Results

1 Q 20

2

São Paulo, April 29, 2020 - ISA CTEEP - Companhia de Transmissão de Energia Elétrica Paulista (“ISA CTEEP”, “Company”, B3: TRPL3 and TRPL4), announces its results for the first quarter of 2020 (1Q20). Regulatory Results are shown in accordance with the Electricity Sector Accounting Manual (MCSE) to facilitate understanding of the Company’s business. Moreover, the information has been prepared in accordance with Brazilian Securities and Exchange Commission (CVM) standards and the applicable Accounting Statements Committee (CPCS) announcements and in accordance with the international accounting standards (IFRS) issued by the International Accounting Standards Board (IASB) in the “Attachments” section of this document.

Main Regulatory Indicators

Consolidated

(BRL million) 1Q20 1Q19 Chg (%)

Net Revenue 734.3 694.2 5.8%

Adjusted EBITDA¹ 673.8 614.8 9.6%

Adjusted EBITDA Margin² 87.7% 80.7% 7.0 p.p.

Net Income3 308.3 230.2 33.9%

Net Margin 42.0% 33.2% 8.8 p.p.

ROE (amount value of LTM) 18.4% 17.8% 0.6 p.p.

¹ Excludes equity income and other non-recurring effects and includes ISA CTEEP’S share of EBITDA in its affiliate companies to present a more appropriate vision of the Company's operational cash generation ² Includes ISA CTEEP’s share in affiliate companies’ net revenue 3 Adjusted by the interest held by non-controlling shareholder

Contacts – Investor Relations

Alessandro Gregori Filho

Michelle Lourenço Corda Luciana Silvestre Fonseca

Marcelly Cunha Alves

Telephone:

+55 11 3138-7407

E-mail:

ri@isacteep.com.br

3

ÍNDICE

1. ISA CTEEP

1.1 ISA CTEEP 4

1.2 Shareholder Breakdown 5

1.3 Corporate Structure 6

1.4 Growth 6

2. Operational Peformance 9

3. Financial Performance 9

3,1 Operating Revenue 9

3,2 O&M Costs and Expenses 10

3,3 Equity Income 10

3,4 EBITDA and Margin 11

3,5 Financial Result 12

3,6 Net Income 12

3,7 Comparison of Results (Regulatory vs. IFRS) 13

4. Debt 14

5. Capex 15

6. Equity Market 15

7. Events during the Period 16

8. Upcoming Events 16

9. Other Relevant Information 17

9.1 Concession Renewal - Contract 059/2001 (RBNI/RBSE) 17

9.2 Supplementary Retirement Plan – Law 4,819/58 18

10. Glossary 20

11. Attachaments 22

* Results in Excel spreadsheet available on the Investor Relations Website

4

ISA CTEEP

ISA CTEEP is the largest private electricity transmission company in Brazil’s utility sector and is part of the National

Interconnected System (“SIN”), which comprises the entire Brazilian electricity grid (except certain isolated systems) and supplies approximately 99% of the system’s total load. Through its operations and those of its subsidiaries and affiliate

companies, which are located in 17 states across Brazil, it supplies approximately 33% of all electricity in Brazil and 94% of the energy in the state of São Paulo.

The coordination and control of the operations of the Company’s installations and the entire electricity generation and

transmission infrastructure in the “SIN” are the responsibility of the National Electricity System Operator (“ONS”), subject to the inspection and regulations of the National Electricity Agency (“ANEEL”).

On March 31, 2020, the installed capacity of the Company (including the parent company, subsidiaries and JVs in operation) was 65.9 thousand MVA in transformation, 18.6 thousand km of transmission lines, 25.8 thousand km of

circuits and 126 own substations.

To efficiently operate our complex transmission system, we rely on a team of over 1,400 employees and facilities that ensure quality and reliable service.

We are committed to the development of the country’s energy infrastructure and constantly invest on retrofitting our network and contributing directly to the expansion of the national transmission system. In the last four years, the

Company won the bids for thirteen lots in the transmission auctions conducted by ANEEL.

Under construction

Substation

Line Entrance

Transmission Line (TL)

Synchronous compensatorIn Operation

5

Shareholding Structure

ISA CTEEP is controlled by ISA, a multi-Latin linear infrastructure systems company.

Shareholders TRPL3 % TRPL4 % Total %

ISA Capital do Brasil 230,856,832 89.50% 5,144,528 1.28% 236,001,360 35.82%

Management 0 0.00% 4,000 0.00% 4,000 0.00%

Free float 27,080,900 10.50% 395,797,044 98.72% 422,877,944 64.18%

Eletrobras 25,158,644 9.75% 212,276,657 52.94% 237,435,301 36.04%

Others 1,922,256 0.75% 183,520,387 45.77% 185,442,643 28.14%

Total 257,937,732 100% 400,945,572 100% 658,883,304 100%

Date: 03/31/2020

United State of America5%

Brazil51%

Luxembourg: 2% of the FloatSweden: 1% of the FloatEngland: 1% of the FloatIrland: 1% of the Float

Colombia*36%

Europe5%

* Includes the interest held by “Isa Capital do Brasil”, ISA investment vehicle for the acquisition of ISA CTEEP

** 3% of float is dispersed in other regions

Excluding the interest held by Eletrobras and ISA, on March 31, 2020, 46% of the shareholder base consisted of foreign investors (23% North America, 20% Europe, 2% Asia and 1% Oceania) and 54% Brazilian investors.

6

Corporate Structure

ISA CTEEP’s corporate structure includes its subsidiaries and affiliate companies, as shown below:

ISA CTEEP Operational São Paulo 2.579 2.579 Real Profit ISA CTEEP 100% Fully consolidated

IE Madeira Operational Rondônia / SP 511 260 Real Profit ISA CTEEP 51% / Furnas 24,5% / Chesf 24,5% Equity method

IE Ivaí Under construction Paraná 294 147 Real Profit ISA CTEEP 50% / TAESA 50% Equity method

IE Paraguaçu Under construction Bahia / MG 118 59 Real Profit ISA CTEEP 50% / TAESA 50% Equity method

IE Garanhuns Operational Pernambuco 91 46 Real Profit ISA CTEEP 51% / Chesf 49% Equity method

IE Aimorés Under construction Minas Gerais 79 40 Real Profit ISA CTEEP 50% / TAESA 50% Equity method

IE Aguapeí Under construction São Paulo 59 59 Presumed Profit ISA CTEEP 100% Fully consolidated

IE Serra do Japi Operational São Paulo 58 58 Presumed Profit ISA CTEEP 100% Fully consolidated

IE Pinheiros Operational São Paulo 57 57 Presumed Profit ISA CTEEP 100% Fully consolidated

IE Itaúnas Under construction Espírito Santo 52 52 Presumed Profit ISA CTEEP 100% Fully consolidated

Operational Minas Gerais 19 19

Under construction Minas Gerais 33 33

IE Itaquerê Under construction São Paulo 51 51 Presumed Profit ISA CTEEP 100% Fully consolidated

Operational Espírito Santo 10 10

Under construction Rio Grande do Sul 38 38

IENNE Operational Tocantins 46 46 Presumed Profit ISA CTEEP 100% Fully consolidated

IE Biguaçu Under construction Santa Catarina 40 40 Presumed Profit ISA CTEEP 100% Fully consolidated

Under construction SP / Paraná 20 20

Under construction Mato Grosso do Sul / SP 5 5

IE Itapura - Bauru Operational São Paulo 12 12 Presumed Profit ISA CTEEP 100% Fully consolidated

IE Itapura - Lorena Under construction São Paulo 11 11 Presumed Profit ISA CTEEP 100% Fully consolidated

IE Sul Operational Rio Grande do Sul 18 18 Presumed Profit ISA CTEEP 100% Fully consolidated

Total 4.203 3.662

IEMG

IE Tibagi

Presumed Profit ISA CTEEP 100% Fully consolidated

Presumed Profit ISA CTEEP 100%

ConsolidationLocation

2019/2020¹

Revenue Cycle

(BRL million)

Share (%)Tax²

ISA CTEEP

2019/2020¹

Revenue Cycle

(BRL million)

Fully consolidated

Presumed Profit ISA CTEEP 100% Fully consolidated

Evrecy

¹ 2019/2020 revenue cycle includes adjustment parcel (“PA”), net of PIS and COFINS

² Presumed Profit: tax regime where the income tax is 25% on the presumed 8% of operating income and social contribution tax is 9% over the presumed 12% on

operating income. Real Proft: tax regime where Income Tax and Social Security Contribution totals 34% on income

Growth

ISA CTEEP constantly assesses market opportunities for growth and has been making progress in this context. The Company’s strategy is to expand its presence in Brazil through auctions and/or M&A that presents synergy with existing

operations, while respecting the minimum required return.

In the last four years, the Company placed won the bids for thirteen lots in the transmission auctions conducted by ANEEL, for which total ANEEL capex (weighted by ISA CTEEP’s stake) is of BRL5 billion, with an increase in revenue -

RAP (2019/2020 cycle) - of around BRL567 million after the assets start-up. As of March 31, 2020, about BRL1.2 billion had been invested in the 13 projects won in the auctions held from 2016 to 2019.

Another important avenue for growth is the investments made in retrofitting the assets. In the last five years, the

Company invested an average of BRL180 million/year, with associated average revenue of BRL50 million/year. It must be noted that these are average amounts and the investments are non-linear, as they depend on ANEEL’s authorizations.

The Company has authorizations to invest BRL500 million in retrofitting over the coming years.

7

IE Paraguaçú

(Lot 3) 50%

Bahia

Minas Gerais255 0,0% 59 Feb/17 Feb/22 Jan/192

✓ 2Q19 -

IE Aimorés

(Lot 4)50% Minas Gerais 171 0,0% 40 Feb/17 Feb/22 Jan/192

✓ 2Q19 -

IE Itaúnas

(Lot 21)100% Espírito Santo 298 25,1% 52 Feb/17 Feb/22 Jul/18 ✓ 3Q18 -

IE Ivaí

(Lot 1)50% Paraná 968 33,2% 147 Aug/17 Aug/22 Feb/213

✓ 4Q19 -

IE Tibagi

(Lot 5)100%

São Paulo

Paraná135 32,2% 20 Aug/17 Aug/21 Jan/17 ✓ 3Q18 -

IE Itaquerê

(Lot 6)100% São Paulo 398 44,5% 51 Aug/17 Aug/21 Jun/18 ✓ 3Q18 -

IE Aguapeí

(Lot 29)100% São Paulo 602 52,7% 59 Aug/17 Aug/21 Dec/18 ✓ 3Q19 -

IE Itapura

(Lot 25)100%

São Paulo

(Bauru)126 57,6% 12 Aug/17 Feb/21 Aug/19 ✓ 2Q18 Aug/19

IE Itapura

(Lot 10)100%

São Paulo

(Lorena)238 73,9% 11 Sep/18 Sep/22 Jan/20 ✓ 3Q19 -

IE Biguaçu

(Lot 1)100% Santa Catarina 641 66,7% 40 Sep/18 Sep/23 Sep/21 2Q20 - -

Minuano

(Lot 1)100%

Rio Grande do

Sul682 66,9% 38 Mar/20 Dec/24 Jan/20 3Q21 - -

Três Lagoas

(Lot 6)100%

Mato Grosso do

Sul

São Paulo

99 68,1% 5 Mar/20 Jun/23 Jan/20 1Q21 - -

Triângulo Mineiro

(Lot 7)100% Minas Gerais 554 65,4% 33 Mar/20 Dec/24 Mar/23 3Q21 - -

5.165 567

Auction

013/2015

10/28/2016

Initiation of

Construction

Auction

05/2016

04/24/2017

Total

Contract

signature

ANEEL

Implementation

Deadline

Environmental

License (LI)Auctions Subsidiaries

Auction

02/2019

12/19/2019

Start-up

Auction

02/2018

06/29/2018

Discount% ISA

CTEEPNecessity Date¹Location

ANEEL CAPEX

ISA CTEEP

Participation

(BRL MM)

ISA CTEEP

2019/2020

Revenue Cycle

Cycle 2019/2020

(BRL MM)

IE Paraguaçu The project is located in the states of Bahia and Minas Gerais and involves the installation of 338 km of transmission lines.

In May 2019, ISA CTEEP obtained the Installation License (“LI”) from IBAMA, the Brazilian environmental protection agency, for the project and works began in 2Q19.

IE Aimorés The project is located in Minas Gerais and involves the installation of 208 km of transmission lines. In April 2019, the

subsidiary obtained the Installation License from IBAMA and works began in 2Q19.

IE Itaúnas The project is located in the state of Espírito Santo and involves the installation of 79 km of transmission lines, the construction of a substation and the expansion of an existing substation. The subsidiary began expansion works in 3Q18.

The installation licenses for the transmission line and for the construction of the substation were issued in August 2019 and work began in in 3Q19.

IE Ivaí The project is located in the state of Paraná and involves the construction of 3 substations with total capacity of 2,988

MVA, besides the installation of 599 km of double-circuit transmission lines. Works began in October 2019.

IE Tibagi The project, which pertains to lot 5 of the 2017 auction, is located in the states of São Paulo and Paraná and involves the installation of an 18 km transmission line and the construction of a substation. The subsidiary obtained the LI from IBAMA

in July 2018 and construction began in 3Q18.

In this subsidiary was incorporated Lot 6 of the 2019 auction (Três Lagoas Project) located in the states of São Paulo and Mato Grosso do Sul and contemplates the implementation of 37 km of transmission lines and the expansion of two

substations. The LI is expected to be granted in 1Q21.

8

IE Itaquerê The project is located in São Paulo and includes the installation of three 500 kV (-180/+300) MVAr synchronous compensators in the Araraquara 2 substation (State Grid’s substation in operation). The installation of this equipment in

the substation benefits the SIN as a whole and, especially, provides voltage control for the 440 and 500 kV systems in São Paulo. The subsidiary started construction work in 3Q18.

IE Aguapeí The project is located in São Paulo and involves the construction of 1,400 MVA substations and the installation of 111 km

of transmission lines. In June 2019, the subsidiary obtained all the LIs issued by the São Paulo State Environmental Company (CETESB) and construction work began in 3Q19.

IE Itapura The project, which pertains to lot 25 of the 2017 auction, is located in São Paulo and involves the installation of a 440 kV

(-125/+250) MVAr static compensator in the existing Bauru substation. The installation of this equipment in the substation

benefits the SIN as a whole and, especially, voltage control in the 440 kV network in São Paulo. Construction work began in 2Q18 and was completed in 3Q19, when the project obtained the Final Release Statement (TLD) from the ONS for full

commercial operation as of August 27, 2019

This subsidiary has incorporated Lot 10 of the 2018 transmission auction, formed by the implementation of a substation with 1,200 MVA in the city of Lorena, state of São Paulo, and a 6 km Double-Circuit transmission line. In August 2019, the

subsidiary secured the CETESB LI for the project’s substation, and immediately commenced construction.

IE Biguaçu

The project is located in Santa Catarina and involves the construction of a 300 MVA substation, expansion of an existing substation, and construction of a 57 km transmission line including overhead, seabed and underground stretches. The LI

is expected to be obtained in 2Q20.

Evrecy (Minuano Project) The project is located in Rio Grande do Sul and involves the construction of a substation with total capacity of 2,700 MVA and the installation of 169 km of transmission lines, of which are 44 km double-circuit lines. The LI is expected to be

obtained in 3Q21.

IEMG (Triângulo Mineiro Project)

The project is located in Minas Gerais and involves the construction of 4 substations with total power of 1,600 MVA, as well as approximately 172 km of transmission lines. The LI is expected to be obtained in 3Q21.

9

OPERATIONAL PERFORMANCE We are among the industry benchmarks in terms of performance, and we constantly manage our operating indicators

meticulously, most notably the Index of Non-Supplied Energy (IENS), which is the ratio of total energy not supplied

during incidents throughout the year to the total energy demanded that the Company did in fact supply. In 1Q20, the IENS of ISA CTEEP was 0.00012% vs. 0.0033%1 of the SIN.

ISA CTEEP is remunerated through the “RAP” according to the avalailability of its assets. This means that any downtime of its assets may incur a loss of RAP through a discount in revenue (Variable Parcel – PV). In 1Q20, the PV applied was

0.86% of consolidated RAP.

FINANCIAL PERFORMANCE (Regulatory Results)

Operating Revenue

In 1Q20, consolidated gross operating revenues were BRL851.5 million (+5.5% vs. 1Q19). The increase in relation to 1Q19 was mainly due to the rise in the IPCA inflation index, which impacted O&M and RBSE revenues, and revenue from

the startup of new retrofitting projects.

Operational Revenue Consolidated

(BRL Million) 1Q20 1Q19 Chg(%)

Eletric Network Revenue

843.8 799.8 5.5%

RBSE

415.5

397.0 4.7%

O&M Revenue

244.1

234.8 4.0%

CAAE Revenue

131.2

120.4 8.9%

PA, PV and Anticipation

18.5

14.3 29.6%

Regulatory Charges

34.5

33.3 3.5%

Others

7.7 7.0 9.6%

Gross Revenue

851.5 806.9 5.5%

Deductions

(117.1) (112.7) 3.9%

Net Revenue

734.3 694.2 5.8%

Deductions from gross revenue are related to taxes (PIS/COFINS) and regulatory charges (CDE, RGR, P&D, PROINFA, and Inspection Fee). In 1Q20, deductions reached BRL117.1 million, compared to BRL112.7 million in 1Q19, in line with

the change in regulatory charges. As such, net revenue totaled BRL734.3 million in 1Q20 (+5.8% vs. 1Q19).

1 SIN information available only for January 2020

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O&M Costs and Expenses

O&M Costs and Expenses Consolidated

(BRL million) 1Q20 1Q19 Chg(%)

Personnel (74.9) (83.1) -9.9%

Material (3.0) (3.2) -4.6%

Services (30.1) (27.0) 11.4%

Contingencies 1.9 (0.2) -1050.0%

Others (21.6) (16.8) 28.6%

Sub Total (127.7) (130.2) -1.9%

Depreciation (140.6) (145.0) -3.0%

Total (268.2) (275.2) -2.5%

O&M costs and expenses ex-depreciation totaled BRL127.7 million in 1Q20, down 1.9% from 1Q19. This change reflects:

(i) the reduction in the payroll line due to the reduction in headcount between the periods and efficiency gains as a result of processes and operation optimization;

(ii) better contingency results, mainly due to the reversal of a provision for civil contingency amounting to BRL1.9 million in 1Q20; which was partially offset by

(iii) the increase in network maintenance expenses; and

(iv) the increase in the others line on account of higher spending with insurance, indemnity and tax deficiency notices

(non-recurring).

Equity Income

Equity income in 1Q20 was BRL20.3 million (+25% vs. 1Q19). This increase is mainly due to the better results posted by

IE Madeira in 1Q20 (+134%) resulting from the full receipt of RAP since September 2019, the reduction in costs due to the reversal of the provision for tax contingencies, and the better financial result in the period. The performance of

subsidiaries under construction (IE Aimorés, IE Paraguaçu and IE Ivaí) is mainly explained by regulatory charges and monetary variation resulting from the debentures issuance in IE Ivaí for project funding. IE Garanhuns reported a 20%

increase in its results, which reached BRL4.8 million in 1Q20, driven by EBITDA growth and better financial result.

11

29.5

1Q19

12.6

20.3

4.0-0.4

1Q20

4.8

-14.1

16.2

+25%

IE Madeira IEAimorés/IEParaguaçú/IE IvaíIE Garanhuns

EBITDA and Margin

EBITDA

(BRL Million)

Consolidated

1Q20 1Q19 Chg (%)

Net income 323.8 234.1 38.3%

Income and Social Contribution Taxes (tax over income) 103.9 137.1 -24.2%

Net financial result 48.6 54.5 -10.8%

Depreciation and amortization 141.2 145.6 -3.0%

EBITDA ICVM 527/12 617.4 571.2 8.1%

Affiliates EBITDA (weighted by ISA CTEEP's share) 74.1 60.0 23.6%

Equity Income (20.3) (16.2) 25.1%

Non recurring costs and expenses¹ 2.5 (0.2) -1,368.0%

Adjusted EBITDA 673.8 614.8 9.6%

Adjusted EBITDA Margin 87.7% 80.7% 7,0 p,p,

RBSE (372.0) (344.5) 8.0%

Adjusted EBITDA Ex-RBSE 301.8 270.2 11.7%

Adjusted EBITDA Ex-RBSE Margin 76.2% 64.8% 11.3 p,p,.

¹Non-recurring costs and expenses in 1Q20 refer to tax deficiency notices.

To reflect the operating cash generation, the Company reports Adjusted EBITDA, which totaled BRL673.8 million in

1Q20, up BRL59 million from 1Q19, due to the positive effect of IPCA on revenue, the operational startup of retrofitting

projects, and lower operating costs and expenses when comparing the periods, as explained above.

Adjusted EBITDA excludes equity income and other non-recurring effects and includes ISA CTEEP’s share of EBITDA in

affiliate companies in order to provide a more appropriate picture of the Company’s operatiing cash generation.

Equity Income (BRL Million)

12

Financial Result

The consolidated financial result was an expense of BRL48.6 million in 1Q20, down 10.8% from 1Q19. Financial income totaled BRL193.6 million (+71.1% vs. 1Q19) mainly affected by the higher average cash balance. Financial expense

totaled BRL242.2 million in 1Q20 (+44.5% vs. 1Q19) due to new funding during the period and the impact of exchange variation.

Financial Results Consolidated

(BRL million) 1Q20 1Q19 Var (%)

Financial Income 193.6 113.2 71.1%

Financial investment income 22.0 14.2 55.0%

Swap 170.1 97.3 74.8%

Others 1.5 1.7 -11.4%

Financial Expense (242.2) (167.7) 44.5%

Interest on loans (63.1) (52.5) 20.2%

Swap (176.0) (109.4) 60.8%

Others (3.1) (5.8) -45.3%

Total (48.6) (54.5) -10.8%

Net Income¹

As a result of the above factors, net income came to BRL308.3 million in 1Q20, 34% higher than in 1Q19.

1Q20

230.2

308.3

1Q19

+34%

¹Adjusted by non-controlling interest

(BRL million)

13

Comparison of Results (Regulatory vs. IFRS)

The main variations between the consolidated result through IFRS and Regulatory standards are shown below:

Consolidated DRE (BRL million) IFRS Regulatory Change

IFRS vs. Regulatory 1Q20 1Q20

Gross Revenue 930 851 -79

O&M Revenue¹ 297 297 0

CAAE Revenue (Annual Cost of Electric Assets)² 0 131 131

RBSE Revenue 286 415 129

Infrastructure Revenue 147 0 -147

Concession Asset Revenue 193 0 -193

Gains in efficiency from implementing infrastructure 0 0 0

Other Revenue 8 8 0

Deductions -125 -117 8

Net Revenue 806 734 -72

Infrastructure Costs -141 0 141

Costs of O&M and General Expenses -123 -128 -5

Depreciation -4 -141 -137

EBIT 537 466 -71

Equity Income 63 20 -43

Other Opertional Revenues (expenses) 5 -10 -15

Result Before Financial Result and Taxes 604 476 -128

Financial Result -49 -49 0

Income tax & Social contribution tax -147 -104 43

Net Income before Participation of Non-Controlling

Shareholder 408 324 -84

Participation of Non-Controlling Shareholder -15 -15 0

Consolidated Income/Losses 392 308 -84 ¹Contemplates the parent and wholly subsidiaries' O&M revenue, PA, PV, Anticipations and Regulatory Charges ²Contemplates the parent and wholly subsidiaries' CAAE Revenue

Revenues: As per IFRS rules, revenues from investments made during the concession period are booked as assets

under contract. As per regulatory accounting rules, investments are treated as fixed assets, depreciated according to their useful life and revenue is booked as it is received during the concession period. Costs: As per IFRS rules, the costs of implementing infrastructure relate to investments made and are neutralized by revenues from the implementation of infrastructure as calculated based on investment plus PIS and COFINS taxs and

other charges.

Depreciation: Pursuant to IFRS rules, the concession asset is not treated as a fixed asset, but rather a financial asset or

asset under contract. Again, under IFRS rules, fixed assets largely relate to assets used by the Company and are not linked to the concession agreement. For Regulatory Result purposes, the concession asset is deemed a fixed asset with

its respective depreciation.

Equity Income: The main effects of equity income are the same as for revenue, costs and depreciation explained

above.

Income Tax/Social Contribution Tax: As per IFRS, Income Tax/Social Contribution tax are provisioned monthly on an accrual basis and calculated pursuant to Law 12,973/14. The Company adopts the taxable income method and uses a

monthly estimate. The consolidated tax rate in 1Q20 was 26% under IFRS and 24% as per the Regulatory rules.

14

DEBT On March 31, 2020, gross debt reached BRL3,432.4 million, an increase of BRL188.6 million from the balance on

December 31, 2019, mainly due to the higher effect of exchange rate variation on foreign currency debt. Note that all

debt in accordance with Law 4,131 is hedged through swap operations. The Company did not raise funding operation in 1Q20.

Pursuant to CPC 06 (R2), starting from January 2019, the Company started recognizing obligations for future payments

for all leasing agreements, except short-term and/or low-value agreements. In 1Q20, BRL57 million was added to IFRS gross debt, related to the Company’s leases. As such, IFRS gross debt totaled BRL3,489.5 million. The regulatory

accounting did not change.

The decrease in cash and cash equivalents reflects the change in the investment strategy in the joint ventures (JV) due to the worsening economic scenario: cash was transferred from the funds, which are consolidated at ISA CTEEP balance

sheet, to CDBs which are not consolidated by ISA CTEEP. Excluding the cash and cash equivalents of JVs, the Company’s net debt reached BRL2,665.6 million at the end of March 2020, against BRL2,546.6 million in December 2019, while the

Net Debt/Adjusted EBITDA ratio closed 1Q20 at 1.1x.

Debt 03/31/2020 12/31)2019 Var (%)

(BRL million)

Gross Debt 3,432.4 3,243.9 5.8%

Short-term Debt 1,258.3 1,077.4 16.8%

Long-term Debt 2,174.2 2,166.4 0.4%

Consolidated Availabilities 1,269.3 2,664.6 -52.4%

Availabilities of ISA CTEEP and wholly subsidiaries 766.8 697.3 10.0%

Availabilities of JV¹ 502.4 1,967.3 -74.5%

Consolidated Net Debt² 2,665.6 2,546.6 4.7%

¹A part of the Company's funds are invested in exclusive investment funds, which are also used separately by the wholly subsidiaries and JVs, and refer to shares in highly liquid investment funds, easily convertible into cash, regardless of the maturity of the assets allocated to them ² Net debt considers cash and cash equivalents of ISA CTEEP and wholly subsidiaries

The company is compliant with the covenants and requirements for all of its issues. For 2020, the most restrictive Net

Debt/EBITDA index is 3.0x. Greater details on financial indicators are available in Attachment V to this document.

Average cost of consolidated debt was 6.4% p.a. on March 31, 2020, compared to 7.4% p.a. on December 31, 2019, due to the decline in IPCA index between the periods. IPCA is the company’s main index for debt and revenues. Average

term of consolidated debt on March 31, 2020 was 3.8 years.

15

1.237

250

82 78

396

725613

51

2021 20239M20 2030 +2022 From 2026 to

2029

2024 2025

16%

56%

23%

5%

BNDES - TJLP Debentures - CDI/IPCA Law 4,131 Others

From April to December 2020, debt amounting to BRL1.2 billion is expected to mature, consisting mainly of debt pursuant to Law 4,131/62 and the 6th issue of debentures.

CAPEX

ISA CTEEP, its wholly subsidiaries and JVs invested BRL277.5 million in 1Q20, an increase of BRL196.3 million from the same period in 2019. This change is mainly due to higher investments on subsidiaries under construction with the work

progress, in line with the challenging budget and deadlines. Investments on retrofitting cannot be compared between the periods because the project portfolio is different and they depend on authorizations from ANEEL.

(BRL million) 1Q20 1Q19 Var (%)

Retrofitting 7.1 17.0 -58.3%

Greenfield Projects 270.4 64.2 321.5%

Total 277.5 81.2 241.9%

CAPITAL MARKETS

ISA CTEEP has common (“TRPL3”) and preferred shares (“TRPL4”) listed and traded on the São Paulo Stock Exchange (“B3”) and, since 2002, has also been listed on Level 1 of the Corporate Governance segment, valuing ethics and

transparency in its dealings with shareholders and other stakeholders. The Company’s shares are included in several

stock indices, including the Corporate Governance Index, which includes companies with differentiated corporate governance standards, and the Brazil 100 Index, which includes companies with the higher liquidity at B3. Moreover, the

Company has an American Depositary Receipts (“ADR”) program – Rule 144A in the United States and its ADRs are traded under the tickers “CTPTY” (common share) and “CTPZY” (preferred share).

The common and preferred shares of ISA CTEEP ended 1Q20 trading at BRL22.74 and BRL18.97, respectively. The

Company’s market capitalization on March 31, 2020, was BRL13.5 billion.

In 1Q20, average daily trading volume of the preferred shares was BRL48.5 million, 53% more than in 1Q19

(BRL31.6 million). Daily trades averaged 6 thousand, 140% higher than the 2.5 thousand trades in the same period last year.

Debt Breakdown 03/31/2020

Gross Debt Amortization Schedule (BRL million)

16

TRPL3, TRPL4, IBOV and IEE Performance (Base 100): 12/30/2019 to 03/31/2020

-50%

-30%

-10%

10%

30%

Dec-19 Jan-20 Feb-20 Mar-20

TRPL3 TRPL4 IBOVESPA IEE

-17%-16%

-25%

-37%

EVENTS DURING THE PERIOD

WACC ANEEL approved the Regulatory Capital Remuneration Rate (“WACC”) for the power transmission sector, which went

from 6.64% to 7.71% in 2018, 7.40% in 2019 and 6.96% in 2020. The WACC for 2018 will be used in the Periodic Tariff Reset (PTR) of ISA CTEEP’s contract 059. Expectations are that the PTR will be applied in July 2020, with retroactive

effect as of July 2018.

Periodic Tariff Reset of contract 059 Public Consultation On March 10, 2020, a Public Consultation was approved to obtain inputs for the periodic tarif reset for ISA CTEEP’s

059/01 contract, effective from July 1, 2018, followed by the Technical Note publication #39/2020. The deadline for submitting inputs is May 15, 2020. The Public Consultation indicates a 0.2% reduction in the revenue for the 2018/2019

RAP cycle, from BRL2,453 million to approximately BRL2,449 million (base date: June 2018), and the positive amount of

BRL110 million in the adjustment portion (“PA”) to be diluted over the next three revenue cycles.

UPCOMING EVENTS

1Q20 Conference Call

04.30.2020 10:00 a.m. (BRT) / 09h00 a.m. (EDT)

Connection Data:

Brazil: +55 11 4210-1803 / +55 11 3181-8565

Other Countries: +1 412 717-9627

Password: ISA CTEEP

Link for webcast available on Investor Relations website: www.isacteep.com.br/ir

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OTHER RELEVANT INFORMATION

Concession Renewal – Contract 059/2001 (RBNI/RBSE)

On September 12, 2012, Provisional Presidential Decree 579/2012 (MP 579) was published regulating the extension of

power generation, transmission and distribution concession agreements. According to the Decree, expired concessions or concessions due to expire within 60 months from its publication had the

option to advance their maturity to December 2012 and subsequently extend the respective agreements for up to 30 years.

On November 1, 2012, the Ministry of Mines and Energy (MME) published Interministerial Ordinance 580, which defined the reversal amounts for installations energized from June 1, 2000, that is, the Basic Network of New Installations

(“RBNI”). The amount fixed for ISA CTEEP was BRL2.9 billion. The same date, the MME published Interministerial Ordinance 579, which set the RAP amount for ISA CTEEP at BRL515.6 million starting from January 1, 2013, which

represents a reduction in RAP of approximately 75%.

On November 29, 2012, Provisional Presidential Decree 591 was published authorizing the Concession Authority to pay

the amount for undepreciated assets existing prior to May 31, 2000, that is, Basic Existing System Network(“RBSE”).

In December 2012, ISA CTEEP held an Extraordinary Shareholders Meeting to decide on advancing the expiry of Concession Agreement 059/2001 as proposed in PM 579. The Company’s shareholders unanimously approved extending

the agreement pursuant to Law 12,783/2013 and the concession was extended to December 2042, guaranteeing the

Company the right to receive the amounts relating to the RBNI and RBSE assets.

The amounts related to RBNI, equivalent to BRL2.9 billion, were received between 2013 and 2015. For the RBSE assets, an independent valuation report was requested to value the investments at the New Replacement Value (“VNR”),

adjusted for depreciation up to December 31, 2012. In December 2015, ANEEL approved, through Order 4,036, the

value of RBSE assets for ISA CTEEP at BRL3.9 billion.

In April 2016, MME issued Ordinance 120, which determined that the amounts approved by ANEEL for RBSE facilities be included in the Regulatory Remuneration Base of electricity transmission concessionaires as from the 2017 tariff process

for an estimated period of 8 years.

ANEEL Order 1,484/17 of May 2017 redefined the total RBSE amount for ISA CTEEP at BRL4.1 billion. The initial impact

of the RBSE values was the accounting recognition according to IFRS in September 2016 as per the conditions established by MME Ordinance 120. As for regulatory results, the impact on the Company’s numbers is apparent from

the initial payments received in July 2017.

ANEEL Order 1,275/18 considers the acceptance of the administrative appeal filed by ISA CTEEP in 2017, requesting an

adjustment for fully depreciated assets. As such, the Economic and Financial Components up to the 2022/2023 cycle increased.

The change mentioned was considered in the tariff adjustment for the 2018/2019 revenue cycle in which RAP was also

restated by the IPCA. Moreover, the linearization of the Economic Component was made according to Submodule 9.1 of

the Tariff Regulation Procedures (PRORET) such that these payments will be constant until the 2022/2023 cycle. For the 2023/2024 period, the sum of BRL347 million would be receivable corresponding to the Economic Component. However,

the same linearization could be applied as already made.

Furthermore, pursuant to a court injunction that provisionally determined ANEEL to recalculate the RAP excluding the cost of capital (Ke) from the Portion, the Company is still not receiving the remuneration related to the financial

component.

On the legislative front, Bill 4,636/2019 was introduced to define the remuneration index on the financial component of

RBSE, proposing the weighted average cost of capital (“WACC”) instead of the cost of shareholders’ equity (“Ke”). The bill was approved by the Mining and Energy Committee on October 2, 2019. Before being approved and enacted, the bill

must go through Lower House and Upper House.

18

Starting from November 2019, the courts started dismissing certain lawsuits, which forced the exclusion of Ke from the remuneration on the financial component and consequently, the respective injunctions were consequently null and void.

However, other similar injunctions on the same subject are still in force in other lawsuits.

Below is the Company’s RBSE receipt flow. The bars are amounts net of PIS/COFINS. The grey bars show potential

return flows for the financial component: either Ke (ordinance 120) or WACC (Bill 4636).

RBSE Revenues Flow (BRL million)

837711 747 747 747 747

347

785

729

750785 785 785 785

785

2018/2019

1,566

2019/20202017/2018 2020/2021 2022/20232021/2022 2023/2024 2024/2025

1,4611,532 1,532 1,532 1,532

1,132

785

246 253 264 264 264 264 264 264Ke 246 253 264 264 264 264 264 264

246 253 264 264 264 264 264 264WACC 151 156 163 163 163 163 163 163

Financial Component Economic Component

Note: The graph shows amounts defined for the revenue cycles 2017/2018 (REH ANEEL 2,258), 2018/2019 (REH ANEEL 2,408) and 2019/2020 (REH ANEEL 2,565). Assumptions for future cycle as per REN ANEEL 762/2017 and based on REH ANEEL 2,565. Regulatory WACC of 6.64% that will be updated in the tariff reset. Asset base is subject to write-offs during tariff reset.

Supplementary Retirement Plan – Law 4,819/58 The supplementary retirement plan is governed by State Law 4,819/58 and applies to employees hired prior to May 13,

1974, by government agencies and corporations in which the state of São Paulo is the controlling shareholder and exercises control.

The funds needed to meet the costs under this plan are the responsibility of the São Paulo State Government and the plan was implemented as per the agreement between the Tax Authority of the State of São Paulo (SEFAZ) and the

Company on December 10, 1999. Payments of the supplementary retirement benefits are made monthly by SEFAZ. SEFAZ transferred the amount to be paid to ISA CTEEP, which then transferred it to Fundação CESP to be paid to

individual retirees.

Since January 2004, retiree benefits have been processed directly by SEFAZ. This change in the process revealed

disallowances such as payments in excess of the ceiling (equivalent to the State Governor’s salary). As a result, SEFAZ started excluding the surplus amounts from the benefits paid to retirees.

Public-Interest Civil Action and Class Action

In June 2005, after the courts dismissed a claim, the Funcesp Retirees Association (“AAFC”) obtained an injunction in the

Labor Court, which ordered the maintenance of the previous payment in full. The benefits payment process has since reverted to the original model, where Fundação CESP was responsible for retirement payments. However, SEFAZ

continues to transfer the adjusted amount to ISA CTEEP, which then adds the difference so that retirement payments are made in full, as ordered by the injunction.

19

Collection Lawsuit Since 2005, SEFAZ has been transferring to the Company amounts lower than required to make full payment (about

70%) to the retirees following an injunction by the 49th Labor Court. ISA CTEEP has since been making up the difference

to ensure full payment of retiree benefits (about 30%). The difference paid by ISA CTEEP is being claimed in a collection lawsuit filed against SEFAZ.

The São Paulo Court of Appeals ruled in the Company’s favor. In August 2017, SEFAZ filed a special appeal at the Federal

Court of Appeals (STJ), which is awaiting the analysis of admissibility. On December 31, 2018, the amount booked in the

Company’s balance sheet was approximately BRL2 billion, net of provisions for losses on the realization of credits in 2013.

In August 2018, ISA CTEEP obtained a ruling from the São Paulo Court of Appeals requiring SEFAZ to refrain from disallowing any transfers concerned with the payment of benefits under Law 4,819/58 before concluding the

administrative proceedings to check for irregular payments. In March, the Federal Court of Appeals, in an interim individual ruling by Justice Francisco Falcao, suspended the effects of the injunction that prohibited São Paulo State

Finance Department from making deductions in its payments to ISA CTEEP. The Company once again received the

transfer with the disallowances, forcing it to supplement the amount paid in April 2019.

The Company continues its efforts to uphold the favorable ruling given by the São Paulo Court of Appeals.

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GLOSSARY

ANEEL (Brazilian Electricity Regulatory Agency) - Agency entrusted with regulating and supervising the generation,

transmission, distribution and sale of electricity in Brazil, ensuring the quality of services provided, the fair treatment of users and controlling the reasonableness of tariffs charged to consumers, while maintaining economic and financial

viability of the players and the sector. ANEEL inspects and regulates access to transmission systems and establishes the tariffs for such systems, including TUST, which is the tariff charged for the use of the Basic Network and Other

Transmission Installations (DIT).

CAAE (Annual Cost of Electricity Assets) – Revenue from investments in assets. It consists of the remuneration on

capital and the regulatory reintegration quota (QRR).

CAOM (Management, Operating and Maintenance Costs) - Portion of revenue that can be divided into (i) revenue

from O&M, which is used to bear the costs and expenses (e.g.- wages, maintenance expenses and others); and (ii) revenue to pay for costs of movable and fixed installations (CAIMI).

CCEE (Electric Energy Trading Chamber) - Operating under the authorization of the government, and regulated and

supervised by ANEEL, its mission is to promote the purchase and sale of electricity among its members.

CDE (Energy Development Account) - Regulatory charge to ensure the universal supply of energy and subsidize low-

income consumers.

DIT (Other Transmission Installations) - Installations with voltage lower than 230 kV.

EBITDA - Earnings Before Interest, Taxes, Depreciation & Amortization.

Energization - Operational startup of a project (retrofitting or greenfield).

Energy Transmission Auctions - Auctions held by MME and ANEEL to grant concessions for transmission lines and

substations in Brazil.

EPE (Energy Research Company) - Federal government agency linked to the Ministry of Mines and Energy, which is

responsible for national energy planning, including generation, transmission, distribution, oil and gas.

Greenfield - Projects for growth through auctions.

IEE (Electric Utilities Index) - B3 stock exchange index that measures the performance of the electricity sector.

MME - Brazil’s Ministry of Mines and Energy

O&M - Operation and Maintenance

ONS (National Electricity System Operator) - Agency responsible for coordinating and controlling power generation and transmission operations in the SIN.

Organic growth - Growth through investments in reinforcements and improvements.

Other revenues - Revenues from non-concession operations, partly intended to enable lower tariffs.

PA (Adjustment Parcel) - Offset the receivables surplus or deficit in the period prior to the revenue adjustment.

PROINFA - Incentive Program for Alternative Electricity Sources (regulatory charge for subsidies to alternative energy sources).

PV (Variable Portion) - Penalizes revenue from asset due to unavailability.

21

RAP (Permitted Annual Revenue) - Remuneration received by transmission companies for providing public

transmission services to users. For transmission companies that won auctions, RAP is obtained as a result of the transmission auction itself and is paid to them upon the operational startup of their installations, and is reviewed every

four or five years as per the concession agreements. For transmission companies whose concession agreement was

renewed, RAP was calculated based on the Operation and Maintenance costs, pursuant to Law 12,783 of January 11, 2013. In cases where studies indicate the need for retrofitting assets in the transmission concession, ANEEL calculates an

additional amount for RAP to remunerate new installations, always through an Authorizing Resolution.

RB (Basic Network) - SIN transmission installations owned by public transmission services concessionaires, defined

according to the criteria established in ANEEL regulations.

RBNI (Basic Network New Investments) - Portion of revenue (RAP) corresponding to the new authorized installations of the Basic Network, whose revenues are established by a specific resolution.

RBSE (Basic Network of Existing System) - Portion of RAP corresponding to installations in the Basic Network,

defined in the Appendix to Resolution 166 of May 31, 2000.

Regulatory Charges - These are charged by transmission companies and passed on to CCEE, ANEEL and MME, and

also invested in R&D projects. These have a neutral effect on the transmission company.

Retrofitting - Refers to the installation, replacement or refurbishment of equipment in existing transmission facilities, or

adaptations made to these facilities to expand transmission capacity, increase the reliability of the National Interconnected System, the useful life or connection of users, as recommended by the transmission system expansion

plans. Also includes the installation, replacement or refurbishment of equipment in existing transmission facilities or adaptations made in these facilities to maintain the regularity, continuity, safety and timeliness of the public electricity

transmission services.

SIN (National Interconnected System) - All the installations and equipment that supply electricity to regions across

the country, which are electrically interconnected according to applicable regulations.

TUST (Electricity Transmission System Usage Tariff) - Tariff paid by distributors, generators and free and special consumers for use of the Basic Network and DIT, and is adjusted annually according to (i) inflation; and (ii) new

revenues from energized projects.

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ATTACHMENTS

Attachment I – Regulatory Balance Sheet

Assets Consolidated

(BRL thousand) 03/31/2020 12/31/2019¹

CURRENT

Cash and Cash Equivalents 757,278 595,971

Financial Investments 511,984 2,068,611

Accounts receivable - Concessionaires and Permissionaires

281,522 256,674

Inventory 15,165 14,942

Services in course 9,681 17,452

Recoverable taxes and contributions 43,483 32,335

Derivative instruments 228,664 19,202

Credit with controlled parties 917 703

Prepaid Expenses 33,212 4,677

Restricted cash 1,887 1,876

Others 39,483 41,133

1,923,276 3,053,576

NON-CURRENT

Long-Term Assets

Restricted cash 46,649 46,515

Accounts receivable - Concessionaires and

Permissionaires 10,700 10,679

Accounts Receivable from the State Finance Secretariat 1,620,971 1,576,332

Deferred income taxes and social contribution 0 242

Pledges and Escrow 51,597 52,886

Employee benefits - actuarial surplus 43,024 43,024

Derivative instruments 3,068 0

Ongoing service 12,226 0

Others 13,700 12,693

1,801,935 1,742,371

Investments 1,510,113 1,390,300

Imobilized 7,153,557 7,156,235

Intangible 300,500 306,071

8,964,170 8,852,606

10,766,105 10,594,977

Total Assets 12,689,381 13,648,553

¹ Reclassified

23

Liabilities and Shareholders' Equity Consolidated

(BRL thousand) 03/31/2020 12/31/2019¹

CURRENT

Loans and Financing 886,355 709,928

Debentures 371,913 367,508

Leasing 240 282

Suppliers 167,858 167,774

Taxes and social charges to be collected 127,657 92,106

Regulatory charges to be collected 48,970 48,336

Interest on Shareholders' Equity / Dividends to pay 9,731 102,079

Provisions 26,512 33,341

Amounts Payable - Funcesp 2,176 2,173

Special obligations - Reversal/Amortization 2,480 2,480

Others 55,374 80,152

1,699,266 1,606,159

NON-CURRENT

Long-Term Liabilities

Loans and Financing 620,011 637,448

Debentures 1,554,166 1,528,971

Leasing 73 101

Derivative instruments 0 135

Deferred income taxes and social contribution 713,361 686,732

Regulatory charges to be collected 34,179 41,236

Provisions 59,509 62,367

Global Reversal Reserve - RGR 15,992 16,612

Obligations connected to concession service 388,616 351,904

Others 46,714 35,652

3,432,621 3,361,158

SHAREHOLDER'S EQUITY

Share Capital 3,590,020 3,590,020

Capital Reserves 666 666

Income Reserves 1,192,078 1,192,078

Revaluation reserve 1,844,193 1,899,993

Other Comprehensive Results 63,630 31,191

Accumulated Profits and Losses 364,465 0

7,055,052 6,713,948

Non-controlling shareholders' share of investment funds 502,442 1,967,288

7,557,494 8,681,236

Total Liabilities and Shareholders' Equity 12,689,381 13,648,553

¹ Reclassified

24

Attachment II – Regulatory Income Statement

Result

(BRL thousand)

Consolidated

1Q20 1Q19 Chg (%)

Gross Revenue 851,478 806,853 5.5%

Availability of Electric Network 843,778 799,831 5.5%

Others 7,700 7,022 9.7%

Deductions from the Operational Revenue (117,137) (112,689) 3.9%

Net Revenue 734,341 694,164 5.8%

Costs and Operational Expenses (268,212) (275,211) (2.5%)

Personnel (74,866) (83,116) (9.9%)

Material (3,005) (3,151) (4.6%)

Services (30,082) (26,995) 11.4%

Depreciation (140,551) (144,967) (3.0%)

Others (19,708) (16,982) 16.1%

Result of Service 466,129 418,953 11.3%

Financial Results (48,618) (54,493) (10.8%)

Income from Financial Investments 21,983 14,183 55.0%

Result of Liquid Monetary Variation (26,159) (15,154) 72.6%

Asset and Liability Interest (418) (205) 103.9%

Interest/Charges on loans (36,389) (36,444) (0.2%)

Others (7,635) (16,873) (54.8%)

Operational Result 417,511 364,460 14.6%

Equity Income 20,314 16,244 25.1%

Other Operational Revenues/Expenses (10,187) (9,562) 6.5%

Results before Taxes 427,638 371,142 15.2%

Income Tax and Social Contribution on Income (103,852) (137,075) (24.7%)

Current (77,594) (114,844) (32.4%)

Deferred (26,258) (22,231) 15.1%

Consolidated Income/Losses of the Period with

the Participation of the Non Controlling Shareholder

323,786 234,067 38.3%

Participation of Non Controlling Shareholder (15,497) (3,879) 100.0%

Net Income/Loss Consolidated in the Period 308,289 230,188 33.9%

25

Attachment III – Indirect Cash Flow – Regulatory

Cash Flow of operational activities Consolidated

03/31/2020 12/31/2019

Cash generated by operational activities 552,386 1,948,742

Net Income 323,786 1,238,650

Depreciation and amortization 140,551 575,557

Deferred income taxes and social contribution 25,836 (25,538)

Provision for Lawsuit Liabilities (2,904) (13,940)

Residual value of fixed/intangible assets 16,765 21,894

Tax benefit - incorporated goodwill 10 36

Realization of concession assets in the acquisition of subsidiary 597 2,390

Realization of the loss in jointly controlled (470) (1,966)

Result of equity income (20,314) (69,900)

Interest and exchange variations due on assets and liabilities 68,529 221,559

Assets Variation (111,925) (124,023)

Restricted cash (145) (4,336)

Accounts receivable - Concessionaires and Permissionaires (24,869) 14,144

Inventories (223) 5,423

Accounts Receivable from the State Finance Secretariat (44,639) (150,249)

Recoverable taxes and contributions (11,148) (2,814)

Prepaid Expenses (28,535) 3,707

Pledges and Escrow 1,670 16,328

Services in course 2 (13,826)

Credit with subsidiaries (215) (8,863)

Others (3,823) 16,463

Liabilities Variation 44,543 180,114

Suppliers 84 79,161

Taxes and social charges to be collected 35,555 37,762

Labor obligations (6,829) (3,706)

Regulatory charges to be collected (6,965) 10,675

Provisions (1,668) (22,033)

Amounts Payable - Funcesp 3 (2,077)

Global Reversal Reserve - RGR (620) (2,481)

Obligations related to concession of service 39,900 36,733

Others (14,917) 46,080

Net cash generated in operational activities 485,004 2,004,833

Investments Activites Cash Flow (160,097) (508,948)

Financial Investments 91,781 348,708

Fixed Assets (152,378) (687,532)

Investments (99,500) (185,000)

Received dividends 0 14,876

Cash used in financing activities (163,600) (916,654)

New loans 4,138 509,515

Loan payments (principal) (22,814) (337,234)

Loan payments (interest) (36,202) (169,700)

Transactions with non-controlling shareholders (15,497) (16,820)

Derivative instruments (1,254) (1,701)

Paid dividends and interest on equity (91,971) (900,714)

Net variation in Cash and Cash Equivalents 161,307 579,231

Opening Balance of Cash and Cash Equivalents 595,971 16,740

Closing Balance of Cashand Cash Equivalents 757,278 595,971

Closing Balance of Cash and Cash Equivalents 161,307 579,231

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Attachment IV – Regulatory Income Statement for Subsidiaries IE Madeira and IE Garanhuns IE MADEIRA

Results (BRL million)

1Q20 1Q19 Chg (%)

Gross Operational Revenue 144,812 126,091 14.8%

Operational Revenue Deductions (18,431) (16,643) 10.7%

Net Operational Revenue 126,380 109,448 15.5%

Costs and Expenses 867 (9,047) (109.6%)

Depreciation (33,859) (33,866) (0.0%)

Gross Profit 93,388 66,535 40.4%

Financial Result (35,418) (41,441) (14.5%)

Other Revenues and Expenses 241 (39) (718.4%)

Income before IR & CSLL 58,212 25,055 132.3%

IR & CSLL* (290) (308) (5.8%)

Net Income 57,922 24,747 134.1%

ISA CTEEP Participation (51%) 29,540 12,621 134.1%

IE GARANHUNS

Results

(BRL million) 1Q20 1Q19 Chg (%)

Gross Operational Revenue 26,233 25,559 2.6%

Operational Revenue Deductions (3,412) (3,218) 6.0%

Net Operational Revenue 22,822 22,340 2.2%

Costs and Expenses (3,537) (3,992) (11.4%)

Depreciation (6,253) (6,226) 0.4%

Gross Profit 13,031 12,122 7.5%

Financial Result (3,047) (3,950) (22.9%)

Other Revenues and Expenses 159 0 -

Income before IR & CSLL 10,143 8,172 24.1%

IR & CSLL* (655) (336) 94.7%

Net Income 9,488 7,835 21.1%

ISA CTEEP Participation (51%) 4,839 3,996 21.1%

(*) Has infrastructure projects relating to power transmission lines and a substation in operation in the SUDENE area, whose benefit was granted in December 2016. The period for using the tax benefit is 10 years, with a 75% reduction in income tax and surcharges.

27

Attachment V – Breakdown of Consolidated Debt (BRL thousand)

Funding Charges Maturity 03/31/2020 12/31/2019

BNDES

TJLP + 1.80% per year 03/15/29 173.3 178.2

3.50% per year 01/15/24 39.1 41.7

TJLP + 2.62% per year 03/15/32 233.5 234.1

CTEEP - Debentures

4th Issuance IPCA + 6.04% 07/15/21 173.9 168.5

5th Issuance IPCA + 5.04% 02/15/24 329.9 336.9

6th Issuance 105.65% of CDI per year 12/13/20 354.2 350.4

7th Issuance IPCA + 4.70% 04/15/25 669.9 651.0

8th Issuance IPCA + 3.50% 12/15/29 398.1 389.6

CTEEP - Others

Law 4,131 - MUFG VC + 3.34% per year +

IR 07/20/20 395.6 306.1

Law 4,131 - Citibank VC + Libor 3M + 0.47%

per year + IR 08/24/20 391.1 302.4

Law 4,131 - Citibank VC + Libor 3M + 0.25%

per year + IR 11/08/19 - -

Finame PSI 6.0% per year 11/18/19 - -

Eletrobras 8.0% per year 11/15/21 - -

Leasing 0.6% per month 11/30/20 - -

CTEEP Total Gross Debt 3,158.7 2,959.0

Funding Charges Maturity 03/31/2020 12/31/2019

PINHEIROS

TJLP + 2.06% per year 02/15/28 4.3 4.5

3.5% per year 04/15/23 5.6 6.0

TJLP + 2.62% per year 05/15/26 22.4 23.3

5.5% per year 01/15/21 8.4 10.9

SERRA DO JAPI TJLP + 1.95% per year 05/15/26 23.8 24.7

TJLP + 1.55% per year 05/15/26 20.5 21.4

IEMG TJLP + 2.39% per year 04/15/23 16.3 17.6

IE SUL

5.5% per year 01/15/21 0.9 1.2

TJLP + 2.58% per year 05/15/25 3.9 4.1

3.0% per year 04/15/23 3.7 4.0

TJLP + 2.58% per year 02/15/28 6.6 6.8

IENNE 10.0% per year 05/19/30 157.3 160.3

Subsidiaries Total Gross Debt 273.8 284.9

Consolidated Total Gross Debt (BRL thousand) 3,432.5 3,243.8

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BNDES (annual verification)

Infrastructure Debentures

(4th, 5th and 6th issuance)

(quarterly verification)

International Credit - Law 4,131

(quarterly verification)

Net Debt 03/31/2020

3,305 Net Debt 03/31/2020

2,220 Net Debt 03/31/2020

2,220

EBITDA last 12 months

2,471 EBITDA last 12 months

2,223 EBITDA last 12 months

2,223

Net Debt/EBITDA 03/31/2020

1.34

Net Debt/EBITDA 03/31/2020

1.00

Net Debt/EBITDA 03/31/2020

1.00

Shareholders' Equity

03/31/2020

12,468

Financial Result

03/31/2020

180

Financial Result

03/31/2020

180

Net Debt/Net Debt +

Shareholders' Equity

03/31/2020

0.21

EBITDA/Financial Result 03/31/2020

12.37

EBITDA/Financial Result 03/31/2020

12.37

The main covenants that ISA CTEEP must comply with are:

The financing agreements with BNDES (valid expiry of the agreement in 2029) must meet the following maximum

financial indicators: Net Debt/BNDES Adjusted EBITDA ≤ 3.0 and Net Debt/(Net Debt + Shareholders’ Equity) ≤ 0.6 at the end of each fiscal year. For the purposes of calculating and substantiating these indices, the Company must

consolidate all subsidiaries and joint ventures (in proportion to its interest) provided its interest is 10% or higher.

The 4th issue of debentures must meet the quarterly calculation frequency and the financial indicators established in

the indenture: Net Debt/EBITDA < 3.5 and EBITDA/Financial Result > 1.5 until the baseline date of June 30, 2017 and after the baseline date of September 30, 2017, the indicator is > 2.0. EBITDA is calculated according to the methodology

defined in the agreement.

The 5th issue of debentures requires compliance with the indicators established in the indenture, to be verified on a quarterly basis: Net Debt/EBITDA < 3.5 and EBITDA/Financial Result > 1.5 until the baseline date of June 30, 2017 and

after the baseline date of September 30, 2017, the indicator is > 2.00. EBITDA is calculated according to the methodology defined in the agreement.

The 6th issue of debentures requires compliance with the indicators established in the indenture, to be verified on a

quarterly basis: Net Debt/EBITDA < 3.5 and EBITDA/Financial Result > 2.0. EBITDA is calculated according to the methodology defined in the agreement.

The Credit Agreements (4131) require the following maximum financial indicators for the full term of the loan, to be verified on a quarterly basis: Net Debt/EBITDA < 3.5 and EBITDA/Financial Result > 2.0. EBITDA is calculated according

to the methodology defined in the agreement.

29

Attachment VI – Breakdown of Debt of Jointly-Held Subsidiaries - (BRL thousand)

Company Bank Charges Final

Maturity

Amount guaranteed

by ISA

CTEEP

Total Amount

Owed

03/31/2020

IE MADEIRA 51% ISA CTEEP

ITAÚ IPCA + 5.5% per

year 03/18/2025 207.5 406.9

BNDES TJLP + 2.42% per

year 02/15/2030 509.7 999.3

BNDES TJLP 02/15/2030 2.0 3.9

BNDES 2.5% per year 10/15/2022 43.4 85.2

BASA 8.5% per year 10/10/2032 140.1 274.7

Gross Debt 902.7 1,770.0

Availability 146.3 286.8

Net Debt 756.4 1,483.2

IE GARANHUNS 51% ISA CTEEP

BNDES TJLP + 2.05% per

year 12/15/2028 77.5

152.0

BNDES 3.50% per year 08/15/2023 29.7

58.3

BNDES TJLP 12/15/2028 0.6

1.1

Gross Debt 107.8 211.4

Availability 13.1 25.7

Net Debt 94.7 185.7

IE IVAÍ

50% ISA CTEEP ITAÚ

IPCA + 5.0% per

year 12/15/2043 801.5

1,603.0

Gross Debt 801.5 1,603.0

Availability 775.9 1,551.8

Net Debt 25.6 51.1

TOTAL Gross Debt 1,812.0 3,584.3

TOTAL Net Debt 876.7 1,719.9

30

Attachment VII – Balance Sheet – IFRS

Assets Consolidated

(BRL thousand) 03/31/2020 12/31/2019

CURRENT

Cash and cash equivalents 757,278 595,971

Financial investments 511,984 2,068,611

Concession Asset 2,082,903 2,061,882

Inventories 63,747 103,818

Taxes and contributions to compensate 43,483 32,335

Derivative instruments 228,664 19,202

Credit with related parties 917 703

Prepaid expenses 33,212 4,677

Restricted Cash 1,887 1,876

Others 46,416 44,373

3,770,491 4,933,448

NON-CURRENT

Long-term Receivables

Restricted Cash 46,649 46,515

Concession Asset 12,668,940 12,599,151

Accounts Receivable from the State Finance

Secretariat 1,620,971 1,576,332

Deferred income taxes and social contribution 0 1,144

Pledges and Escrow 51,597 52,886

Inventories 23,089 13,006

Employee benefits - actuarial surplus 43,024 43,024

Derivative instruments 3,068 0

Others 25,926 24,011

14,483,264 14,356,069

Investments 2,360,020 2,198,004

Imobilized 93,465 86,377

Intangible 24,227 25,196

2,477,712 2,309,577

16,960,976 16,665,646

Total Assets 20,731,467 21,599,094

31

Liabilities and Shareholders' Equity Consolidated

(BRL thousand) 03/31/2020 12/31/2019

CURRENT

Loans and financing 886,355 709,928

Debentures 371,913 367,508

Leasing 9,456 9,948

Suppliers 167,858 167,774

Taxes and social charges to be collected 127,657 92,106

Regulatory Charges to be collected 48,970 48,336

Interest on Shareholders' Equity / Dividends payable 9,731 102,079

Labor obligations 26,512 33,341

Amounts Payable - Fundação CESP 2,176 2,173

Special obligations - Reversal/Amortization 2,480 2,480

Others 55,374 80,152

1,708,482 1,615,825

NON-CURRENT

Long-term Liabilities

Loans and financing 620,011 637,448

Debentures 1,554,166 1,528,971

Leasing 47,616 39,948

Derivative instruments 0 135

Deferred PIS and COFINS 1,179,839 1,185,323

Deferred Income Tax and Social Contribution 2,742,928 2,673,970

Regulatory Charges to be collected 34,179 41,236

Provisions 59,509 62,367

Global Reversal Reserve - RGR 15,992 16,612

Others 46,714 35,652

Total long-term liabilities 6,300,954 6,221,662

NET EQUITY

Shareholders' Equity 3,590,020 3,590,020

Capital Reserves 666 666

Profits Reserve 8,172,442 8,172,442

Other comprehensive results 63,630 31,191

Additional proposed dividends 392,831 0

12,219,589 11,794,319

Non-controlling shareholders' share of investment funds

502,442 1,967,288

12,722,031 13,761,607

Total Liabilities and Shareholders' Equity 20,731,467 21,599,094

32

Attachment VIII – Income Statement – IFRS

Income Statement

(BRL thousand)

Consolidated

1Q20 1Q19 Chg (%)

Gross Operational Revenue 917,154 846,080 8.4%

Infrastructure Revenue 146,642 72,374 102.6%

O&M Gross Revenue 297,169 282,515 5.2%

Remuneration of concession assets 465,643 484,169 (3.8%)

Other Revenues 7,700 7,022 9.7%

Deductions from Operational Revenue (111,651) (113,784) (1.9%)

Net Operational Revenue 805,503 732,296 10.0%

Operational Costs and Expenses (268,335) (202,375) 32.6%

Personnel (77,351) (86,137) (10.2%)

Materials (103,860) (47,151) 120.3%

Services (63,413) (48,025) 32.0%

Depreciation (4,468) (5,242) (14.8%)

Others (19,243) (15,820) 21.6%

Service Income 537,168 529,921 1.4%

Financial Income (49,311) (54,876) (10.1%)

Income from Financial Investments 21,983 14,183 55.0%

Result of Liquid Monetary Variation (26,159) (15,154) 72.6%

Interest costs (418) (205) 103.9%

Interest/Charges on loans (37,261) (36,827) 1.2%

Others (7,456) (16,873) (55.8%)

Operational Result 487,857 475,045 2.7%

Equity Income 62,516 34,028 83.7%

Other Operating Revenues/Expenses 4,662 191 2340.8%

Earnings Before Taxes 555,035 509,264 9.0%

Income tax and Social Contribution on Earnings (147,084) (151,873) (3.2%)

Current (77,594) (114,844) (32.4%)

Deferred (69,490) (37,029) 87.7%

EBITDA ICVM nº 527/12 609,446 570,014 6.9%

Consolidated Profit/Loss for the Period before Non-

Controlling Shareholder's Stake 407,951 357,391 14.1%

Non-Controlling Shareholder's Stake (15,497) (3,879) 299.5%

Consolidated Profit/Loss for the Period 392,454 353,512 11.0%

33

Attachment IX – Cash Flow – IFRS (BRL thousand)

Cash Flow from Operations Consolidated

03/31/2020 12/31/2019

Cash flow from operational activities 480,063 1,940,756

Net earnings 407,951 1,779,451

Deferred PIS and COFINS (5,484) 8,757

Depreciation and amortization 4,468 19,963 Deferred income taxes and social contribution 69,490 99,666 Lawsuit Liabilities (2,905) (13,940)

Residual cost of imobilized/intangible asset 0 2,402

Tax benefit - incorporated goodwill 10 36

Realization of concession assets in the acquisition of subsidiary 623 2,490

Realization of the loss in jointly controlled (470) (1,966)

Result of control acquisition 0 0 Result of equity income (62,516) (179,789)

Interest and exchange variations due on assets and liabilities 68,896 223,686

Asset Variations (147,332) (733,440)

Restricted cash (145) (4,336) Concession asset (90,340) (525,212) Inventories 29,987 (64,099) Accounts Receivable from the State Finance Secretariat (44,639) (150,249) Recoverable taxes and contributions (11,148) (2,814)

Prepaid expenses (28,535) 3,707 Pledges and Escrows 1,670 16,328 Credit with subsidiaries (215) (124) Others (3,967) (6,641)

Liabilities Variations 4,643 143,381

Suppliers 84 79,161 Taxes and social charges to be collected 35,555 37,762

Labor obligations (6,829) (3,706) Tax installments 0 0 Regulatory charges to be collected (6,965) 10,675

Provisions (1,668) (22,033) Amounts Payable - Funcesp 3 (2,077) Global Reversal Reserve - RGR (620) (2,481)

Others (14,917) 46,080

Net Cash from Operating Activities 337,374 1,350,697

Investments Activites Cash Flow (9,329) 157,179

Financial applications 91,781 348,708

Imobilized (1,287) (18,534)

Intangible (323) (2,871)

Investments (99,500) (185,000)

Cash acquired in combination of businesses 0 0

Received dividends 0 14,876 Cash used in financing activities (166,738) (928,645) Addition to loans and debentures 4,138 509,325

Loan payments (principal) (22,728) (336,849)

Loan payments (interest) (36,202) (169,721) Leasing Additions 0 0 Leasing Payments (principal) (3,224) (12,208) Leasing Payments (interest) 0 43 Transactions with non-controlling shareholders (15,497) (16,820) Derivative instruments (1,254) (1,701) Paid dividends and interest on equity (91,971) (900,714) Net variation in Cash and Cash Equivalents 161,307 579,231

Opening Balance of Cash and Cash Equivalents 595,971 16,740 Closing Balance of Cashand Cash Equivalents 757,278 595,971 Cash and cash equivalents at year end 161,307 579,231

34

Attachment X – Annual RAP Adjustment

Ratification Resolution (REH) 2,565 was published on June 25, 2019, establishing new RAPs for ISA CTEEP and its

subsidiaries for providing the transmission installations to members of the Basic Network and Other Transmission

Installations for a 12-month cycle from July 1, 2019, to June 30, 2020 (2019/2020 cycle).

Pursuant to REH 2,565, the RAP and the amounts corresponding to the adjustment portion (PA) of the parent company,

net of PIS and COFINS, was set at BRL 2,579 million for the 2019/2020 cycle, an increase of 7% from the previous cycle (2018/2019 cycle). The breakdown of the RAP for this cycle may be explained by:

i. Inflation adjustment1 for the 2019/2020 cycle (IPCA) totaling BRL114 million, which includes BRL 68 million related

to the portion of RBSE receivable;

ii. operational startup of new reinforcement and improvement projects during the 2018/2019 Cycle, which added BRL

63 million to the RAP;

iii. adjustment of BRL3 million to RBSE resulting from the correction in the calculation of the linearization of the

economic component;

iv. negative adjustment parcel of BRL 55 million (vs. BRL 31 million in the 2018/2019 cycle), mainly explained by the

reimbursement of RAP advance of (-) BRL 73 million, partially offset by receipts for minor upgrades in the amount

of (+) BRl 21 million.

The RAP and amounts corresponding to the adjustment portion for 100%-operational subsidiaries, net of PIS and COFINS, totaled BRL 221 million in the 2019/2020 cycle. The change is due to:

i. inflation adjustment¹ for the 2019/2020 cycle (+BRL 11 million);

ii. operational startup of IE Itapura (Bauru) in 3Q19, partly offset by

iii. the tariff revision at the subsidiaries IE Pinheiros and IESUL (-5%); and

iv. the pro rata reduction of 50% in the RAP for the agreement 143/2001 of Serra do Japi since November 2019, as

established in the concession agreement.

The RAP and amounts associated with the adjustment portion of the affiliate companies IE Madeira and IE Garanhus, net of PIS and COFINS, which totaled BRL 584 million in the 2018/2019 cycle, increased to BRL601 million in the 2019/2020

cycle. This BRL17 million increase is due to the lower negative adjustment portion in the 2019/2020 cycle (- BRL23 million vs. –BRL 66 million in the 2018/2019 cycle), inflation adjustment¹ in the period, partly offset by the tariff review

at the subsidiary IE Madeira, which reduced the RAPs under its two agreements by 5%.

The company filed an appeal to maintain the parameters that had been in force since the agreement came into effect,

using WACC after taxes as the rate to calculate the cost of capital, and to apply the WACC to a cash flow consistent with the fixed percentage of debt the concession period, as established in the agreement.

ANEEL issued an order declaring null the effects of the RAP amounts approved for IE Madeira (REH 2,556/19) for the

2019/2020 cycle as long as the injunction remains in force and until the administrative proceedings are concluded. Since

August 2019, the RAP set for IE Madeira for the 2018/2019 cycle (BRL497 million, with PA) has been applied, that is, without any inflation adjustment based on the IPCA.

Below is a summary of the new RAPs for the 2019/2020 cycle, including regulatory charges and net of PIS and COFINS.

¹ IPCA and IGPM in the period from June 2018 to May 2019 were 4.65% and 7.64%, respectively.

Results

35

RAP

Cycle 18/19

RAP

Cycle 19/20

REH 2,408 REH 2,565

2,453 114 63 3 2,634 (55) 2,579 2,421

ISA CTEEP 991 46 63 0 1,101 1,046 960

ISA CTEEP - RBSE 1,461 68 0 3 1,533 1,533 1,461

RAP

Cycle 18/19

RAP

Cycle 19/20

REH 2,408 REH 2,565

231 12 (8) (5) 230 (9) 221 212

IEMG 004/2007 IPCA 19 1 0 0 20 (1) 19 18

EVRECY 020/2008 IGP-M 12 1 0 0 13 (2) 10 7

012/2008 12 1 0 (1) 11 (0) 11 11

015/2008 37 2 0 (2) 37 (1) 35 35

018/2008 6 0 0 (0) 6 (0) 6 6

021/2011 6 0 0 0 6 (1) 5 2

026/2009 IPCA 41 2 0 0 43 (1) 42 37

143/2001 IGP-M 23 2 (8) 0 17 (1) 16 22

IENNE 001/2008 IPCA 46 2 0 0 48 (2) 46 44

013/2008 IPCA 6 0 0 (1) 6 (0) 6 6

016/2008 13 1 0 (1) 13 (1) 12 12

IE ITAPURA 042/2017 IPCA 11 1 0 0 12 0 12 11

2,684 126 56 (1) 2,864 (64) 2,800 2,633

¹Pro rata reduction of 50% of RAP for contract 143/2001 (as of Nov/19), as predicted contractually

RAP

Cycle 18/19

RAP

Cycle 19/20

REH 2,408 REH 2,565

650 30 0 (56) 624 (23) 601 584

013/2009 300 14 0 (30) 285 (12) 273 304

015/2009 260 12 0 (26) 245 (8) 238 193

IE GARANHUNS (51% ISA CTEEP) 022/2011 IPCA 90 4 0 0 94 (3) 91 87

RAP

Cycle 18/19

RAP

Cycle 19/20

REH 2,408 REH 2,565

222 10 0 0 233 0 233 222

IE ITAÚNAS 018/2017 IPCA 50 2 0 0 52 0 52 50

IE TIBAGI 026/2017 IPCA 19 1 0 0 20 0 20 19

IE ITAQUERÊ 027/2017 IPCA 49 2 0 0 51 0 51 49

IE AGUAPEÍ 046/2017 IPCA 56 3 0 0 59 0 59 56

IE ITAPURA 021/2018 IPCA 10 0 0 0 11 0 11 10

IE BIGUAÇU 012/2018 IPCA 38 2 0 0 40 0 40 38

468 22 0 0 491 0 491 468

IE PARAGUAÇU (50% ISA CTEEP) 003/2017 IPCA 113 5 0 0 118 0 118 113

IE AIMORÉS (50% ISA CTEEP) 004/2017 IPCA 76 4 0 0 79 0 79 76

IE IVAÍ (50% ISA CTEEP) 022/2017 IPCA 279 13 0 0 294 0 294 279

¹ RAP cycle 2018/2019 as PA

Jointly Owned Subsidiaries

RBSE PARAP

Cycle 19/20

RAP

Cycle

18/19¹

Company

Concessionaire

BRL millionContract Index Inflation

Reinforcements

& Improvements

Jointly Owned Subsidiaries in Operation

IE MADEIRA (51% ISA CTEEP) IPCA

Subsidiaries Under Construction

RAP

Cycle

18/19¹

IE JAPI

IE SUL

Total Consolidated ISA CTEEP in Operation

Concessionaire

BRL millionContract Index Inflation

Reinforcements

& ImprovementsRBSE PA

RAP

Cycle 19/20

PARAP

Cycle 19/20

RAP

Cycle

18/19¹

Wholly Owned Subsidiaries (100% ISA CTEEP)

IE PINHEIROS IPCA

Concessionaire

BRL millionContract Index Inflation

Reinforcements

& ImprovementsRBSE

PARAP

Cycle 19/20

RAP

Cycle

18/19¹

Company

059/2001 IPCA (55)

Concessionaire

BRL millionContract Index Inflation

Reinforcements

& ImprovementsRBSE

The accounting and cash effects of the annual RAP adjustment were observed in 3Q19 with the start of billing under the

new revenue standards starting from July and full recognition of the adjustment portion in 3Q19.