DECREE OF December 9, 2010

Outorga to the company Rio Canoas Energia S.A. granting of public good use for exploitation of the hydraulic power potential, named Usina Hydropometric Garibaldi, in stretch of the Canoas River, in the State of Santa Catarina, and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers you the art. 84, inciso IV, of the Constitution, and in view of the provisions of the Leis n^os 9,074, of July 7, 1995, and 10,848, of March 15, 2004, in the Decrees n^os 2,003, September 10, 1996, and 5,163, of 30 de July 2004, and what is stated in Process n^o 48500.005181 /2010-36,

DECRETA:

Art. 1^o It gets outored to the company River Canoas Energia S.A. granting of public good for electrical power generation, with views on the exploitation of hydraulic power potential, through the Garibaldi Hydropometric Usina, and the respective transmission facilities of restricted interest of the plant generator, in stretch of the Canoas River, in the Municipality of Abdon Batista, in the State of Santa Catarina.

Single Paragraph. The electric power produced will be marketed by the dealership, in view of its condition of Electrical Power Independent Producer, pursuant to the Leis n^the 9,074, July 7, 1995, and 10,848, of March 15, 2004, and of the Decrees n^the 2,003, September 10, 1996, and 5,163, of July 30, 2004.

Art. 2^o The concession that it treats this Decree will be in force for the term of thirty-five years, counted from the date of the outorga.

Single Paragraph. The Concession Contract is to be signed within the period stipulated by the Ministry of Mines and Energy, under penalty of ineffectiveness of the concession awarded by this Decree.

Art. 3^the The dealership should deploy restricted-interest transmission facilities to the Garibaldi Hydropometric Usina, and I shall provide you with the negotiated acquisition of the respective servings, even if on public domain grounds and strips of domain of public roads, with subjection to administrative regulations.

Art. 4^o The goods and facilities used for the production of electric power in the Garibaldi Hydropometric Usina can only be removed, ceded, transferred or disposed of upon prior and express authorization from the National Energy Agency Electric-ANEEL.

Single Paragraph. By the end of the concession deadline, the goods and facilities linked to the operation of the Garibaldi Hydropometric Usina and the restricted transmission facilities of the generating central generator will pass on to the Union's heritage, guaranteed compensation of those still unamortized, in the form of the legislation in force.

Art. 5^o The dealership is obliged to satisfy the requirements for environmental protection, flood control, reservoir management and respective areas of protection, and other acautelative prescriptions of water use, provided for in art. 143 of the Code of Waters and in the subsequent legislation.

Art. 6^o This Decree goes into effect on the date of its publication.

Brasilia, December 9, 2010 ; 189^o of Independence and 122^the of the Republic.

LUIZ INACIO LULA DA SILVA

Marcio Pereira Zimmermann