CPFL ENERGIAS RENOVÁVEIS S.A.
Publicly held company
CNPJ/MF nº 08.439.659/0001-50
NIRE 35300335813
ANNOUNCEMENT TO THE MARKET
TRANSACTIONS BETWEEN RELATED PARTIES
São Paulo, September 9, 2019 - CPFL Energias Renováveis S.A. ("Company" or "CPFL Renováveis") in compliance with ANNEX 30-XXXIII of Instruction nr. 480 of the Brazilian Securities and Exchange Commission ("CVM"), as from December 7, 2009, as amended by CVM Instruction nr. 552, as from October 9, 2014, hereby informs its shareholders and the market in general that the following transaction with related parties was approved in a meeting of the Board of Directors of the Company held on August 29th, 2018 and executed on September 3rd, 2019, 2019:
Parties | CPFL Energias Renováveis S.A. ("CPFL Renováveis") and | ||||
1. | CPFL Comercialização Brasil S.A. ("CPFL Brasil") | ||||
Relation with CPFL Renováveis | CPFL Renováveis is an indirect subsidiary of CPFL Energia, | ||||
2. | through CPFL Geração de Energia S.A. and CPFL Brasil is | ||||
an direct subsidiary of CPFL Energia. | |||||
3. | Object | Long Term Power Purchase Agreement (PPA). | |||
Main terms and conditions | CPFL Renováveis and CPFL Brasil have entered into a Long | ||||
Term PPA in which CPFL Brasil purchases energy from | |||||
four (4) wind farms operated by CPFL Renováveis. The | |||||
4. | scope of the PPA involves the delivery of renewable | ||||
energy with 50% (fifty per cent) discount on the wire | |||||
costs, the so called "Energia Incentivada 50%", with | |||||
monthly payments, resulting in a total amount of R$ 704 | |||||
million during ten (10) years. | |||||
Form and to what extent the | The transaction was approved by the Board of Directors | ||||
counterparty in the transaction, its | of CPFL Energia and by the Board of Directors of CPFL | ||||
partners or administrators participated | Renováveis, both held on August 29th, 2018, with the | ||||
in the process of the: a) decision of the | abstention of vote from CPFL Energia's representatives. | ||||
5. | issuer about the transaction, describing | ||||
such participation; and b) negotiating | |||||
the transaction as representatives of | |||||
the | issuer, | describing | such | ||
participation; | |||||
Detailed justification of the reasons | CPFL Brasil carries out energy purchase and sale | ||||
why the CPFL management considers | operations in order to take advantage of market | ||||
that the transaction has observed | opportunities. CPFL Renováveis develops energy projects | ||||
6. | commutative | conditions or | provides | to participate in energy auctions or to sell in the Free | |
for adequate compensatory payment: | Market through public calls to the Market. | ||||
The transaction was executed in the context of a Public | |||||
a) If the company requested for | Request for Proposals performed by CPFL Renováveis | ||||
proposals, performed any submission | with the publication of a public notice with wide |
of prices' procedure, or tried other form to accomplished third party transactions, explaining, If not, the reasons for not did, If so, the procedures accomplished and its results;
- the reason that led the company to execute the transaction with a related party and not with a third party;
- Detailed justification of the measures and procedures taken to ensure the operation commutativity.
disclosure to the market, to sell energy from projects under development. Besides CPFL Renováveis have received other proposals from the market, the proposal from CPFL Brasil was the winner.
Attachments
- Original document
- Permalink
Disclaimer
CPFL Renováveis SA published this content on 09 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 September 2019 18:16:01 UTC