES Eletropaulo’s Sistema de Gestão
de Segurança e Saúde Ocupacional
- Occupational Health and Safety
Management System (SGSSO) is based on
the OHSAS 18001 and on BBS – Behavior
Based on Safety. The company seeks to
identify danger and risk factors related
to occupational health and implements
control measures related to health, safety
and ergonomics.
The company also runs its quality of life
program, Viva Bem Viva Mais – Live Well,
Live Longer, aimed at reducing daily stress
and promoting physical and mental health,
contributing to employees’ professional
and personal development. The program is
divided along three lines:
Viva o Corpo - Long Live the Body
Actions contributing to improved health
for employees:
Respire Saúde: Respiratory Health:
aimed at combating smoking, this
program is open not only AES Brasil
employees, but also their families. In 2010,
63 people took part in the program at AES
Eletropaulo, which offers informative and
motivational talks, weekly psychological
support group sessions and medication
when necessary. Family members receive
a discount on the purchase of medication
and distance psychological help. In 2010,
the success rate of the Respiratory Health
program at AES Brasil, in its second year,
was 94% (participants who actually gave
up smoking).
Alimente-se Bem: Eating Well: aimed at
re-educating employees on eating habits
and helping them to adopt a healthier
routine, this program holds monthly
educational talks and personalized
fortnightly sessions, as well as physical
evaluations and assessments on diet,
nutrition and body composition, with
the aim of losing weight and improving
general health. In 2010, the program
registered 546 people at AES Brasil, with
351 at AES Eletropaulo. In this group,
weight loss amounted to a total 437.4 kg
(at AES Eletropaulo 193.4 kg) at the end
of the meetings.
Viva a Mente – Long Live the Mind
Aimed at reducing stress and sedentary
lifestyles through the following activitiess:
Caminhada e corrida de rua: Walking
and jogging in the street: encourages the
practice of sport through a natural activity
- effective at preventing the most varied
health problems and at combating stress.
At AES Brasil there are 24 training points
available. In 2010, 380 employees and
family members registered and took part
in the program, of which 268 were from
AES Eletropaulo.
Agita julho: Agitate July: taking
advantage of the school holidays, AES
Brasil offers its employees and their
families a sports competition in seven
67 2010 Sustainability Report
sporting activities - indoor soccer,
volleyball, tennis, walking and jogging
in the street, card games and chess,
in addition to recreational games for
employees and family members. The 2010
event at AES Brasil registered 1,313 people
(732 from AES Eletropaulo), an increase
of 110% over the previous year. In 2010,
this championship took place in the cities
of São Paulo, Bauru, Rio de Janeiro, São
Leopoldo, uruguaiana and Santa Maria.
Viva Mais – Live Longer
Initiatives and campaigns in favor of
physical and mental health through:
Work-related gymnastics: carried
out in all company installations, three
times a week, with the goal of controlling
ergonomic risks and the prevention of
osteo-muscular problems caused by fatigue
resulting from muscular tension at work, and
uncorrected posture, as well as movements
or efforts that are harmful to joints. Work-
related gymnastics registered an average
participation of 80% over the year.
talks and lectures: a preventive and
educational initiative. In 2010, topics
dealt with included ergonomics, hearing
protection, health of the shoulders
and prevention of STD/Aids, obesity
and hypertension, with 22 thousand
participations in all of AES Brasil. AES
Eletropaulo was partnered by the Hospital
São Camilo in the Health Program.
hearing preservation Campaign: open
to all employees with focus on those whose
work exposes them to risk. The company
also makes available informative bulletins
on hearing preservation and vocal health,
among other issues, on the intranet. 128
people took part at AES Eletropaulo.
vaccination Campaigns: in 2010 AES
Brasil applied 4,484 doses of flu vaccine (a
trivalent vaccine that includes H1N1, or swine
flu), with 3,435 AES Eletropaulo employees
being immunized against flu (75.93%). It
should be emphasized that in 2010 the
Federal Government invested heavily in
the campaign, giving early vaccinations to
groups at risk. In the company, 27 employees
received immunization shots against
Hepatitis A and/or B.
In 2010, the big news was the creation
of the Gestação Saudável - Healthy
Pregnancy Program, the aim of which is to
guide pregnant employees in fortnightly
meetings with a specialist at which issues
related to care during pregnancy and
childbirth are discussed. This year 42
people participated at AES Eletropaulo.
OCCuPATIONAL SAFETy AND HEALTH 2008 2009 2010
Investments in HIV holders programs (R$ thousands) 0 0 0 0
Investments in drugs and alcohol prevention and treatment programs (R$ thousands) 24.8 30.6 43.3 42.1
68 2010 Sustainability Report
Remuneration GRI EC5
AES Eletropaulo maintains a
remuneration policy in accordance
with the Hay methodology and aims
at maintaining its attractiveness and
competitiveness in the market. It uses the
Balanced Scorecard to publicize global
targets and thus, encourages employees to
obtain high-performance results promoting
a culture of excellence. Comparisons in
the market take into account the electric
energy sector for technical positions and,
for other levels, companies of the same
size, number of employees and billing, etc.,
are taken into account.
The remuneration package is composed
of the nominal salary (fixed remuneration),
additional remunerations, benefits, and
Participation in Profits and Results (PLR).
The fixed remuneration is linked to the
attributes of the position and its function,
according to its responsibility. Variable
remuneration on the other hand is based
on the individual performance evaluation
and also on the company’s results and is
paid through the Profit Sharing and Results
Participations Program.
The lowest base-salary remuneration paid
by the company corresponds to 1.5 times
the minimum salary in effect in 2010.
In operational positions, men were paid a
salary 1% greater. In 2009, this difference
was 8.2%.
Private Pension Plan GRI EC3
In 2010, investment made by the
company in the Private Pension Plan was
R$ 6.13 million compared to R$6.039
million in 2009.
Among its benefits, AES Eletropaulo
provides pension plans such as Fundação
Cesp, Previdência Itaú-unibanco and MetLife¹.
Participation is voluntary and offered to
employees in all positions and in all units.
Three kinds of plans are available – defined,
supplementary and voluntary – and
contributions are stipulated according to the
TyPE OF BENEFIT METRICS COVERAGE
Collective PLR Performance in relation to corporate targets set by the management.
All employees (except company officers and the CEO).
Individual PLR Individual performance evaluation. All employees (except managers, company officers and the CEO).
Bonus Individual and business performance evaluation. Managers, company officers and the CEO.
Long-Term IncentiveThe Long-Term Incentive Policy is that of AES Corp. and the program has a three-year cycle for evaluation.
Company officers and the CEO.
Participation in Profits and Results
*�1: Previdência Itaú/unibanco and MetLife are not defined benefits, however there is a counterpart from the company in the plans (general company funds) and there is no pension fund. For both, the plans cover benefits for total and permanent disability and a benefit in the case of death.
The remuneration policy at AES Eletropaulo aims to maintain the Company’s market attractiveness and competitiveness
69 2010 Sustainability Report
COMPENSATION 2008 2009 2010
Gross payroll (R$ thousands) 206,438,00 225,912,00 364,727,00
Mandatory social charges (R$ thousands) 82,030,00 83,004,00 101,845,00
BENEFITS 2008 2009 2010
Education (R$thousands) 3,038,00 3,286,00 3,540,35
Meal (R$ thousands) 23,102,00 25,950,00 35,921,00
Transportation (R$ thousands) 2,422,00 2,105,00 4,546,00
Health (R$ thousands) 23,449,00 25,454,00 30,945,00
Foundation (R$ thousands) 5,358,00 6,039,00 6,630,70
Other (specify) (R$ thousands) – – –
Compensation, benefits, carreers
specifications of each of them, with payments
made by employees and by the company.
For the Fundação Cesp, the calculation of
the defined benefit is based on 70% of the
employee’s salary and multiplied by the
corresponding rate in the list – Plano de
Suplementação de Aposentadorias e Pensão
- Pension and Retirement Supplements Plan
(PSAP). In this type, the company participates
with 100% of the amount. The calculation
for voluntary contribution is based on 30%
of the employee’s salary, who can choose to
contribute from 1 to 100%. In this type, the
company participates with a limit of 5% of
the amount.
The contribution of the Previdência
Itaú-unibanco is divided between two
groups of participants, with the company
participating with 100% of the basic
contribution:
Group 1: participants with a contribution
salary above 10 uRA (R$ 2,980.00) – basic
contribution of 1%, plus complementary
contribution of from 1% to 10%;
Group 2: participants with a contribution
salary of less than 10 uRA (salaries below
R$ 2,980.00) – basic contribution of 1%.
In the case of MetLife, AES Eletropaulo
makes an annual contribution for its
executives in the month of December.
Benefits GRI LA3
The factors affecting people’s
satisfaction, motivation, wellbeing and
commitment are analyzed and dealt with
by AES Eletropaulo’s Human Resources
department. The company therefore
makes available to all employees various
benefits, services and policies, which are
continually upgraded, according to the
organizational climate and market surveys,
using the Hay methodology.
70 2010 Sustainability Report
PREPARATION FOR RETIREMENT GRI Eu15 2008 2009 2010
Investment in complementary pension (R$ Thousands) 5,400,00 6,039.00 6,130.40
Number of beneficiaries in the complementary pension plan 3,405 3,499 3,633
IDENTIFy THE PERCENTAGE OF EMPLOyEES IN EACH SALARy LEVEL 2008 2009 2010
up to 5 monthly minimum wages (%) 60.80 47.90 64.75
from 6 to 10 monthly minimum wages (%) 23.10 33.50 23.91
from 11 to 15 monthly minimum wages (%) 8.50 10.70 6.06
Above 15 minimum wages (%) 7.60 7.90 5.28
PER CATEGORIES (AVERAGE SALARy FOR THE CuRRENT yEAR) - R$
office positions 28,163.09 26,756.50 28,866.74
management positions 13,231.42 13,780.00 14,350.86
administrative positions 3,217.48 3,357.70 3,950.97
production positions 1,846.82 1,923.77 1,640.58
Compensation profile
BENEFITS DESCRIPTION RANGE
Life Insurance Offered to all employees without monthly payment. Death by any cause and Disability. Capital of R$ 1,300,000.00 - Generali Seguros
All
Funeral AssistanceOffered to all employees and direct dependents by Generali Seguros. No monthly payment
All
Personal Support ProgramChannel for dealing with personal problems, conflicts, finances, drug addiction, psychological, social etc. At no cost and confidential.
All
Meal VouchersPaid in the amount of R$ 471.00 to all active employees. Sliding-scale discount varying from R$0.01 to R$37.61 depending on salary
All
Food Voucher Paid in the amount of R$106.50 to all employees receiving a salary of up to R$ 5,431.78. R$10 is discounted from the employee
All
Transport Voucher Paid to the employee who opts for it. Discount of up to 6% of salary All
Holiday Meal/Food Voucher Benefit offered to all employees receiving a monthly salary of up to R$ 9,404.58 for holidays. Value of R$1,100.00
All
Snack Voucher Paid to employees working overtime. up to 5 hours, R$6.31; from 5 to 8 hours, R$12.66; over 8 hours, R$21.41
All
Private Pension Employee can opt for the following plans: Benefits of Mixed Plan offered by the Fundação Cesp. Defined Contribution and Benefit. PGBL or VGBL Plan
All
Medical Assistance Benefit offered by Bradesco Saúde with co-participation and deductible percentage. It extends to dependents and cohabitants registered prior to 2000
All
Dental Assistance Benefit offered by Odontoprev with no monthly payment. Discounts co-participation. It extends to dependents and cohabitants registered prior to 2000
All
Complement to Work Accident/Sickness Assistance
Employee on medical leave receives the salary complement
up to the 24th month of leaveAll
Special Assistance to Employee with disabled child
Benefit paid to employee’s child suffering from a disability with medical attestation. Amount R$378.00
All
Daycare Assistance Offered to employees with children up to age 7 who are at school, in daycare, maternal care or nursery care during working hours. Amount R$351.00
All
Nanny assistance Offered to employees with children from 4 months to 7 years old and who are being cared for by a nanny. Amount R$351.00
All
Check-up Annual benefit offered to the company officers without co-participation Company officers and management
Automobile Benefit given to company officers with a subsidy of 400 liters of fuel per month Company officers
LoansCooperative agreement with the Fundação Cesp and the Banco BMG discounted from salary
All
Travel Insurance Given to upper Management when on business travel Company officers
Main Benefits GRI LA3; LA8
71 2010 Sustainability Report
Internal Communications
In 2010, AES Brasil expanded and consolidated
the operations of its internal communications
channels with the Rede Ligado (Connected
Network) – an internal network composed of
six integrated communications channels – for
bringing people closer by means of clear and
dynamic language.
The Rede Ligado is made up of the following
channels:
Revista Ligado (Ligado Magazine): monthly
publication featuring the main news at the
AES Brasil Group, such as the organization’s
strategies, events, services and articles
focused on safety, social responsibility, ethics,
behavior, the environment and quality of life.
It is sent to employees’ homes by mail.
Portal Ligado (Ligado Gateway): corporate
intranet, launched in March 2010, focusing
on services, the latest news and online social
networks.
Boletim Ligado (Ligado Bulletin): sent by
e-mail, with urgent and important news about
the companies, for immediate release.
Conexão Ligado (Ligado Connection): mural
updated weekly with corporate information, as
well as the main indicators.
Estação Ligado (Ligado Station): monthly
podcast (digital audio archive) via web, 10
minutes long, on entertainment, information,
services and integration between the
companies.
Gestor Ligado (Ligado Manager): digital
bulletin, sent every two months to managers at
AES Brasil, on leadership, campaigns, initiatives
and activities to be launched.
Union�relations�GRI LA9
AES Brasil maintains constant relations
with the unions of the various
categories of company employees
working at the company. There is even
a specific department for maintaining
a constant dialog.
The Group has been striving to create
increasingly closer relations between
unions and the company. It is an active
relationship, with continuous dialog
for reaching satisfactory solutions for
all parties, especially on matters where
divergences arise.
GENERAL INFORMATION GRI LA1; LA13 2008 2009 2010
Total number of employees 4,141 4,360 5,663
Employees up to 30 years old (%) 27.10 26.80 30.73
Employees between 31 and 40 years old (%) 42.80 42.90 40.14
Employees between 41 and 50 years old (%) 25.90 25.20 23.29
Employes above 50 years old (%) 4.20 5.10 5.84
Number of female employees in relation to the total number of employees (%) 20.00 20.40 19.83
Women holding management positions in relation to the total management positions (%)
22.00 20.70 24.18
Black female employees (black and brown) in relation to the total employees (%) 1.20 1.70 2.15
Black male employees (black and brown) in relation to the total employees (%) 9.90 12.90 17.55
Black employees (black and brown) holding management positions in relation to the total management positions (%)
1.00 6.00 1.10
Interns in relation to the total employees (%) 1.44 1.42 1.20
Employees under the apprenticeship program (%) 0.17 0.80 0.62
Disabled employees 59 60 62
72 2010 Sustainability Report
PROFIT SHARING GRI EC5 2008 2009 2010
Total investment in the company’s profit sharing program (R$ thousands) 32,200.00 43,943.00 48,873.44
Amounts distributed in relation to the gross payroll (%) 15.60 19.45 13.40
Company shares held by employees (%) NA NA NA
Division of the highest cash compensation by the lowest cash compensation paid by the company (including profit sharing and bonuses)
61.7 57.98 69.06
Division of the company’s lowest compensation by the current monthly minimum wage (including profit sharing and bonuses)
1.1 1.80 1.49
CONDuCT IN CASE OF DISMISSALS 2008 2009 2010
Number of employees at the end of period 4,141 4,360 5,663
Number of hirings during the period 283 516 1,640
Labor claims filed per total employees dismissed over the period (%) 34 29 14.99
Labor claims GRI SO8
Amount claimed in court (R$ 000) 587,214 547,040 515,300
Provision recorded in liabilities (R$ 000) 389,945 406,550 347,999
Number of lawsuits in progress 4,775 4,678 4,015
Number of employees acting as parties to the lawsuits 5,316 6,385 4,567
73 2010 Sustainability Report
Suppliers
Joint development
AES Eletropaulo seeks much more than a simple business interaction. It encourages its partners to look for continual improvement in their processes and performance
aGRI EN6
ES Eletropaulo’s suppliers are
small, medium and large-scale
companies, both Brazilian
and multinational. They are responsible
for supplying the material used in the
electric system, such as: conductors,
connectors, poles, insulators, transformers,
meters and various materials used in
the administrative units. In 2010, the
Company maintained contracts with 554
companies.
The service providers are qualified for
expansion and maintenance activities
in the overhead and underground grid,
connecting new customers, meter-
reading and delivery of bills, security and
surveillance services, clearing vegetation,
tree-pruning and repairing equipment.
Over 90% of contracted companies
are composed of suppliers and service
providers based in the region. In 2010,
7,847 people worked at AES Eletropaulo
through service providers.
Management of suppliers includes their
registration according to technical, legal
and tax requirements, aligned with the
policies of Compliance, Safety and the
Environment.
Contracting policy GRI EC6
In the AES Eletropaulo contracting
processes, the needs and expectations of
the suppliers are identified, analyzed and
used to improve the practices relative to
the relationship, aimed at complying with
the best ways of adapting the company’s
expectations to the suppliers’ ability to
execute them in sustainable fashion.
During the term of the contracts, various
meetings, events and workshops are held
to guarantee continuity of supply without
prejudice to either of the parties. The main
topics addressed are Ethics and Safety.
AES Eletropaulo has specific rules for
selecting its suppliers, the application of
which begins at the start of the registration
process, where information is made
available on the Basic Guidelines for
Safety, the Environment and the Code of
Corporate Ethics and Conduct. At this stage
documentation is required for juridical, fiscal
and tax authorization. Specific consultations
are also made regarding the company’s
financial health and its compliance with
socio-environmental legislation.
For more complex processes, AES
Eletropaulo may require specific licenses,
such as ISO 9001 and ISO 14001,
compliance with occupational safety
requirements, training in areas such as
regulatory standards NR10 and NR33,
evaluation of prototypes, industrial
ratification and a compliance questionnaire.
During the contract’s term, suppliers’
compliance with AES Eletropaulo’s
requirements is ensured by means of
periodic inspections of reception, industrial
evaluation, the ethics and compliance
questionnaire, socio-environmental
responsibility and through technical audits
WAyS OF TRANSMITTING THE SuPPLy REQuIREMENTS TO THE SuPPLIERS
Basic Guidelines for Safety and the Environment;
Ethical Values Guide;
General Hiring Conditions;
Contracts for Supply and Provision of Services;
Specific formal communication;
Work meetings; and
Forums and workshops
In the contracting process, AES Eletropaulo seeks to adjust its expectations to the supplier’s capacity to deliver
75 2010 Sustainability Report
SupplIerS
carried out by specialized companies.
Contractual and compliance reviewGRI HR2; HR6; HR7
The contractual review is aimed at
ensuring AES Eletropaulo’s business
integrity, monitoring the legal conduct
and ethics of commercial partners and
safeguarding the company from situations
of ethical or legal violations.
In the contracts, specific compliance
clauses are included in which the contracted
company agrees not to become involved in
any criminal scheme or any which involves
violating human rights, such as slave or child
labor. In 2010, 100% of suppliers involved
in the Compliance process were evaluated
regarding these aspects, as well as health
and safety conditions.
The forms for contracting suppliers and
service providers also deal with specific
questions of ethics and compliance. When
doubts arise, the compliance team conducts
investigations on the company involved and
tries to clarify them with the contracted
company. In the case of serious evidence,
contracting does not proceed.
In 2010, 1,075 operations were analyzed
at AES Eletropaulo, involving a total value of
R$1.8 billion.
Action to combat child and slave labor
AES Eletropaulo takes action to eradicate
child labor and to impede forced and
degrading labor in its supply chain by using
a diverse set of tools. Additionally, at the
registration phase, information concerning
the Code of Ethics and Corporate Conduct
is made available, and specific clauses on
the theme are inserted in the contracts.
AES Eletropaulo carries out on-site audits
of suppliers, where one of the evaluation
items is child or slave labor. During Safety
Inspections, this is also one of the items that
make up the verification check-list.
To ratify this commitment, in 2010, AES
MATERIALS SERVICES
Areva Transmissão e Distribuição FM Rodrigues & Cia Ltda
Prysmian Energia, Cabos e Sistemas Socrel Serviços de Eletricidade
Landis & Gyr Equipamentos Conecta Empreendimentos Ltda
ABB Ltda B. Tobace Instalações Elétricas
Nansen S.A. Instrumentos Amara Brasil Ltda.
Main types of supplier at AES Eletropaulo
Brasil signed the National Compact for the
eradication of slave labor in Brazil.
Ethics and Compliance with the suppliers
In September 2010, AES Brasil held the
1st Forum on Ethics and Compliance
for 150 suppliers of Group companies.
The goal was to clarify the company’s
contracting policy so that its partners could
understand the analyses made before the
signing of contracts. During the event, an
invited specialist spoke on how the issue of
corruption is dealt with in various parts of
the world.
76 2010 Sustainability Report
OuTSOuRCED WORKERS 2008 2009 2010
Number of outsourced workers 6,368 7,191 7,847
Total cost (R$ thousands) 150,700 166,300 262,935
Outsourced workers in relation to the total headcount (%) 61 62 59
Compensation level - identify the percentage of employees in each salary level ND ND ND
EDuCATION LEVEL - IN RELATION TO THE TOTAL OuTSOuRCED WORKERS - DESCRIBE (%)
Elementary school ND ND ND
Secondary school ND ND ND
High school, post-graduation ND ND ND
SELECTION AND EVALuATION OF SuPPLIERS (CONCERNING CHILD LABOR, FORCED LABOR AND OCCuPATIONAL HEALTH AND SECuRITy CONDITIONS)
2008 2009 2010
Suppliers inspected by the company / total suppliers (%) – concerning child and forced labor ND 2.5 12.94
Suppliers inspected by the company / total suppliers (%) – concerning occupational health and security conditions 100.00 100.00 100.00
unqualified suppliers (incompliant with the company’s social responsibility criteria) / total suppliers (%) 0 0 0
SuPPORT FOR SuPPLIERS’ DEVELOPMENT (CONCERNING CHILD LABOR, FORCED LABOR AND OCCuPATIONAL HEALTH AND SECuRITy CONDITIONS):
2008 2009 2010
Number of training offered to suppliers 110 207 3,214
Number of training hours offered to suppliers 728 1,650 391,838
Suppliers GRI HR6; HR7; Eu16; Eu18;
77 2010 Sustainability Report
Customers
Focus on quality
In the challenge to serve with quality almost 6,1 million customers, AES Eletropaulo seeks to understand their particular needs and find the most suitable solution for each one.
aGRI Eu26; PR5
ES Eletropaulo serves 6.1
million consumer units in 24
municipalities located within
its concession area. the majority with an
urban profile in an area 100% served by
the energy distribution grid. The company’s
market corresponds to its concession area.
which represent 34.7% of the total in São
Paulo State and 10.4% of the national
market.
In 2010. the company was certified
at the ISO 9001:2008 quality standard
within the scope of Call Center Services.
Stores and the Contact Center. following a
sequence of audits covering several areas.
carried out by ABS Quality Evaluations
Inc. This positioned the company on an
internationally prescribed quality level.
which will be maintained and improved on
even further.
To maintain a quality service with
safety. fulfilling the customer’s needs. the
company divides its service into groups:
corporate customers and retail customers.
Corporate Customers
Eletropaulo’s corporate customers are
divided as follows:
Captive Corporate Customers: this
segment is given personalized service with
an account manager. whose purpose is to
understand the particular business needs
of his customers and develop specific and
suitable solutions for each. The account
managers therefore make periodic visits
and use traditional communications means
(telephone. email and the internet). as well
as holding events in business associations
(FIESP. CIESP. Fecomércio. among others)
and talks on the energy sector. AES
Eletropaulo also has a contact center
available for these customers. which carries
out the commercial service. Currently 13
customer managers and 39 commercial
assistants at the contact center are
responsible for this market’s management.
non-captive Corporate Customers:
similar to corporate captive customers.
non-captive customers represent a diverse
segment. which includes industrial.
commercial and service customers. This
covers customers who choose their electric
energy supplier through free negotiation.
contracting the connection and the use
of the distribution network with AES
Eletropaulo. These customers are also
served by customer managers and by the
contact center. All facilities and services
available to the captive customer are also
offered to non-captive customers.
Retail segment customers GRI PR5
The retail segment has a demand for
voltage below 500 kW. mostly residential.
but also with rural. small businesses and
industrial customers. They are served
by the call center. service stores. the
franchised network. chat. website or
ombudsman.
In 2010. the company expanded the call
center operations. maintaining the service
methodology. the content of the courses.
the indicators and the 450 service
posts. all located within AES Eletropaulo
itself. It has also invested in training via
e-learning. applied to all employees in
this area since October 2010.
Within the strategy of maximizing
the relationship potential. the company
resumed the online chat. opening a new
channel for customer communications. In
2010 there were 108.866 hits.
Another innovation with the company’s
call center was the remodeling of
the uRA (Audible Response unit).
responsible for greater speed in
attending to the customer. Separating
the calls by city neighborhoods rather
than by region allowed the operators to
respond with greater agility and with a
more focused response.
Within its concession area, which includes 24 municipalities, AES Eletropaulo serves 6.1 million consumer units
79 2010 Sustainability Report
CuStoMerS
Consumers’ Council GRI PR5
The AES Eletropaulo Consumer Council
is formed by representatives from
various consumer categories (residential.
commercial. industrial. rural and public
authorities) who act voluntarily with
the aim of analyzing questions of final
consumer interest related to electric energy.
such as tariffs and the quality of the services
provided.
The Council meets on a monthly basis
and discusses questions referring to
adapting services. as well as forwarding and
following up on complaints and suggestions.
cooperating in inspections of the company’s
actions. based on the General Conditions
of Electric Energy Supply set by Brazilian
Energy Agency Aneel.
Since they are volunteers. it is essential
that the council members appointed are
suited to the function. ready to defend the
public interest and are representative of that
public. To guarantee impartiality. authority
and reliability of the Consumers’ Council. its
members cannot occupy or be candidates
for elected public office.
Find out who the members of
the Consumer Council are at: www.
aeseletropaulo.com.br/clientes/Paginas/
ConselhodeConsumidores.aspx
Entering the social networks GRI PR5
In 2009, AES Eletropaulo began monitoring information about
the company posted on social networks such as Twitter, Facebook
and Orkut. A company hired for the purpose is responsible for
the monitoring and carries out the sorting of the information
in three categories: positive, negative and neutral, sending them
on so that AES Eletropaulo can get in touch and respond to the
suggestions or criticism.
On Twitter, the company’s profile (@AESEletropaulo) gives tips
on safety and the power grid, conscientious consumption and
energy efficiency, as well as information on the main power
outages, working hours of the two customer service channels
during public holidays and news about new products and
services. It also monitors complaints and answers various types
of question from internet users.
On youTube, the company’s page (www.youtube.com/
AESEletropaulo) posts videos with information of public interest,
such as correct and safe use of electricity, and on service channels.
In 2010, the company began tracking customer comments left on
the site Reclame Aqui (Complain Here), replying whenever necessary.
The company broadcasts on YouTube (www.youtube.com/AESEletropaulo) public-interest videos on the correct and safe use of electric energy
80 2010 Sustainability Report
Personal service
More comfort and practicality: based
on these concepts. in May 2010 AES
Eletropaulo inaugurated its first model
store in São Paulo’s Southern zone
neighborhood of Santo Amaro. Its purpose
is to improve service quality and guarantee
customer well being and satisfaction.
Located at Avenida Barão do Rio Branco
425. the new Customer Service Store is
adapted to serve various customer profiles.
Those preferring agility and speed. for
example. can use the electronic totems
and telephones in the self-service space.
Those needing a more personalized
solution go through a sorting process
according to type of service and are
directed to the service counters.
The waiting room is equipped with LCD
screen TVs with preferential seats for the
elderly. pregnant women and the disabled.
as well as adapted restrooms. The store’s
visual communication is clearer and
facilitates identification and recognition of
the location. The internal spaces. for example.
are identified by colors. enabling a better
understanding of the services available.
Courtesy and politeness are
characteristics of the attendants. They
receive continual training and technical
qualification and. last year. they all
attended the behavioral training course
Nosso Jeito. Nossa Atitude (Our Way. Our
Attitude).
In early 2011. the second model store was
inaugurated out of a total of 12; between
2010 and 2011. 26 of 63 Rede Conveniada
de Atendimento (franchised customer
service stores) have been opened within
the new concept. By the end of 2012. the
company is expected to complete the
remodeling of all company-owned and
franchised stores in its network.
Satisfaction with quality service GRI PR5
AES Eletropaulo tracks its customers’ levels
of satisfaction by means of satisfaction
surveys applied in each of its segments.
Retail segment customers
In the retail segment. AES Eletropaulo
uses the Brazilian Electric Energy
Distributors Association – Abradee’s
survey. carried out annually. which takes
into account 39 quality attributes divided
into seven macro categories (energy
supply; information and communication;
electricity bill; customer service; company
image; social responsibility and public
lighting). The individual results of each
interview are subsequently forwarded
to AES Eletropaulo. which then makes
various comparative analyses.
According to the Abradee survey.
AES Eletropaulo customers’ Perceived
Satisfaction with Quality Index (ISQP)
was 76.6% in 2010. a drop in relation
to 2009 (80.1%). This decrease is due
mainly to the items. Energy Supply (9.3
percentage points) and Information and
Communication (10.5 points). According
to Abradee. the heavy rains in Southeast
Brazil in the summer of 2010. the media
81 2010 Sustainability Report
driven effect of the power outage on
November 11. 2009. throughout the
Central-South of Brazil and the persistence
at the time. of the negative media
exposure. contributed significantly to the
fall in the general perception of customer
satisfaction at AES Eletropaulo and many
other electric energy distributers in Brazil.
Of the 29 distributors with over 500
thousand consumers in Brazil. 23 suffered
a decrease in customer satisfaction
between 2009 and 2010.
The management of customer
satisfaction surveys in the electric sector
is usually annual. Intending to break
with this paradigm and be innovative.
AES Eletropaulo created its Online
Survey of Customer Satisfaction. which
investigates satisfaction on a daily basis.
This is a phone survey carried out by call
center operators. with sample planning
similar to that of the Abradee Survey.
The consolidation of the data researched.
the generation of satisfaction indicators
and the publication of the results on the
intranet are carried out automatically and
online at the company.
The impact of this action on the
organization is remarkable and naturally
encourages everyone’s mobilization in the
customer area. Activities of the Customer
Satisfaction Plan. a strategic company
program. are prioritized in regional terms by
means of the survey results. The practice
has been adopted in other AES Group
companies (AES Sul and AES El Salvador).
Corporate customers
For Corporate Customers. the Corporate
Customer Satisfaction Survey. carried out
annually. face-to-face by the Vox Populi
Institute. evaluates 66 attributes grouped
into eight quality areas (account manager;
telephone service; image; information and
communication; supply quality. billing
and tariffs; social responsibility and public
illumination projects) and identifies the
level of importance each customer gives
to each of these. The forms are individual
and allow the customer’s identification.
facilitating the development of specific
actions.
The 2010 General Satisfaction Index
(ISG) of this corporate customer survey
was 77.6%. representing an increase of 8.5
percentage points over 2009.
Aiming to anticipate any customer
demands and consistently monitor
corporate customer satisfaction
throughout the year. AES Eletropaulo
created the Continuous Corporate
Customer Satisfaction Survey. carried
out through questionnaires filled in by
the customers. via the internet. on a web
survey platform. Four surveys were carried
out in 2010.
In addition to the surveys. the company
monitors and manages complaints
received. taking actions to continuously
improve customer satisfaction.
In 2010, the corporate customer General Satisfaction Index grew 8.5 percentage points compared to 2009
82 2010 Sustainability Report
Torpedo fácil - Easy SMS
Implemented in 2009 in all 24
municipalities in the concession area,
the sending of SMS messages (texting
via cell phone) by the customer to
the company was consolidated as a
reliable form of communication in
2010. Customers have assimilated
text message culture and the service
has been widely used. The following
services are available via Torpedo Fácil:
bill copy request, communication
of power outage and reconnection
requests. In 2010, the communication
channel was responsible for 7% of
calls/texts made due to power outages.
Satisfaction with customer service
channels GRI PR5
Retail customer service channels are
also evaluated on a daily basis. The call
center carries out surveys after the calls
have been dealt with automatically by
uRA (Audible Response unit). without
interference from the operator. The
customer service stores and service posts
of the Franchised Network. carry out
surveys by means of an “opinionmeter”
device. available on every operator’s
desk. The self-service chat carries out a
satisfaction survey at the end of the web
customer service.
All these surveys follow the same standards
when evaluating the service channel. the
posture. knowledge and cordiality of the
operator. and are therefore comparable.
The results are collected daily and result in
various corrective actions in processes.
Tariff review
The mechanisms used by Aneel to alter
the tariffs are the annual readjustment
and the tariff review. It should be
noted that in the annual adjustments.
the part of the tariff that includes the
manageable revenue costs (remuneration
from investment. costs of operation.
maintenance and asset depreciation)
is monetarily updated by the General
Market Price Index (IGP-M) released by
the Fundação Getúlio Vargas. reduced
by Factor x (a factor defined in the
concession contract. the purpose of which
is to share gains in productivity with
customers). On July 4. 2010. the average
tariff adjustment was 8%.
In the periodic tariff review. the revenue
needed to cover efficient operational costs¹
and a suitable remuneration on prudent
investments is calculated. In 2011. Aneel
(Brazilian Electric Energy Agency) will begin
the distribution concessionaires’ third cycle
of periodic tariff review. the methodology of
which is still in a public hearing.
For AES Eletropaulo. the tariff review
will be held in July 2011. with the process
happening every four years. Monitoring
the preparation of the methodology is a
strategic matter for AES Eletropaulo.
¹Aneel calculates the revenue needed to set a new tariff level, in such a way as to adequately remunerate investment and cover operating costs. As regards the latter, so that this result does not depend solely on information supplied by the distributor, which could jeopardize the review process, Aneel utilizes the “Reference Company” methodology for the calculation of the operating costs, in this case called “efficient”. In short, it means dealing with a theoretical model that seeks to reflect the efficient operating costs that an ideal concessionary company would have operating in the same concession area. The efficient operating costs are used for the calculation of the distributors’ revenue.
83 2010 Sustainability Report
Division of the tariff
Based on current tariffs. AES Eletropaulo
receives around 21% of the total amount
billed to customers. The remaining 79% is
divided between generation. transmission.
taxes and charges. updated tariff values
can be found at www.aeseletropaulo.
com.br/clientes/informacoes/Paginas/
tarifasdeenergia.aspx.
Relationship channelsMAIN CHANNELS CuSTOMER SEGMENT DESCRIPTION
Electricity Bill All Customers uses the back of the bill and leaflets in the same envelope for commercial. institutional and promotional communication.
Call center All Customers Telephone customer service available 24/7.
Stores and Franchised Customer Service Network
All Customers Personal service for requests and clearing up doubts.
Web site and chat All Customers Disseminates services. safety hints and useful information in banners and specific pages
Ombudsman All Customers Relationship channel that receives. analyzes. forwards and responds to complaints. denouncements. suggestions and praise.
Publicity and Advertising All Customers Advertisements in communications media to consolidate the company brand. information on safe and proper use of electricity. Disseminated via TV. press. radio. billboard and bus advertising.
Sponsorship All Customers Financial or institutional support for campaigns. events. cultural and educational projects and actions for the dissemination of safe and proper use of electric energy.
Connection online Newsletter
Corporate CustomersDistributed quarterly via email and available on the site. carrying important information for corporate customers for the sustainability of their business.
Contact Center Corporate Customers Telephone channel for exclusive communication.
Press Office All Customers Serves journalists and communications media and sends releases with pertinent information.
Twitter All CustomersDisseminates information on power outages. scheduled disconnections. safety hints and achievements.
cont
With the resources allocated to it. the
company pays salaries. legal charges. and its
employee benefits. invests in service quality.
in energy supply infrastructure and derives
its remuneration from it.
In 2010, Easy SMS messaging was responsible for 7% of power outage communications
84 2010 Sustainability Report
MAIN CHANNELS CuSTOMER SEGMENT DESCRIPTION
youTube All Customers With the use of videos. shows information on safety and efficient electric energy use.
Courses. Technical Seminars. Workshops
Corporate CustomersEvents on trends in the services sectors. industry. commerce and public authorities on best options for contracting energy.
Sustainability Reports All Stakeholders Annual report. available on the company site. reporting its economic-financial and socio-environmental performance.
Torpedo Fácil (SMS) All CustomersCopy of bill can be requested or power outages reported and reconnection requested via SMS text message.
Service for the Hearing Impaired
Hearing Impaired Customers Relationship channel exclusively for the hearing impaired. carried out using a telephone interface. The flow of request handling is similar to that of the call-center.
Targets
AES Eletropaulo intends to guarantee continuity in improvement
in the quality indicators and attain the mark of 85% of service
responses within the first 30 seconds of the customer’s call.
The company will also act more forcefully on two fronts:
• Improving indicators. expanding benefits offered to customers;
• Expanding surveys made on the call center. reaching 100% of calls.
Adjustment to Resolution 414 GRI 1.2
Normative Resolution 414. of 2010. established new conditions
for the provision of services linked to electric energy. Among
the main changes are obligatory personal services in all
municipalities served by the concessionaire. the reduction of
connection times for residential and rural consumers. small
commercial establishments and businesses (from three to two
working days) and for medium and high voltage consumers
(from ten to seven working days). Reconnection times were also
reduced from 48 to 24 hours.
Aneel also changed the rules regarding power shut-off due to non-
payment: the consumer must have prior notice of at least 15 days.
but the power can only be shut off 90 days after the due date of
the unpaid bill. In addition. the company must offer. 24 hours per
day. free telephone service to the caller. regardless of the type of
call (landline or cell). In accordance with the rules. the call must
be answered by the second ring and calls must be directed to a
human operator within 60 seconds.
In order to comply with these decisions. AES Eletropaulo is restructuring
its franchised service network and working on adapting the call
center to satisfy the new requirements. In addition. it has signed new
partnerships with suppliers and informed all the medium and high
voltage units of the new rules for billing.
For more information on Normative Resolution 414. Aneel has
made a folder available that can be found on the internet. at:
www.aneel.gov.br/arquivos/PDF/folder_perguntas%20e%20
respostas_414_final.pdf
85 2010 Sustainability Report
ExCELLENCE IN SERVICES 2008 2009 2010
profile of consumers and clients GRI 2.7; PR5
Energy sale per rate class (GWh): % total
Residential 40.88 41.91 42.02
Residential - low income 1.72 1.69 1.85
Commercial 30.42 31.22 31.27
Industrial 19.37 17.52 17.32
Rural 0.08 0.08 0.08
Government 3.25 3.33 3.39
Public Lighting 2.59 2.61 2.43
Public Services 1.68 1.64 1.64
Client satisfaction
Satisfaction level obtained through the IASC - ANEEL survey 65,10 71,51 71,51
Satisfaction levels verified by surveys made by other entities (Abradee. Vox Populi and other) and/or own survey (to specify) ISQP – Index of Quality Satisfaction obtained from residential clients – ABRADEE (Brazilian Association for Electric Power Distributors) survey.
80,40 80,10 76,6
Customer services
Number of calls answered (Call Center) 8,554,295 8,661,057 9,975,540
Number of answers at the regional offices 1,444,023 2,131,813 2,420,564
Number of answers through the Internet 3,449,935 3,738,775 4,724,343
Complaints in relation to the total phone calls answered (%) 2,21 1,03 0,00
Average waiting time until the beginning of an answer (minutes) 1,42 0,19 0,35
Average answer time (minutes) 5,22 4,28 4,82
Number of consumers’ complaints submitted to:
the company 29,511 27,204 29,251
Aneel state/regional offices) 2,948 4,433 9,394
Procon (Consumer Protection Agency) 4,512 5,044 5,281
Court 2,330 3,416 3,288
Complaints - main reasons (%) (%) (%)
Term for performance of services (%) ND 3,2 7,0
Inadequate supply of energy (%) 0,6 0,9 0,8
Interruptions (%) 1,2 1,9 2,6
Emergencies (%) 1,2 1,0 0,7
Consumption/measurement (%) 20,7 22,2 16,6
undue energy cut off (%) ND ND 0,1
undelivered bills (%) 11,5 8,6 6,5
Poor performance of services (%) 0,2 0,3 0,5
Electric damages (%) 4,1 7,3 10,5
Irregularities in measurement (fraud. energy misappropriation) (%) 2,5 4,3 3,3
Other 58,0 50,3 51,5
COMPLAINTS RESOLVED 2008 2009 2010
During the answer (%) 49,00 59,00 50,4
In up to 30 days (%) ND 67,00 84,10
Between 30 and 60 days (%) ND 14,00 13,00
After more than 60 days (%) ND 19,00 2,90
Complaints considered valid in relation to the total complaints (%) 72,00 59,00 51,00
Complaints resolved in relation to the number of valid complaints (%) 100,00 100,00 100,00
Number of innovations implemented due to the interference of the ombudsman and/or customer service
ND ND ND
86 2010 Sustainability Report
Society
Inclusion and citizenship
Making a difference, practicing sustainability, encouraging inspired relationships and educating current and future generations
t GRI EC4
he supply of reliable and
accessible electric energy is the
central point in promoting the
socio-economic development of society,
especially in low-income communities.
AES Eletropaulo invests its own and
tax-incentive sourced resources in social
projects, energy efficiency and research
and development.
In 2010, around R$160 million was
allocated to projects promoting: social
inclusion and citizenship; education for
conscientious and safe use of energy;
reduction of energy consumption; culture,
sport and income generation in low-
income communities.
Social Projects GRI SO1
AES Eletropaulo runs seven social
projects in its concession area, divided
along two lines: Education, Culture and
Sport and Inclusive and Social Businesses.
In 2010, R$38.3 million was invested from
own and tax incentive funds.
Among tax incentive funds, R$1.4 million
was allocated to cultural projects through
ProAC (São Paulo State Cultural Activity
Program), which uses resources from the
ICMS (sales tax). Examples of the projects
benefiting from this program are the
Oficinas Querô, the object of which was
the production of a short film with 31
adolescents from the community of Vila
Guacuri; Boca do Céu, which brought story-
telling to the units of the Casa de Cultura e
In 2010, AES Eletropaulo invested R$160 million in projects of social inclusion, citizenship, education, culture, sport, conscientious energy use and income generation.
Cidadania; and the Cineco, which foresees
the installation of seven structures for
showing films on DVD.
Prior to the implementation of a social
project, the company makes an analysis of
the region’s socio-economic profile using
the Índice Paulsta de Vulnerabilidade Social
(IVPS)* (São Paulo State Index of Social
Vulnerability) and evaluates the size of the
population to be benefited. The lower the
IVPS and the higher the population, the
greater the probability of a social project’s
implementation is. The decision on which
can be proactive on the part of the company,
or due to the demand from society.
Once the community where the social
project is to be implemented has been
identified, the next step is to enter into
a dialog with the Public Authorities and
the local leaders, to align the expectations
of the community with the company’s
social responsibility strategy, part of the
company’s strategic map.
After the project’s implementation,
AES Eletropaulo monitors the results by
surveying the people benefiting from the
initiatives.
Indicators
To measure the socio-environmental
performance of the company and to
attain the strategic goal of being the
sector’s best distributor regarding Social
Responsibility, AES Eletropaulo uses
three tools: the indicators of the Ethos
Institute**, allowing an evaluation of
* A system of indicators that express the degree of social and economic development among the 645 municipalities of the State of São Paulo.
** The Ethos Institute of Corporate and Social
Responsibility is an Oscip (a Public Interest Civil
Society Organization) which has the mission of
mobilizing and helping companies manage their
businesses in a socially responsible way.
Cultural incentives
AES Eletropaulo allocated R$ 1.4
million to cultural projects through
the São Paulo State Cultural Initiative
Program (ProAC), which makes use
of ICMS (tax on the movement of
goods and services) tax incentives.
Among the projects that benefit
from this program are the Officina
Queiro, which produces short films
with adolescents in the Vila Guacuri
community; the Boca do Céu, which
brings story-telling to the Casa de
Cultura e Cidadania; and Cineco, which
foresees the installation of seven
structures to exhibit movies in DVD.
88 2010 Sustainability Report
SoCIety
the management of social responsibility
practices; the Abradee Customer
Satisfaction Survey; evaluating the
perception on the company’s social
action; and the results of the Ibase Social
Audit, an annual balance sheet with
accounting information on the projects,
benefits and socio-environmental actions
involving company employees, outside
stakeholders and the environment.
In 2010, AES Eletropaulo came in 6th place
in the national ranking of the Abradee Social
Responsibility Awards, among distributors
with over 500 thousand customers.
Casa de Cultura e Cidadania (House of
Culture and Citizenship)
AES Brasil’s main project, the Casa
de Cultura e Cidadania has the goal of
transforming the reality of thousands of
children, adolescents and adults through
activities involving art, culture, citizenship,
quality of life and income generation.
Focused primarily on low-income
communities, the project directly benefits
5.2 thousand people in its activities and
47 thousand people with its presentations
and talks. In AES Eletropaulo’s units, 1.6
thousand people benefit directly from the
project and 33 thousand people in low-
income communities benefit from the
talks and other activities of the Casa de
Cultura e Cidadania.
Acting in the two spheres of Social
Responsibility (Education, Culture and
Sport and Inclusive and Social Businesses),
the project has seven units: São Paulo
and Osasco, with investment from AES
Eletropaulo and support from AES Atimus;
Barra Bonita, Lins, São José do Rio Pardo
and Caconde, under the responsibility of
AES Tietê; and Rio de Janeiro, coordinated
by AES Atimus. In 2011 a new unit will
be inaugurated in Novo Hamburgo in Rio
Grande do Sul state, sponsored by AES Sul.
The program at the Casa de Cultura e
Cidadania includes two fronts of action,
which have a transversal theme of safe
and efficient use of electric energy and
responsible consumption of natural
resources. The first of them, offered on
Mondays to Fridays from 8am to 5pm, is
directed toward children and adolescents
and presents activities such as storytelling,
circus arts, visual and digital arts, music,
theater, dance, artistic gymnastics
and sports gymnastics. The teaching
methodology applied was developed by a
multidisciplinary team of curators.
The other front, for adolescents and
adults, promotes vocational and business
training courses, workshops on income
generation and talks. The courses are given
in the evening from Monday to Friday and
on Saturdays.
To evaluate and manage the benefits
of the Casa da Cultura e Cidadania,
AES Eletropaulo carries out a weekly
satisfaction survey, conducted by the
Instituto IdeaFix, and tracks the Casa’s
monthly management indicators and
its activities, together with six-monthly
indicators on the real use of the benefits.
The Casa has consultative councilors,
made up of members of AES Eletropaulo,
the company that renders the project
operational, and from the community. The
main goal is to exercise citizenship through
periodic meetings – with the participation
of community leaders, educators, parents
or those responsible for the children,
adolescents from the project and
representatives from the public authorities
– so that in the medium term the council
can have an influence on questions of
public policies that directly affect the
community in which they live.
In 2010, the AES Brasil Group won the
10th edition of the Fundação Coge Award
in the category, Social Responsibility
Actions, with the Project, Casa de Cultura
e Cidadania. Over 80 projects and 32
energy companies were competing for the
Fundação Coge Award.
Centro Educacional Infantil Luz e Lápis
(Light and Pencil Children’s Educational
Center)
The Centro Educacional Infantil (CEI) Luz
e Lápis is a Civil Society Organization in the
Public Interest (OSCIP) serving 320 children
aged from one year to five years and eleven
months of age, from low-income families or
in a situation of social risk. Structured on AES
Brasil’s pillar of Education, Culture and Sport,
the project has two units – Santo Amaro and
Guarapiranga, in the Southern zone of the city
of São Paulo and employs about 60 people.
*Category grouping energy distributors with over 500,000 customers
**Group comprising companies positioned in the top ten, based on general performance
Compliance with Ethos – Abradee* Indicators
Abradee Survey (Customer Satisfaction – Social Responsibility Attributes)*GRI PR5
2008
83.0% 94.0%
2009 Reference**
88.0%
2008
82.1% 82.0%
2009 Reference**
95.3%
89 2010 Sustainability Report
Maintained for over 20 years by AES
Eletropaulo, the CEIs use a constructivist
pedagogical project, aimed at encouraging
the children to develop their own ability to
observe, discover, think and act by having
as its principles, respect for the dignity and
rights of children; the right to play; access
to available socio-cultural resources; the
socialization of the children and the right
to essential care.
The project also provides access to
children’s literature through two Ecotecas
– ecological libraries, built with box
packaging made from recycled material.
This project was made possible by ProAC
– Programa de Ação Cultural do Estado de
São Paulo (the São Paulo State Cultural
Action Program) – with investment from
AES Eletropaulo. The minimum collection
is 500 books per unit.
To evaluate the work, climate surveys are
carried out among the employees, who
assess the strong points and improvements
(which result in a plan of action), and a
360º, performance assessment which
helps in the understanding of training and
development needs.
In 2010, Luz e Lápis implemented the
Educar para a Vida (Educate for Life)
project which, through a cooperative
agreement with the São Paulo Municipal
Fund for Children’s and Adolescents Rights
(Fumcad), enabled the development of
activities in arts, music, dance, physical
education and IT, in addition to the hiring
of a psychologist for the children.
The project team is composed of a
teaching director, teaching coordinators,
educators, nursing assistants, a health
agent, a psychologist, chefs and cleaning
personnel, administrative and janitors. The
educators (teachers and assistants) take
part in talks by professional specialists and
attend courses upgrading the activities.
Members of both the Executive Board
and the Audit Committee are employee
volunteers from AES Eletropaulo, appointed
at the general meeting in December 2009
for a period of two years.
AES Eletropaulo in the Community and
AES Eletropaulo in Schools
AES Eletropaulo develops two social
education projects for conscientious and
safe consumption of electric energy: AES
Eletropaulo in the Community and AES
Eletropaulo in Schools.
With playful and interactive activities,
the aeS eletropaulo in the Community
project is composed of itinerant modules
(trucks and tents) using multimedia
resources and scientific experiments to
transmit knowledge on efficient and safe
energy consumption habits.
In 2010, the project served 104.7
thousand people in the two trucks,
equipped with an interactive video
projected on a 180º touch-sensitive
screen, and 48.5 thousand people in the
tents. Children and adolescents from the
state school system benefited as well as
those from neighborhood associations and
Partnerships
Unidade Básica de Saúde de Santo
Amaro (Santo amaro primary
health Care unit) –appointments
with pediatricians and further
appointments for specialist treatment;
Albergue Reencontro e Casa da
Criança e do Adolescente de Santo
Amaro (Santo amaro Shelter for
Children and adolescents) – Priority
service for children, with reserved
places at the Santo Amaro unit;
Conselho Tutelar e Vara da Infância
(Guardianship council and children’s
court) – priority service for children
referred onwards;
unip (paulista university) – children
and parents referred for psychological
treatment.
90 2010 Sustainability Report
other institutions from the communities’
surrounding areas including those in
the Transformation of Consumers into
Customers Program (see more on page 94).
With a focus on the qualification of
teachers in the state school system, the
aeS eletropaulo in Schools project works
directly in the training of multipliers to
disseminate information in the classroom on
responsible and safe use of electric energy.
The project, which also has a truck equipped
with 15 computers and an educational game
in which students test their knowledge on
the subject, served 456 state-run schools
in 15 municipalities in the AES Eletropaulo
concession area, reaching around 62
thousand children and adolescents in 2010.
Students taking part develop artistic
works on the topic that vary from
models of equipment to plays, music and
dance. In 2010, the students produced
4,236 projects which were shown to the
community in open exhibitions organized
by the schools and the Educational
Secretaries of the participating towns.
Investment for the Energy Efficiency
Program was R$5 million.
To reinforce awareness on the proper use
of electric energy, AES Eletropaulo invests in
the mass media – with advertisements on
TV and radio – and in 2010 launched the
Consumo Mais Inteligente (More Intelligent
Consumption) Program, focused on
encouraging attitudes that result not only
in financial savings but also in improving
the public’s quality of life. Energy Efficiency
projects, run out by the company, are
described on the Consumo Mais Inteligente
site (www.consumomaisinteligente.com.br).
Fornecedor Cidadão (Citizen supplier)
In the Inclusive and Social Business sphere,
the Fornecedor Cidadão project was created
to provide training aimed at the distribution
business and to train people to be AES Brasil
suppliers. The result of ideas developed in
the Ethos Institute’s Grupo Referencial de
Empresas em Sustentabilidade - Sustainability
Reference Group of Companies in (GRES),
the project’s goals are: the generation of
income for the low-income community; the
inclusion of women in the energy sector,
increased diversity; and the reduction of the
turnover rate among suppliers.
The project’s first initiative was the
Training of Women Electricians, which
offered a vocational training course in
electricity – divided into two classes - for 41
women from low-income communities. The
women are linked to the suppliers Socrel
and FM Rodrigues, service providers for AES
Eletropaulo, in the activity of shutting off
and reconnecting electric connections. The
target for 2011 is to expand the project to
other AES Brasil suppliers.
Among the preliminary results, were
approval by the supplier (no dismissals),
incorporation of the safety culture into the
employees’ daily work routine and high
productivity.
Empreender com Energia (Enterprise
with Energy)
The Empreender com Energia (Enterprise
with Energy) program encourages social
enterprise in low-income communities. For
this, community members organize a mini-
company and with monitoring, learn how
to administer it during a year. In 2010,
two groups with 22 community members
were formed with individual entrepreneurs
from activities such as handicrafts in
general, sewing, IT and cleaning products.
Programa de Voluntariado Energia do
Bem (Energy for Good Volunteer’s
Program)
Energia do Bem is an AES Brasil
volunteer’s program whose aim is to
engage with and offer support to company
and outsourced employees and their
family members who want to voluntarily
contribute to the development of the
communities in which AES is active.
Launched in 2009, in 2010 the project
had 713 volunteers from AES Eletropaulo
(12.5% of the workforce).
To support the program, AES Brasil
companies offer a link to divulge voluntary
opportunities, and the donation is up
to four hours per month from working
hours for voluntary work, including
transportation by a company-licensed taxi
to the institution closest to the workplace.
91 2010 Sustainability Report
The spheres of Energia do Bem
Distributing Energia do Bem: has the
objective of mobilizing employees to take part
in periodic and emergency campaigns, such
as the Campanhas do Agasalho e de Natal
(Clothes Donation and Christmas Campaigns),
encouraging donations for social projects in
aid of children and adolescents. In 2010,
AES Brasil’s Christmas Campaign helped
1,188 children and the Clothes Donation
Campaign involved 37 institutions
throughout the concession areas where
Group companies operate. The Program
also mobilized employees to contribute to
helping people affected by natural disasters
such as those in Chile and Haiti, São Paulo
and São Luis do Paraitinga. Clothes, shoes
and domestic utensils were collected
and bank accounts opened for financial
donations.
Agindo para Transformar (acting for
Change): aimed at social engagement and
the employees’ voluntary participation
in AES Eletropaulo’s partner institutions.
It also includes the selection and
monitoring of social projects registered
in the Conselhos Municipais dos Direitos
da Criança e do Adolescente Municipal
Councils for Children’s and Adolescents’
Rights (CMDCAs), which receive 1% of
income tax owed by the company. In
2010, AES Eletropaulo allocated R$2.3
million to 15 social projects in three
municipalities in the concession area.
Empreendendo na Comunidade
(enterprise in the Community):
implemented in 2010, the goal is to
encourage social enterprise among
employees through the presentation of
social projects to be developed – with
the support of AES Eletropaulo – in
the communities. The results will be
evaluated in 2011.
MANAGEMENT OF THE COMPANy’S IMPACT ON THE NEIGHBORING COMMuNITy GRI SO1 GRI PR5 GRI SO1
2008 2009 2010
Number of the community’s complaints – impacts caused by the company’s activities
19 11 7
Number of improvements implemented in the company’s processes based on the community’s complaints
2 3 1
B) COMPANy’S INVOLVEMENT IN LOSSES RELATED TO THIRD PARTIES
2008 2009 2010
Amount claimed in lawsuits (R$ 000) 124,370 144,905 158,717
Provision recorded in liabilities (R$ 000) 11,146 11,435 14,995
Number of lawsuits in progress 256 249 273
Number of parties to the lawsuits 325 323 353
cont
Number of volunteers
557
713
2009 2010
92 2010 Sustainability Report
COMPANy’S INVOLVEMENT IN SOCIAL ACTIONS GRI EC4
2008 2009 2010
Resources applied in education (R$ 000) 12,100 16,385 23,653
Resources applied in health and sanitation (R$ 000) 0 0 0
Resources applied in culture (R$ 000) 7,295 6,109 11,885
Other resources applied in social actions (R$ 000) 1,276 974 2,757
Amount intended for social actions (not including legal obligations, taxes, employee benefits) (%)
23.05 27.86 30.00
Of the total intended for social actions, percentage of donations in products and services (%)
0,00 0,00 0,00
Of the total intended for social actions, percentage of donations in cash (%) 8 7 5
Of the total intended for social actions, percentage of investments in own social project (%)
87.48 90.30 87.00
Employees who perform voluntary work for the community outside the company / total employees (%)
ND 12.77 13.00
Number of monthly hours donated (released from the normal work day) by the company for employees’ voluntary work
ND ND 2,852
Consumers enrolled in the “Bolsa Família” program/ number of consumers in the low-income class (%) 6.10 6.80 13.8
COMPANy’S INVOLVEMENT IN CuLTuRAL, SPORTS AND OTHER PROJECTS (ROuANET LAW, STATE INCENTIVES)¹
2008 2009 2010
Amount of resources intended for the projects (R$ 000) 8,971 7,001 15,513
Number of projects benefited by the sponsorship 22 30 39
Amount of resources intended to the largest project (R$ 000) – provide details of the largest project: project title, beneficiaries (sponsored person: individual or legal entity)
7.261 Casa de Cultura e Cidadania. Applicant - H. Melilo. Description: this Project serves 1,000 low-income children and teenagers highly subject to social vulnerability, in addition to 300 adults of the community itself with projects for income gener
5.771 Casa de Cultura e Cidadania. Applicant - H. Melilo. Description: this project serves 1,500 low-income children and teenagers highly subject to social vulnerability, in addition to 400 adults of the community itself with projects for income generation ncentive.
9.051 Casa de Cultura e Cidadania. Applicant - H. Melilo. Description: this project serves 1,500 low-income children and teenagers highly subject to social vulnerability, in addition to 400 adults of the community itself with projects for income generation ncentive.
GOVERNMENT AND SOCIETy
a) Management of the company’s impact on the neighboring community
2008 2009 2010
Resources allocated to federal, state and municipal governmental programs (not provided for in law) (R$ 000)
0.00 0.00 0
Number of initiatives, events and campaigns focused on the citizenship development (voting exercise, conscientious consumption, anti-corruption practices, children’s rights etc)
2,883 3,647 8,887
Publicity resources intended for citizenship development institutional campaigns (R$ 000)
7,057 9,440 12,405
Resources invested in tax incentive-based programs/total social investment resources (%)
43 30 34
LOW-INCOME RATE
2008 2009 2010
Number of low-income clients/consumers 724,378 729,547 758,850
Total clients/consumers with low-income rate in relation to the total residential clients/consumers (%)
13.77 13.40 13.50
Revenue from residential low-income consumers (R$ 000) 95,344 102,948 112,753
Total residential low-income revenues in relation to the total residential revenues (%)
2.62 2.48 2.49
Subsidy received (Eletrobrás) for low-income consumers (R$ 000) 26,135 8,876 39,730
1 Lei Rouanet, incentivos estaduais, etc.
93 2010 Sustainability Report
Energy EfficiencyCampaign GRI Eu7; Eu24
AES Eletropaulo allocates 0.5% of its net
operating revenue to the Energy Efficiency
Campaign, in compliance with the decision
of the Brazilian energy agency, Aneel,
in addition to company funds. In 2010,
investments totaled R$18.2 million from
company funds and R$62.5 million from
compulsory resources.
Part of the Energy Efficiency program is
the Turning Consumers into Customers
project – the regularization of electricity
connections in low-income communities –
and projects aimed at public and corporate
customers, as well as Eletropaulo in
Schools (read more on page 90).
Turning Consumers into Customer GRI EC9; SO1; Eu22
The aim of the Turning Consumers into
Customers Program is the regularization
of electric energy connections, improving
energy supply conditions to low-income
communities and the surrounding area,
disseminating guidelines on safe and
efficient use of electricity and promoting
social inclusion.
Since 2004, over 411 thousand families
have benefited from the regularization
of their electricity connections. In 2010
alone, 55.5 thousand regularizations
were made, with an investment of
R$48.4 million, with R$18.2 million from
company funds and R$30.2 million from
compulsory resources as part of the
Energy Efficiency Program.
The starting point is a visit to the
community to build the relationship, get to
know people and explain the project’s goals.
After these contacts, the regularization
work begins.
To help the community have the financial
conditions to pay their electricity bills, AES
Eletropaulo contributes to reducing energy
consumption, replacing incandescent light
bulbs with compact fluorescent ones,
as well as refrigerators in a precarious
state, installing smart showers and also
renovating internal electric installations in
houses in poor condition.
In addition to being more efficient in
terms of energy consumption, the new
refrigerators use isobutane gas and foam
with cyclopentane gas that does not harm
the ozone layer. Moreover, the precarious
refrigerators are disposed of correctly by
specialist companies, who recycle and re-
use the component materials.
The Turning Consumers into Customers
Project also promotes citizenship, given
that the customer ends up with a proof
of residence (the electricity bill), enabling
eligibility for diverse benefits in society.
To measure the project’s results, periodic
satisfaction surveys are carried out in
the regularized communities. The next is
scheduled for 2011.
For 2011, the target is to reduce the
default rate among new customers. The
campaign “Pagou em dia, é só alegria”
(Happiness is paying on time) was launched
in 2010, with a seven-month duration.
All customers in the areas regularized by
AES Eletropaulo between 2004 and June
2010 and with their bills paid up and their
registration regularized take part in the
campaign. Participation is automatic, as
numbers are generated automatically, with
a monthly draw on the campaign site:
(www.pagouemdiaesoalegria.com.br).
Each month, 60 tickets worth R$200 are
drawn, and one worth R$5,000. Throughout
the campaign, those who have already
won are eligible to win two prizes worth
R$105,000 each to do a makeover of their
houses by architect Marcelo Rosenbaun,
the same as in the feature “Lar, Doce Lar”
(Home, Sweet Home) in the Rede Globo TV
program “Caldeirão do Huck”.
In three months of the campaign, the
number of paid-up customers rose by 6.3%.
94 2010 Sustainability Report
Energy efficiency projects GRI EN6; EN26
As well as the project aimed at low-
income customers, AES Eletropaulo
invests in projects for customers in the
commercial, industrial, public authorities
and services groups. In 2010, AES
Eletropaulo invested R$32.3 million in
projects for these groups and enabled
savings of 18,932 MWh/year, enough to
supply over 7 thousand residences.
PROJECT DESCRIPTION SEGMENT ACTIVITy BENEFITED FINAL uSE INVESTMENT (R$)
State Education Secretary
Total replacement of schools’ lighting systems, including external areas, such as sports courts, parking and forecourts. The project included the raising of teachers and students’ awareness on questions referring to energy efficiency, safety and the environment. Material removed in previous administration scheduled for disposal.
Public Authorities
Education 400 Lighting R$ 13,166,771.00
Schools in São Caetano
Modernization of lighting system in public buildings with use of energy-saving light bulbs, electronic reactors and high-reflection guttering.
Public Authorities
Public Buildings
16 Lighting R$ 654,076.00
Cidade I Building
Modernization of the building’s air-conditioning system with the installation of 02 chillers with a centrifugal 500TR compressor, 56 humidifier units replaced the existing self-contained units, 3 chilled water circulation pumps for the secondary circuit built to feed the air-conditioners in blocks 1 to 4, 3 condensation water circulation pumps and two chilling towers.
Public Authorities
Public Authorities
1 Air-conditioning
R$ 5,954,929.00
Beneficência Portuguesa Hospital - blocks 3, 4 and 5
52 self contained units removed and replaced with fan coils, supplied with chilled water from Chilled Water unit built for the project. The unit has a capacity for 600 TR divided into 2 chillers of 300 TR each.
Commercial Health 1 Air-conditioning
R$ 4,394,484.00
PM Mauá - Nardini Hospital
Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering.
Public Authorities
Health 1 Lighting R$ 196,662.00
cont
Among the energy efficiency projects,
technological improvements were
implemented such as the replacement
of equipment in systems for lighting, air
conditioning, refrigeration, electric motors
and water heating. One of the main
benefits for society is the reduction of
energy consumption and also of carbon
emissions.
95 2010 Sustainability Report
PROJECT DESCRIPTION SEGMENT ACTIVITy BENEFITED FINAL uSE INVESTMENT (R$)
ETEC and FATEC
Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering.
Public Authorities
Education 26 Lighting R$ 2,200,802.00
Rio Grande da Serra City Hall
Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering.
Public Authorities
Public Authorities
12 Lighting R$ 123,213.00
Diadema Public Buildings
Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering.
Public Authorities
Public Buildings
75 Lighting R$ 1,707,254.00
Itapecerica da Serra Hospital
Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering.
Public Authorities
Health 1 Lighting R$ 225,008.00
Santana de Parnaíba Public Buildings
Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering.
Public Authorities
Public Buildings
10 Lighting R$ 452,740.00
PMSP Municipal Schools (100)
Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering.
Public Authorities
Education 100 Lighting R$ 3,381,314.00
Ayrton Senna underpass
Complete replacement of the old lighting system of 3,008 sodium light bulbs of from 150 to 400W by LEDS with 24.5W to 86W reducing consumption by more than 80%. Conclusion scheduled for Jan. 2011.
IP IP 1 Lighting R$ 4,286,386.00
São Paulo Municipal Hospitals
Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering.
Public Authorities
Health 15 Lighting R$ 1,355,751.00
Incor (Hospital das Clinicas + Children’s Institute)
Project begun in 2010 with conclusion scheduled for 2011 where 3,500 m2 of thermal film will be installed in the building’s glass façade to reduce use of air conditioning systems and the Children’s Institute’s CAG will be renovated with the removal of three 80 TR chillers and the installation of two 120 TR chillers with the replacement of the water pumps and the installation of an automated system. The chillers and pumps removed will be disposed of by the company contracted by AES Eletropaulo for the execution of this project.
Health Health 2 Air conditioning
R$ 425,670.00
Sports Educational Centers PMSP
Replacement of the whole lighting system in 32 municipal parks. Project started in 2010 with completion scheduled for 2011.
Public Authorities
Sports and Leisure
32 Lighting R$ 74,668.00
Finance Secretariat
Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering Project started in 2010 with completion scheduled for 2011.
Public Authorities
Public Authorities
1 Lighting R$ 33,950.00
São Paulo Legislative Assembly
Project begun in 2010 with completion scheduled for 2011 where 300 window air conditioning units were replaced with a new air conditioning system using Variable Refrigerant Volume (VRV) technology with a total capacity of 230 TR.
Public Authorities
Public Authorities
1 Air conditioning
R$ 957,781.00
PM Jandira Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering Project started in 2010 with completion scheduled for 2011.
Public Authorities
Public Buildings
47 Lighting R$ 21,695.00
PM Ribeirão Pires
Modernization of the lighting system of public buildings with the use of energy-efficient light bulbs, electronic reactors and high-reflection guttering. Project begun in 2010 with completion scheduled for 2011.
Public Authorities
Public Authorities
59 Lighting R$ 27,068.00
cont
96 2010 Sustainability Report
energetic efficiency program - uses of resources per consumer class (r$ thousand)
RESIDENTIAL 2008 2009 2010
With no charge for consumer (A) 0 0 0
With charge for consumer (B) 0 0 0
Total resources in the segment ( C ) 0 0 0
Total units served in the segment (D) 0 0 0
Average investment per consumer (C/D) 0 0 0
RESIDENTIAL - LOW INCOME 2008 2009 2010
Without charge for consumer (A) 20,107 32,832 30,195
With charge for consumer (B) NA NA NA
Total resources in the segment ( C ) 20,107 32,832 30,195
RESIDENTIAL - LOW INCOME 2008 2009 2010
Total units served in the segment (D) 74,500 80,177 55,473
Average investment per consumer (C/D) 0.2699 0.4095 0.5443
Population served (total number of inhabitants residential + low income) (E) 298,000 320,708 221.,892
Average investment per population served (total cost: residential + low income per inhabitant) (C/E)
0.0675 0.1024 0.1361
COMMERCIAL 2008 2009 2010
Without charge for consumer (A) 7,273 3,174 3,419
With charge for consumer (B) 1,300 1,194 144
Total resources in the segment ( C ) 8,573 4,368 3,563
Total units served in the segment (D) 26 13 2
Average investment per consumer (C/D) 329.73 336.00 1,781.50
INDuSTRIAL 2008 2009 2010
Without charge for consumer (A) 0 0 0
With charge for consumer (B) 1,247 232 0
Total resources in the segment ( C ) 1,247 232 0
Total units served in the segment (D) 62 7 0
Average investment per consumer (C/D) 20.11 33.14 0
RuRAL 2008 2009 2010
Without charge for consumer (A) 0 0 0
With charge for consumer (B) 0 0 0
Total resources in the segment ( C ) 0 0 0
Total units served in the segment (D) 0 0 0
Average investment per consumer (C/D) 0 0 0
PuBLIC LIGHTING 2008 2009 2010
Without charge for consumer (A) 5,154 359 4,286
With charge for consumer (B) NA NA 0
Total resources in the segment ( C ) 5,154 359 4,286
Total kW installed (F) 0 0 0
Average investment per kW installed (C/F) 0 0 0
PuBLIC SERVICES 2008 2009 2010
Without charge for consumer (A) 236 0 0
With charge for consumer (B) NA NA 0
Total resources in the segment ( C ) 236 0 0
Total units served in the segment (D) 20 0 0
Average investment per consumer (C/D) 11.80 0.00 0,.00
GOVERNMENT 2008 2009 2010
Without charge for consumer (A) 17,087 14,812 19,581
With charge for consumer (B) NA NA 0
Total resources in the segment ( C ) 17,087 14,812 19,581
Total units served in the segment (D) 496 834 318
Average investment per consumer (C/D) 34.45 17.76 61.58
MuNICIPAL ENERGETIC MANAGEMENT 2008 2009 2010
Invested resources - own 25 0 0
Invested resources - third parties NA NA 0
Total resources 25 0 0
cont
97 2010 Sustainability Report
EDuCATION - ENERGy CONSERVATION AND RATIONAL uSE (R$ 000) 2008 2009 2010
Invested resources - own 278 575 4,928
Invested resources - third parties 0 0 0
Total resources 278 575 4,928
SOLAR HEATING (FOR REPLACEMENT OF ELECTRIC SHOWERS) 2008 2009 2010
Invested resources - own 2,893 213 0
Invested resources - third parties NA NA 0
Total resources 2,893 213 0
RuRAL 2008 2009 2010
Invested resources - own 0 0 0
Invested resources - third parties 0 0 0
Total resources 0 0 0
TOTAL RESOuRCES INVESTED IN ENERGETIC EFFICIENCy PROJECTS (R$ THOuSANDS)
2008 2009 2010
With no charge for consumer 60,550 55,800 62,409
With charge for consumer 2,547 1,426 144
Total resources 63,097 57,226 62,553
RELATIVE PARTICIPATION OF THE RESOuRCES IN ENERGETIC EFFICIENCy PROJECTS (R$ THOuSANDS)
2008 2009 2010
Per consumer class
Residential segment resources in relation to the total invested in the PEE (Energetic Efficiency Program) (%)
0.00 0.00 0.00
Low-income residential resources in relation to the total invested in the PEE (%) 31.9 57.4 48.3
Commercial resources in relation to the total invested in PEE (%) 13.6 7.6 5.7
Industrial resources in relation to the total invested in the PEE (%) 2.0 0.4 0.0
Rural resources in relation to the total invested in the PEE (%) 0.0 0.0 0.0
PARTICIPAçãO RELATIVA DOS RECuRSOS EM PROJETOS DE EFICIêNCIA ENERGÉTICA (R$ MIL)
2008 2009 2010
Per consumer class
Public Lighting resources in relation to the total invested in the PEE (%) 8.2 0.6 6.9
Public services resources in relation to the total invested in the (%) 0.4 0.0 0.0
government resources in relation to the total invested in the PEE (%) 27.1 25.9 31.3
Per types of project
Municipal energetic management resources in relation to the total invested in the PEE (%)
0.0 0.0 0.0
Education resources in relation to the total invested in the PEE (%) 12.3 7.7 7.9
Solar heating resources in relation to the total invested in the PEE (%) 4.60 0.40 0.0
RESIDENTIAL 2008 2009 2010
Energy saved (in MWh) per year NA NA NA
Reduction in peak demand (in MW) NA NA NA
Cost avoided with the energy saved NA NA NA
RESIDENTIAL - LOW INCOME 2008 2009 2010
Energy saved (in MWh) per year 111,233.00 143,579.00 69,415.15
Reduction in peak demand (in MW) 70.26 83.15 32.77
Cost avoided with the energy saved 0.18 0.23 0.43
COMMERCIAL 2008 2009 2010
Energy saved (in MWh) per year 4,953.87 2,306 1,435
Reduction in peak demand (in MW) 1,495.25 807.00 551.00
Cost avoided with the energy saved 1.73 1.89 2.48
INDuSTRIAL 2008 2009 2010
Energy saved (in MWh) per year 3,770.30 792.23 0
Reduction in peak demand (in MW) 698.43 148.60 0
Cost avoided with the energy saved 0.33 0.29 0
RuRAL 2008 2009 2010
Energy saved (in MWh) per year 0 0 0
Reduction in peak demand (in MW) 0 0 0
Cost avoided with the energy saved 0 0 0
PuBLIC LIGHTING 2008 2009 2010
Energy saved (in MWh) per year 7,849.44 456.00 2,840.00
Reduction in peak demand (in MW) 106.40 55.00 469.00
Cost avoided with the energy saved 0.66 0.79 1.51
cont
98 2010 Sustainability Report
PuBLIC SERVICES 2008 2009 2010
Energy saved (in MWh) per year 267.68 0 0
Reduction in peak demand (in MW) 73.33 0 0
Cost avoided with the energy saved 0.88 0 0
GOVERNMENT 2008 2009 2010
Energy saved (in MWh) per year 18,252.45 14,312.00 14,657.00
Reduction in peak demand (in MW) 4,310.26 3,953.00 4,530.00
Cuts avoided with the energy saved 0.94 1.03 1.34
SOLAR HEATING 2008 2009 2010
Energy saved (in MWh) per year 1,491.87 109.00 0
Reduction in peak demand (in MW) 1,042.12 71.00 0
Cost avoided with the energy saved 1.94 1.95 0
INTERNAL EFFICIENCy (INTO THE COMPANy) 2008 2009 2010
Energy saved (in MWh) per year NA NA 0
Reduction in peak demand (in MW) NA NA 0
Cost avoided with the energy saved NA NA 0
Total NA NA 0
Research and DevelopmentGRI EC8; Eu8
Research and Development (R&D) at AES
Eletropaulo encourages innovation and
creates investment opportunities aligned
with the business strategy and the valuing
of knowledge produced by employees in
partnership with institutes, universities,
manufacturers and public and private
companies for technology development.
The R&D program is part of the daily
routine at AES Brasil Group companies,
within the perspective of continuous
improvement and quality in its processes
using tools that guarantee the safety and
reliability of the services. The program
also encourages opportunities for
sustainable growth, capable of generating
benefits for customers, shareholders,
employees, partners, suppliers and society.
In addition to practical results, the
intangible results (Masters, Doctorates,
employee specializations) provide future
expectations and opportunities that can be
economically valued.
The company allocates 0.2% of its net
operating revenue (ROL) to the R&D
program, in compliance with electric
energy sector legislation. The projects
also include technical, commercial
and operating processes; the safety of
employees and outsourced workers, in
addition to the promotion of sustainable
initiatives for the communities, among
other related topics.
Among the projects concluded, the
Virtual Environment Simulation for
the training on critical tasks in the
area of power distribution should be
emphasized, the result of which was the
development of a virtual reality platform
for live-wire team training, a system
comprising a training room, software
and methodology. This project provided
for the creation of an interactive and
real training process leading to more
integrated action by maintenance teams
99 2010 Sustainability Report
Resources invested in Technological and Scientific Research and Development - (R$ thousand)PER RESEARCH TOPIC (R&D MANuAL - ANEEL) 2008 2009 2010 TARGET 2010
Energetic efficiency (A) 0 2,659 3,480 4,461
Renewable or alternative source (B) 0 0 0 0
Environment (C) 683 509 2,916 4,119
Quality and reliability (D) 1,818 1,919 3,499 3,486
Planning and operation (E) 5,395 10,061 18,239 24,452
Supervision, control and protection (F) 394 4,192 3,165 4,137
Measurement (G) 1,831 1,451 3,144 3,242
Network data transmission (H) 678 1,082 2,152 4,367
New materials and components (I) 288 36 1,738 3,359
Development of technology against fraud and theft (J) 1,414 2,950 1,874 5,562
total r&D investment (K) 12,500 24,858 40,205 57,184
Investment in Energetic Efficiency (A) over Total invested in R&D (K) (%) 0.0 10.7 9% 8%
Investment in Renewable or Alternative Source (B) over Total invested in R&D (K) (%)
0.0 0.0 0% 0%
Investment in Environment (C) over Total invested in R&D (K) (%) 5.5 2.0 7% 7%
Investment in Quality and Reliability (D) over Total invested in R&D (K) (%) 14.5 7.7 9% 6%
in critical situations involving risk in the
execution of live-wire tasks; the project
to optimize the reticulated underground
distribution system implemented
a signaling system for faults in
underground power lines, together with
the so-called maneuvering switches.
Installed in the energy feeder circuits, by
way of power control, this tool allows
cable connection maneuvers to be made
in order to re-establish or redirect the
power load, improving the energy supply
quality indicators.
Among the projects in progress are the
Project SIM – Sistema de Informações
Meteorológicas (Meteorological Information
System); the main product of which will
be an automated meteorological tracking
system and the issuing of alerts for short-
term severe weather conditions. This system
will enable the carrying out of mobilization
strategies for resources needed to mitigate
impacts on the power grid, improving the
supply quality; the Comunicação Inteligente
Integrado a Transformador de Distribuição
– (Smart Transformer Project); these smart
cont
transformers are able to monitor themselves
and the power supply grid, as well as interact
with the company’s supervision and control
systems reliably and in real time, significantly
improving the capacity and speed of grid
problem solving, resulting in improved power
supply quality indicators.
In 2010, R$40.2 million was invested in
98 projects, of which 19 were completed
the same year. For 2011, investments
in the order of R$39.7 million in R&D
projects are expected, in a total of 54
projects to be carried out during the year.
1002010 Sustainability Report
PER RESEARCH TOPIC (R&D MANuAL - ANEEL) 2008 2009 2010 TARGET 2010
Investment in Planning and Operation (E) over Total invested in R&D (K) (%) 43.2 40.5 45 43
Investment in Supervision, Control and Protection (F) over Total invested in R&D (K)(%)
3.1 16.9 8 7
Investment in Measurement (G) over Total invested in R&D (K) (%) 14.6 5.8 8 6
Investment in Network Data Transmission (H) over Total invested in R&D (K) (%) 5.4 4.4 5 8
Investment in New Materials and Components (I) over Total invested in R&D (K) (%)
2.3 0.1 4 6
Investment in Development of Technology Against Fraud and Theft (J) over Total invested in R&D (K) (%)
11.3 11.9 5 10
Public bodies GRI 4.13; SO5
Electric energy distribution is a regulated
activity and requires the company’s
cooperation with the public authorities
at various levels, and with the agencies
that set the sector’s regulatory standards.
The main energy sector regulatory body
is the Brazilian Electric Energy Agency
(Aneel), linked to the Ministry of Mines
and Energy, which represents the Federal
Government in terms of the technical,
economic and financial aspects of
the service concession, regulating and
inspecting the production, transmission
and sale of electric energy, in compliance
with federal policies and guidelines.
The company is also associated with
the Câmara de Comercialização de
Energia Elétrica (CCEE) - (Electric Power
Commercialization Chamber), a civil
association that administers contracts signed
between the generators, sales companies,
distributors and non-captive consumers.
For environmental questions, AES
Eletropaulo maintains relations with the
Instituto Brasileiro do Meio Ambiente
e dos Recursos Naturais Renováveis
(Ibama) (Institute for the Environment and
Renewable Natural Resources) the agency
responsible for environmental licensing. The
company also maintains a relationship with
state agencies, such as Arsesp (São Paulo
State Regulatory Agency for Sanitation
and Energy) and municipal governmental
agencies responsible for certain licenses,
such as Cetesb, in charge of licensing
activities in São Paulo state. With the Public
Prosecutor’s Office, the company studies the
incorporation of this body’s guidelines into
its socio-environmental practices.
AES Eletropaulo also maintains a close
commercial and institutional relationship
with São Paulo state government secretaries
and municipalities in its concession area, with
the aim of adequately complying with their
specific requirements (diverse works and
electric energy consumption) as well setting
up partnerships that benefit the public.
Sendi 2010
The National Seminar of Electric Energy
Distribution – SENDI is one of the most
important events in the distribution sector.
Held every two years it promotes the
exchange of experiences among the energy
concession utilities and contacts with
international specialists on the theme. In
2010, the event took place in São Paulo
and was coordinated by Abradee and AES
Eletropaulo.
Held on November 22 to 25, the event
included plenary sessions, presentations of
technical projects, lectures and exhibitions
on the electric power distribution sector.
1012010 Sustainability Report
Annual Social Scorecard/20101 - CALCuLATION BASE 2010 AMOuNT (R$ THOuSANDS) 2009 AMOuNT (R$ THOuSANDS)
Net revenues (RL) 9,697,157 8,785,637
Operating result (RO) 1,913,032 1,277,734
Gross payroll (FPB) 479,330 519,298
2 - INTERNAL SOCIAL INDICATORS AMOuNT (R$ THOuSANDS)
% OF FPB % OF RLAMOuNT (R$ THOuSANDS)
% OF FPB % OF RL
Meals 35,922 7.49% 0.37% 26,998 5.20% 0.31%
Compulsory social charges 101,769 21.23% 1.05% 81,816 15.76% 0.93%
Private Pension 167,914 35.03% 1.73% 180,612 34.78% 2.06%
Health 30,945 6.46% 0.32% 27,457 5.29% 0.31%
Occupational health and safety 14,002 2.92% 0.14% 9,045 1.74% 0.10%
Education - 0.00% 0.00% 1,387 0.27% 0.02%
Culture - 0.00% 0.00% - 0.00% 0.00%
Professional training and development 3,540 0.74% 0.04% 1,908 0.37% 0.02%
Daycare or daycare assistance 979 0.20% 0.01% 754 0.15% 0.01%
Profit sharing 48,873 10.20% 0.50% 42,778 8.24% 0.49%
Others - 0.00% 0.00% 22,375 4.31% 0.25%
Total - Internal social indicators 403,944 84.27% 4.17% 395,694 76.20% 4.50%
3 - ExTERNAL SOCIAL INDICATORS AMOuNT (R$ THOuSANDS)
% OF RO % OF RLAMOuNT (R$ THOuSANDS)
% OF RO % OF RL
Education 21,789 1.14% 0.22% 16,228 1.27% 0.18%
Culture 11,885 0.62% 0.12% 5,176 0.41% 0.06%
Health and sanitation - 0.00% 0.00% - 0.00% 0.00%
Sport 2,350 0.12% 0.02% 975 0.08% 0.01%
Daycare 1,845 0.10% 0.02% 1,914 0.15% 0.02%
Fight against hunger and food safety - 0.00% 0.00% 2,080 0.16% 0.02%
Others 408 0.02% 0.00% 10,538 0.82% 0.12%
Total contribution to society 38,277 2.00% 0.39% 36,911 2.89% 0.42%
Taxes (excluding social security) 3,942,676 206.10% 40.66% ,677,620 287.82% 41.86%
Total - External social indicators 3,980,953 208.10% 41.05% 3,714,568 290.72% 42.28%
4 - ENVIRONMENTAL INDICATORS GRI EN30AMOuNT (R$ THOuSANDS)
% OF RO % OF RLAMOuNT (R$ THOuSANDS)
% OF RO % OF RL
Investments related to production/operations 9,903 0.52% 0.10% 15,885 1.24% 0.18%
Investments on external programs and/or projects 66,704 3.49% 0.69% 52,528 4.11% 0.60%
Total environmental investments 76,607 4.00% 0.79% 68,413 5.35% 0.78%
In relation to establishing “annual goals” to minimize waste and overall consumption in production/operations and to enhance efficient use of natural resources, the company:
( ) has no goals ( ) fulfills 51 to 75%( ) fulfills 0 to 50% ( X ) fulfills 76 to 100%
( ) has no goals ( ) fulfills 51 to 75%( ) fulfills 0 to 50% ( X ) fulfills 76 to 100%
5 - WORKFORCE INDICATORS GRI LA13 2010 2009
No. of employees at the end of the period 5.663 4.360
No. of persons hired during the period 1.643 516
No. of outsourced workers 7.847 7.191
No. of interns 68 62
No. of employees over 45 years of age 1.023 678
No. of women working at the company 1.123 890
% of management positions held by women 24,18% 20,70%
No. of African-Brazilians working at the company 994 633
% of management positions held by African-Brazilians
1,10% 6,00%
No. of disabled or persons with special needs 62 60
cont
1022010 Sustainability Report
6 – RELEVANT INFORMATION ON THE ExERCISE OF CORPORATE CITIZENSHIPGRI HR5; EC1
2010 2011 TARGETS
Ratio between highest and lowest salary at the company
69.06 0
Total number of work-related accidents 63 0
Social and environmental projects developed by the company are defined by:
( ) directors(X) directors
and management
( ) all employees
( ) directors(X) directors
and management
( ) all employees
Working environment safety and health standards are defined by:
(X) directors and
management
( ) all employees
( ) all + Cipa( ) directors
and management
(X) all employees
( ) all + Cipa
In relation to the unions’ free right to collective bargaining and to internally represent workers, the company:
( ) is not involved
( ) follows OIT rulings
(X) encourages and follows OIT rulings
( ) is not involved
( ) follows OIT rulings
(X) encourages and follows OIT rulings
The private pension plan is extended to: ( ) directors( ) directors
and management
(X) all employees
( ) directors( ) directors
and management
(X) all employees
The profit sharing plan is extended to: ( ) directors( ) directors
and management
(X) all employees
( ) directors( ) directors
and management
(X) all employees
On selecting suppliers, the same ethical, social responsibility and environmental standards followed by the company are:
( ) not considered
( ) are suggested
(X) are demanded
( ) not considered
( ) are suggested
(X) are demanded
With respect to employee participation in volunteer work programs, the company:
( ) is not involved
( ) gives support
(X) organizes and
encourages
( ) is not involved
( ) gives support
(X) organizes and
encourages
Total number of complaints and criticisms by consumers:
In the company 29,251
at Procon 5,281
In Court 3,288In the
company 0at Procon 0 In Court 0
% of complaints and criticisms met or resolved:In the
company 67%at Procon 57% In Court 41%
In the company _______%
at Procon _______%
In Court _______%
Total added value to be distributed (R$ Thousands):
In 2010 :7,326,058 In 2009: 6,537,993
Value Added Distribution (DVA):71% government 8% employees 18% sharehold-
ers 2% third parties 69% government 10% employees 18% share-
holders 4% third parties
1032010 Sustainability Report
Environment
To preserve is to raise awareness
With the release of the inventory of the Carbon Disclosure Project, AES Eletropaulo takes another step forward in reducing greenhouse gas emissions.
The environmental policy is aimed at raising the awareness of employees and the general public and guides investments in technology and research and development projects.
a GRI EN26; SO5
ES Eletropaulo uses as a guide
its Environmental Management
System (SGA) and AES Brasil
Group’s Integrated Policy for Environment
and Occupational Health and Safety,
in which commitments that must be
assumed by all company workers are
defined, This policy provides for raising
the awareness of employees and the
public in general, as well as investments in
technology and research and development
projects aimed at environmental
conservation,
The SGA is aimed at ensuring compliance
with the regulations relating to the
environment and includes company
activities, mainly those that present
greater environmental risk, so as to
minimize impacts, It also covers the
qualification and management of services
and materials suppliers in terms of
compliance with environmental legislation,
the company’s policies and the prevention
of environmental impacts and accidents,
In the search for continual improvement,
the system develops goals, targets and
management programs, Integrated to the
company’s Occupational Health and Safety
System (SSO), its prime mission is to give
support to the guidelines of AES Corp,
regarding environmental standards, This
system is audited annually to confirm its
compliance with these requirements and
Investments GRI EN30
During 2010, AES Eletropaulo spent and
invested R$76,6 million in Environmental
activities, such as training, improvements
in processes, new technologies,
evaluations for interested parties, studies,
licensing, environmental compensation,
investigation of potential liabilities and
environmental rectifications with suppliers,
legal standards, The company also takes
part in forums on environmental topics and
interacts with its partners and suppliers for
the development of its value chain,
AES Eletropaulo maintains the
ISO 14001:2004 certification of its
Environmental Management System
applicable to the segment of transmission
lines, sub-stations, administrative
headquarters buildings, customer service
stores and Operations Center (COE),
Currently, 62,5% of the segments are
certified and the company aims to
continue expanding this percentage,
In 2010, the company maintained
initiatives reflecting its commitment to
sustainability: it began releasing the results
of its greenhouse gases inventory - the
Carbon Disclosure Project (CDP), It was also
an integral part of the Energy Committee
together with Cetesb and the Climate
Change and Eco-economy Committee
organized by the Municipal Secretary for
Green and the Environment of São Paulo
(SVMA/SP); and joined the Empresas pelo
Clima (Companies for Climate) initiative
- EPC, organized by the Getúlio Vargas
Foundation aimed at strengthening public
policies related to the topic,
*� The results are in the CDP Brazil Report 2010, available at CDP Project.net
envIronMent
ISO 14001:2004
AES Eletropaulo maintained
the ISO 14001:2004
certification of its
Environmental Management
System. Currently, 62.5% of
the company’s
segments are certified.
1052010 Sustainability Report
Projeto Mananciais (Headwaters Project) GRI EN11; EN13
Headwaters are bodies of water used –
or of potential use – for public supply or
consumption by the public, Occupying
headwater areas illegally causes serious risks
and can jeopardize the water source, This
type of habitation has no basic sanitation
structure and its residues, including
sewage, end up draining into the water, The
impermeability of the soil is also damaged
by the removal of forest cover,
Implemented in 2006, the Projeto
Mananciais operates in ten of the thirteen
municipalities in the AES Eletropaulo
concession area, which are home to
headwaters protection areas (APMs),
The aim is to guarantee compliance with
environmental legislation and contribute
to public policies for a reduction in the
irregular occupation of these areas,
In 2010, AES Eletropaulo sought to
improve its Geographical Information
System (GIS), initiating discussions of a
technical cooperative agreement with
Cetesb that provides for geographical
information sharing and other guidelines
to manage and control electric grid
connections in headwater areas,
Atmospheric Emissions GRI EC8; EN18; EN19
To mitigate environmental impacts
resulting from its activities, AES
Eletropaulo has implemented management
actions in its operations and sets up
partnerships with public/private bodies,
The goal is to provide incentives for the
use of cleaner technologies and reduce the
emission of greenhouse gases (GGE),
The Energy Efficiency measures in the
State Schools Project, which includes
modernization of the lighting system by the
replacement of reactors and light bulbs, the
company expects to reduce emissions by
the equivalent of 1,106 tons of CO2,
Replacement of inefficient refrigerators
among low-income families (read more
on page 94) is expected to result in a
reduction of the equivalent of 2,300
tons of CO2 over the year, In addition,
the new refrigerators have no ozone
depletion potential (ODP),
The company also evaluates the
emission of gases with ozone depletion
potential (Fluid R22, Fluid R134 and Fluid
FM200), present in electrical equipment
systems and used in the maintenance of
air-conditioning and fire fighting, HCFC-
22 (R22) gas is used in air conditioning
systems, As well as R22, the company
also uses R134a and R407C gases in
air conditioning, which have no ozone
depletion potential,
01 Barueri 02 Cajamar03 Carapicuiba 04 Diadema05 Cotia06 Embu07 Embu-Guaçu08 Itapecerica da Serra 09 Itapevi10 Jandira11 Juquitiba12 Mauá
13 Osasco 14 Pirapora do Bom Jesus15 Ribeirão Pires16 Rio Grande da Serra17 Santana de Parnaíba18 Santo André19 São Bernardo do Campo20 São Caetano do Sul21 São Lourenço da Serra22 São Paulo23 Taboão da Serra24 Vargem Grande Paulista
Headwater protection areas
Headwater Protection Areas in the concession area
05 06
11
08
0412
16
18
20
22
2324
21
19
13
14
15
17
01
1009
02
03
07
GÁS GRI EN 19 2008 2009 2010
Carbon Hexafluoride (SF6)(t) Unavailable 0.304 0
Fluid R134 (t) 58 13 13
Equivalent tons of CFC 0.022 4.8 8.91*
*The increase in consumption of this gas was due to the renewal plans for air-conditioning equipment and systems at AES
Eletropaulo. The amount was increased in 30 new units of equipment installed in various company areas. Another factor
contributing to the increased consumption of this gas was the identification of equipment previously not included among
the preventive maintenance needing the use of gas R22. The expansion of preventive maintenance plans means that the
consumption will increase until it reaches 100% of the mapped equipment (scheduled to be completed in December
2011). After this, the consumption is expected to fall, with further increases depending on when the renovation, or
replacement, of the equipment and installations recurs.
Reservoirs
1062010 Sustainability Report
Vehicle fleet GRI EN18; EN 29
Started in 2009, the renewal of the
vehicle fleet prioritizes the acquisition of
vehicles with flex-fuel technology, less
polluting and more efficient compared
to previously used models, In 2010, the
fleet emitted 4,644 tCO2 from vehicles, a
reduction of 14% over the previous year,
In addition, every three months, AES
Eletropaulo monitors the emissions of its
diesel fleet – 42% of the total number of
vehicles – and, twice annually, prepares
a more detailed analysis in workshops
certified by Cetesb,
Clean development mechanisms
Activities related to greenhouse gas
emission (GGEs) reduction are included
in the company’s management plan
through joint initiatives with its operating
units, Some of them are considered Clean
Development Mechanisms (CDMs) by
international protocols, permitting their
trading as Reduced Emission Certificates,
or Carbon Credits,
Carbon Credits are certificates issued
by organizations that have been able
to reduce their emissions of GGEs,
The certificate can be traded on the
international market to countries needing
to fulfill emissions reductions targets
stipulated in the Kyoto Protocol,
Starting in 2010, the company
began managing its direct and indirect
greenhouse gas emissions in accordance
with practices stipulated by the GHG
Protocol, and started publishing its
company emissions inventory system, The
document was made public via the Carbon
Disclosure Project (CDP) on the site
www,cdproject,net,
Climate change and impacts on energy distribution GRI EC2
Climatic variations tend to cause problems in electric energy
distribution due to excess rain and wind in certain regions,
especially in summer,
To reduce the damage caused by the changes and to serve
the public, AES Eletropaulo created its Plano Verão (Summer
Plan), in which emergency situations are prioritized and a
greater number of teams are deployed, The company also runs
preventive projects such as the pruning of trees that could
cause risk to the electric system, (read more on page 46),
2008 2009 2010
10.21
6.36
4.21
6.52
4.21
9.73
6.05
9.2
Fuel consumption
Gasoline and diesel (Km/l)Alcohol (Km/l)Natural Gas/GNV/GN (Km/l)
MAIN PROJECTS FOR CREATING CARBON CREDITS
Project DescriptionAmount of equivalent CO2 reduced
Energy Efficiency Measures in Public State Schools
This project aims to modernize the lighting system in state schools in São Paulo by replacing reactors and light bulbs.
1,106 tons
Replacement of Refrigerators in low-income communities
The project replaces refrigerators in low-income communities in the metropolitan area of São Paulo with more efficient units.
2,3 tons
1072010 Sustainability Report
Environmental licensing
In 2010, Cetesb issued authorizations
to intervene in vegetation and areas of
permanent preservation, enabling AES
Eletropaulo to carry out grid maintenance
without the need to seek constant
approval from the public bodies,
Continuing with its environmental
licensing and regularization process, AES
Eletropaulo obtained 25 licenses and
authorizations to expand or build new
installations in 2010, During the period,
four exemptions for environmental
licensing were obtained as well as an
authorization to cross a body of water
from the Departamento de Águas e e
Energia Elétrica (Department of Water and
Electric Energy) – DAEE, for the overhead
branch of the Peri Substation,
Environmental Management Plans
are also in progress for works planned
or installed, aimed at reducing any
environmental impacts in the new
undertakings, Worksites are frequently
inspected to ensure environmental quality
in the work’s execution and services and
compliance with the conditions stipulated
in the license,
In 2010, the company also began
negotiations with Cetesb to obtain
licensing for projects built before 2004, All
projects begun after that date are licensed
in accordance with the requirements of
the environmental authorities,
Target
The target for 2011 is to obtain all the necessary environmental
licenses.
1082010 Sustainability Report
Environmental compensation GRI EN 14
Environmental compensation is a
mechanism created to counterbalance
environmental impacts resulting from
company activities, such as expansion
of the electric system that cannot be
mitigated,
In 2010, AES Eletropaulo planted 1,550
native saplings in Itapevi and 152 saplings
in Ribeirão Pires as a compensatory
measure, It also donated 520 saplings to the
Barueri municipality, 585 to Osasco and 89
to Taboão da Serra,
The company also invested In the
Pomar urbano (urban Orchard) Program,
recovering 37,3 hectares maintained
beneath a sub-transmission line,
LICENSES
Overhead Section of the Monte Azul Substation (LP)
Overhead Section of the ETD Tiradentes Substation (LO)
Overhead Section of the Peri Substation (LI)
Ibirapuera Substation Distribution Transformer (LI)
LTA BAN – Itaim (LI)
Relocation of the Overhead Sub-transmission Lines of the Piratininga Complex (LI)
Overhead Section of the Monte Azul Substation (LI)
Canindé Substation Distribution Transformer (LI)
Morumbi Substation Distribution Transformer (LI)
Santo Amaro Substation Distribution Transformer (LI)
Overhead Section of the ETD Sertãozinho Substation (LP)
Overhead Section of the Guaianazes Substation(LI)
Overhead Sub-transmission Line Bandeirante – Itaim (LI - Modified)
Overhead Sub-transmission Line Piratininga Sul (LO)
Authorization for suppression/intervention in area of permanent preservation (APP)
Maintenance of the Overhead Sub-transmission Line Itapevi
Maintenance of the Anastácio Distribution Circuit 106
Widening of the Safety Margin – Imigrantes 103
Relocation of Overhead Sub-transmission Lines of the Piratininga Complex
Overhead Sub-transmission Line Bandeirantes - Itaim
Overhead Distribution Line Ribeirão Pires - 103
Overhead Distribution Line Ribeirão Pires - 104
Overhead Line Monte Azul Substation
underground Sub-transmission Line Anhanguera
Overhead Sub-transmission Line Pirituba – Bandeirante
Overhead Section Ermelino Matarazzo Substation
Exemptions from Environmental Licensing
Oratório Substation Distribution Transformer
Overhead Section Lubeca Substation
Anhanguera underground Sub-transmission Line
João Clímaco Substation Distribution Transformer
LP – Prior License. LI – Installation License. LO – Operating License.
1092010 Sustainability Report
Waste disposal GRI EN22; EN26; EN30
Waste management follows the
guidelines of the Environmental
Management System (SGA) and AES Corp,
standards, and is focused on prevention
of soil and water pollution, All waste
resulting from company operations
undergoes a process of identification,
treatment and final disposal in
compliance with environmental
legislation, R$351,2 thousand was
invested to treat and dispose of all
hazardous waste,
HAZARDOuS WASTE2008 2009 2010
DISPOSALuNITS KILOS (KG)¹
Public lighting bulbs 31,181 24,665 4,292 Decontaminated and sent for recycling of metal parts
Fluorescent light bulbs 7,521 4,108 13,548 Decontaminated and sent for recycling of metal parts
Total 38,702 28,773 17,840
KILOS (KG)
Batteries 11,580 11,820 51,000 Recycling
Material impregnated with oil 118,975 91,231 90,000 Co-processing in cement kilns²
Insulating mineral oil 462,000 866,000 1,300,000 Re-refining³
Total (Kg) 592,555 969,051 1,441,000
LITERS (L)
Lubricant oil 2,110 3,600 32,000 Re-refining
Total (L) 2,110 3,600 32,000
1) The disposal of light bulbs in 2010 was counted in kilos in alignment with the content of the disposal license.2) Use of industrial fuel waste and/or raw material in high-temperature kilns. 3) Industrial use for removal of additives, contaminant elements and products to degrade used or contaminated lubricant oils.
AES Eletropaulo makes efforts to heighten the employees’ awareness on the importance of the reuse of materials
1102010 Sustainability Report
GRI EN21
The company acquired another gas
chromatograph, used in monitoring the
quality of insulating fluids in transformers,
This enables more annual analyses for
checking the amount of PCB – harmful to
humans – found in insulating mineral oil
for electric equipment,
The resulting scrap is sold to
environmentally-evaluated recycling
companies, The principal materials recycled
are aluminum, iron, bronze, copper,
wooden crossarms, poles, reactors and
porcelain, In 2010, around four tons of
scrap was sold for R$7,7 million, The liquid
effluents are sent to the basic sanitation
network, where they receive suitable
treatment, During the year, 132,882 m³ of
effluent was generated,
Investigation and rectification of
environmental liabilities GRI EN30
AES Eletropaulo runs an Investigation
Program of Potential Environmental
Liabilities and Rectifications, responsible
for the evaluation and verification of areas
under risk of contamination and in situations
of property purchase and sale, The studies
are carried out in compliance with Cetesb
standards and are aimed at evaluating
impacts on the soil and ground water,
Currently the main interference of
company activities on the environment is
caused by oil leaks, In 2010, the company
installed 10 oil collector basins, avoiding
risks of fire and soil contamination
from the oil used in its transformers,
It also concluded the rectification of
the Santana and Medidores Section, A
Research and Development program
was started with the Instituto de
Pesquisas e Tecnologias de São Paulo
(São Paulo Institute of Research and
Technology) - IPT for the biological
recuperation of the soil as part of the
search for biological alternatives for the
recuperation of soil contaminated by
insulating mineral oil, Total investment
amounted to R$10,3 million.
Programa Reciclando (Recycling Program) GRI EN22; EN26
The Recycling Program aims at raising
awareness of all employees on the
importance of reusing materials by
separating waste, disseminating the
application of the 3Rs concept (reduce,
reuse and recycle), advising of the need
to recycle paper, plastic, glass, metal and
printer cartridges.
The project also maintains collector
bins in the operating and administrative
units and sells the waste. The income
generated is used for social projects.
MATERIALS SENT FOR RECyCLING (KG)
2008 (KG) 2009 (KG) 2010 (M³)1
Paper 45,344 51,066 1,963
Plastic 32,709 35,511 1,209
Glass 262 484 323
1) In 2010, these items started to be quantified in cubic meters and no longer in kilos.
In the quest for biological options for soil recovery, R$ 10.3 million has been invested in a bio-remediation program at the IPT in São Paulo
1112010 Sustainability Report
Energy efficiency and water
consumption GRI EN4; EN5; EN8; EN26
The AES Eletropaulo Energy Efficiency
Program is aimed at encouraging the
proper use of energy, Among the actions
undertaken are those directed at schools,
daycare centers and hospitals enabling a
reduction in electric energy consumption,
and the modernization of lighting systems,
AES Eletropaulo runs programs aimed at
employees with the focus on responsible
electricity and water consumption in its
facilities, In 2010, AES Eletropaulo developed
infrastructure projects generating savings
in electric energy consumption, Among
them are the change in the layout of the
operating bases and customer service
stores, improving lighting use, the reform
of the changing rooms to save water, the
(Read more on page 94),
The company has also created internal
projects, such as the recuperation of
transformers and Electricity meters and
the regeneration of insulating materials,
minimizing consumption of renewable
resources, conserving non-renewable
resources and recycling and reusing
materials,
installation of energy efficient light bulbs
and the application of a thermal film over
the reinforced concrete covering of the 25 de
Janeiro unit, All administrative and operating
units are monitored on a monthly basis,
MAIN ACTIONS TO MINIMIZE IMPACTS FuNCTION OF THE MODIFICATIONS
Recovery of transformers Reuse of equipment in the overhead and underground distribution network
Recovery of electricity meters Reuse of equipment in the electric system, reducing the need to purchase new equipment
Regeneration of insulating mineral oil Prevent environmental pollution and reduce the need to acquire new oil, given that the manufacturing process significantly impacts the environment
Recycling bulbs in public lighting Reutilize materials and prevent soil and water pollution
use of recycled paper Avoid the felling of trees for paper manufacture
WATER AND ELECTRIC POWER CONSuMPTION GRI EN3; EN8
2008 2009 2010
Total consumption of water (m³) 112,147 104,950 127,621
Electric energy (GWh) 46 47 42
1122010 Sustainability Report
Pruning and urban tree planting
To reduce energy supply interruptions
caused by tree interference on the power
grid, AES Eletropaulo undertakes preventive
pruning of trees next to the electric
system, It also offers training in urban
tree care for employees of contractors
and the São Paulo City Hall, as well as
offering the Guia de Arborização urbana
(Guide to urban Tree Care) on the Internet
(available at: www,aeseletropaulo,com,br/
responsabilidadesocioambiental/
Paginas/ProjetosAmbientais,aspx ), with
information on suitable techniques for tree
pruning and species suitable for planting
near the power lines and tips on pruning
these species,
The company has an emergency service
channel available (0800 7272 196), for
customers to report the need for pruning,
in addition to the Linha Verde (Green
Line), so the public can check the quality
of the service,
With the aim of improving the
continuous supply of energy, in 2010
the company intensified its pruning
activities, intervening in around 320,227
trees, It also trained 245 people in urban
tree-care training.
Also in 2010, the company held the 4th
urban Tree Care Technical Meeting, with
the participation of 336 professionals,
Urban orchard GRI SO1
Carried out in partnership with the São Paulo State
Government, the urban Orchard project seeks to promote
the environmental and landscape recovery of the banks of the
Pinheiros River and to train professionals in gardening. AES
Eletropaulo is responsible for two kilometers of these banks and
supports the program together with another 23 companies.
Customers can communicate pruning needs and report on the quality of the work through the emergency service channel (0800 7272 196) and by the Linha Verde (Green Line)
1132010 Sustainability Report
Raising awareness among
takeholders GRI 4.16
To engage suppliers and encourage
them to use best environmental
practices, AES Eletropaulo unified the
environmental qualification guidelines
with supply management, This allowed
the identification of potentially critical
suppliers in terms of the environment
and helps the company to ratify and
periodically inspect their partners,
The company also has manuals on
training and procedures for tree-pruning,
contractual clauses on adherence to socio-
environmental commitments, and talks
and meetings to align activities,
In 2010, AES Eletropaulo investigated 68
companies regarding their environmental
and safety practices, 45 of which were
ratified,
In addition to giving internal classroom
environmental training, AES Eletropaulo
shows videos and interactive projections
to facilitate learning and offer employees
an opportunity to do their training at the
time most convenient to them,
For customers, the company publicizes
the topic in its customer service
stores using videos, Messages are also
included in the electricity bills, aimed at
raising awareness of the importance of
conscientious consumption, together with
social projects in the community,
World Environmental Day
To commemorate World Environment Day, AES Eletropaulo used
internal advertising emphasizing its environmental guidelines
and programs and the responsibility each one has in preserving
the environment.
Talks in various schools were also held, aimed at raising
awareness among children on the need for environmental
conservation, and a partnership was also formed with a non-
profit institution for planting tree saplings at an outside event,
held on June 5.
As well as publicizing the environmental theme using videos in
the customer service stores, pamphlets were also distributed
with 50 tips on preserving the planet. Messages were sent via
electricity bills on the importance of conscientious energy
consumption for a more sustainable world.
1142010 Sustainability Report
Electric and Magnetic Fields
Electric and magnetic fields are Inherent
to the distribution of electric energy,
mainly in sub-transmission (high voltage)
undertakings, The electric fields occur
due to the voltage of the operation, and
magnetic fields are due to the passage of
the current,
AES Eletropaulo, with its concern
for the wellbeing of the communities
located in the vicinity of its activities
and in compliance with the legislation
applicable (Federal law 11,934 of May
5, 2009, regulated by Aneel normative
resolution No, 398, of March 23, 2010,
periodically carries out, in partnership
with the Brazilian Association for
Electromagnetic Compatibility – Abricem,
measurement and simulation studies of
electric and magnetic fields, however,
within the municipality of São paulo,
in the case of new undertakings or the
reform of existing ones, the results
of the studies are shared with the
Department of environmental Quality
Control (Decont),
In addition, AES Eletropaulo, using
funds for Research and Development
projects, has been studying these electric
and magnetic fields and has applied the
knowledge to projects developed for
transmission lines and substations, The
company is also studying a magnetic
field measurement gauge, which is in the
implementation phase for testing with
conclusion expected by December 2011,
Environmental notices and fines GRI EN28
urban vegetation plays a vital role in the
quality of life of our cities, In alignment
with this concept, AES Eletropaulo has
been striving to reduce the impact of
its tree pruning operations to guarantee
quality in its power distribution, In
2010, to minimize interruptions in the
power supply, the company increased its
intervention in trees at risk of coming into
contact with the overhead grid, This action,
despite training given to both its own and
outsourced teams beyond the contractual
requirements, resulted in an increased
number of fines, mainly due to the quality
of tree pruning and the incorrect disposal
of waste in public thoroughfares,
Of the 23 environmental fines or legal
notifications involving the company,
totaling R$573,7 thousand, 20 resulted
from these activities, Of the total received,
seven fines were paid relating to pruning,
totaling R$ 4,890, The remainder is the
subject of defense and administrative
appeal proceedings,
Certain of the relevance of good
environmental practices and despite
the disproportionate number of fines
received compared to the services carried
out, AES Eletropaulo is committed to
harmony between vegetation and the
power grid, correcting the errors found and
intensifying preventive measures, With
this aim, in 2010 the company invested in
initiatives such as:
• The review and re-publication of the
Guide to urban Vegetation and the Pruning
Manual, for consultation and technical
support for employees and neighborhood
associations;
• Sponsoring of the IV GEPAuRB – Major
Meeting of urban Tree Professionals,
with the participation of city halls and
the public, emphasizing the importance
of planting species of suitable size on
sidewalks and under electric power lines,
as well as carrying out technical skills
training, given by agronomist and forestry
engineers, to employees in the operating
teams and the teams of partner companies
and the municipalities;
• Tracking of the evolution of errors and
the interaction with our partners in the
search for improvement;
• A partnership with the Neighborhood
Association AME JARDINS and a
cooperative agreement with the São Paulo
city hall aimed at improving the care
taken with trees within the municipality,
seeking the optimization of planning, as
well as the specific care (vegetation health
care) needed for each tree, to prevent and
avoid accidents involving the public and to
identify the health of each individual tree
in order to plan corrective action.
1152010 Sustainability Report
RECOVERy OF DEGRADED AREAS GRI EN28
2008 2009 2010 TARGET
Area preserved and/or recovered through sustainable management of plant life below the transmission and distribution lines (in ha)
37,30 37,30 37,30 37,30
Preserved area / total preserved area within the concession area, as required by law (%)
NA NA N/A NA
Contribution for the increase of green areas in the municipalities through the urban Afforestation Program ( in ha)
0 0 0 0
Isolated protected network (ecologic network or green line) within the urban area (in km)
1,942 2,135 2,509 2,377
Isolated protected network percentage in relation to the total distribution network within the urban area
10,0 11,0 13 12,0
Costs for environmental impact management (afforestation, sustainable management, use of protected equipment and network) (R$ 000)
65,267,00 68,412,83 76,780,39 ND
Number of accidents due to violation of the environmental security norms
0 0 0 0
Number of assessments and/or fines for violation of environmental rules 4 2 23 0
Amount incurred for assessments and/or fines for violation of environmental rules (R$)
34,218,40 0 4,890,00 0
GENERATION AND TREATMENT OF WASTES GRI EN16 2008 2009 2010 TARGET
EMISSION
Annual volume of greenhouse gases (CO2, CH4, N2O, HFC, PFC, SF6) emitted to the atmosphere (in tons of CO2 equivalents)
283,303 290,115 136,794 ND
Annual volume of emissions that destroy the ozone (in tons of CFC-equivalents)
5,0 4,8 8,91 ND
GENERATION AND TREATMENT OF WASTES GRI EN19; EN22; EN30 2008 2009 2010 TARGET
EFFLuENTS
Total effluents volume (m³) 112,700 105,169 132,882 ND
Total volume of treated effluents (m³) 112,700 105,169 132,882 ND
Treated effluents (%) 100 100 100 100
SOLID WASTES
Annual quantity (in m3) of solid wastes generated (garbage, discharges, debris, etc.)
73,875 82,593 68,975 ND
Percentage of wastes sent for recycling with no association with the company
19.62 30.82 56.22 ND
Percentage of recycled waste per unit or entity associated with the company (specific project)
0 0 0 0
Waste recycling costs (R$ THOuSANDS) 932.00 860.00 668.59 ND
PERCENTAGE OF CONSuMPTION MATERIAL REuSED (RAW MATERIALS, EQuIPMENT, ELECTRIC WIRES AND CABLES) GRI EN2 2008 2009 2010 TARGET
Distribution transformers (%) 70.57 64.41 91.00 ND
Energy meters (%) 32.89 31.67 41.73 100% ¹
Insulating mineral oil (%) 100 100 100 100
Costs for final destination of non-hazardous wastes (R$ THOuSANDS) 343.00 477.80 1.924.96 ND
HANDLING OF HAZARDOuS WASTES GRI EN22; EN30 2008 2009 2010 TARGET
Equipment replaced by non-PCB insulating mineral oil - Askarel (%) 100 100 100 100
Percentage of decontaminated lamps in relation to the total replaced in the company (%)
100 100 100 ND
Percentage of decontaminated lamps in relation to the total replaced in the consumer units (%)
ND ND 100 ND
Costs for treatment and destination of toxic wastes (incineration, embankment, biotreatment) (R$ 000)
2,670,93 8,366,00 2,185,01 ND
uSE OF RESOuRCES IN THE PRODuCTION PROCESS AND MANAGEMENT PROCESSES OF THE ORGANIZATION GRI EN3; EN4 2008 2009 2010 TARGET
TOTAL ENERGy CONSuMPTION PER SOuRCE
hydroelectric (%) 95 95 93 ND
fossil fuels (%) 4 2 5 ND
alternative sources (gas, eolian energy, solar energy, etc,) (%) 1 3 2 ND
Total energy consumption (GWh) 46 47 42 ND
Energy consumption per kWh distributed (sold) 0.00137 0.00138 0.00129 ND
cont
1. Limited to 300 thousand meters removed from the network in recoverable conditions.
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TOTAL FOSSIL FuEL CONSuMPTION By THE COMPANy’S VEHICLE FLEET PER KM DRIVEN GRI EN29 2008 2009 2010 TARGET
oil (km/l) 6.35 5.87 5.39 ND
diesel (km/l) 3.86 3.86 3.81 ND
alcohol (km/l) 6.36 6.52 6.05 ND
natural gas (km/m3) 4.21 4.21 0.00 ND
TOTAL WATER CONSuMPTION PER SOuRCE (M3) GRI EN8 2008 2009 2010 TARGET
supply (public system) 112.147 104.950 127.621 ND
underground source (well) ND ND ND ND
superficial impounding (water course) NA NA NA NA
Total water consumption (m3) 112.147 104.950 127.621 ND
Water consumption per employee (m3) 27.00 24.00 22.53 ND
Cost reduction obtained by the reduction of consumption of energy, water and consumer materials (R$)
118,271,24 108,098,94 ND ND
ORIGIN OF PRODuCTS - CONSuMER MATERIAL 2008 2009 2010 TARGET
Percentage of material acquired in accordance with the environmental criteria verified by the company / total material acquired
ND ND ND ND
Percentage of material acquired with Green Seal and other certified (Procel, Inmetro, etc, )
ND 44 56 ND
Percentage of material acquired with forest certification ( Imaflora, FSC and other)
0 0 25 ND
ENVIRONMENTAL EDuCATION AND AWARENESS – COMMuNITy – IN THE ORGANIZATION GRI EN30 2008 2009 2010 TARGET
Number of employees trained under the environmenta education programs
4.116 4.253 4.073 5.663
Percentage of employees trained under the environmental education programs / total employees
99.00 97.86 71.92 100
Number of environmental training hours / total training hours 10.14 8.28 2.86 ND
Resources invested (R$ thousands) 324.00 447.00 82.11 ND
ENVIRONMENTAL EDuCATING - COMMuNITy GRI SO1 2008 2009 2010 TARGET
Number of elementary and secondary school units served 61 2 456 400
Percentage of schools served /total number of schools in the concession area
2.0 0.0 6.0 10.0
Number of students served 36.932 180 97.413 38.000
Percentage of students served /total number of students of the school network in the concession area
ND 0 4 2
Number of qualified teachers 1.354 0 2.072 2.000
Number of technical and high school units served ND 0 0 0
Percentage of schools served/total number of schools in the concession area
ND 0 0 0
Number of students served ND 0 0 0
Percentage of students served /total number of students from the school system in the concession area
ND 0 0% 0
Resources invested (R$ thousands) 300.00 535.00 4.905 4.000
ENERGy EFFICIENCy PROGRAMS (PEES) FOCuSED ON THE CuLTuRE OF CONSERVATION AND RATIONAL uSE OF ENERGy GRI EN6 2008 2009 2010 TARGET
Number of low-income domiciles served by the program 74.500 80.177 55.473 45.000
Percentage of low-income domiciles served by the program in relation to the total low-income domiciles
10.23 10.99 7.31 6.16
Number of efficient equipment donated 4.786 135.026 604.956 250.000
Number of domiciles served for adequation of the electric installations of the house
0 600 609 650
Number of electrician professionals trained by the program 0 0 0 0
PEES - SOLAR HEATING 2008 2009 2010 TARGET
Number of solar heating systems installed 30 6 0 100
PEES MuNICIPAL ENERGETIC MANAGEMENT 2008 2009 2010 TARGET
Number of municipalities served by the municipal energetic program 1 0 0 0
Percentage of municipalities served in relation to the total municipalities of the concession area (%)
4 0 0 0
R&D FOCuSED ON THE ENVIRONMENT 2008 2009 2010 TARGET
Resources invested (R$ thousands) 1,295,00 2,087,00 2,915,15 4,119,00
Number of patents registered with the INPI (Brazilian Intellectual Property Office)
0 0 0 0
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PERFORMANCE INDICATORS
MEASuREMENT uNITS
INDICATOR'S PuRPOSE
2008 2009 2010
Plant life suppression M2 of area suppressed (per quarter)
Measure the areas subject of plant life suppression either for construction of substations or for opening of access.
135,160 47,000 154,397
Lopping Volume of wastes generated per month (in m3)
Measure the lopping waste volume generated from the network maintenance.
1,122 2,041 9,873.70
Burnings Number of occurrences and area degraded by burnings (per year)
Measure the efficiency of preventive and corrective burning actions.
ND ND ND
Oil spill Spill points (per month) Measure the efficiency of preventive and corrective actions for equipment oil spills.
114 101 101
use of alternative sources in environmentally protected areas
Number of residences served
Measure the efficiency of programs aiming at mitigating impacts caused by the concessionaire in areas of great interest and under environmental protection
NA NA NA
R&D actions that favor the prevention of pollution
Physical/financial schedule on the project development
Measure the efficiency of programs aiming at establishing pollution prevention actions.
3 4 4
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Summary of Contents
Global guidelinesThe summary below shows where to find in this report the following information: • Table of contents for the Global Reporting Initiative Indicators – GRI• Correlation with the Global Compact – PG• Actions favorable to the Millennium Development Objectives – ODM
PROFILE
GRI PG ODM Page
STRATEGy AND ANALySIS
1.1. Statement of relevance of sustainability
4
1.2. Description of the principal impacts, risks and opportunities
4, 85
ORGANIZATIONAL PROFILE
2.1. Name of organization 3
2.2. Principal brands, products and/or services
7
2.3. Operating structure 7
2.4. Location of Corporate Headquarters
7
2.5. Number of countries and names of those relevant to sustainability
7, 11
2.6. Type and legal nature of property 7
2.7. Markets served 7, 9, 11, 86
2.8. Size of organization 7, 9
2.9. Principal changes during the period covered by the report
There were no changes in relation to the previous year, 7
2.10. Awards received during the period covered by the report
11
PARAMETERS OF THE REPORT
Profile of the report
3.1. Period covered by the report 3
3.2. Date of most recent previous report 3
3.3. Publication cycle of reports 3
3.4. Details for contact 3
Scope and limit of the report
3.5. Process for the definition of the report’s contents
3
3.6. Limit of the reportAll AES Eletropaulo operations and page 3
3.7. Limitations to the scope or the limit of the report
No limit
3.8. Basis for preparation of the report All AES Eletropaulo operations, 3
3.9. Techniques for measurement of data and bases for calculation
In accordance with GRI protocols, otherwise, there will be explanatory notes
3.10. Consequences of reformulations of information
None during the period covered by this report
3.11. Significant changes in comparison to previous years
None during the period covered by this report
Summary of the GRI Content
3.12. GRI Table identifying location of information
119
Verification
3.13. Current policy and practice for external verification of the report
There was no external verification of data referring to GRI indicators. The economic and financial data and Ibase Social Report were audited by Ernst&young Auditores Independentes S.A.
PROFILE
GRI PG ODM Page
GOVERNANCE COMMITMENTS AND ENGAGEMENT
Governance
4.1. Structure of organization’s governance
15
4.2. Indication in the case of the president of the highest body of governance also being an executive officer
16, 17
4.3. Declaration of number of executive members, independent or not, of the highest body of governance
16
4.4. Mechanisms for shareholders and employees to make recommendations to the highest body of governance
20, 22
4.5. Relationship between remuneration for members of the highest body of governance, board of directors and other executives and the organization’s performance
16
4.6. Processes in the highest body of governance to avoid conflicts of interest
21
4.7. Process for the determination of the qualifications and knowledge of members of the highest body of governance
16
4.8. Statements of mission and values, codes of conduct and internal principles
11, 19
4.9. Procedures of the highest body of governance for overseeing the management of economic, environmental and social performance
16
4.10. Processes for self-evaluation of the performance of the highest body of governance
The company does not apply a process of performance self-evaluation or qualification to members of the Board of Directors
Commitments to External Initiatives
4.11. Principle of precaution 7 23
4.12. Charters, principles or other initiatives to which the company subscribes
14, 19, 28
4.13. Participation in associations and/or domestic and international bodies of defense
28, 101
Engagement of Stakeholders
4.14. Relationship of stakeholders engaged by the organization
28
4.15. Basis for identification and selection of stakeholders
The stakeholders are established and chosen internally, taking into account the strategic importance of each of the selected groups to the company's activities.
4.16. Approaches for the engagement of stakeholders
28, 114
4.17. Principal topics and concerns raised by the stakeholders
28
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SuMMary oFContentS
PERFORMANCE INDICATORS
GRI – ECONOMIC PERFORMANCE PG ODM Page
Form of management 52
EC1. Direct economic value generated and distributed
8 41, 101
EC2. Climate change risks and opportunities
7 e 8 107
EC3. Coverage of the obligations in the pension plan benefit
69
EC4. Significant financial assistance received from government.
88,93
Market Presence
EC5. Variation in the proportion of the lowest salary compared to the local minimum salary in important operating facilities
6 69, 73
EC6. Spending on local suppliers 8 75
Indirect Economic Impacts
EC8 - Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, inkind, or pro bono engagement.
48, 99, 106
EC9. Indirect economic impacts 8 94
ENVIRONMENTAL PERFORMANCE PG ODM PAGE
Form of management 104
Materials
EN1. Materials used 8 7 47
EN2. Percentage of materials used from recycled material
8 e 9 7 116
Energy
EN3. Direct energy consumption 8 7112, 116
EN4. Indirect energy consumption 8 7112, 116
EN5. Energy saved 8 e 9 7 112
EN6. Initiatives to supply low energy consumption products and services, or which use energy generated from renewable sources and the reduction in energy needed as a result of these initiatives
8 e 9 775, 95, 117
Water
EN8. Total water usage 7 112, 117
EN9. Water sources significantly affected by water consumption
Water supply is exclusively from the public system
Biodiversity
EN11. Area within, or adjacent to, protected areas and areas of high biodiversity outside the protected areas
7 106
EN13. Habitats protected or restored 8 7 106
EN14. Management of impacts on biodiversity
8 7 109
PERFORMANCE INDICATORS
ENVIRONMENTAL PERFORMANCE PG ODM PAGE
Emissions, Effluent and Waste
EN16. Total direct and indirect emission of gasses causing the greenhouse effect
7 116
EN18. Initiatives to reduce greenhouse gas emissions and reductions achieved
8 e 9 7 106, 107
EN19. Emission of substances destructive to the ozone layer
7 106, 116
EN21. Total discharge of water, by quality and destination
8 7 111
EN22. Total weight of waste, by type and method of disposal
8 7 110, 111, 117
Products and services
EN26. Initiatives to mitigate environmental impact of products and services
8 e 9 795, 105, 110, 111, 112
Compliance
EN28. Significant fines and total number of non-monetary sanctions resulting from non-compliance with environmental laws and regulations
7 115, 116
Transport
EN29. Environmental impacts from transporting products and other goods and materials used for the organization’s operations and transporting members of the workforce
7 107, 117
General
EN30. Total investment and expenditure on environmental protection
8 7102, 105, 110, 11, 116, 117
SOCIAL PERFORMANCE – LABOR PRACTICES AND DECENT WORKING CONDITIONS
PG ODM PAGE
Form of management 56
Employment
LA1. Total workers by type of job, work contract and region
57, 72
LA2. Total number and turnover rate of employees
6 61
LA3. Benefits provided to full time employees that are not provided to temporary or part-time employees, by major operations
6 7 70, 71
LA4. Percentage of employees covered by collective bargaining agreements
1 e 3
100% of the employees are covered by agreements and collective bargaining
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PERFORMANCE INDICATORS
SOCIAL PERFORMANCE – HuMAN RIGHTS
PG ODM Page
Child Labor
HR5 -Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be voilated or at significant risk, and actions taken to support these rights.
103
HR6. Operações com risco de trabalho infantil
1, 2 e 5
4 76, 77
Forced Labor or that Analogous to Slavery
HR7. Operations with risk of occurrence of forced labor or that analogous to slavery
1, 2 e 4
28, 76, 77
SOCIAL PERFORMANCE – SOCIETy PG ODM Page
Form of management 87
Community
SO1. Programs and practices to assess and manage impacts of operations on the communities
1 1 e 253, 88 to 94, 113, 117
Corruption
SO2. Business units analyzed for risks related to corruption
10
The business units are not submitted to risk assessment regarding corruption
SO3. Employees trained in anticorruption policies and procedures
10 21
SO4. Actions taken in response to incidents of corruption
10 20
Public Policies
SO5. Public policy positions and participation in public policy development and lobbying
10101, 105
SO8 - Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.
73
SOCIAL PERFORMANCE – RESPONSIBILITy FOR THE PRODuCT
PG ODM Page
Form of management 45
PR2. Total number of cases of non-compliance with regulations and voluntary codes regarding impacts caused by products and services in health and safety during the life-cycle, itemized by type of result
There was no instance of non-conformity in 2010.
PR5. Practices related to customer satisfaction, including results of surveys measuring this satisfaction
79 to 83, 86, 89
PERFORMANCE INDICATORS
SOCIAL PERFORMANCE – LABOR PRACTICES AND DECENT WORKING CONDITIONS
PG ODM PAGE
Relations between workers and the governance
Helath and safety in the workplace
LA6. Representation in health and safety committees
7 31
LA7. Rates for injuries, occupational diseases, days lost, absenteeism and deaths
7 31
LA8. Programs for education, training, counseling, prevention and control of risk to employees, their families or members of the community in terms of severe illness
6 33, 63, 67, 71
LA9. Issues regarding health and safety covered by formal agreements with unions
7 33, 72
Training and education
LA10. Average hours of training 21, 63
LA11. Programs for management of competencies and continued education supporting the continued employability of employees and for administering end of career
8 61 to 66
LA12. Percentage of employees receiving analyses of performance and career development on a regular basis
8 56, 62, 63
DIVERSITY AND EQUALITY OF OPPORTUNITIES
LA13. Composition of groups responsible for corporate governance and of the other employees
1 e 6 3 58, 59, 72, 102
LA14. Ratio of basic salary between men and women
1 e 6 3 58
SOCIAL PERFORMANCE – HuMAN RIGHTS
PG ODM Page
Form of management 1 e 2 76
Investment and procurement practices
HR2 -Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.
76
HR4. Total number of discrimination cases
1, 2 e 6
During the years 2009 and 2010, reports were made concerning the matter of discrimination. The facts were investigated and were proved to be unsubstantiated, and as a consequence there is no disciplinary measure
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PERFORMANCE INDICATORS
SECTOR INDICATORS – ENERGy PG ODM Page
Eu1. Installed capacity (MW), broken down by energy source and regulatory regime.
9
Eu2. Net production of energy broken down by primary energy source and regulatory regime.
9
Eu3. Number of residential, industrial, institutional and commercial customer accounts.
9
Eu4. Length of above and underground transmission and distribution lines by regulatory regime.
9
Eu6. Form of management to ensure availability and reliability of electricity in the short and long term.
7 46
Eu7. Demand-side management programs including residential, commercial, institutional and
industrial programs.
7 94
Eu8. Activities and expenses related to research and development to maintain reliability of electricity supply and to promote sustainable development.
7 99
Eu10. Planned capacity against the long-term electricity demand forecast, broken down by energy source and regulatory regime.
9
Eu14. Programs and processes to ensure the availability of a skilled workforce.
1 e 2 62
Eu15. Percentage of employees eligible to retire in the next 5 and 10 years broken down by job category and by region.
1 71
Eu16. Policies and requirements regarding health and safety of employees and employees of contractors and subcontractors.
77
Eu18. Percentage of contractor and subcontractor employees that have undergone relevant health and safety training.
77
Eu22. Programs aimed to improve or maintain access to electricity.
1 94
Eu24. Practices to address language, cultural, low literacy and disability related barriers to accessing and safely using electricity and customer support services.
34, 94
Eu25. Number of injuries and fatalities to the public involving company assets including legal judgments, settlements and pending legal cases of disease.
34
Eu26: Percentage of population without service in licensed distribution or service areas
79
Eu28: Power outage frequency. 9, 46
Eu29: Average power outage duration.
9, 46
Eu30: Average plant availability factor by energy source and by regulatory regime
AES Eletropaulo does not generate power
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General Coordination
Márcia Magno
Office of Communication and
Social Responsibility
Content orientation
Luciana Alvarez
Management of External Communication
and Social Responsibility
Content Coordination
Sandra Coelho
Communication Analyst
Content, analysis, of indicators and
graphic project
Report Comunicação
revision
Assertiva Produções Editoriais
photos
AES image bank
Na Lata Photography Agency
translation
Brauns&Brauns Language Consultancy
1242010 Sustainability Report
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