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Notice to the Market - Obtaining of EDTE Installation License


NOTICE TO THE MARKET

Transmissora Aliança de Energia Elétrica S.A. ("Taesa" or "Company") hereby announces to its shareholders, the market in general and other stakeholders that, the Institute for the Environment and Water Resources - INEMA granted the Installation License ("LI") for the facilities of its subsidiary EDTE - Empresa Diamantina de Transmissão de Energia S.A. ("EDTE"), pursuant to Ordinance No. 17,646, from January 8, 2019, published on this date in the Official Gazette of the State of Bahia. With that, EDTE is now authorized to start the construction of its facilities.

EDTE is a project under construction of lot M of the transmission auction No. 013/2015, held in April 2016, in which Taesa participates in partnership with its subsidiary Empresa Norte de Transmissão de Energia S.A. ("ENTE") and Apollo 12 Participações S.A., in the proportion of 24.95%, 50.10% and 24.95%, respectively. EDTE has a total RAP of R$ 65.966.1 million for the 2018/2019 cycle and an ANEEL Capex of R$ 368 million. The project is located in the State of Bahia and will connect Interligação Elétrica Paraguaçu S.A. ("Paraguaçu") and Interligação Elétrica Aimorés S.A. ("Aimorés") concessions, projects under construction, to the National Interconnected System (SIN). The deadline to energize EDTE is December 2019.

Finally, the Company reinforces its focus on the execution and delivery of the 9 projects under construction, totaling R$ 3.8 billion in investments and R$ 643 million in RAP (considering Taesa’s stake), and has worked towards anticipating the delivery date of some of these projects, while seeking Capex efficiencies and better financial conditions, in order to boost their returns. Thereby, the Company has been demonstrating its commitment to sustainable growth, financial discipline, operational efficiency and value generation to its shareholders.

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