DECREE OF July 19, 2012

Outorga to the company Generation Sky Blue S.A. granting of public good use for the exploitation of the hydraulic power potential, called Low Iguaçu Hydropower Plant, in stretch of the Iguaçu River, State of Paraná, and gives other arrangements.

THE REPUBLIC OF THE REPUBLIC, in the use of the attribution conferring you the art. 84, caput, inciso IV, of the Constitution, and in view of the provisions of the Laws No 9,074 of July 7, 1995, and No 10,848 of March 15, 2004, in the Decrees No 2,003 of September 10, 1996, and No 5,163 of July 30, 2004, and what is stated in the Process # 48500.008743 /2008-89,

D E C R E T A:

Art. 1º It gets outored to the company Generation Sky Blue S.A. granting of public good for electrical power generation, to exploit hydraulic power potential, by means of the Low Equaçu Hydrotric Power Plant and transmission facilities of restricted interest of the generator plant, in stretch of Rio Iguaçu, Municipalities of Capanema and Captain Leonidas Marques, State of Paraná.

Single Paragraph. The electric power produced will be marketed by the dealership, in view of its independent producer condition, pursuant to the Leis No 9,074 of July 7, 1995, and No 10,848 of March 15, 2004, in the Decrees No 2,003 of 10 of September 1996, and at 5,163, July 30, 2004.

Art. 2º The granting of this Decree shall apply for the period of thirty-five years, counted from the date of signing of the public good use concession contract.

Single Paragraph. The contract will be signed within a period stipulated by the Ministry of Mines and Energy, under penalty of ineffectiveness of the concession awarded by this Decree.

Art. 3º The dealership should deploy restricted-interest transmission facilities to the Low Iguaçu Hydropower Plant, I will provide you with the negotiated acquisition of servings, even if on public domain grounds and lane domain strips public, with subjection to administrative regulations.

Art. 4º The goods and facilities used for the production of electric power in the Low Iguaçu Hydropower Plant may only be removed, ceded, transferred or disposed of upon prior and express authorization from the National Electrical Energy Agency -ANEEL.

Single Paragraph. Upon the expiry of the concession deadline, the goods and facilities linked to the operation of the Low Equaçu Hydro Power Plant and the transmission facilities of restricted interest of the generator plant will pass on to integrate Union heritage, guaranteed compensation of goods and facilities not yet amortized, in the form of the legislation in force.

Art. 5º The dealership is obliged to meet the requirements of environmental protection, flood control, reservoir management and protection areas, and other acautelative prescriptions of water use, provided for in art. 143 of Decree No. 24,643, of July 10, 1934-Code of Waters, and in subsequent legislation.

Art. 6º This Decree shall enter into force on the date of its publication.

Brasilia, July 19, 2012 ; 191º of the Independence and 124º of the Republic.

DILMA ROUSSEFF

Edison Loban