DECREE N. 4,541? FROM December 23, 2002

Regulaments the arts. 3º, 13, 17 and 23 of Law No. 10,438 of April 26, 2002, which provides about the expansion of emergency electric power supply, extraordinary tariff recomposition, creates the Incentive Program for Alternative Energy Sources of Energy? PROINFA and the Energy Development Account? CDE, and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, in the use of the assignments that gives him the art. 84, incisos IV and VI, paragraph "a" of the Constitution, and with a view to the provisions of the arts. 3º, 13, 17 and 23 of Law No. 10,438, of April 26, 2002,

DECRETA:

Art. 1º This Decree sets up standards and regulatory guidelines of the arts. 3º, 13, 17 and 23 of Law No. 10,438, of April 26, 2002.

Ttitle I

OF THE FUNDAMENTAL CONCEPTS AND METHODOLOGIES

CHAPTER I

OF THE FUNDAMENTAL CONCEPTS

Art. 2º For the purposes of application of Law No. 10,438, of 2002, and of this Decree, consider:

I? PCH? Small Hydro Central: endeavor that meets the conditions determined by the Resolution of the National Electrical Energy Agency? ANEEL No. 394, of December 4, 1998;

II? Economic Value corresponding to the Specific Technology of a Source: selling value of electrical energy which, at a certain time and for a certain level of efficiency, economically vibrates a average pattern project using the said source;

III? Economic Value Corresponding to Competitive Power Generation: weighted average cost of generating new hydraulic leases with power exceeding 30,000 kW and natural gas power plants;

IV? National Revenue for Supply to End Consumers of Interconnected Electrical Systems: revenue obtained by dealers and distribution permissionaries, in energy sales and service benefits for increased end consumers of the estimated revenue from energy sales to free consumers;

V? National Average Supply of Supply to End Consumers of Interconnected Electrical Systems: ratio of national supply revenue to end consumers of the interconnected electrical systems in the last twelve months prior to the calculation and the respective consumption, expressed in R$/MWh;

VI? Reference Power: amount of energy to be produced and passable from contracting with the Brazilian Electric Central S.A. Central? ELECTROBRAS in the framework of the Incentive Program to Alternative Sources of Electrical Power? PROINFA, owing to be established in an authoring act of ANEEL and reviewed periodically;

VII? Public Call: Procedure to be adopted by ELECTROBRÁS in the purchase of electric power under PROINFA, applying, in what couber, the general principles and norms of the Tenders And Contracts Act, Law No. 8,666, of June 21, 1993;

VIII? Thermometric Generation to National Mineral Coal that Use Clean Technology: the one that, using the aforementioned coal, purchased from producer committed to the elimination of its environmental liabilities, presents energy efficiency of more than thirty and five percent and meet the maximum limits set by the resolution CONAMA # 008, of December 6, 1990;

IX? Universalization of the Public Service of Electrical power: pursuit of the widespread supply of electric power, progressively achieving the fulfillement of consumers unable to be met in the face of the distance they are from existing networks or the difficulty in arching with normal supply fares; and

X? Thermometric Power plants for National Mineral Coal that Participate in the Optimization of Interconnected Electrical Systems: those plants with flexibility, which can be dispatched by the National Operator of the Electrical System? ONS and comply with the dispatching instructions to meet the conveniences of the optimization.

Single paragraph. They fall into the universalization efforts of the public energy utility the definitions of special tariffs for low-income consumers who, under normal conditions, would not have access to services.

CHAPTER II

OF THE VALUES ECONOMICS

Art. 3º The economic values corresponding to the specific technologies for each source will be established by the Ministry of Mines and Energy and publicized through Portaria.

Single paragraph. The economic values to be initially used in the CDE will be released within ninety days, from the date of publication of this Decree, and the economic values to be used in PROINFA will be disclosed with at least thirty days of advance in relation to each Public Call.

Art. 4º The calculation of each economic value will be effective upon methodology that considers a cash flow:

I? for a period of thirty years in the case of hydro power plants and twenty years in the cases of the remaining technologies;

II ? with a return rate of the equity capital compatible with the minority risks that arise from the hiring and price guarantees;

III? with efficiency levels consistent with the stage of technological development and with national energy potentials;

IV? with average unit costs for the determination of the value to be invested in the venture;

V? with the estimate of the residual value;

VI? with the forecasts of operating expenses, inclusive losses, average costs of connection and use of electrical systems and tributes;

VII? with the conditions of possible special financing;

VIII? with a proper relationship between equity capital and third party capital;

IX? with the specific discounts provided for in Law for the use of the transmission and distribution network; and

X? with the average levels of setorial default.

§ 1º The return rates of equity and the factors of minimum capacity to be considered in the definitions of economic values will be fixed by Portaria of the Minister of Mines and Energy.

§ 2º For the purpose of application of PROINFA resources, the economic values corresponding to the specific technologies of wind sources, small hydropower plants and biomass will have as a floor eighty percent of the national average tariff of supply to the final consumer.

§ 3º The Ministry of Mines and Energy will make available to those interested the mathematical models and parameters used for the calculation of economic values.

§ 4º The national average tariff of supply to the final consumers of the interconnected electrical systems will be updated by ANEEL whenever necessary.

§ 5º The Ministry of Mines and Energy will disseminate, in a same act, the economic values to which art refers. 3º and the average tariff used as a floor, referred to in § 2º.

§ 6º In the calculation of the national average tariff of supply to the final consumer will not be taken into account:

I? the tributes not included in the calculation of tariffs;

II? the costs, inclusive of an operational, tax and administrative nature, concerning the acquisition of electric power (kWh) and the hiring of generating capacity or power (kW) by the Brazilian Emerging Energy Trader? CBEE that it treats art. 1º of Law No. 10,438, of 2002;

III? back from the share of the expenditure on the purchase of energy under the MAE of which it treats art. 2º of Law No. 10,438, of 2002; and

IV? the extraordinary tariff recomposition that it treats the art. 4º of Law No. 10,438, of 2002.

§ 7º The economic value corresponding to the competitive power generation is the cost resulting from the weighted average of the corresponding economic values of generation of new hydraulic leases with power exceeding 30,000 kW and of natural gas termometric power plants, with the weights defined depending on the relative share of these sources in the first five years of the expansion sevector program.

TITLE II

OF THE INCENTIVE PROGRAM FOR THE ALTERNATIVE SOURCES OF ELECTRIC POWER? PROINFA? 1ª STEP

CHAPTER I

OF THE OBJECT OF THE PROGRAM AND ITS COORDINATION

Art. 5º The Incentive Program for Alternative Sources of Electric Power? PROINFA, instituted with the aim of increasing the share of the electric energy produced based on wind sources, small hydropower and biomass power plants, in the National Interconnected Electrical System, will be deployed, in its first step, in the terms of this Decree.

Art. 6º The Incentive Program for Alternative Energy Sources? PROINFA will be administered by the Ministry of Mines and Energy.

Art. 7º In the administration of PROINFA, the Ministry of Mines and Energy:

I? will establish the annual schedule of actions to be implemented, assessing the impact arising from the cost reversal to end consumers, so as to minimise them;

II? will establish and disseminate the economic values, obeyed to the methodological guidelines set out in the art. 4º;

III? will define measures of stimulus to technological advancement that reflect, progressively, in the calculation of economic values; and

IV? submit to the National Energy Policy Council? CNPE the annual planning of PROINFA, demonstrating the need for public calls to be carried out and the anticipated impact of energy purchases in relation to market service and on the payments effective by end consumers.

CHAPTER II

OF THE ENERGY PURCHASE BY THE ELECTROBRAS

Art. 8º For the purposes of implantation of the first step of PROINFA, the Brazilian Electrical Central S.A.? ELECTROBRÁS will conclude, by April 29, 2004, electric power purchase agreements arising from production facilities whose starting operation is planned for up to December 30, 2006.

§ 1º The contracts, of which it treats this article, should contemplate the purchase for fifteen years of the energy generated in installations connected to the National Interconnected Electrical System, which use wind or biomass sources or even if they are characterised as small hydropower plants.

§ 2º The purchases referred to in this article will be carried out with prices equal to the economic values of the respective sources, and the contracts should be firmed up, as a matter of priority, with Independent Producer Autonomous? PIA, as defined in § 1º of the art. 3º of Law No. 10,438, 2002.

§ 3º Will be admitted to the direct participation of manufacturers of generation equipment, its controlled, collated or controlling in the constitution of the Autonomous Independent Producer, provided that the nationalization index of the equipment to be used in PROINFA's ventures is to be at least fifty percent in value.

Art. 9º The hiring of the purchase of electric power by ELECTROBRÁS will occur after the Public Call process of interested and selection.

§ 1º The Ministry of Mines and Energy, in consonance with the Schedule of the Expansion of the Brazilian Electrical Sector, will submit to CNPE the programming of Public Calls to be held, taking into view the market needs of the National Interconnected Electrical System.

§ 2º Of the public calls to be carried out by ELECTROBRÁS are expected to result in purchase hires, by April 29, 2004, from 3,300 MW, equally distributed among wind sources, small hydroelectric and biomass power plants, of ventures whose start of operation is planned for up to December 30, 2006.

Art. 10. In The Public Call on each power source to ELECTROBRÁS will comply, in addition to other requirements set in the convenatory instrument, to the following basic guidelines:

I? provision of Habilitation Guides by source, by consignment the necessary information regarding the participation in PROINFA and in particular the conditions necessary for its habilitation;

II? ninety-day term fixation, starting from the publication of the Public Call, for delivery of the documentation required for habilitation, inclusive of the authoritative act of ANEEL, outored in the form of the legislation in force, and

III? will not be enabled ventures in commercial operation or in production for own consumption, on the date of publication of Law No. 10,438, 2002, the possibility of hiring additional capacity, recognized by ANEEL, in the cases of revitalization, repotentiation and recapaciation of facilities.

Art. 11. The enabled endeavors will be classified depending on their environmental licences, observed the following order:

I? will be considered, initially, those endeavors that have the Installation Environmental License? LI, with the proposals sorted out, in this group, in ascending order of the remaining validity deadlines of the LIs; and

II? in the sequence, will those endeavors dispose of the Environmental Preview License be considered? LP, with the classification, in this group, in ascending order of the remaining validity deadlines of LPs.

§ 1º Se required, will adopt the draw as a criterion of tie-up, pursuant to Law No. 8,666, of 1993.

§ 2º Not being reaching the total amount set out in the Public Call for contracting, ELECTROBRÁS will be able to purchase energy from Independent Producers who do not meet the requirements of § 1º of the art. 3º of Law No. 10,438, of 2002, obeyed the criterion set out in the caput.

§ 3º The purchase carried out pursuant to § 2º will not be able to exceed twenty five per cent of the schedule annual, provided that these hires do not result in pretertition of Autonomous Independent Producer supply, observing, in the case of wind power, that the total hiring can reach up to fifty percent.

Art. 12. The energy purchase agreements to be firmed by ELECTROBRÁS:

I? will have as a basis the reference energy amount, established in the authoritative act of ANEEL to the generating and revisable plant periodically, in the form to be regulated by that Agency;

II? will have a term of fifteen years, as of the expected date of entry into operation of the venture;

III? will define, as the purchase price of energy, the Economic Value corresponding to the specific source, released by the Ministry of Mines and Energy and upgradeable since the date of its publication;

IV? will define that it will be the responsibility of the entrepreneur the losses between the plant bus and the center of gravity of the submarket to which the venture comes to connect, in addition to the forced and programmed stops;

V? will define that the power purchase can only be viabilized after the completion of the network access process, as Network Procedures and hiring, by the generating agent, of the connection and use of the transmission and distribution systems;

VI? will define that payments to generators will occur in the proportion in which ELECTROBRÁS receives the prorated costs among consumers and in the proportion of the sale of each generator;

VII? will contain reduction clause of the incentivised purchase price in the concrete existence hypothesis of new incentives to technologies considered in PROINFA;

VIII? will contain clause determining the compensation provided for in § 2º of the art. 19;

IX? will contain clause by which the generator gives powers to ELECTROBRÁS to gestionise, in conjunction or in isolation, the timely framework of the venture in the Clean Development Mechanism? MDL of the United Nations Climate Change Framework Convention; and

X? will contain contractual termination clauses, with the loss of PROINFA's incentives, in addition to penalties, should the PIA cease to maintain all the conditions that qualify it as such.

Paragraph single. The ELECTROBRÁS will submit to the administration of PROINFA, for the purposes of approval, the minuta of contract to be signed, for the purchase of energy.

CHAPTER III

OF THE COST AND ENERGY PROROGATION

Art. 13. The Incentive Program for Alternative Energy Sources? PROINFA will be costed by all end consumers serviced by the National Interconnected Electrical System.

Art. 14. ANEEL will regulate the procedures for prorogation among all end consumers serviced by the National Interconnected Electrical System, of the costs described in the art. 3º, inciso I, paragraph 10,438 (c) of Law No. 10,438, of 2002 and of the energy purchased by ELECTROBRÁS, pursuant to the arts. 8º to 12.

§ 1º The ratee of costs and energy will be done in proportion to the individual consumption verified, owing to the collection of such costs and the upturn of the energy being done by means of the dealerships, permissionaries and authorized, with the prorogation of costs carried out upon tariff of supplies or charges of free consumers.

§ 2º The procedures will be defined so as to cause no advantage or economic or financial loss to ELECTROBRÁS and to the dealerships, permissionaries and authorized.

§ 3º In the definition of the procedures for prorogation of costs to the final consumers to ANEEL will take into account all the charges arising, including those of a tax nature.

§ 4º In the definition of the procedures for prorogation of energy to final consumers to ANEEL will take into account the charges of the dealerships, permissionaries and authorized relative to the losses incurred since the subsystem Gravity Centre and relative the costs of use of the transmission and distribution network, considered the terms of Paragraph 1º of the art. 26 of Law No. 9,427 of December 26, 1996.

§ 5º The energy of PROINFA to be prorated among consumers and the they passed down by dealerships, permissionaries or authorised, will integrate the energy balance of the respective agents.

§ 6º The mentioned procedures will be regulated by ANEEL at up to one hundred and eighty days after the publication of this Decree.

Art. 15. The ELECTROBRÁS shall draw up the Annual Power Acquisition Plan of Alternative Sources on the basis of the contracts provided for or firmed up and with indication of the costs involved, considered the charges, inclusive of taxation.

§ 1º Until September 30 of the year prior to that of its duration, the Procurement Plan, of which it treats the caput, is to be forwarded by the ELECTROBRAS to the Ministry of Mines and Energy, for homologation and to ANEEL for the purposes of calculating the mice.

§ 2º A ANEEL, until November 30 each year, on the basis of purchases and costs informed by ELECTROBRÁS and the market forecasts of the National Interconnected Electrical System drawn up by the Ministry of Mines and Energy and considered still the charges, inclusive tax, incurred by the dealers, permissionaries and authorized, will define the resulting value of the prorogation to be charged to consumers.

§ 3º The ELECTROBRÁS, in advance required, will open in agency of the Bank of Brazil S.A., the specific current account PROINFA, intended for the movement of the resources of the Incentive Programme Alternative Sources of Electric Power.

§ 4º The value of prorated prorated prorated and received by dealers, permissionaries and authorized of the consumers should be deposited in the specific account of ELECTROBRÁS? PROINFA Account? up to the fifth business day after receipt.

§ 5º The concessionaire, permissionary or authorized not to check the collecting the financial resources, within the time specified in § 4º, will be subject to the payment of interest of living from one per cent to the month and fine of up to five per cent, to be fixed by ANEEL, respected the maximum limit admitted by the legislation in vigour.

§ 6º ELECTROBRÁS will inform monthly to ANEEL the movement of the PROINFA Account, with individualisation of the receipts and payments.

CHAPTER IV

FROM PAYMENT BY ELECTROBRAS BY THE PURCHASE OF ENERGY.

Art. 16. For receipt of the values originally paid by the final consumers and for reimbursement of their costs and payments to the energy producers, ELECTROBRÁS will move the specific account named Account PROINFA.

Art. 17. Every ten days ELECTROBRÁS will use the balance of the PROINFA Account to reimburse their costs and to effect payments to the generators, obeyed the ratios of effective credits of each.

Single paragraph. In observance of the provisions of § 2º of the art. 14, will be passed on to the creditors of the PROINFA Account, in the proportion of the effective credits, the result of financial applications of balances of the said Account, the fines and other penalties applied for default of the concessionaires, permissionaries and authorized, all passing as if the payments were to be effective directly to the aforementioned creditors.

Art. 18. Payments to generators will be based on the energy contracted by ELETROBRÁS.

Art. 19. They will be accounted for by ELECTROBRÁS, for each generating plant, the monthly changes between the contracted generation amounts and the effectively generated ones, referred to the center of gravity of the respective submarket, in MWh.

§ 1º In the case of PCH participant of the Power Reallocation Mechanism? MRE, instituted by Decree No. 2,655 of July 2, 1998, will be considered the energy allocated to PCH.

§ 2º A difference periodically ascertained for each generating plant will be compensated, in equivalent periods, in the subsequent payments to be carried out by ELECTROBRÁS valued at the hiring price, in the month of the compensation.

CHAPTER V

OF PRODUCERS AND OF THE SURVEILLANCE

Art. 20. The Electrical Power Purchase and Sale Agreements concluded with ELECTROBRÁS are to be registered in ANEEL.

§ 1º During the duration of the purchase and sales contracts of energy, the PIAs should maintain all the conditions that qualify it as such, under penalty of cancellation of the contract, application of penalties predicted in its clauses and loss of the incentives of PROINFA.

§ 2º Caberá à ANEEL, for the duration of the contracts, the audit of the fulfilment of the qualification criteria of the PIAs, defined in Paragraph 1º of the art. 3º of Law No. 10,438, of 2002.

Art. 21. It will be up to ANEEL, directly or upon arrangements with state bodies or from the Federal District to exercise technical supervision of the works regarding the participating endeavors of PROINFA.

Art. 22. ANEEL will define, in specific regulation, the PROINFA Account surveillance procedures and the penalties eventually applicable.

CHAPTER VI

OF THE ACCESS TO DISTRIBUTION SYSTEMS AND TRANSMISSION

Art. 23. After the Public Call by ELETROBRÁS identified the potential and places for insertion of the Independent PIAs and Producers, members of PROINFA, in the National Interconnected Electrical System, the concessionaires, permissionaries and the National Operator of the System? ONS should be scheduled to implement themselves for the implementation of the suitability to the distribution and transmission systems, ensuring free access.

Paragraph single. In occurring disagreement with respect to the deadlines for established connection, ANEEL may be triggered, owing to manifest, in up to thirty days, from the date of entry of protocol, on the deadline for effecting the connection to be fulfilled by the concessionary or permissionary of transmission or distribution.

CHAPTER VII

OF THE DISPATCHING OF THE GENERATED POWER AND THE ENERGY WHOLESALE MARKET

Art. 24. The generating Central Generators benefited by PROINFA will be considered as basic generation and the offered energy will be given priority in the dispatch of the ONS in relation to the remaining generation sources, respected the conditions of operative safety, as determinations expressed in the Network Procedures.

§ 1º The generating stations referred to in the caput will be framed in the ONS-centric dispatch modality, when they meet the requirements set for such, defined in the Network Procedures.

§ 2º In the case of small hydropower plants and biomass, the priority for dispatch does not apply in the face of circumstances of turbinable and communicable vertiments.

Art. 25. It is ELETROBRÁS authorised to be the representative agent in the Energy-MAE Atacadist Market of Central Managers who conclude contracts under PROINFA.

CHAPTER VIII

OF THE ENVIRONMENT ASPECTS

Art. 26. The Ministry of Mines and Energy, based on the Environmental Agenda of the Electric Sector, established in partnership with the Ministry of the Environment, should articulate itself with this to promote, together with the Federation states, the environmental regularization more agile for PROINFA's endeavors, taking into account the environmental benefits of this program.

Art. 27. The CNPE will propose PROINFA's environmental assessment methodology, indicating its contribution to preventing greenhouse gas emissions, mitigating the risk of climate change, so as to enable its timely framework in the Mechanism of Clean Development? MDL of the United Nations Climate Change Framework Convention.

Single paragraph. On the basis of this methodology, the CNPE will propose to the President of the Republic the definition of the manner of use of the credits arising from carbon certificates, eventually obtained by the framework of PROINFA's projects in the MDL.

Tickness III

OF THE ENERGY DEVELOPMENT ACCOUNT? CDE

CHAPTER I

DAS SOURCES OF RESOURCES

Art. 28. CDE, created by Law No. 10,438, of 2002, with the aim of promoting the energy development of states and the competitiveness of energy produced from wind sources, small hydroelectric power plants, biomass, natural gas and mineral coal national, in the areas serviced by the interconnected systems and promote the universalization of the electric power service throughout the national territory, will move resources from:

I? annual payments realized in the title of Use of Well Public? UPB;

II? payment of fines applied by ANEEL; and

III? annual quota payments by all agents marketing electric power with the final consumer.

§ 1º The payments to which the incisos I and II refer to are those occurred from April 29, 2002.

§ 2º The quotas referred to in the inciso III will be collected from 1º January 2003 and determined in ANEEL Resolution, which will establish the operational procedures to be adopted, inclusive of fines and other penalties stemming from default.

Art. 29. To ANEEL, it will determine, in thirty days, after the publication of this Decree, to the dealers, permissionaries and authorized, that they pass on the payments of which they treat the incisors I and II of the art. 28 upon deposit in the CDE, to be opened by ELECTROBRÁS.

Art. 30. ANEEL will inform ELECTROBRÁS, in thirty days, after the publication of this Decree, the payments of which treat the incisors I and II of the art. 28, occurred in the period between April 29, 2002 and the date of effective implementation of the provisions of the art. 29.

Art. 31. The quotas to which the inciso III of the art is concerned. 28 shall have value identical to those stipulated for the year 2001, in obedience to the one set out in § 1º of the art. 11 of Law No. 9,648 of May 27, 1998, and will be re-adjusted annually so as to maintain the same overall percentage share in relation to the National Revenue Supply to the End Consumers of Interconnected Electrical Systems observed in 2001, not entailing in this way tariff increase, in obedience to § 3º of the art. 13 of Law No. 10,438, of 2002.

§ 1º In the National Supply Revenue to the Finals of Systems Interconnected electrics in 2001, to be considered for the purposes of the percentage share of which it treats the caput, should be considered, inclusive, the one that stems from the extraordinary tariff recomposition provided for in the art. 4º of Law No. 10,438, of 2002.

§ 2º In the years 2003, 2004 and 2005 will be deducted from the quotas, which deals with the caput, the values to be collected at the title of the systematic prorogation of onus and advantages for the thermometric mills, situated in the regions served by the interconnected electrical systems, as defined in the art. 11 of Law No. 9,648, of 1998.

CHAPTER II

OF THE TARGETING OF RESOURCES

Art. 32. The resources of the CDE, arising from the payments of which they treat the incisos I and II of the art. 28 will be applied, as a matter of priority, in the development of the universalization of the public service of electric power.

§ 1º ANEEL will regulate the application of the share of CDE resources intended for the development of the universalization of the public service of electric power, observed the concept of universalization and the arranged in § § 2º and 3º of the art. 14 of Law No. 10,438, 2002, relating to consumer finance, by public bodies, including indirect administration, for the expansion of networks aiming at the universalization of service.

§ 2º The features referred to in the caput eventually not used in one year, could be targeted for other foreseen applications for CDE.

Art. 33. The resources of the CDE, arising from the payments of which it treats the inciso III of the art. 28 and the possible balances of resources arising from the payments of which they treat the incisos I and II of the art. 28, not applied in the development of the universalization of the public utility of electric power, can be used.

I? for coverage of the fuel cost of thermometric ventures using only national mineral coal, in operation until February 6, 1998;

II? for coverage of the cost of fuel from plants framed in § 2º of the art. 11 of Law No. 9,648, of 1998;

III? for coverage of the difference between the annual costs arising from the natural gas transport facilities for states where, by the end of 2002, there is no supply of piped natural gas and the plots that arise from the collection of tariffs of use of the transmission systems and electric power distribution of which it treats art. 45;

IV? for payment of the difference between the economic value corresponding to the energy made available to the system through the specific technology of each source and the economic value corresponding to competitive energy, to the electric power producer agent from wind, thermal to natural gas, biomass and small hydroelectric power plants, whose ventures come into operation from April 29, 2002, and that the purchase and sale if it does with final consumer;

V? for payment of the supplementary credit calculated by the difference between the economic value corresponding to the specific technology of each source and the value paid by ELECTROBRÁS, when of the implantation of the second step of PROINFA; and

VI? for payment of the difference between the economic value corresponding to the energy made available to the system by thermometric generation to national mineral coal using clean technology, from facilities that enter into operation from 2003, and the economic value corresponding to competitive energy.

Art. 34. The coverage of the fuel cost of which treat the incisos I and II of the art. 33 will occur, exclusively, for thermometric power plants national mineral coal, located in the regions covered by the interconnected electrical systems, which participate in the optimization of the said systems and maintain, as of 1º January of 2004, the mandatory minimum purchase of fuel stipulated in the prevailing contracts on April 29, 2002.

§ 1º In the case of mills framed in § 2º of the art. 11 of Law No. 9,648, of 1998, mandatory minimum purchase of fuel will be stipulated through contracts that should be on the occasion of the commencement of commercial operation.

§ 2º Fuel cost coverage will be effective to the generator upon reimbursement of seventy-five per cent of the expenditure corresponding, the values to be received for the title of the systematic prorogation of burden and advantages for the thermometric mills of which they treat the § § 1º and 2º of the art are to be deduced. 11 of Law No. 9,648, 1998.

§ 3º The expense to be considered for the purposes of reimbursing CDE is the one that elapses of the optimization of the interconnected system, observed the minimum fuel purchase agreements.

§ 4º The agent interested will prove to ELECTROBRÁS the reasonableness of the cost of fuel to be refunded.

§ 5º TO ANEEL, can adjust the percent of seventy-five percent refund to the generator, so as to preserve the current level of production of the coal industry and a profitability of the generator compatible with the minority risks arising from the Law No. 10,438, of 2002.

Art. 35. The planned investment in natural gas transportation facilities for states where, by the end of 2002, there is no supply of piped natural gas, should be demonstrated by the person concerned, the Ministry of Mines and Energy, through detailed projects and budgets, on the occasion of the venture's framework request.

Single paragraph. The investment to be considered as the basis of calculation of the annual costs arising from the facilities, of which it treats the inciso III of the art. 33, will be the one approved by the Ministry of Mines and Energy on the occasion of the framework of the venture, duly updated.

CHAPTER III

OF PRIORITIES DEFINITIONS

Art. 36. The CDE resource utilization schedule will, annually, be submitted by the Ministry of Mines and Energy to the CNPE and will be elaborated so that, to none of the wind sources, biomass, small hydroelectric power plants, natural gas and mineral coal national, are intended for resources whose total value exceeds thirty percent of the annual pick-up for CDE.

Paragraph single. On the pay schedule of the difference that it treats the inciso VI of the art. 33 only resources may be provided that do not exceed fifteen per cent of the quotas to which the inciso III of the art is concerned. 28.

Art. 37. From the annual resource utilization schedule of CDE constaron:

I? the predictions of credits to the said account;

II? the forecasts of debits to the said account, arising from previous decisions; and

III? the programming and framing guidelines of new ventures, properly justified.

Art. 38. The disbursement of CDE resources will be conditional on the prior framework of the venture and the availability of financial resources.

Art. 39. The framing of new ventures will be requested from the Ministry of Mines and Energy and by it analyzed, with the support of ELECTROBRÁS.

§ 1º No project or contract will be framed for immediate use of CDE in case there is no availability of financial resources in the year itself.

§ 2º In the occurrence of insufficient resources of CDE in a given year to meet projects or contracts framed in exercises previous, the available value will be prorated proportionally to the resources originally anticipated for the year.

§ 3º In the occurrence of the hypothesis provided for in § 2º, the insufficiency of resources will be compensated in following exercises and, considered the limits set out in art. 38, no new endeavor will be framed, in each block of limitation, until the insufficiency of resources has been fully compensated.

§ 4º The solicitations of which it treats § 5º of the art. 13 of Law No. 10,438, of 2002, will be forwarded to the Ministry of Mines and Energy.

Art. 40. The requests for framing and anticipations that it treats art. 39 should be forwarded by agents who have permission from ANEEL and prior Environmental License, and they should be interested in using CDE's resources to express this intention, as well as to define in which mechanism of resource use intends to be framed, providing all the information necessary for the analyses.

§ 1º It is up to the interested forward, after the framework, the request to ELECTROBRÁS for the respective resources of the CDE to be reserved, when requested to, when requested, the Installation Environmental License? LI and the contract with suppliers of equipment and executors of the services.

§ 2º The Ministry of Mines and Energy, will edit, in up to ninety days, of the publication of this Decree, the instruction manual for framing in the CDE and its corresponding operationalization.

CHAPTER IV

OF ACCOUNT MANAGEMENT

Art. 41. The ELECTROBRÁS will open, in up to thirty days, from the publication of this Decree, in agency of the Bank of Brazil S.A., specific current account ELETROBRÁS-CDE, intended for the movement of the CDE resources.

§ 1º The initial credit in the current account will correspond to the resources regarding the Use of Well-Public, owed by the entrepreneurs winners of bidding for hydro advantage and the fines applied to the dealers, permissionaries and authorized, raised since April 29, 2002 until the effective implantation of the definitive procedures that arise from this Decree, owing to the Ministry of Finance, to conduct the transfer of these resources which have eventually been collected to the National Treasury.

§ 2º The CDE will have the duration of twenty five years.

Art. 42. ANEEL will publish, by November 30 of each year, the following information:

I? the forecast of the CDE resources to be raised for the period of the subsequent four years, understanding the annual quotas due by the UBP Concessionaires and annual quotas due by the agents marketing energy with the consumer final;

II? the ratio of deposits carried out in the financial year, to the title of collecting fines applied to the dealers, permissionaries and authorized, up to that date;

III? the value of the annual quotas due by the UBP Concessionaires for the subsequent year;

IV? the value of the annual quotas due by the agents marketing energy with the final consumer, to be paid in twelfth and collected up to day 10 of the month following the vencent for the subsequent year;

V? the value to be applied, preferably, in electric power universalization programs, coming from the annual quotas due by the UBP Concessionaires and the fines applied to dealers, permissionaries and authorized; and

VI? the plots that arise from the collection of usage fees from the transmission and distribution systems of electrical energy, referred to in the inciso III of the art. 35.

Art. 43. The ELECTROBRÁS will move CDE so as to gain no advantage or economic or financial loss and without making any incompatible commitments or risks with its condition of being designated to move the credits and debits of CDE.

§ 1º The ELECTROBRÁS will credit monthly to CDE the possible financial results of application of the balances, discounted the fees, contributions and taxes inherent in the financial movement.

§ 2º The ELECTROBRÁS will only use the resources that arise from fines, after exhausting the deadlines of administrative and judicial resources.

§ 3º A move of the CDE will be the subject of surveillance by ANEEL, which will define, in specific regulation, the respective procedures and the penalties eventually applicable.

§ 4º The ELECTROBRÁS will issue a framing certificate in the CDE, the model of which will build from the instruction manual, referred to in § 2º of the art. 40, in such a way as to substantiate the committed resources of CDE, as per art. 37, inciso II.

Art. 44. Without prejudice to the penalties provided for in Law No. 8,987 of February 13, 1995 and the revocation of the authorisation, the Company that does not promote payments to CDE, at the time of its own, shall be constituted in arream, for all legal purposes, subjecting itself as provided for in § 2º of the art. 17 of Law No. 9,427, of 1996.

CHAPTER V

OF THE TRANSMISSION FEES

Art. 45. ANEEL in determining the usage tariffs of the transmission and distribution systems of electrical energy, will consider as an integral of the basic network that it treats art. 17 of Law No. 9,074 of July 7, 1995, the natural gas transmission facilities required for the supply of thermometric power stations in the states where, by the end of 2002, there is no supply of canalized natural gas.

§ 1º In determining the tariffs of which it treats the caput, ANEEL will consider, as a limit, the revenue that would be ensured to an investment in substations and equivalent transmission lines, necessary to build to transport, from the gas production field or from the international border to the location of the plant, the same electrical energy as it is capable of producing in the cargo center.

§ 2º The ANEEL and the National Petroleum Agency? ANP should regulate, after public hearing, the provisions of the caput, observed the limitation determined in § 1º, setting out as well:

I? the process of transferring the proceeds from the advective proceeds from the payment of the usage charges of the transmission and distribution system to the owners of the natural gas transport facilities cited in the caput; and

II? the minimum performance requirements of the natural gas transport facilities, cited in the caput, including the availability of the facilities and the relationship of the fulfilment of such requirements with the payments to be realized to the owners of these facilities.

TITLE IV

FROM THE USE OF RGR RESOURCES

Art. 46. Will the CNPE propose to the President of the Republic the guidelines for the use of the resources of the Global Reversal Reserve? RGR, administered by ELETROBRÁS.

Art. 47. The use of RGR resources, obeyed the legal conditioners, will be programmed by ELECTROBRÁS in consonance with the planning of the electric power sector and with the governmental guidelines.

Art. 48. The feature utilization programming of the Global Reversion Reserve will be submitted to the CNPE analysis.

Art. 49. The application of the features of the Global Reversal Reserve by ELECTROBRÁS will be conditional on the authorization of its board of directors.

TITLE V

OF THE TARIFFS FOR COOPERATIVES OF RURAL ELECTRIFICATION AND OTHER AGENTS

Art. 50. To meet the provisions of the inciso XI of the art. 3º of Law No. 9,427, of 1996, ANEEL is expected to set the tariffs for the supply of electric power carried out to dealerships and distribution permissionaries, including to the Rural Electrification Cooperatives framed as permissionaries, whose own markets are less than 300 GWh/year and the supply tariffs to the authorized cooperatives, considering technical, economic, operational parameters and the structure of the met markets.

Art. 51. The dealerships, permissionaries and cooperatives referred to in the art. 50 should enter into distinct contracts for the connection, use of the transmission or distribution systems and purchase of electric power.

Paragraph single. In the definition of the value of the tariffs for connection and use contracts of the transmission or distribution systems of which it treats this article, appropriate plots of transport costs and electrical power losses, well as the connection charges and the sectoral charges, as per existing regulation, admitted a reduction, when necessary, in relation to the transmission and distribution charges.

Art. 52. The electric power tariffs applicable to the sales contracts for the agents of which it treats the art. 50 may be established in the monomic or binomic form and shall be determined, up to the contractual date of the respective readjustments or tariff reviews of the seller distribution dealerships, based on the cost of the energy available for sale, increased cost of marketing and, where couber, of sectoral charges and tributes.

§ 1º The ANEEL will be able to define discount on the fares that treats the caput, applicable to the permissionaries and authorized cited in the art. 50, when necessary to ensure the same economic condition of the current supply contracts.

§ 2º The discount mentioned in § 1º will be fixed decreasingly, each year and for each permissionary, so as to stimulate the incentive to efficiency.

TITLE SAW

OF THE FINAL DISPOSITION

Art. 53. This Decree comes into effect on the date of its publication.

Brasilia, December 23, 2002; 181º of Independence and 114º of the Republic.

FERNANDO HENRIQUE CARDOSO

Francisco Gomide