Source: Corporate Communications

New company to expand its generating park

The transition to a sustainable and green economy is not just an option. It is an imperative. The world is studying the implementation of public policies designed to stimulate the transition to a new economy in the energy sector.

Upon looking at Brazil, we can observe many comparative advantages in the field of energy. Our energy matrix is very clean: we have one of the largest hydrographic basins in the world, 32% of which is already being used; regarding wind energy, our potential is about 143,000 MW and, in sugarcane biomass, we can add another 15,000 MW through 2019. In the near future, we also are optimistic about the generation of solar power and the development of smart grid technologies.

It was betting on these factors that led CPFL to introduce, for its !rst long-term plan, a clear strategy for growth through alternative sources of energy. The founding of CPFL Renováveis is the result of this thinking.

In this new cycle of changes in production parameters, consumption and lifestyles, we will be present in a competitive and innovative manner, strengthening our commitment to our stakeholders as well as to the very planet itself.

Wilson Ferreira Jr.President of CPFL Energia

On August 24, CPFL Energia and Ersa Renováveis formalized the incorporation of CPFL Renováveis, a company that will be dedicated exclusively to the generation of power based on renewable sources (small power plants-SPPs, wind farms and biomass thermoelectric plants).

At its founding, CPFL’s new company is already one of the largest in Latin America in its segment: this includes 1,417 MW of power in operation or under construction as well as 3,037

MW in preparation for construction and development (including Jantus SL - SIIF Énergies Brasil, whose acquisition is still subject to regulatory approvals).

“Öur target is to maintain the same pace of growth that the companies have been realizing individually,” said the president of the company Miguel Normando Abdalla Saad. CPFL Energia’s partnership interest will be up to 63.6% of the capital stock of the new company whereas ERSA’s partners will own 36.4%.

CPFL Renováveis concluded the acquisition of three other projects in August: the SPP Santa Luzia, located on the border between the cities of São Domingos and Iguaçu in Santa Catarina, and two biomass-fueled thermal plants; TPP Alvorada, in Araporã/MG and TPP Coopcana in São Carlos do Ivaí in Parana state.

With these two new projects, CPFL Renováveis now has seven sugarcane-fueled power plants (two in operation and five under construction), 35 SPPs (34 in operation and one under construction) and 25 wind farms (four in operation and one under construction), as well as a portfolio under development.

SPP SANTA LUZIALocation:Between the cities of São Domingos and Iguaçu in Santa CatarinaInstalled power: 28.5 MWAssured power:18.4 MW averageOperation: sinceJuly 2011

TPP ALVORADALocation: Araporã, MGInstalled power: 50 MWAssured power:18 MW averageConstruction begins: 2012Operation begins: 2nd quarter 2013Investment:R$ 156 mm

TECHNICAL DETAILS

TPP COOPCANALocation: São Carlos do Ivaí, PR.Installed power: 50 MWAssured power:18 MW averageConstruction begins: 2012Operation begins: 1st quarter of 2013Investment: R$ 155 mm

The President’s Word

4Doing Good Day benefits 16 institutions

Source: Corporate Communications

Eolic

SPP

Biomass

CPFL Renováveis is born

3New Business for Energisa

Source: Corporate Communications

2Carlos Ferreira - VP for Operations

Source: Corporate Communications

INVESTOR RELATIONS | 39 | YEAR 7 | JULY/AUGUST 2011

page

page

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In this issue

Analysts’ recommendations

CPFL Energia’s shares

closed the month of

August 2011 covered by

23 financial institutions.

With regard to the

assessments of these

institutions, 58%

recommended the

purchase or holding of

CPFL’s securities.

CFPL Energia participated in the 9th Expo Money São Paulo, held September 22-24 at the Transamérica Expo Center. Aimed at individuals, Expo Money is the most important !nancial and investment educational event in Latin America. Organizers estimated some 20,000 persons participated.

CPFL Energia was present through a stand at the

Convention Center. Overall, the event involved over 180 lectures and presentations about individual and family !nances, as well as focusing on di"erent market opportunities. Among them was a presentation by CPFL Investor Relations Manager Alessandra Maria Mazia Munhoz Andretta about the opportunities and outlook related to investing in the company’s securities.

You can see in the chart below the performance of CPFL Energia’s shares for the 12 months ending August 2011, both in the Bovespa (CPFE3) as well as the New York Stock Exchange (CPL), compared to the main benchmark indices for both of the exchanges.

Capital Market - Our Market Performance

9th Expo Money

Source: Economática Variations adjusted for dividend payouts

CPL DJBr20 DJIA

Share Performance - NYSE – 12 months

2.5%

31/8/10 20.80 31,693 10,015 31/8/11 26.43 32,489 11,614 Var. 27.1% 2.5% 16.0%

27.1% 16.0%9.5% CPFE3 IEE IBOV

31/8/10 19.12 25,738 65,145 31/8/11 20.75 28,195 56,495 Var. 8.6% 9.5% -13.3%

8.6% -13.3%

Share Performance - Bovespa – 12 months

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Sour

ce: C

orpo

rate

Com

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ns

Carlos Ferreira is now CPFL Energia’s Vice Presidente for Operations, part of the Group’s new organizational structure. A graduate of Accounting Sciences at Faculdade de Administração e Economia (FAE), with a postgraduate degree in Controlling and Finance from Fundação Getúlio Vargas(FGV), he was president of the Elektro electricity distribution utility as well as occupying a number of executive positions at International Paper, a U.S. pulp and paper company, including strategic functions at the head o#ces and other mills in the United States. The creation of the position of Vice President for Operations is in step with the most modern management practices in the world.

Carlos Ferreira - VP for Operations

Source: Corporate Communications

More than 2,000 transformers belonging to the Energisa group will continue to be maintained by CPFL Serviços, which has renewed its annual contract, in the amount of R$ 2.5 million for rendering this service. It is the second year the company will perform this service on behalf of the unit located in São José do Rio Pardo, in upstate Sao Paulo. Some 170 pieces of equipment are scheduled for refurbishing per month subsidiary electric power distribution companies in units in Minas Gerais, Rio de Janeiro, Paraíba and Sergipe.

The transformers involved in the contract are installed in concessionaires based in Energisa Minas Gerais, Energisa Nova Friburgo, Energisa Sergipe, Energisa Paraíba and Energisa Borborema. “The renovation of this contract rea#rms the quality of the services performed by CPFL,” said the president of CPFL Serviços, Rubens Bruncek Ferreira.

New Business for Energisa

Santander Datacenter is CPFL Serviços client

Media Highlights

CPFL Serviços has concluded a R$ 500 million project on behalf of Banco Santander in Campinas. After winning a tender for the job, the CPFL Group company designed and built a compact two-km electric distribution system within the Spanish bank’s datacenter, with installation of eight 250 kVA transformers and a primary 2 MVA cabin.

This infrastructure will support

the !nancial institution’s new green datacenter. The complex will operate over a 1 million m2 area, inside the Companhia de Desenvolvimento do Polo de Alta Tecnologia de Campinas’ (CIATEC) technology complex, centralizing most of the bank’s technological operations.

The term “green datacenter” is used to describe the management, use and discarding of any product or solution

linked to information technology without damaging the environment. In the case of the new Santander facility, the infrastructure will save 30% in energy consumption compared to traditional datacenters. Another concern takes into account preservation of native forests. The power contingency system is lead-free and its buildings maintain 80% of the natural permeability of their water supplies.

VALOR 1000 PRIZECPFL Energia was the winner in its sector of the Valor 1000 Prize, an initiative of the Valor Econômico newspaper to recognize the best companies in the country in 25

di"erent economic sectors, based on criteria such as sustainable growth, net

revenues, value generation, pro!tability, activity margin, current liquidity and asset

working capital.

EXAME MELHORES E MAIORES MAGAZINECPFL Brasil earned the top spot in the energy

category in the 38th annual ranking organized by the Exame magazine’s Best and Largest

supplement. Overall there were 500 companies vying for awards in 18 categories. CPFL Brasil

presented the Best Pro!tability among energy companies. Last year, this indicator was 63.9%, 10 percentage points higher than the second placed

company on the list.

3

4

CPFL Energia in Ethos Conference debate

Doing Good Day benefits 16 institutions

The main objective of the Ethos 2011 Conference, the largest social responsibility and sustainability event in Latin America, was to be the !rst step in the construction of a common program of proposals leading to a transition for an inclusive, clean and responsible economy. The president of CPFL Energia, Wilson Ferreira Jr., participated in the opening ceremony held August 8 in São Paulo and made a presentation entitled “The new economy: inclusive, green and responsible – The advances

and bottlenecks of the Brazilian electric energy sector in the process for a transition to the new economy.”

The Ethos Conference’s goal was to prepare a common agenda of initiatives that would lead Brazil in a transition to a new low carbon economy. The proposals that were discussed at the meeting are to be included in a document that will be used as a discussion paper during the Rio+20 meeting, the United Nations Conference for Sustainable Development to be held in Rio de Janeiro in June 2012.

CPFL Energia supported the Doing Good Day held on August 21. The activity was organized in 13 cities around the state of São Paulo and the region Santos. Created in 2009 to commemorate the 70th anniversary of Camargo Corrêa, the movement became an annual solidarity event.

At CPFL Energia, 15 work committees were created. About 1,000 employees are estimated to be involved in the refurbishing and reconstruction of 16 institutions (painting, plumbing and electrical maintenance), among other activities.

Children from the Crianças de Araçariguama

Source: Corporate Communications

Source: Corporate Communications

institution in the Sorocaba region were taken to Santos to visit an ocean beach for the !rst time in their lives. In Avaré, a new senior citizen’s facility was practically built from the ground up while in Jaguariúna a school swimming pool was reformed along with its sports courts. This work led to improvements for some 760,000 people who use the institutions: that is, not a lot of e"ort is needed to actually be able to do some good.

Wilson Ferreira Jr., president of CPFL Energia, in the conference’s opening ceremony

CPFL INVESTOR is a publication of the Investor Relations Department of CPFL Energia, published by the Corporate Communication and Institutional A" airs Department, Rodovia Campinas Mogi Mirim, Km 2.5 - Jd. Santana - Campinas/SP, CEP 13.088-900. Tel.: (19) 3756-8197 Fax: (19) 3756-8040 – Chief Financial and Investor Relations O#cer: Lorival Nogueira Luz Jr., Investor Relations O#cer: Gustavo Estrella, Investor Relations Manager: Alessandra Maria Mazia Andretta, Corporate Communications O#cer: Augusto Rodrigues, Journalism Manager: Carlos Henrique Matos Ramos (MTb) 19.163). Content and Editing: Usina do Texto. Design: Produção Coletiva - website: Investor Relations: www.cp$.com.br/ir email: ri@cp$.com.br.