6-K 1 elppr4q08_6k.htm RESULTS OF 2008 Provided by MZ Technologies
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of March, 2009

Commission File Number 1-14668
 
 
COMPANHIA PARANAENSE DE ENERGIA
(Exact name of registrant as specified in its charter)
 

Energy Company of Paraná
(Translation of Registrant's name into English)
 

Rua Coronel Dulcídio, 800
80420-170 Curitiba, Paraná
Federative Republic of Brazil
(5541) 3222-2027
(Address of principal executive offices)
 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____


Curitiba, Brazil, March 20, 2009 - Companhia Paranaense de Energia - Copel (NYSE: ELP / LATIBEX: XCOP / BOVESPA: CPLE3, CPLE5, CPLE6), a company that generates, transmits and distributes power to the State of Paraná, announces its results for the year 2008. All the figures in this report are in Brazilian Reais and were prepared in accordance with Brazilian GAAP.

This report presents cumulative data through December 2008 compared with the same period in the previous year.

• Copel's consolidated financial statements present, in addition to the figures of the wholly-owned subsidiaries (Copel Geração e Transmissão, Copel Distribuição and Copel Telecomunicações), those of Compagas, Elejor, UEG Araucária and Centrais Eólicas do Paraná (companies in which Copel retains a majority stake). From January 2008 on, Dominó Holdings started to be partially consolidated (45%).

• Net operating revenues: R$ 5,459 million - 4.9% up

• Operating Income: R$ 1,555 million

• Net Income: R$ 1,079 million (R$ 3.94 per share) - a 2.5% decrease in relation to 2007. Net income in 4Q08 was R$ 180 million.

• EBITDA (earnings before interest, taxes, depreciation and amortization): R$ 1,851 million. EBITDA in 4Q08 was R$ 381 million.

• Return on net equity: 15.5% .

• Total power consumption billed by Copel to captive customers in 2008 rose by 6.0% over 2007. Copel Distribuição's grid market grew by 5.6% .

• The Company's shares and main indexes presented the following variations from January through December 2008:

CPLE3 (common/ Bovespa) = -25.4%  IBOVESPA = -41.2% 
CPLE6 (preferred B/ Bovespa) = -10.5%  DOW JONES (NYSE) = -33.8% 
ELP (ADR/NYSE) = -30.2%  LATIBEX = -51.8% 
XCOP (preferred B/ Latibex) = -28.4%   

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Companhia Paranaense de Energia – Copel
Results of 2008

INDEX

1. Main Events 3 
2. Human Resources 5 
3. Energy Sales 6 
4. Financial Performance 7 
5. Balance Sheet and Investment Program 11 
6. Account for Compensation of Portion A - CVA 13 
7. Additional Information 14 
7.1 Main Operational and Financial Indicators 14 
7.2 Tariffs 15 
7.3 Energy Flow 16 
7.4 Shareholding Structure 17 
8. Financial Statements - Consolidated 18 
8.1 Assets 18 
8.2 Liabilities 19 
8.3 Income Statement 20 
8.4 Cash Flow 21 
9. Financial Statements - Subsidiaries 22 
9.1 Assets 22 
9.2 Liabilities
23 
9.3 Income Statement
24 

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1. Main Events 

Net Income:

In 2008, Copel recorded net income of R$ 1,078.7 million, which corresponded to R$ 3.94 per share. Net income in 4Q08 was R$ 179.7 million (R$ 0.66 per share).

Dividends and Interest on Capital:

A proposed distribution of R$ 228,0 million as interest on capital and of R$ 33,8 million as dividends, amounting to R$ 261,8 million for 2008, will be submitted to the General Shareholders' Meeting, which will take place in April 2009

Energy Sales:

Power consumption by the captive market billed by Copel grew 6.0% in 2008. The following variations were recorded in the consumption of the Company's main customer categories: residential: 4.7%, commercial: 6.6%, industrial: 7.8%, and rural: 5.5% .

The following charts show the monthly power consumption billed by Copel from 2006 to 2008:

Hydroelectric Power Plant:

This 361 MW project belongs to Consórcio Energético Cruzeiro do Sul, a partnership between Copel (with 51% interest) and Eletrosul (with 49% interest). On March 24, 2008, the Environmental Institute of Paraná (IAP) issued the Installation License for the Mauá Hydroelectric Power Plant, located on the Tibagi River, in the State of Paraná.

On November 17, 2008, the Brazilian Development Bank (BNDES) approved a loan for the Mauá Hydroelectric Power Plant.

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UEG Araucária - UEGA:

UEG Araucária Ltda., a Copel subsidiary, renewed its agreement with Petrobras to lease the Araucária thermal power plant for three years starting from January 1, 2009. UEGA will receive fixed monthly payments plus a variable payment when energy supply begins. Petrobras signed a parallel agreement with Copel Geração e Transmissão guaranteeing plant operation and maintenance services during the lease period. The agreement may be partially or entirely terminated if UEGA wins energy auctions held by ANEEL.

Extension of plant concessions:

The Brazilian Electric Energy Agency (ANEEL) recommended to the Ministry of Mines and Energy, through Circular 455 of February 3, 2009, the extension of the following Copel concessions without valuable consideration:

Power Plant    Capacity (MW)   Concession expires 
Segredo    1,260    2029 
Salto Caxias    1,240    2030 
Derivação do Rio Jordão    6.5    2029 
Cavernoso    1.3    2019 

The extension is for 20 years for the first three plants, and 8.5 years for Cavernoso, but Copel is already requesting a 20-year extension for it.

Split-off and liquidation of Copel Participações:

In 2008, continuing the corporate restructuring process, Copel obtained ANEEL's approval for the split-off and liquidation of Copel Participações S.A. and transfer of its assets to Companhia Paranaense de Energia and Copel Geração e Transmissão S.A., with the book value being R$ 865.6 million and R$ 453.4 million, respectively.

Impairment:

Applying the Technical Pronouncement CPC 01 relating to Asset Impairment, the Company conducted impairment tests on its cash generating units and its investments in affiliates and subsidiaries, and arrived at the impairment value of R$ 18,3 million for Sercomtel Telecomunicações S.A. and R$ 6,2 million for Sercomtel Celular S.A. With this provision, the investment made in Sercomtel Celular S.A. was fully written off in 2008. For other affiliates and subsidiaries, no need was identified to book provisions for the impairment of the investments made.

Sale of Braspower:

On December 22, 2008, Copel signed an agreement to transfer its interest in the capital of Braspower International Engineering S.C. The sale price for the 49% interest was R$ 1.0 million.

4

Nova Holanda:

Between 1995 and 2001, Copel allocated funds to the Regional Incentive Funds, Amazonia Investment Fund (FINAM), and Northeast Investment Fund (FINOR). According to legislation, about R$ 14.9 million was invested in Nova Holanda Agropecuária S.A. and the entire amount was provisioned for losses in the current year, given the history of losses at Nova Holanda Agropecuária S.A.

Purchase of energy generated from biogas:

On February 3, 2009, Copel signed the first agreements in Brazil's electricity sector to purchase energy produced from the biodigestion of organic waste. The tests, which began in 2007, were aimed at reducing the environmental impact and studying the technical and economical feasibility of implementing biodigestors in rural areas. Six agreements have been signed, with total energy potential of up to 524 kW, enough to supply a hundred middle-income houses, which will be supplied by four generators: Sanepar, Cooperativa Lar, Granja Colombari and Star Milk. The agreements are valid till the end of 2012.

Voluntary Redundancy Program

Copel's Board of Executive Officer has created two voluntary redundancy programs: one for employees who already receive pensions and the other, which is permanent, for employees who retire through the INSS (National Institute of Social Security)

Moody's Upgrades Copel's Ratings:

On November 26, Moody's América Latina upgraded the global scale rating of Companhia Paranaense de Energia (Copel) from 'Ba2' to 'Baa3' and the national scale rating from 'Aa2.br' to 'Aa1.br'. At the same time, it also upgraded its third debenture issue's global scale rating from 'Ba1' to 'Baa3' and confirmed the company's national scale rating at 'Aa1.br'.

Restructuring:

In a pioneering move in the energy industry, Copel will propose a change in the structure of its Executive Board to include an Environment Corporate Citizenship Office to treat environment-related issues at the top management level. This change will give the Company the technical capacity to meet the demands of a very important area.

2. Human Resources 

Copel ended 2008 with a total of 8,405 employees, distributed among the Company's wholly-owned subsidiaries as follows:

Copel Geração e Transmissão = 1,554
Copel Distribuição = 6,508
Copel Telecomunicações = 343

On November 29, 2008, all the employees of Copel Participações were transferred to Copel Geração e Transmissão.

At the end of 2008, Copel Distribuição had a customer-to-employee ratio of 541.

Compagas, Elejor and UEG Araucária, companies in which Copel holds a majority stake, had 104, 6 and 3 employees, respectively.

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3. Energy Sales 

Total energy sales billed by Copel, including the captive market, supply to free customers by Copel Geração e Transmissão and energy supplies by Copel Distribuição to other distributors in the State of Paraná, was 21,313 GWh, up by 4.2% . The captive market consumed 19,633 GWh, up by 6.0%, due to several factors, notably:


(i) the growth in income levels and expansion of credit, which stimulated business activity and purchases of consumer electronics; and

(ii) the 8.6% growth in industrial production in Paraná state in 2008, which was almost 3 times the national average of 3.1% .

The table below breaks down Copel's energy sales by customer segment:

GWh

                                         Segment    4Q08    4Q07    % Var.    2008    2007    % Var. 
    (1)   (2)   (1 / 2)   (3)   (4)   (3 / 4)
 
Residential    1,370    1,316    4.1    5,379    5,143    4.6 
Industrial    1,693    1,618    4.6    6,770    6,278    7.8 
Commercial    1,030    957    7.6    3,967    3,722    6.6 
Rural    404    390    3.6    1,606    1,522    5.5 
Other    490    473    3.6    1,911    1,858    2.9 
Total Captive Customers    4,987    4,754    4.9    19,633    18,523    6.0 
Free Customers Copel Geração e Transmissão    288    406    (29.1)   1,185    1,462    (18.9)
Total Supply to Final Customers    5,275    5,160    2.2    20,818    19,985    4.2 
Wholesale State of Paraná    122    119    2.5    495    473    4.7 
 
TOTAL    5,397    5,279    2.2    21,313    20,458    4.2 

3.1 Captive Market

The residential segment consumed 5,379 GWh, a 4.6% growth, representing 27.4% of this market. In December 2008, 2,782,404 residential customers were billed.

The industrial segment (except free customers) consumed 6,770 GWh and grew 7.8%, representing 34.5% of the captive market. In December 2008, 63,641 industrial customers were billed.

The commercial segment consumed 3,967 GWh, growth of 6.6%, representing 20.2% of the captive market. In December 2008, 294,866 commercial customers were billed.

The rural segment consumed 1,606 GWh, growth of 5.5%, representing 8.2% of the captive market. In December 2008, 335,666 rural customers were billed.

The other consumption segments (government, public lighting, utilities and own consumption) registered consumption of 1,911 GWh, growth of 2.9% in the period, representing 9.7% of the captive market. In December 2008, 46,966 customers were billed.

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3.2 Free Market

Energy consumption by free customers served by Copel Geração e Transmissão declined by 18.9% due to the termination of certain contracts.

3.3 Copel Distribuição's Grid Market - TUSD

Copel Distribuição's grid market, comprising the captive market, supply to other distributors in Paraná and all free customers in the Company's concession area, grew 5.6% .

GWh

    4Q08    4Q07    % Var.    2008    2007    % Var. 
    (1)   (2)   (1 / 2)   (3)   (4)   (3 / 4)
 
Grid Market (TUSD)   5,931    5,769    2.8    23,504    22,255    5.6 

4. Financial Performance 

The financial statements for the years ended December 31, 2008 and 2007 reflect, in all the material aspects, the changes proposed by Law 11.638/07 and Provisional Measure 449/08. Said Law was mainly intended to update Brazilian legislation to enable the convergence of accounting practices in Brazil with International Financial Reporting Standards (IFRS) and allow new accounting norms and procedures to be issued by the Brazilian Securities and Exchange Commission (CVM) in consonance with international accounting standards.

Pursuant to CVM Resolution 565/08, Copel and its subsidiaries chose to record the changes with retrospective effect and hence the financial statements for the year ended December 31, 2007 were reclassified to include the changes in practices with retrospective effect.

4.1 Operating Revenues

In 2008, net operating revenue was R$ 5,458.8 million, 4.9% higher than the R$ 5,203.7 million in 2007. The main factors behind this increase were:



(i) the 8.1% increase in retail revenue (which reflects only the sale of energy, excluding Copel's distribution grid tariff TUSD), mainly due to the growth of the electricity market;

(ii) the 0.3% drop in the account "electricity sales to distributors" as a result of the lower revenue from bilateral agreements and short-term electricity billing (CCEE), compensated by the higher revenue from auctions (CCEAR).

(iii) the 4.7% increase in "use of transmission grid", which is composed of the distribution grid tariff (TUSD), the basic transmission network and the network connection revenue, chiefly due to the increase in volume of energy transmitted by Copel's distribution lines and in the transmission grid charges;

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(iv) the 26.2% upturn in "telecom revenues" thanks to new clients and the higher volume of services provided to existing clients;

(v) the 16.2% increase in " piped gas distribution" resulting from the growth in the third-party gas supplied by Compagas and the tariff adjustment in the period; and

(vi) the 24.4% decrease in "other operating revenues", mainly due to lower revenue from UEG Araucária's provision of operation and maintenance (O&M) services. The decreased was caused by of the plant interruption of the plant operation, due to a technical problem. In 2007 pre-operating services were booked, which are non-recurring revenues.

Gross Income Statement    4Q08    3Q08    4Q07    Var.%    2008    2007    Var.% 
    (1)   (2)   (3)   (1/3)   (4)   (5)   (4/5)
Operating revenues    2,159,757    2,135,259    2,043,259    5.7    8,305,395    7,920,094    4.9 
Electricity sales to final customers    754,220    760,399    731,860    3.1    2,968,880    2,747,680    8.1 
  Residential    235,805    237,349    230,222    2.4    935,934    876,287    6.8 
  Industrial    267,607    282,358    271,455    (1.4)   1,069,201    985,685    8.5 
  Commercial    162,482    155,377    151,241    7.4    622,046    570,418    9.1 
  Rural    31,528    29,352    30,419    3.6    123,071    113,720    8.2 
  Other segments    56,798    55,963    48,523    17.1    218,628    201,570    8.5 
Electricity sales to distributors    384,119    354,700    327,607    17.2    1,363,094    1,367,595    (0.3)
Use of transmission grid    885,909    884,412    836,569    5.9    3,473,098    3,316,963    4.7 
  Residential    270,585    265,274    252,124    7.3    1,054,150    1,023,847    3.0 
  Industrial    295,898    312,141    291,469    1.5    1,194,193    1,136,137    5.1 
  Commercial    179,764    171,844    163,653    9.8    687,563    657,504    4.6 
  Rural    35,229    32,805    33,324    5.7    138,138    133,400    3.6 
  Other segments    62,411    61,497    59,834    4.3    242,397    242,314    0.0 
  Basic Network and connection grid    42,022    40,851    36,165    16.2    156,657    123,761    26.6 
Telecom revenues    22,981    20,846    17,309    32.8    80,604    63,893    26.2 
Piped gas distribution    76,958    76,789    59,499    29.3    283,709    244,080    16.2 
Other operating revenues    35,570    38,113    70,415    (49.5)   136,010    179,883    (24.4)

4.2 Deductions from Operating Revenues

The following table shows the legal deductions from Copel's operating revenues:

R$'000

Deductions from Operating    4Q08    3Q08    4Q07    Var. %    2008    2007    Var. % 
Revenues    (1)   (2)   (3)   (1 / 3)   (4)   (5)   (4 /5)
ICMS    409,049    409,286    390,782    4.7    1,600,758    1,507,883    6.2 
PASEP and COFINS    202,949    200,100    177,559    14.3    782,509    724,906    7.9 
RGR    18,134    18,134    16,210    11.9    64,877    61,105    6.2 
CDE    45,117    44,859    47,230    (4.5)   189,560    184,295    2.9 
CCC    67,237    61,166    17,596    282.1    153,208    179,071    (14.4)
P&D and PEE    13,949    13,686    14,135    (1.3)   53,616    56,347    (4.8)
Other    504    596    870    (42.1)   2,089    2,826    (26.1)
TOTAL    756,939    747,827    664,382    13.9    2,846,617    2,716,433    4.8 

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4.3 Operating Costs and Expenses

     In 2008, total operating costs and expenses reached R$ 3,982.0 million, 10.5% higher than the R$ 3,604.3 million in 2007. The highlights were:


(i) the 26.2% increase in 'energy purchased for resale' chiefly due to the higher cost of acquisition of energy from the CCEE, the auctions (CCEAR) and Itaipu, in addition to the reversal of R$ 100.9 million related to CIEN's cancelled bills (non-recurring effect) in the first quarter of 2007. The main amounts booked were: R$ 502.4 million from ITAIPU (5,468 GWh), R$ 107.9 million from Itiquira (914 GWh) and R$ 976.2 million from energy auctions (12,746 GWh). In addition, an expense of R$ 66.1 million was booked as passive CVA and Pasep/Cofins contributions in the negative amount of R$ 172.7 million;

(ii) the 4.6% increase in the 'charges for the use of transmission grid', chiefly due to the higher appropriation of connection costs and costs for the use of the transmission grid, increase in the ESS (Electric Power Services Fee) quotas, as per the values defined by the National System Operator (ONS);

(iii) in 2008, 'payroll' expenses totaled R$ 673.8 million, 3.7% higher than in the previous year, chiefly due to the pay raise of 5.5% and 7.5% applied as of October 2007 and 2008, respectively, which was compensated by the increased allocation of funds to Property, plant and equipment and lesser payments of labor claims in the period;

(iv) the 'pension plan and other benefits' line reflects the pass-through of costs with the Pró-Saúde program (assistance) and the pension plan, paid to Fundação Copel, pursuant to the actuarial criteria established by CVM resolution 371/2000.

(v) the 9.1% reduction in the 'material' line, chiefly due to the decline in the acquisition of fuel, auto parts, and IT material.

(vi) the amounts booked under the 'raw materials and supplies for the generation of energy' line refer to the purchase of mineral coal for the Figueira thermoelectric power plant. In 2007, a reversal of R$ 29.9 million, relating to Pasep/Cofins contributions on natural gas volumes negotiated with Petrobras, was booked under this line, wich was a non is recurring fact;

(vii) the 'natural gas purchased for resale' line increased by 23.4%, reflecting the higher cost of acquisition of natural gas by Compagas to serve its third-party gas distributor market, as well as the depreciation of the Brazilian real against the U.S. dollar;

(viii) the 11.3% increase in 'third-party services' is mainly due to higher expenses with electric power system maintenance, telecommunications, data processing and transmission, technical, scientific and administrative consultation, and postal services;

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(ix) the 59.2% decline in the 'provisions and reversals' is chiefly due to the provision in the amount of R$ 170.5 million, recorded in 2007, relating to the Cofins effect, which is a non recurring fact in 2008; and

(x) the 28.9% increase in 'other operating expenses' was mainly due to (i) the increase in Elejor concession fees (granted by ANEEL) and (ii) the financial compensation for use of water resources (due to the higher own generation in 2008).

R$ '000
Operating Costs and Expenses    4Q08    3Q08     4Q07    Var.%    2008    2007    Var.% 
    (1)   (2)   (3)   (1/3)   (4)   (5)   (4/5)
 
   Electricity purchase for resale    428,980    411,903    348,269    23.2    1,615,086    1,279,335    26.2 
   Charges for the use of transmission grid    149,050    136,001    82,927    79.7    466,652    446,067    4.6 
   Payroll    204,466    190,300    238,996    (14.4)   673,827    649,717    3.7 
   Pension plan    (29,406)   20,137    (21,281)   38.2    30,016    (13,851)   (316.7)
   Material    15,630    15,913    16,037     (2.5)   57,474    63,218    (9.1)
   Raw material and supplies for gen, of electricity    6,675    4,325    7,774    (14.1)   19,274    (8,954)   (315.3)
   Natural gas purchased for resale    54,521    44,902    30,493    78.8    163,846    132,726    23.4 
   Third-party services    66,718    68,916    76,080    (12.3)   268,248    240,942    11.3 
   Depreciation and amortization    101,089    94,590    107,691     (6.1)   404,743    429,957    (5.9)
   Provisions and reversals    33,708    15,463    34,814     (3.2)   98,894    242,435    (59.2)
   Other operating expenses    67,470    42,291    46,627    44.7    183,917    142,697    28.9 
Total    1,098,901    1,044,741    968,427    13.5    3,981,977    3,604,289    10.5 

Other Operating Revenues (Expenses), Net:

     Consequent to the extinction of the Non-Operating Income group by Provisional Measure 449/08, the amounts earlier booked under this item are now shown as "Other Operating Revenues (Expenses), Net". The reclassified balance declined 1.9% in relation to 2007.

     The effects of the decline in tax incentives (R$ 23.9 million) and the net result of deactivation of assets and rights were appropriated to this account.

4.4 EBITDA

     Earnings before interest, taxes depreciation and amortization (EBITDA) totaled R$ 1,851.0 million in 2008, 7.4% lower than the R$ 1,998.2 million in the previous year. In 4Q08 alone, EBITDA was R$ 380.8 million.

4.5 Financial Result

     Financial revenues grew 23.4% in 2008 in comparison with 2007, totaling R$ 488.6 million, mainly due to the higher income from financial instruments and the rise in the IGP-DI rate (which adjusts the transfer of CRC to the State of Paraná).

     Financial expenses totaled R$ 394.3 million, 4.9% up year-on-year, mainly due to the increase in exchange rates on foreign currency debt. The discontinuation of the CPMF tax and the decline in debt charges helped to reduce financial expenses.

4.6 Equity Investment:

     Equity investment reflects the equity income of the affiliates and subsidiaries of Copel, partially offset by goodwill amortization. In the fourth quarter, the asset impairment tests were conducted, which showed, with an adequate level of security, that part of the assets related to the affiliate Sercomtel Telecomunicações S.A. (R$ 18.3 million) and Sercomtel Celular S.A. (R$ 6.2 million) is above the recoverable value, indicating the need for recognizing the correspondent loss for their non-recoverability in the year's results. With this provision, the investment made in Sercomtel Celular S/A was fully written off in 2008.

     For other assets, no need was identified to set up asset impairment provisions.

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4.7 Net Income

     Copel's net income in 2008 was R$ 1,078.7 million (or R$ 3.94 per share), 2.5% lower than in 2007. Net income in the fourth quarter was R$ 180.0 million.

5. Balance Sheet and Investment Program 

5.1 Assets

     On December 31, 2008, Copel's assets totaled R$ 13,253.6 million, 6.3% up year-on-year.

5.2 Investment Program

     Copel's investment program executed in 2008 and the program approved by the Board of Directors for 2009 is in the following table:

R$ million
    Carried    Scheduled 
     2008         2008 
Generation and Transmission    93.1    107.5 
Distribution    497.7    774.7 
Telecommunications    24.7    51.3 
Partnerships    -    - 
   Consórcio Energético Cruzeiro do Sul (Mauá)   50.3    180.3 
   Dominó Holdings    110.2    - 
TOTAL    776.0    1,113.8 

     Compagas, Elejor and UEG Araucária (whose balance sheets are consolidated with Copel's) invested R$ 26.1 million, R$ 1.3 million and R$ 8.8 million, respectively, in 2008.

5.3 Liabilities and Shareholders' Equity

     Copel's consolidated debt at the end of December 2008 was R$ 1,864.6 million, representing a debt/equity ratio of 23.2% . Excluding Elejor's and Compagas' debts, debt/equity ratio would be 19.8% .

     The shareholders' equity of Copel on December 31, 2008, was R$ 8,053.1 million, 11.3% higher than in December 2007, and equivalent to R$ 29.43 per share (book value).

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5.4 Debt Profile:

     The breakdown of the balance of loans, financing and debentures is shown in the table below:

R$'000
        Short-term    Long-term    Total 
    IBD    25,938    36,552    62,490 
Foreign    National Treasury    8,647    85,359    94,006 
Currency    Eletrobrás    7    36    43 
    Banco do Brasil S/A    6,517    0    6,517 
    Total    41,109    121,947    163,056 
                 
    Eletrobrás - Copel    34,411    275,207    309,618 
    Eletrobrás - Elejor    -    26,092    26,092 
Domestic    BNDES - Compagas    6,526    13,111    19,637 
Currency    Debentures - Copel    169,233    600,000    769,233 
    Debentures - Elejor    25,767    202,116    227,883 
    Banco do Brasil S/A and other    16,415    332,699    349,114 
    Total    252,352    1,449,225    1,701,577 
GENERAL TOTAL    293,461    1,571,172    1,864,633 

     Following are the loan, financing and debentures maturities:

R$'000
     2009     2010     2011    2012    2013    2014 a 2024 
Loans and Financing    98,461    73,988    68,064    50,070    48,257    528,678 
  Domestic Currency    57,352    42,977    49,237    45,180    45,120    464,595 
  Foreign Currency    41,109    31,011    18,827    4,890    3,137    64,083 
Debentures    195,000    36,455    638,454    38,454    38,454    50,299 
   Total    293,461    110,443    706,518    88,524    86,711    578,977 

     Copel's consolidated net debt (loans, financing and debentures less cash, cash equivalents and short-term investments) significantly declined in the past few years, as shown in the following chart:

12

5.5 Ratings

     The following table shows Copel's current corporate and debentures issue ratings:

    Moody's    Fitch 
Corporate    Aa1.br    AA (bra)
Debentures - 3rd issue    Aa1.br    AA+ (bra)
Debentures - 4th issue    -    AA (bra)
         

6. Account for Compensation of Portion A - CVA

     The account for compensation of Portion A (tracking account) allows distribution companies to offset, between their annual rate reviews, variations in the cost of certain items listed in their concession agreements.

     The CVA variation updated by the SELIC from January to December 2008 is demonstrated in the following table:

R$ '000
    Balance    Deferral    Amortization    Monetary    Balance 
    12/31/07            restatement    12/31/08 
Assets                     
   Purchased Energy (Itaipu)   46,907    34,858    (35,697)   2,481    48,549 
   Transport of Purchased Energy    285    1,443    (211)   35    1,552 
   Use of Transmission Grid Charges    8,148    46,740    (16,614)   2,458    40,732 
   Energy Development Account - CDE    9,969    (3,282)   (6,710)   600    577 
   Electric Power Services Fee - ESS    7,826    41,988    (17,310)   2,871    35,375 
   Fuel Consumption Account - CCC   13,187    39,939    (20,258)   2,122    34,990 
   Proinfa    6,770    3,165    (7,851)   733    2,817 
TOTAL    93,092    164,851    (104,651)   11,300    164,592 
Liabilities                     
   Energy Purchased for Resale - CVA    87,177    15,153    (83,054)   6,451    25,727 
   Fuel Consumption Account - CCC    35,856    (1,710)   (36,119)   1,973    - 
   Use of Transmission Grid Charges    34,175    (2,372)   (32,579)   776    - 
   Transport of Purchased Energy    1,114    258    (1,320)   175    227 
   Proinfa    -    4,712    -    34    4,746 
   Electric Power Services Fee - ESS    7,444    (7,194)   -    (250)   - 
TOTAL    165,766    8,847    (153,072)   9,159    30,700 

13

7. Additional Information 

7.1 Main Operational and Financial Indicators

December 31, 2008
Generation     
Copel Geração e Transmissão (GET) power plants    18 (17 hydro and 1 thermal)
Power plants in which Copel holds interest    7 (5 hydro, 1 thermal and 1 wind power)
Total installed capacity of Copel GET    4,550 MW 
Installed capacity of Copel's Corporate Partnerships (1)   610 MW 
Automated and remote-controlled power plants of Copel GET    15 
Automated and remote-controlled power plants of Copel's     
corporate partnerships    3 
Step-up substations of Copel GET    14 (automated and remote-controlled)
 
Transmission     
Transmission lines    1,835 km 
Number of substations    30 (100% automated)
Installed substation capacity    10,285 MVA 
 
Distribution (up to 138 kV)    
Distribution networks and lines    179.188 km 
Number of substations    344 
Number of automated substations    340 
Installed capacity in substations    9,195 MVA 
Number of localities served    1,119 
Number of municipalities served    393 
Number of customers    3,523,543 
DEC (outage duration per customer, in hours and hundredths     
of an hour)   12.18 
FEC (outage frequency per customer)   10.69 times 
 
Telecommunication     
Optical cable main ring    5,381 km 
Self sustained optical cable    6,629 km 
Number of cities served    197 
Number of customers    573 
 
Administration     
Number of employees (wholly-owned subsidiaries)   8,405 
Customer per distribution employee    541 
 
Financial     
Book Value (per 1,000 shares)   R$ 29.43 
EBITDA    R$ 1,851.0 million 
Liquidity (Current Ratio)   1.82 

 

Note:
(1) proportional to the capital stake.

 

14

7.2 Tariffs

Average Energy Purchase Tariffs

R$/MWh
Tariff    Dec/08    Sep/08    Dec/07    Var. % 
    (1)   (2)   (3)   (1 / 3)
Itaipu*    110.39    91.46    80.06    37.9 
CIEN    -    -    84.54    - 
Auction - CCEAR 2005 - 2012    67.38    67.33    63.81    5.6 
Auction - CCEAR 2006 - 2013    78.91    78.78    74.75    5.6 
Auction - CCEAR 2007 - 2014    89.21    85.87    84.43    5.7 
Auction - CCEAR 2007 - 2014 (A-1)   112.57    112.56    104.75    7.5 
Auction - CCEAR 2008 - 2015    94.87    94.86    -    - 
Auction - CCEAR 2008 H30    118.47    118.61    -    - 
Auction - CCEAR 2008 T15**    146.60    146.60    -    - 
                 
* Furnas transport charge not included
** Auction average price updated by IPCA

Average Retail Tariffs

R$/MWh
Tariff    Dec/08    Sep/08    Dec/07    Var. % 
    (1)   (2)   (3)   (1 / 3)
Residential    255.17    257.26    252.00    1.3 
Industrial (Free customers not included)   177.55    186.42    177.71    (0.1)
Commercial    222.04    229.38    222.21    (0.1)
Rural    151.44    151.31    148.99    1.6 
Other    169.79    176.45    170.98    (0.7)
TOTAL    205.50    210.46    204.14    0.7 
Without ICMS

Average Energy Supply Tariffs

R$/MWh
 Tariff    Dec/08    Sep/08    Dec/07    Var. % 
    (1)    (2)   (3)   (1 / 3)
Auction CCEAR 2005 - 2012    67.48    67.00    63.91    5.6 
Auction CCEAR 2006 - 2013    79.19    78.47    75.11    5.4 
Auction CCEAR 2007 - 2014    88.80    87.76    83.99    5.7 
Auction CCEAR 2008 - 2015    94.03    93.27    -    - 
Wholesale Concessionaires State of Paraná    123.19    123.07    120.59    2.2 
                 

15

7.3 Energy Flow

Copel Consolidated

GWh
    2008    2007    Var.% 
   Own Generation    20,372    18,134    12.3 
   Purchased energy    24,557    24,351    0.8 
       Itaipu    5,468    4,666    17.2 
       Auction - CCEAR    13,975    13,053    7.1 
       Itiquira    914    912    0.2 
       Dona Francisca    648    646    0.3 
       MRE/CCEE    2,012    1,936    3.9 
       Other    1,540    3,138    (50.9)
Total Available Power    44,929    42,485    5.8 
   Energy Market    21,313    20,458    4.2 
       Retail    19,633    18,523    6.0 
       Concessionaires    496    474    4.6 
       Free Customers    1,185    1,462    (18.9)
   Bilateral Agreements    3,538    3,945    (10.3)
   Auction - CCEAR    12,663    11,940    6.1 
   MRE/CCEE    4,151    3,088    34.4 
   Losses and differences    3,263    3,055    6.8 
       Basic network losses    1,031    958    7.7 
       Distribution losses    2,111    1,958    7.8 
       CG contract allocation    121    139    (12.6)
             

CCEAR = Energy Purchase Agreements in the Regulated Market
MRE = Energy Reallocation Mechanism
CCEE = Electric Power Trade Chamber
CG = Center of gravity of the Submarket (difference between billed and energy received from CG)
Amounts subject to changes after settlement by CCEE

Energy Flow - Copel Geração

GWh
    2008    2007    Var. % 
 
 Own Generation    20,372    18,134    12.3 
 MRE/ CCEE    1,053    1,775    (40.7)
 Dona Francisca    647    646    0.2 
 Other    -    194    - 
Total Available Power    22,072    20,749    6.4 
 Bilateral Agreements    3,538    3,945    (10.3)
 CCEAR - Copel Distribuição    1,229    1,203    2.1 
 CCEAR - Other Concessionaires    11,435    10,737    6.5 
 Free Customers    1,185    1,462    (18.9)
 MRE/ CCEE    4,151    2,927    41.8 
 Losses and differences    534    475    12.4 
             

16

Energy Flow - Copel Distribuição

GWh

    2008    2007    Var. % 
 
 Itaipu    5,468    4,666    17.2 
 CCEAR - COPEL Geração e Transmissão    1,229    1,203    2.1 
 CCEAR - Other    12,746    11,850    7.6 
 CIEN    -    1,533    - 
 CCEE    959    162    493.4 
 Itiquira    914    912    0.3 
 Other    1,541    1,410    9.3 
 Purchased energy    22,857    21,735    5.2 
 State Demand    20,129    18,996    6.0 
   Retail    19,633    18,522    6.0 
   Wholesale    496    474    4.6 
 CCEE    -    161    - 
 Sold energy    20,129    19,156    5.1 
 Losses and differences    2,728    2,579    5.8 
 Basic Network    496    482    3.0 
 Distribution    2,111    1,958    7.8 
 Contracts    121    139    (12.6)

7.4 Shareholding Structure

Thousand shares

Shareholders    COMMON    %    Preferred "A"    %    Preferred "B"    %    TOTAL    % 
State of Paraná    85,029    58.6    0    -    14    0.0    85,043    31.1 
BNDESPAR    38,299    26.4    0    -    27,282    21.3    65,581    24.0 
ELETROBRÁS    1,531    1.1    0    -    0    -    1,531    0.6 
Free Floating    19,617    13.5    128    32.2    100,892    78.7    120,637    44.0 
     BOVESPA    14,202    9.8    128     32.2    74,424    58.0    88,754    32.4 
     NYSE    5,415    3.7    0    -    26,352    20.6    31,767    11.6 
     LATIBEX    0    0.0    0    -    116    0.1    116    0.0 
Other    555    0.4    270    67.8    38    0.0    863    0.3 
TOTAL    145,031    100.0    398    100.0    128,226    100.0    273,655    100.0 


17

8. Financial Statements - Consolidated 

8.1 Assets

R$'000

ASSETS     Dec/08     Sep/08    Dec/07    Var.%    Var.% 
    (1)   (2)   (3)   (1/3)   (1/2)
CURRENT    3,573,153    3,466,222    3,288,375    8.7    3.1 
   Cash in hand    1,813,576    1,766,157    1,540,871    17.7    2.7 
   Customers and distributors    1,032,952    1,062,195    1,089,694    (5.2)   (2.8)
   Allowance for doubtfull accounts    (56,284)   (91,448)   (71,592)   (21.4)   (38.5)
   Telecommunications services. net    7,904    10,421    8,303    (4.8)   (24.2)
   Dividends receivable    5,247    3,529    2,767    89.6    48.7 
   Services in progress    64,765    59,672    51,343    26.1    8.5 
   CRC transferred to State Government    47,133    45,189    40,509    16.4    4.3 
   Taxes and social contributions paid in advance    257,339    230,309    281,564    (8.6)   11.7 
   Account for compensation of "Portion A"    111,098    100,544    67,614    64.3    10.5 
   Other regulatory assets    31,511    33,682    17,186    83.4    (6.4)
   Collaterals and escrow deposits    150,794    134,475    145,161    3.9    12.1 
   Material and supplies    64,260    57,362    52,195    23.1    12.0 
   Other receivables    42,858    54,135    62,760    (31.7)   (20.8)
NON-CURRENT    9,680,473    9,617,659    9,184,614    5.4    0.7 
Long-term assets    2,117,741    2,131,756    1,977,614    7.1    (0.7)
   Customers and distributors    82,176    97,778    139,125    (40.9)   (16.0)
   Allowance for doubtfull accounts    (246)   (9,739)   (11,469)   (97.9)   (97.5)
   Telecommunications services    3,211    5,016    7,251    (55.7)   (36.0)
   CRC transferred to State Government    1,272,770    1,275,754    1,209,853    5.2    (0.2)
   Taxes and social contributions paid in advance    462,609    504,284    449,652    2.9    (8.3)
   Account for compensation of "Portion A"    53,494    42,415    25,478    110.0    26.1 
   Other regulatory assets    11,085    9,132    5,729    93.5    21.4 
   Bonds and Securities    69,063    66,647    -    -    3.6 
   Collaterals and escrow deposits    37,868    24,547    22,423    68.9    54.3 
   Judicial Deposits    113,497    107,499    121,122    (6.3)   5.6 
   Other    12,214    8,423    8,450    44.5    45.0 
Permanent    7,562,732    7,485,903    7,207,000    4.9    1.0 
   Investments    452,455    463,436    255,018    77.4    (2.4)
   Property. plant and equipment    6,992,158    6,907,496    6,835,491    2.3    1.2 
   Intangible assets    118,119    114,971    116,491    1.4    2.7 
TOTAL    13,253,626    13,083,881    12,472,989    6.3    1.3 

18

8.2 Liabilities

R$'000

LIABILITIES    Dec 08    Sep 08             Dec 07    Var.%    Var.% 
    (1)   (2)   (3)   (1/3)   (1/2)
CURRENT    1,963,494    1,820,237    1,940,592    1.2    7.9 
   Loans and financing    293,461    242,340    264,511   10.9    21.1 
   Suppliers    497,832    448,217    366,510    35.8    11.1 
   Taxes and social contributions    407,072    366,413    375,425    8.4    11.1 
   Interest on own capital and dividends    245,166    142,832    252,362    (2.9)   71.6 
   Accrued payroll costs    159,388    161,067    146,119    9.1    (1.0)
   Post-employment benefits    22,066    19,331    42,286    (47.8)   14.1 
   Account for compensation of "Portion A"    28,327    42,300    143,436    (80.3)   (33.0)
   Other regulatory liabilities    26,192    32,029    46,476    (43.6)   (18.2)
   Customer charges due    43,123    44,731    32,722    31.8    (3.6)
   Research and development and energy efficiency    126,484    203,819    185,280    (31.7)   (37.9)
   Other payables    114,383    117,158    85,465    33.8    (2.4)
NON-CURRENT    2,997,478    3,041,865    3,064,693    (2.2)   (1.5)
Long-term liabilities                     
   Loans and financing    1,571,172    1,696,867    1,837,942    (14.5)   (7.4)
   Provision for contingencies    593,365    530,087    514,052    15.4    11.9 
   Suppliers    214,157    207,006    190,394    12.5    3.5 
   Taxes and social contributions    29,528    25,017    19,317    52.9    18.0 
   Post-employment benefits    425,879    479,476    454,411    (6.3)   (11.2)
   Account for compensation of "Portion A"    2,373    10,109    22,330    (89.4)   (76.5)
   Other regulatory charges    7,257    10,882    18,935    (61.7)   (33.3)
   Electric efficiency and development research    72,079    -    -    -    - 
   Deferred revenues    74,994    74,994    592    -    - 
   Other payables    6,674    7,427    6,720    (0.7)   (10.1)
MINORITY INTEREST    239,567    244,567    231,527    3.5    (2.0)
SHAREHOLDERS' EQUITY    8,053,087    7,977,212    7,236,177    11.3    1.0 
   Share capital    4,460,000    4,460,000    4,460,000    0.0    0.0 
   Capital reserves    838,340    838,340    838,340    0.0    0.0 
   Income reserves    2,754,747    2,678,872    1,937,837    42.2    2.8 
TOTAL    13,253,626    13,083,881    12,472,989    6.3    1.3 

19

8.3 Income Statement

R$'000

INCOME STATEMENT     4Q08     3Q08    4Q07    Var,%     2008     2007    Var,% 
    (1)   (2)    (3)   (1/3)   (4)   (5)   (4/5)
Operating revenues *    2,159,757    2,135,259    2,043,259    5.7    8,305,395    7,920,094    4.9 
Deductions from operating revenues    (756,939)   (747,827)   (664,382)   13.9    (2,846,617)   (2,716,433)   4.8 
Net operating revenues    1,402,818    1,387,432    1,378,877    1.7    5,458,778    5,203,661    4.9 
Operating expenses and costs    (1,098,901)   (1,044,741)   (968,427)   13.5    (3,981,977)   (3,604,289)   10.5 
   Electricity purchase for resale    (428,980)   (411,903)   (348,269)   23.2    (1,615,086)   (1,279,335)   26.2 
   Charges for the use of transmission grid    (149,050)   (136,001)   (82,927)   79.7    (466,652)   (446,067)   4.6 
   Payroll    (204,466)   (190,300)   (238,996)   (14.4)   (673,827)   (649,717)   3.7 
   Pension plan    29,406    (20,137)   21,281    38.2    (30,016)   13,851    (316.7)
   Material    (15,630)   (15,913)   (16,037)   (2.5)   (57,474)   (63,218)   (9.1)
   Raw material and supplies for generation of electricity    (6,675)   (4,325)   (7,774)   (14.1)   (19,274)   8,954    (315.3)
   Natural gas purchased for resale and supplies for the gas business    (54,521)   (44,902)   (30,493)   78.8    (163,846)   (132,726)   23.4 
   Third-party services    (66,718)   (68,916)   (76,080)   (12.3)   (268,248)   (240,942)   11.3 
   Depreciation and amortization    (101,089)   (94,590)   (107,691)   (6.1)   (404,743)   (429,957)   (5.9)
   Provisions and reversals    (33,708)   (15,463)   (34,814)   (3.2)   (98,894)   (242,435)   (59.2)
   Other operating expenses    (67,470)   (42,291)   (46,627)   44.7    (183,917)   (142,697)   28.9 
Other Revenues (Expenses). net    (24,245)   (2,310)   7,020    -    (30,523)   (31,109)   (1.9)
Result of operations    279,672    340,381    417,470    (33.0)   1,446,278    1,568,263    (7.8)
Financial Income (Losses)   (203)   7,930    35,006    (100.6)   94,363    20,243    366.2 
   Financial revenues    116,362    120,641    129,672    (10.3)   488,620    396,017    23.4 
   Financial expenses    (116,565)   (112,711)   (94,666)   23.1    (394,257)   (375,774)   4.9 
Equity investment    (15,790)   7,896    (8,314)   89.9    14,318    9,509    50.6 
Operating income (expenses)   263,679    356,207    444,162    (40.6)   1,554,959    1,598,015    (2.7)
Income tax and social contribution                             
Deductions from income    (83,091)   (64,097)   (125,030)   (33.5)   (458,146)   (460,315)   (0.5)
Net income (loss) before minority interest    180,588    292,110    319,132    (43.4)   1,096,813    1,137,700    (3.6)
Minority interest    (879)   (6,094)   (6,890)   (87.2)   (18,069)   (31,090)   (41.9)
Net income (loss)   179,709    286,016    312,242    (42.4)    1,078,744    1,106,610    (2.5) 
Earning per share    0.66    1.05    1.14    (42.4)    3.94    4.04    (2.5) 
EBITDA    380,761    434,971    525,161    (27.5)   1,851,021    1,998,220    (7.4) 

20

8.4 Cash Flow

                                                             Consolidated Cash Flow    2008    2007 
Cash flow from operating activities         
   Net income for the period    1,078,744    1,106,610 
   Adjustments for the reconciliation of net income         
for the period with cash flow from operating activities:    503,654    736,343 
             Provision (reversal) for doubtful accounts    (5,823)   (4,353)
             Depreciation and amortization    399,123    422,049 
             Unrealized monetary and exchange variations, net    98,164    81,919 
             Equity in the results of subsidiaries and investees    (13,956)   8,795 
             Deferred income tax and social contribution    106,082    (75,853)
             Variations in Account for Compensation of "Portion A", net    (204,425)   797 
             Variations in other regulatory assets and liabilities, net    (51,643)   45,904 
             Contract renegotiation - Cien    -    (62,862)
             Provisions under long-term liabilities    104,718    248,385 
         Provision (reversal) for the devaluation of tax incentives    23,902    (12,789)
             Write-off of investments    8,742    2,240 
             Write-off of property, plant, and equipment, net    14,565    29,141 
             Write-off of intangible and deferred assets, net    516    13,972 
             Amortization of goodwill on investments    5,620    7,908 
             Minority interests    18,069    31,090 
   Reduction (increase) of assets    88,129    574 
   Reduction of liabilities    (177,059)   (527,561)
   Net cash generated by operating activities    1,493,468    1,315,966 
Cash flow from investing activities         
         Acquisition of controlling interest in Centrais Eólicas - net of acquired cash    -    (1,393)
         Acquisition of controlling interest in Dominó - net of acquired cash    (108,962)   - 
         Additions in other investments - net of acquired cash    (49,933)   (12,953)
         Additions to property, plant, and equipment:    (647,646)   (516,483)
         Additions to intangible assets    (8,416)   (4,406)
         Customer contributions    79,673    48,580 
         Disposal of property, plant, and equipment    11,297    6,652 
Net cash used by investing activities    (723,987)   (480,003)
Cash flow from financing activities         
             Loans and financing obtained    34,818    346,592 
             Amortization of principal amounts of loans and financing    (86,492)   (99,853)
             Amortization of principal amounts of debentures    (176,072)   (717,738)
             Dividends and interest on capital paid    (269,030)   (292,809)
Net cash used by financing activities    (496,776)   (763,808)
Increase (decrease) in cash and cash equivalents    272,705    72,155 
             Cash and cash equivalents at the beginning of the period    1,540,871    1,468,716 
             Cash and cash equivalents at the end of the period    1,813,576    1,540,871 
Variation in cash and cash equivalents    272,705    72,155 

21

9. Financial Statements - Subsidiaries 

9.1 Assets

R$'000

ASSETS    GET    DIS    TEL    PAR 
 
Current    1,261,255    1,603,722    48,259    - 
   Cash in hand    920,861    354,286    29,638    - 
   Customers and distributors    220,963    759,209    -    - 
   Telecommunications services, net    -    -    10,837    - 
   Dividends receivable    -    -    -    - 
   Services in progress    10,541    54,224    -    - 
   CRC transferred to State Government    -    47,133    -    - 
   Taxes and social contributions    7,530    141,399    2,076    - 
   Account for compensation of "Portion A"    -    111,098    -    - 
   Other regulatory assets    -    31,511    -    - 
   Bonds and linked deposits    79,079    37,208    -    - 
   Other    11,858    19,504    557    - 
   Material and supplies    10,423    48,150    5,151    - 
NON-CURRENT    4,119,124    3,879,948    195,675    - 
Long-term assets    113,219    1,768,466    12,980    - 
   Customers and distributors    75    81,855    -    - 
   Telecommunications services    -    -    3,211    - 
   CRC transferred to State Government    -    1,272,770    -    - 
   Taxes and social contributions paid in advance    89,433    241,987    9,417    - 
   Account for compensation of "Portion A"    -    53,494    -    - 
   Other regulatory assets    -    11,085    -    - 
   Bonds and linked deposits    -    37,868    -    - 
   Judicial Deposits    21,830    64,698    352    - 
   Other    1,881    4,709    -    - 
Permanent    4,005,905    2,111,482    182,695    - 
   Investments    469,163    2,474    -    - 
   Property, plant and equipment    3,473,522    2,081,585    181,587    - 
   Intangible    63,220    27,423    1,108    - 
TOTAL    5,380,379    5,483,670    243,934    - 

GET: Geração e Transmissão, DIS: Distribuição, TEL: Telecomunicação, PAR: Participações

22

9.2 Liabilities

R$'000

Liabilities    GET    DIS    TEL    PAR 
 
CURRENT    942,890    1,124,075    21,960    - 
   Loans and financing    61,373    14,313    -    - 
   Debentures    -    -    -    - 
   Suppliers    68,791    415,006    5,287    - 
   Taxes and social contributions    128,827    206,295    1,922    - 
   Dividends payable    562,618    141,100    3,655    - 
   Accrued payroll costs    39,664    109,161    8,737    - 
   Post-retirement benefits    5,908    15,106    1,018    - 
   Account for compensation of "Portion A"    -    28,327    -    - 
   Other regulatory charges    11,680    14,512    -    - 
   Customer charges due    3,548    39,575    -    - 
   Electric efficiency and development research    28,352    93,506    -    - 
   Other    32,129    47,174    1,341    - 
NON-CURRENT    808,528    1,317,310    18,050    - 
   Loans and financing    246,927    153,326    -    - 
   Debentures    -    -    -    - 
   Provision for contingencies    183,421    191,483    958    - 
   Intercompany receibables    -    597,227    -    - 
   Suppliers    237,807    -    -    - 
   Taxes and social contributions    -    20,869    -    - 
   Pension plan and other post-retirement benefits    130,054    278,005    17,092    - 
   Account for compensation of "Portion A"    -    2,373    -    - 
   Other regulatory charges    -    7,257    -    - 
   Electric efficiency and development research    5,324    66,755    -    - 
   Other    4,995    15    -    - 
SHAREHOLDERS' EQUITY    3,628,961    3,042,285    203,924    - 
   Capital stock    3,400,378    2,171,928    194,755    - 
   Income reserves    228,583    870,357    9,169    - 
TOTAL    5,380,379    5,483,670    243,934    - 

GET: Geração e Transmissão, DIS: Distribuição, TEL: Telecomunicação, PAR: Participações

23

9.3 Income Statement

R$'000

Income statement  GET    DIS    TEL    PAR 
Operating revenues  1,804,035    6,264,057    113,734    - 
   Electricity sales to final customers  165,006    2,804,767    -    - 
   Electricity sales to distributors  1,385,477    60,722    -    - 
   Use of transmission plant  228,129    3,330,176    -    - 
   Telecom revenues  -    -    113,734    - 
   Piped gas distribution  -    -    -    - 
   Other  25,423    68,392    -    - 
Deductions from operating revenues  (259,947)   (2,498,139)   (19,435)   - 
Net operating revenues  1,544,088    3,765,918    94,299    - 
Operating costs and expenses  (738,654)   (3,173,767)   (77,569)   (8,446)
   Electricity purchase for resale  (70,065)   (1,789,931)   -    - 
   Charges for the use of transmission grid  (163,618)   (366,561)   -    - 
   Payroll  (160,350)   (462,382)   (32,570)   (2,927)
   Pension plan  (415)   (27,464)   (1,627)   (407)
   Material  (10,281)   (44,466)   (1,659)   (1)
   Raw material and supplies for generation of electricity  (19,577)   -    -    - 
   Natural gas purchased for resale and supplies for the gas business  -    -    -    - 
   Third-party services  (59,533)   (207,434)   (12,295)   (262)
   Depreciation and amortization  (135,704)   (176,081)   (29,731)   (4,656)
   Provisions (reversal) for contigencies  (20,919)   (75,316)   3,081    - 
   Other costs and expenses  (98,192)   (24,132)   (2,768)   (193)
Other revenues (expenses), net  (952)   (7,034)   471    814 
Result of operations  804,482    585,117    17,201    (7,632)
   Financial Income (Losses) 23,956    146,909    3,603    23,680 
   Equity investment  5,759    -    -    26,872 
Operating Income (expenses) 834,197    732,026    20,804    42,920 
   Provision for IRPJ and CSLL  (205,537)   (100,483)   (5,237)   (2,230)
   IRPJ e CSLL Diferidos/ IRPJ and CSLL Deferred  (5,483)   (87,169)   (1,723)   1,522 
Net income (loss) 623,177    44,374    13,844    42,212 
Ebitda  940,186    761,198    46,932    (2,976)

GET: Geração e Transmissão, TRA: Transmissão, DIS: Distribuição, TEL: Telecomunicação, PAR: Participações

24

2008 Results Conference Call 

Presentation by Rubens Ghilardi, CEO, and Paulo Roberto Trompczynski, CFO.

Date:  Tuesday, March 24, 2009 
Time:  2:00 p.m. (US EST)
Telephone:  1- 786-924-6977 
Code:  Copel 

Live webcast of the conference call will be available at www.copel.com/ri

Please connect 15 minutes prior to the call.

Investor Relations - Copel
ri@copel.com

Telephone:  Fax: 
+ 55 (41) 3222-2027  +55 (41) 3331-2849 

Statements contained in this press release may contain information which is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occ ur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

25

 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 24, 2009

 
COMPANHIA PARANAENSE DE ENERGIA – COPEL
By:
/S/  Rubens Ghilardi
 
Rubens Ghilardi
CEO
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.