Mission and Vision

Companhia Energética de Minas Gerais – CEMIG is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market.

CEMIG’s concession area extends throughout nearly 96.7% of the State of Minas Gerais, whose territory is situated in the Southeastern region of Brazil and covers an area of 567,478 thousand square kilometers, which corresponds to the territorial extension of a country the size of France. CEMIG owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state’s 774 municipalities. In addition to those 52 plants, another three are currently under construction. In 2004 alone, CEMIG furnished its market with 37,897 GWh of energy.

CEMIG is also active in several other states, through ventures for the generation or the commercialization of energy in the following Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espírito Santo (generation) and Rio Grande do Sul (commercialization). 

In order to make sure electric energy will be delivered to its nearly 6 million clients, CEMIG manages the largest electric energy distribution network in Latin America and one the four largest in the world, which extends as far as 367,437 thousand kilometers.

Founded on May 22, 1952 by then State Governor and future President of Brazil, Mr. Juscelino Kubitscheck, for the purpose of providing the necessary support to a broad program of modernization, diversification and expansion of the state’s industrial park, CEMIG was able to fulfill its role as an economic development tool in Minas Gerais, while at the same time remaining an efficient and competitive company.

Controlling Interest

CEMIG is a mixed economy company in which the Government of Minas Gerais is the main shareholder, holding 50.96% of the ordinary shares of the Company. The second major shareholder is Southern Electric Brasil Participações Ltda., with 32.96% of the shares. Foreign and domestic private sector interests control, respectively, 4.2% and 11.53% of the shares. The data is contained in the CEMIG 2004 Balance Sheet. 

2004: the unbundling of CEMIG

In December, 2004 CEMIG ceased to be an integrated company as it underwent a restructuring program through which the company was broken into two whole subsidiaries: Cemig Distribuição de Energy S.A. and Cemig Geração e Transmissão S.A. The change was as required by Law no. 10.848, of March, 2004, which defined the new electric sector model, requiring that integrated companies be unbundled.

In CEMIG’s case, the unbundling model was approved by the Company’s Administrative Council. In August, Governor Aécio Neves signed Law no. 15.290/2004, authorizing this corporate restructuring. As part of this process, the Rosal Plant (Rosal Energia S.A.) was acquired from Caiuá Serviços de Eletricidade S.A. The acquisition of this plant, which is located on the border of the states of Rio de Janeiro and Espírito Santo, represented an important first step in the implementation of the national growth strategy. Also as a result of the unbundling process, an association was formed with Petrobrás Gás S.A. – Gaspetro, who acquired 40% of Gasmig’s equity capital. This partnership with Gaspetro will allow for the expansion of the natural gas distribution network in Minas Gerais where there is currently unmet demand.

International Image

With shares traded on the Bovespa and on the New York and Madrid Stock Exchanges, CEMIG is the only electric utility in Latin America to be included in the Dow Jones Sustainability Index. In 2005, it was listed in the index for the sixth consecutive time.

Out of a universe of 2,500 companies in sixty different industries in 34 countries, CEMIG was one of only two Brazilian companies selected to be a component of the Dow Jones Index, which is the foremost international financial performance index of world leaders in sustainability. This year, Dow Jones has also acknowledged CEMIG as a world leader in the electric energy industry.

In 2004, CEMIG closed its fiscal year boasting a recorded net profit of R$ 1,385 million, a 16% increase over 2003 and a 234% over 2000. In order to continue supplying its clients with the best energy in Brazil, CEMIG invests in state-of-the-art technology. From customer service and the monitoring of reservoirs with on-line satellite-fed systems, to its bookkeeping, in the maintenance of its transmission grid and in the telecontrol of substations and plants, state-of-the-art technology is always present, endowing CEMIG’s services with the highest of standards.

The Chile Bid

Cemig is preparing to begin construction of a transmission line in Chile. This hard-won contract represents a big step in the Company’s efforts to establish a presence in the international market.

The implementation and commercial operation rights were obtained in April of this year (2005), when Cemig, in partnership with Cia. Técnica de Engenharia Elétrica – Alusa, of São Paulo, won the bidding process.