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Notice to the Market - Approval of SUDENE Tax Benefit of Aimorés and Paraguaçu Concessions


Transmissora Aliança de Energia Elétrica S.A. ("Taesa" or "Company") hereby announces to its shareholders, the market in general and other stakeholders that it has been informed about the approval by the Superintendence of Development for the Northeast ("SUDENE"), through Resolutions 338/2018 and 339/2018, for the 75%reduction in the Corporate Income Tax (IRPJ) during a 10-year period for Interligação Elétrica Paraguaçu S.A. ("Paraguaçu") and Interligação Elétrica Aimorés S.A. ("Aimorés"), which will give them the right to tax incentives. Paraguaçu and Aimorés are then obliged to inform SUDENE of the effective operation entries, in the year of their occurrence, during when they must provide the information required at the current regulation, in order to issuing the appraisal reports for the fruition of the tax benefit.

Paraguaçu and Aimorés are projects under construction from lots 3 and 4, respectively, of the transmission auction 013/2015 (part 2), held in October 2016, in which Taesa participated in partnership with Companhia de Transmissão de Energia Elétrica Paulista - ISA CTEEP, with an equal stake of 50%. Paraguaçu is located between the states of Minas Gerais and Bahia, with an extension of 338 km in transmission lines, an investment of R$ 510 million (Capex ANEEL) and Annual Permitted Revenues (RAP) of R$ 113.2 million (cycle 2018-2019). Aimorés is located in the state of Minas Gerais, with an extension of 208 km of transmission lines, an investment of R$ 341 million (Capex ANEEL) and RAP of R$ 75.8 million (cycle 2018-2019). The deadline set by ANEEL to energize Paraguaçu and Aimorés is February 2022.

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