UBS Latam/EMEA ConferenceNew York

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CPFL Energia and Brazilian Electricity Sector

Summary

CPFL Energia – Performance 3 Years Since IPO

CPFL Energia – 3Q07 Highlights and Results

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Since 1997, CPFL Energia has developed an aggressive strategy of growth in the distribution, generation and commercialization

1998 2002 2004 200620001997 2001 2005 20072003

IPO

CPFLJaguariúna1

1) Base: set/07 1) Old company name: CMS Energy Brasil2) Old company name: Cia. Luz e Força Santa Cruz

Recent Acquisitions:

• CPFL Jaguariúna1 in Apr/07

• CPFL Santa Cruz2 in Oct/06

• 11% of CEEE stake in HPP Foz do Chapecó in Aug/06

• 32.69% of PSEG stake in RGE in May/06

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CPFL Energia – Distribution Business

Concession area: 8 distributors in São Paulo, Rio Grande do Sul, Paraná and Minas Gerais States

Leadership in the distribution business: 13,8% of market share1

Presence in the regions with high growth market rate

73% EBITDA’s and 74% Net Income’s contribution to CPFL Energia’s results2

1) Base: set/07 1) Source ANEEL (Sep/07). Considers Brazilian market share2) Ref.: 3Q07

23%

49%

13%

6%

9%

Residential Industrial Commercial Rural Other

Concession Area Sales by Segment – 3Q07 (GWh¹)

Employees 6.620

Clients (million) 6,22

Population (million) 18,50

Concession Area (km2) 208.300

Municipalities 568

Concession Area

Key Indicators – 3Q0710% 9%

39%

16%

26%Metallurgy and

Non-Metallic Minerals

Others

Chemical Food and Beverage

Rubber andPlastic

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Spreading proposes consolidation opportunities

Distributors (#) 64

2006

59.1

347.4

Clients (million)

Distributed Energy (TWh)

Distribution Business:

Brazilian market has 64 distribution’s companies

Market Breakdown

The 5 largest groups have 50% of market-share

State-owned companies: 34%

Private Company: 66%

1) 1Q07Source: Aneel – Installed capacity: PDEE 2007-2016 Market breakdown: Acende Brasil

Distribution Market Share1 %

COPEL 6.7%

CELESC 4.8%

EdB 5.7%

ENDESA 4.2%

Ashmore Energy3.7%

Others 33,1%

CPFL Energia 13.8%

Brasiliana Energia 12.1%

CEMIG Companhia Energética 8.6%

Neoenergia7.3%

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Under Construction

CPFL Energia – Generation Business

1) Considers 6.93% stake in HPP Lajeado

5 HPPs1 and 31 SPPs

1,587 MW

797 MWmedium

Installed Capacity

Assured Energy

Operating

3 HPPs

587 MW

285 MWmedium

Power Plants

EBITDA Margin around 90%

16% EBITDA’s and 14% Net Income’s contribution to CPFL Energia’s results1

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143

801 812 812 854 9151.072

1.5881.737 1.737

2.174

440 440 434 472 525 571801 861 861

1.082

822000 2001 2002 2003 2004 2005 2006 2007(e) 2008(e) 2009(e) 2010(e)

Installed Capacity (MW)

Assured Capacity (MWmedium)

CPFL Energia’s generation capacity have been increasing since 2000, reaching 2.2 thousand MW until 2010

Barra Grande Campos Novos Castro Alves 14 de Julho Foz do ChapecóMonte Claro

CPFL’s stake (%)

CPFL’s capacity (MW)

Status 3Q10Operating

3Q08Operating

1Q08OperatingOperatingOperatingOperating

436.165.084.5428.8172.584.5

51.0065.0065.0048.7225.0165.00

Installed Capacity and Assured Energy Evolution

48%

40%

25%

26%

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Generation Companies (#) 1,660

2006

104,822Installed Capacity(MW)

Generation Business:

Brazilian market has 1,600 generation companies. The public sector concentrates 72% of the assets

Market Breakdown

The 5 largest groups have 50% of the market

State-owned companies: 72%

Private Company: 28%

Source: Aneel – Installed capacity: PDEE 2007-2016Market breakdown: Acende Brasil

Generation Market Share %

Others 35%

Chesf 10%

Furnas 9%

Eletronorte 9%

CESP 7%Itaipu 7%

Cemig 6%

Tractebel 6%

Copel 4%

AES Tietê 3%

Duke 2%

CPFL Energia 2%

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Growth in the free market

Commercial Expertise:Competitive performance in the free market and value added services – VAS

CPFL Energia - Commercialization

Leadership in the commercialization business: 23% of market share1

11% EBITDA’s and 12% Net Income’s contribution to CPFL Energia’s results1

1) Ref.: 3Q07 - CPFL Brasil Consolidated

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91

144

74

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2003 3Q07Outside Concession Area Group's Distribution Company

600%

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Sales Evolution - TWh

Captive and Free Market’s Sales Evolution in Brazil

75%76%79%88%99% 96%

25%24%

21%12%4%1%

2002 2003 2004 2005 2006 2007

ACR - Free Contracting Ambience ACL - Regulated Contracting Ambience

Source: EPE – Information until Apr, 2007

24.325.6

28.026.7

28.9

30.5

Currently, free market is responsible for 25% of Brazilian’s energy consumption

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CPFL Energia – 3Q07 Highlights and Results

Summary

CPFL Energia – Performance 3 Years Since IPO

CPFL Energia and Brazilian Electricity Sector

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CPFL Energia issues R$ 450 million in Debentures

Extension of term from acquisition of CMS Energy BrasilObjective

Half-yearlyYield Payment

CDI + 0.45% per yearCost

Equal three payments in Sep/2012, Sep/2013 and Sep/2014Term

September 3rd, 2007Issuing Date

R$ 450 millionOffering Total Value

Issue Characteristics

Issuer Rating brAA-

Issuer Rating brA+

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CPFL Energia – Performance 3 Years Since IPO

Summary

CPFL Energia and Brazilian Electricity Sector

CPFL Energia – 3Q07 Highlights and Results

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Investor RelationsPhone.: 55 19 3756 6083E-mail: ri@cpfl.com.brWebsite: www.cpfl.com.br/ri