Sustainability

Report 2011

Innovation and excellence for

safety
the customers satisfaction

Generation of efficient use Development and Appreciation

Sustainable Power of resources of Employees, Suppliers
and The Communities
Summary
3 56
About the Report Efficient use of resources
Efficient use of financial resources 58
Efficient use of power resources 66
Efficient use of natural resources 68
4
Message from the CEO 24
Strategy and Management
Sustainability Platform 39
Sustainability Policy 47
6 Public Commitments 38
PROFILE
Our History
Corporate structure
14
15
40 74
Safety Development and Valorization
of Employees, Suppliers and
Communities

46
Innovation and excellence
for customers satisfaction
Employees 76
Suppliers 90
Communities 94

100
Content index

16
Corporate Governance 52 110
Generation of CReDITS
Governance Structure 20 sustainable power
Capital markets 22
about
the report
GRI: 2.1; 3.1; 3.3; 3.4; 3.5; 3.8
AES Tiet presents in this sustainability
report the initiatives to ensure the
development of its business, explaining
subjects related to the companys social and
environmental and economic responsibility.
GRIs guidelines, the document reached level
B of compliance with the guidelines.
This report is also in compliance with the
recommendations by Brazilian Electricity
Regulatory Agency (ANEEL) Resolution
No. 444/2001, as amended, that provides
for the Accounting Manual for the Public
Electricity Service (MCSPEE) and present
accounting instructions and a schedule for
the preparation and disclosure of economic
and financial information and the social
responsibility of the concessionaires and
permittees in the document referred to as
Annual Report of Social and Environmental
Responsibility of the Electric power
Companies.
Report Levels of application
G3 Profile
report content
Information on G3s management
Performance indicators of G3 &
performance indicators of the
Sector Supplement
Sustainability Report 2011
This report comprises, on an annual basis,
the period from January 1 to December 31,
of 2011. Information related to AES Tiets
activities within its operational units in the
States of So Paulo and Minas Gerais.
The contents was defined together
with all the companys areas and based
on the discussions throughout the 3rd
Cycle of Relationship Discussions, held
between October and November 2011
and that represented an engagement
process, attended by employees, suppliers,
customers (corporate and residential) and
representatives of different sectors of the
community (such as public authorities,
NGOs and other institutions).
C C+
Answer to items: 1,1; 2,1 a 2,10;
3,1 to 3,8; 3,10 to 3,12; 4,1 to 4,4;
4,14 and 4,15
With external verification
Information on the type of
Not required
Answer to at least 10
performance indicators, including
at least one of the following areas
of performance: social, economic
and environmental
ContaCT
In case of doubts and suggestions
with respect to the contents of this
report, contact the Executive Board of
Communication and Sustainability, to the
care of Luiz Pires.
e-mail
comunicacao@aes.com
LETTER
Rua Loureno Marques, 158, Vila Olmpia
So Paulo (SP) CEP 04547-100
B B+ A A+
Answer to all criteria for Level C,
plus the following items: 1,2; 3,9; The same is required for level B
3,13; 4,5 to 4,13; 4,16 and 4,17
With external verification
With external verification
Type of management for each
management for each category
category of indication
of indication
Answer to at least 20 Answer to each main indicator
performance indicators, including of G3 and Sector Complement
at least one of the following (if any), properly considering the
areas of performance: economic; principle of materiality, of one of
environmental, human rights, the following types: a) answering
work practices, society and to the indicator or b) explaining
responsibility for the product the reason of the omission
3
Message
from the CEO
GRI: 1.1; 1.2; 2.10
Important challenges took place in 2011
with respect to all businesses of Grupo
AES Brasil. In view of a more complex
scenario, simplification was the best way. We
reviewed and improved our management
structure, reinforced our investment
programs in the generation and distribution
of electric power, renewed our commitment
with customer care and quality related to
the services rendered to our customers,
over 7.5 million, and we sought to improve
our operational procedures. Through the
performance of the value added to our
telecommunication business AES Atimus
, whose sale was successfully concluded, in
the amount of R$ 1.6 billion, we reinforced
our strategic focus as one of the main
groups operating in the Brazilian electric
power groups.
4 AES Tiet
In 2011, we invested R$ 1.3 billion, an
amount 14% greater than the amount
invested in 2010. With respect to our
distribution business, we invested R$ 1
billion (R$ 948 million in 2010) in the
expansion of our electric energy networks
in order to serve 234 thousand new
customers and to ensure the continued
consumption increase , improvement and
acceleration of our automated electrical
system and improvement of the services
provided to our customers and of our
response time to more aggressive climate
events. We invested R$ 739 million in
AES Eletropaulo and R$ 271 million in AES Sul.
In June 2011, AES Eletropaulo faced an
adverse condition with the extra tropical
cyclone that interrupted the electric power
supply to approximately 600 thousand
customers. In order to improve our response
time under similar conditions, as well
as to continue improving the quality of
the services rendered, we reinforced our
operational activities and investments,
allocating approximately R$ 242 million to a
specific action plan, whose implementation
commenced in July 2011 and will continue
through the end of 2012.
The expected results have been reached. AES
Eletropaulo ended 2011 with an Equivalent
Interruption Frequency per Consumer Unit
(FIC) of 5.45 times and with a Duration of
Interruption per Consumer Unit (DIC) of 10.36
hours, respectively, the fourth and sixth best
FIC and DIC among important Brazilian electric
power discos. In February 2012, we recorded
FEC of 4.94 times and DEC of 9.16 hours.
Our purpose is to continue our
improvement and close 2012 with FEC of
5.03 times and DEC of 8.11 hours, based on
the regulatory limit of 6.87 times and 8.67
hours, respectively.
In AES Sul, also as a result of our actions
and our investments in the continued
improvement of the quality of the services
rendered, we reduced 2.68 hours in DEC and
0.83 times in FEC, closing 2011 with DEC of
15.38 hours and FEC of 9.29 hours.
In the generation of electric power, we
invested R$ 175.3 million (R$ 82.2 million
in 2010), mainly in the maintenance and
modernization of the hydroelectric plants
of AES Tiet, whose goal is to double its
installed capacity, by adding approximately
3 thousand MW by 2016. In view of this,
in 2011, we continued with the Termo So
Paulo project, the thermoelectric unit under
natural gas with generation capacity of 550
MW, to be installed in the Municipality of
Canas (SP), with an estimated investment of
R$ 1.1 billion.
In October 2011, we obtained the Previous
Environmental License and, as soon as the
natural gas supply is confirmed for new
electric energy auctions, the project will
continue to be developed.
AES Uruguaiana, thermoelectric plant with
generation capacity of 640 MW, remains
with its activities discontinued due to the
suspension of the agreement for natural gas
supply with Argentina.
In 2011, AES Brasil renewed
the to more than 7.5 million
of customers and sough
more efficiency in the
operational proceedings
In December 2011, the hearings were
resumed in connection with the arbitration
procedure filed by AES Uruguaiana against
YPF S.A., in Argentina. We expect that
this process is concluded in the second
half of 2012.
In terms of safety, our main concern,
we invested R$ 43.5 million in training,
campaigns and lectures in communities
and schools, protection equipment and
continuous improvement of the operating
procedures. These investments and the
commitment of all employees were
essential to, in 2011, avoid accidents with
our and contracted employees and we
were able to reduce by 32% the number
of fatal accidents with the population in
the concession area o four electric power
distributors.
With regard to our social actions in the
communities, we advanced. In July 2011,
we launched the seven units of Culture
and Citizenship House, in Novo Hamburgo,
concession area of AES Sul, in the State
of Rio Grande do Sul. With this new unit,
we reached approximately 5,600 children
and adolescents, directly benefited from
this project. AES Eletropaulo, together
with the Ministry of Social Development
and municipalities of its concession
area, renewed the personal file of the
beneficiaries of the Social Tariff, based on
the changes introduced in specific regulation
in 2011. Approximately 270 thousand
beneficiaries were already registered and
we expect to reach approximately 500
thousand customers.
Sustainability Report 2011
In 2011, Grupo AES Brasil reached Ebitda
(income before interest, taxes, depreciation
and amortization) of R$ 4.9 billion and net
income of R$ 3 billion, an increase of 17%
and 35% as compared to 2010, respectively.
In 2011, we were recognized for our efforts,
as follows:
- AES Eletropaulo was elected, for the third
consecutive time, as The Most Admired
Company in Brazil, under category Electric
Power Supply, by Carta Capital magazine;
- AES Sul received the Ibero American
Quality Award, Abradee Award (Brazilian
Association of Electric Power Distributors),
under categories Management Quality
and Social Responsibility, and Eloy Chaves
Medal, granted by Fundao Coge, in
recognition for its safety standards;
- AES Tiet received the Abrasca Award
for the Best Annual Report amongst the
companies with net income of up to R$
2 billion and the Sectorial Award, under
category Electric Power, and Abrasca Value
Creation Award;
- AES Eletropaulo and AES Tiet maintained
the Business Sustainability Index (ISE), of
BM&FBovespa, for the seventh and sixth
year, respectively;
- AES Eletropaulo, AES Tiet and AES Sul
received the Ethics Seal, comprising the
Pro-Ethics Company Registry, an initiative
of the General Controllership of the Federal
Government and Ethos Institute.
Between 2012 and 2016, we defined a new
strategic plan, supported by our Sustainability
Platform, that renews and reinforces the focus
on the customer and establishes the other
key steps for the next five years: growth,
relation network management, and efficiency
and focus on the execution. This planning
is associated with the investments in our
businesses of distribution and generation
of electric power of approximately R$ 5.5
billion, in the next five years. For purposes of
distribution, we estimate R$ 4.7 billion and,
in terms of generation, R$ 814 million. These
amounts may increase to the extent that we
improve our growth strategy and develop new
generation projects.
We thank for the confidence of our
customers, the dedication and commitment
of our employees and the support provided
by suppliers, shareholders, communities,
regulatory bodies, public authorities and
investors.
Britaldo Soares
CEO of Grupo AES Brasil
5
6 AES Tiet
 AES Tiet invests to expand
generation capacity and
ensure the continuous
improvement of service
PROFILE
Generate
to Grow
GRI: 2.2; 2.3; 2.7; 2.8
AES Tiet company of AES Brasil Group
is the second largest Brazilian publicly-held
company in the power generating sector,
with installed capacity of 2,659 MW and
physical guarantee of 1,280 MW average.
The Company operates, in the State of So
Paulo, the following hydroelectric plants
gua Vermelha, Bariri, Barra Bonita, Caconde,
Euclides da Cunha, Ibitinga, Limoeiro, Nova
Avanhandava and Promisso, in addition
to the small hydroelectric power plants
(SHPPs) Mogi-Guau and So Joaquim. In
Minas Gerais, where operates through its
controlled company AES Minas PCH, it holds
six SHPPs. In the aggregate, its generation
complex represents 18.2% of the installed
capacity of the State of So Paulo and 2.3%
of national the installed capacity.
Sustainability Report 2011
To ensure the continuous improvement of the
service and the expansion of the generation
capacity, AES Tiet is also investing in the
Termo So Paulo project, which sets the
construction of a new combined cycle gas-
fired thermal plant that will be installed in the
city of Canas (SP) and will generate power
from natural gas and vapor.
AES Tiet generates more than electric
power. The rendering of services is directly
related to the populations quality of life and
wellbeing. There are 355 own professionals
and 963 subcontracted working on a
daily basis to serve the customers, always
focusing on safety value number 1 and
committed to sustainability.
7
Commercialization GRI: 2.5
GRI: 2.2
In 2011, AES Tiet expanded the interest in AES Corp. and AES Brasil
the electric power purchase and sell market, AES Corp. is a global company operating in the generation
increasing the client portfolio as part of the and distribution of electric power. Operating in 27 countries,
strategy to seek news opportunities in the the workforce of AES, comprised of 28 thousand persons, is
national power scenario. committed with the operational excellence and compliance
with the energy consumption needs in the world.
AES Tiets concession agreement is effective
until 2029 and can be renewed for further AES operates in Brazil since 1997 in the generation,
30 years. Until the end of 2015, a substantial distribution and sale of electric power, with operations in
part of the power generated by AES Tiet is the States of So Paulo, Minas Gerais and Rio Grande do Sul.
contracted by AES Eletropaulo, a disco for
AES Brasil Group. Grupo AES Brasil is comprised of two distributors,
AES Eletropaulo and AES Sul, and two generators,

AES Tiet
AES Uruguaiana and AES Tiet. Together, these companies
account for 12.5% of electric energy distributed and

in Numbers 2.3% of installed capacity in the country.

GRI: 2.8; EU1; EU2

9 hydroelectric plants
2 Small Hydroelectric Plants in So Paulo
6 Small Hydroelectric Plants in Minas Gerais
355 own employees
963 employees subcontracted
2,659 MW de installed capacity
13.86 TWh power generated in 2011
R$ 175.2 million invested in 2011
R$ 844.9 million in net income

* One of the PCHs is disabled for reform, with functioning

scheduled for April 2012.

** One of the PCHs is disabled.

Plants in the State of So Paulo GRI: 2.3

Aes Tiet plants
Rio Grande

Ibitinga (with floodgate) 132 MW

Rio Pardo Nova Avanhandava (with floodgate) 347 MW

Promisso (with floodgate) 264 MW

Barra Bonita (with floodgate) 141 MW

Rio paran
Bariri (with floodgate) 143 MW
Rio Tiet

gua Vermelha 1,396 MW

Rio mogi guau Euclides da Cunha 109 MW

Limoeiro 32 MW
Rio Paranapanema
Caconde (with floodgate) 80 MW

PCH Mogi-Guau 7 MW

PCH So Joaquim 3 MW
Brasil
PCH So Jos 4 MW

8 AES Tiet
2nd largest
Brazilian
publicly-held
company of
generation of
electric power,
AES Tiet have
an installed
capacity of
2,659 MW

The Company controls AES Minas PCH Ltda. GRI: EU1

(PCH Minas), a company holding seven Power Generated
Small Hydroelectric Power Plants (SHPPs) Plant Capacity (MW)
in 2011 (GWh)
in the State of Minas Gerais, provided that Ibitinga (with floodgate) 132 762.663
one is deactivated, in a modernization study. Nova Avanhandava (with floodgate) 347 1,117.539
The installed capacity of the operational Promisso (with floodgate) 264 1,415.866
SHPPs accounts to 5.4 MW, with a physical Barra Bonita (with floodgate) 141 691.245
guarantee of 4.9 MW average. Bariri (with floodgate) 143 766.131
gua Vermelha 1,396 7,971.376
Euclides da Cunha 109 486.499
Limoeiro 32 135.452
Caconde (with floodgate) 80 345.273
PCH Mogi-Guau 7 28.600
PCH So Joaquim 3 0.021

Sustainability Report 2011 9

 A) GENERATION
TRANSFORMER

D) C onsumers
commercial
and industrial

10 AES Tiet
 ENERGY PATH
A) Generation
The plants are the first step in the electric power production. Most cases, they use a
type of natural resource to propel the turbines that generate electric power which,
in turn, will be transmitted to the system. AES Brasil operates in the generation with
AES Tiet and AES Uruguaiana.

B) Transmission
These are high power cable networks that connect the generating plants to the
B) transmisSION distribution centers. In the event of failure in the transmission, the electric energy
distributors are not able to provide the services. AES Brasil does not operate in this
stage of the system.

C) Distribution
These are high power cable networks, easily identified in the cities, that distribute the
electric energy received from the transmission systems to the sundry consumption
points. In this stage, AES Brasil operates with AES Eletropaulo and AES Sul.

D) Consumers commercial and industrial

They receive the electric energy and transform it in several types of products or services:
hospitals, schools, cafs, restaurants, plants, hotels, shopping malls and other customers
that use the electric power to offer quality of life and comfort to any citizen.

E) Residential consumers
We receive the electric power to be used in lightning, showers, TVs, refrigerators,
freezers, microwaves, computers and sundry appliances, in order to ensure quality of
life and comfort to persons.

SUB-STATION
TRANSMISSION

SUB-STATION
DISTRIBUTION
E) residential
consumers
C) distribution

Sustainability Report 2011 11

AES Tiets generation complex
represents 18.2% of the
installed capacity of the State
of So Paulo and 2.3% of
the national capacity.

Operational and productivity indicators GRI: 2.8

Technical data (inputs, production capacity, sale and losses) 2009 2010 2011
Number of own employees 315 313 355
Number of employees subcontracted 339 529 963
Number of commercial offices 1 1 1
Power generated (GWh) 14.558 14.006 13.860
Power purchased (GWh) 416 966* 1.569
Itaipu 0 0 0
with third parties 416 966* 1.569
with related party 0 0 0
Global power losses (GWh) 358 306 206
Energy sold (GWh): 14.706 14.729 15.122
Installed capacity (MVA) 2.651 2.657 2.659
Energy sold by own employee (MWh) 46.686 47.058 42.597
Added value/GWh sold (R$ thousand) 104 94 105
*Information rectified with respect to 2010 sustainability report.

5,4 MW
is the sum of AES Tiets installed
capacity of the Small Hydroelectric
Power Plants in operation

12 AES Tiet
Vision, Mission
and Values
GRI: 4.8
In order to consolidate the high performance
culture disseminated in all companies of
AES Brasil Group, AES Tiets initiatives are
aligned with the organizational guidelines,
objective and long-term goals set forth in
the Groups strategic plan.

In 2011, the strategic plan incorporate

AES Brazils Sustainability Platform,
presented at the beginning of 2012 (refer
page XX for more information). All Groups
companies are governed by the same values
and principles and, during the year, AES Tiet
view was reformulated aiming at a new
cycle of strategic plan, which contemplates
the period from 2012 to 2016.

Vision
Be the leader company in the
operational, commercial and
financial management of the power
generation sector in Brasil and
expand the capacity by 3 thousand
MW, until 2016, through sustainable
practices.

Mission
Improving lives and promoting
development by providing safe,
reliable and sustainable energy
solutions

Values
Safety in first place Operate with
integrity Honor commitments Seek
excellence Job satisfaction

Sustainability Report 2011 13

Our History

1999
So Paulo government approves the spin-off the Companhia Energtica de
So Paulo (Cesp) in three new companies, including Companhia de Gerao
de Energia Eltrica Tiet, which had the majority of its capital stock acquired
by AES Corp., through direct and indirect controlled companies, in a public
auction held in BM&FBOVESPA S.A. The concession agreement with the
Brazilian Electricity Regulatory Agency (ANEEL) is executed for the operation
of nine plants generating electric power and one small hydroelectric plant
for a 30-year term and it may be extended for an addition of 30 years.

2000
acquisition of PCH Minas, in 2000, of Vale.

2001
the corporate name Companhia de Gerao de
Energia Eltrica Tiet changes to AES Tiet S.A.

2003
in December 22, AES Corp. and several of its controlled companies (including
AES Tiet), together with BNDES Participaes S.A. (BNDESPAR), executed
several agreement whereby AES Corp. transferred all shares it held directly and
indirectly in AES Tiet to a new parent company, referred to as Brasiliana Energia
S.A. (current Companhia Brasiliana), in exchange for 50%, plus a common
share of Brasiliana. Brazilian National Development Bank BNDES, through
BNDESPAR, acquired all Brasilianas remaining voting shares, in addition to
the preferred shares issued by the company due to the renegotiation of AES
Elpa S.A. and AES Transgs Empreendimentos Ltda.s debt to BNDESPAR. As a
result, 53.85% of Brasilianss total capital stock is currently granted by BNDES,
represented by BNDESPAR, and 46.15% is held by AES Corp., through the
holding AES Holdings Brasil Ltda.

14 AES Tiet
AES Tiets initiatives are aligned
to the organizational guidelines,
objective and long-term goals
established in the Groups
strategic plan

Corporate structure
GRI: 2.8

AES Corp. USA

T 99.99%
AES Holdings
Brasil Ltda. BNDES
GRI: 2.10
O 50% + 1 ao O 50% - 1 ao
P 0.00% P 100.00%
AES TIet Recognition T 99.70% T 46.15% T 53.85%
in 2011
Wan the Best Annual Report Award AES Sul Cia. Brasiliana de Energia
(category b) Companies with net
income of up to R$ 2 Billion. The award is O 99.99%
O 99% T 99.99%
granted by ABRASCA and evaluated the T 99%
O 71.35%
best annual reports, essentially in terms O 98.26% P 32.34%
T 98.26% T 52.55%
of content;
AES Elpa AES Tiet
Remained in the Corporate Sustainability
Index (SCI), from BM&FBOVESPA, for the AES
sixth year in a roll; Uruguaiana O 77.81%
Empreend. P 0% O 99.99% O 99.99%
T 30.97% T 99.99% T 99.99%
Received the Ethics Seal, integrating O: common shares
P: preferred shares AES AES Minas AES Rio
the Pro-Ethics Company Registry, an T: total Eletropaulo PCH PCH
initiative by the Office of the Comptroller
General and Ethos Institute to evaluate
and disclose the companies commercial,
including those that involve the
public sector;
Common preferred
SHAREHOLDERS % % TOTAL %
Shares Shares
Deemed the Sector Highlight in the
Cia. Brasiliana
Electric power category of ABRASCA de Energia
140,882,909 71.30 59,447,091 32.30 200,330,000 52.50%
Value Creation Award, an award granted Centrais Eltricas
150,534 0.10 30,107,688 16.40 30,258,222 7.90%
to companies that achieve the highest Bras. S.A Eletrobras
value creation index over the last three Other (free float)* 56,427,768 28.60 94,237,503 51.30 150,665,271 39.50%
years and present sustainable results, Total 197,461,211 100.00 183,792,282 100.00 381,253,493 100.00%
Shareholders equity: R$ 1.95 billion.
excellence in risk controls, transparency Capital stock: R$ 0.21 billion.
* Free float (or outstanding shares): all shares issued by the Company, except for the shares held by the controlling shareholder, related persons,
and socio-environmental initiatives. management, treasury shares and special class preferred shares, whose purpose is to ensure differentiated political rights, not subject to transfer
and exclusively held by the entity.

Sustainability Report 2011 15

16 AES Tiet
 With ethics, responsibility and
transparency, our operations
promote welfare to all of our
relation networks
Corporate
Governance
Transparency
is added value
GRI: 4.12
The main focus of the Corporate
Governance of AES Eletropaulo is to
create value to all relation networks, with
ethics and responsibility, as well as the
adoption of good practices. Based on the
vision of Grupo AES Brasil, such behavior
is essential to establish an efficient
management that is able to comply
with the commitment of promoting
the welfare of its customers through
excellence in the rendering of services
and innovative electric power solutions.
In order to ensure equity and
transparency in the relations with
shareholders and protection of the
rights of the other relations, all AES
companies share solid values that
serve as a common parameters for
performing businesses.
Sustainability Report 2011
Recognized Ethics
In 2011, the corporate governance practices
adopted by AES Eletropaulo included the
company in the list of the second edition
of the Pro-Ethics Company Registry, an
initiative of the General Controllership of
the Federal Government (CGU) and Ethos
Institute. The file evaluates, considers
based on strict criteria and discloses the
organizations that voluntarily contributes
to the creation of an environment of
integrity and confidence in the commercial
relations, including those operating in the
public sector. Amongst over 60 companies
throughout Brazil that seek to be included
in the CGU list, solely eight companies were
accepted, out of which three companies
comprise Grupo AES Brasil (AES Eletropaulo,
AES Tiet and AES Sul).
17

GRI: 4.12
Commitments with
transparency
Grupo AES Brasil adopts strict initiatives
that supersedes the common market
practices.
The companies comprising the Group
are signatories of the Business Plan for
Integrity and against Corruption, joint
initiative of the Ethos Institute, United
Nations Program for Development
(Pnud), United Nations Office against
Drugs and Crime (Unodoc) and Brazilian
Global Treaty Committee. These
companies also comprise the Ethic
Committee of the National Quality
Foundation (FNQ), whose purpose is
to contribute with other organizations
in the development of the best joint
practices and in the production of
materials to support other companies
that intend to adopt transparent and
reliable practices.
Guide of value
The activities of the companies
comprising AES Brasil are supported
by our Code of Ethics and business
standards, denominated AES Values
from words to actions. The document
is based on the guidelines of AES Corp.
that supports the corporate governance
practices.
The shared values in the code are:
Safety first
Operate with integrity
Honor commitments
seek excellence
Job satisfaction
The guide AES Values From Words to
Actions is available on the internet to
all interested people, at www.aesbrasil.
com.br/Documents/GuiadeValores.pdf
18
The recognition confirms that ethics in
businesses is one of the principal values of
AES Tiet.
It is a formal, express and disclosed
commitment reflected by our set of rules,
guidelines and recommendations that
ensure transparency and coherency of
the actions of Grupo AES Brasil (see table
below). In addition, we adopt the Ethics and
Compliance Program in order to disseminate
the good practices throughout our relations.
Communication
channel
GRI: 4.4
AES Helpline is a communication tool
whose purpose is to maintain an open
channel for discussion between the
governance bodies and relation networks
of the companies comprising the Grupo
AES Brasil. Through telephone (0800 891
4167) or Internet (www.aeshelpline.com),
AES Helpline receives from own employees
or subcontracted employees, suppliers,
shareholders and others doubts, claims or
denounces related to ethics, lack of ethics
and business practices deemed illegal,
corrupt r not in accordance with AES values.
The communications are anonymous
and always treated as confidential. The
confidentiality is ensured because these
comments are received by an outsourced
company, globally contracted by AES Corp.,
Evolution of the use of AES Helpline AES Tiet
year
Claims
Guide requests
located in the United States of America,
ensuring reliability, transparency and
appropriateness in the verification process.
All reports are analyzed and verified by the
Compliance Management.
The most critical cases are reported to
the Ethics Committee for decision and
resolution with the organization leadership.
AES Corp., in turn, manages the findings of
these verifications, as the ultimate authority,
and may resume the case if necessary.
In the aggregate, AES Brasil Group received
379 calls, provided that 102 related to
clarifications and 277 to claims that could
affect the Groups values.
In AES Tiet, from nine calls received, four
were claims and five guide requests.
As to claims:
100 % refers to issues related to peoples
behavior and policy.
As to guide requests:
20% were related to general concerns;
60% to conflict of interest;
20% to suppliers invitation.
2009 2010 2011
6 6 4
7 8 5
AES Tiet
In 2011, the
corporate
governance
practices
included AES
Tiet in the
list of Pro-
Ethics Company
Registry

Requirements Contractual TRAININGS

evaluated by Compliance Review The Training initiatives for disclosure and
reinforcement of the companys values

the Pro-Ethics The contractual compliance review has as a

purpose verify the legal and ethics conduct
Company Registry agreement contracting or renewal, and
of the commercial partners, prior to an
and internal policies we carried out during
2011 at AES Tiet, pursuant to the numbers
indicated in the table below:

Adoption of an internal Code of Ethics. safeguard AES Tiet from situations that may
characterize any ethics or legal violation, in
Adoption of social responsibility rules. order to ensure the integrity of the business
(for more information, read page XX).
Creation of a system to receive anonymous
comments.
Persons trained, per type of Training 2011
Implementation of rules to receive gifts. trainings persons trained
Conflicts of interest 270
Creation of internal commission to judge Integration of New Employees 1
eventual deviations committed internally. Guide of values and Helpline Certification 7
Workshop Contract Compliance 3
Reinforcement in the Communication of Prohibition to the Second Employment 68
and External Activity
Ethics Champions 143
For further information on CGU FCPA (Foreign Corrupt Practices Act)1 274
initiative and Ethos Institute, visit Dilemma at the Movies2 2
www.cgu.gov.br/empresaproetica. International Ethics Day 203
Trainings performed 972
Total of persons trained 338
1
U.S. Foreign Corrupt Practices Act

2
Dilema no Cinema is a training program is devoted to discussing the values of AES Brazil. We made a movie with our employees, and based
on the situations presented in excerpts of the films, we relate them to our everyday life and discuss what is the best posture that situation
based on our Guide of Values

Sustainability Report 2011 19

Governance
Structure
GRI: 4.1
The Corporate Governance of AES Tiet
is supported by its corporate bodies, as
described below, which are responsible for
the analysis and decision-making procedures
in accordance with the matters set forth in
the Bylaws.
General Shareholders Meeting
The General Shareholders Meeting is the
Companys resolute body and, although
with powers to decide on all matters, it
is solely requested and held with respect
to private matters. There are two types of
General Shareholders Meeting: Ordinary
and Extraordinary. The General Shareholders
Meeting is requested by the Board of
Directors, in the fourth first months of each
year, to resolve on the matters set forth in
article 132 of the Brazilian Corporate Law;
and the Extraordinary Shareholders Meeting
is requested by the Board of Directors
whenever there is the need to resolve on
matters not under the specific responsibility
of the Ordinary General Shareholders
Meeting.
Board of directors
GRI: 4.3; 4.7; 4.9
The Board of directors is the agency
responsible for the determination of the
general direction of the Companys business,
for the resolution of the relevant matters
and the ones of its exclusive responsibility
and for approving the strategic pan and the
business plan, as provided for in the Bylaws.
Consists of 11 effective members and nine
alternates, provided that two effective
members are independent directors,
one effective member and its respective
alternate as representatives of the
employees and the other being indicated by
the controlling shareholder. The mandate
of the currently management directors
ends in the general shareholders meeting
that appreciates the financial statements
related to the fiscal year of 2013. The Board
20
Our governance
of directors met 13 times during the 2011
aims at the
to conduct and monitor, in an effective
way, the Companys economic, social and
compliance with
environmental performance.
welfare of the
Supervisory Board
The Supervisory Board is the board that
customers
monitors managements acts, as well
as verifies its compliance with legal and
through
statutory obligations. It is an optional body;
however, when installed, its opinion is
excellence in
mandatory with respect to some matters. It
is comprised of five effective members and
the rendering
five alternates, with mandate through the
first Ordinary General Shareholders Meeting
of services
held after the election of its members.
Board of Executive Officers
The Executive Board is the executive
body responsible for the Companys Controlling shareholder
administration and management, in The shareholder holding the majority of
addition to perform the resolutions of the voting shares, insuring, potentially,
the General Shareholders Meetings and the control over the company due to the
Board of Directors. It is comprised of election of the majority of the members and
the Chief Executive Officer, Vice Chief conduction of the companys businesses.
Executive Officer of Investor Relations and
four Officers, with a three-year mandate, Performance Forum
reelection being permitted. The mandate
of current members of the Executive Board It aims at ensuring the compliance with
expires at the General Shareholders Meeting the planned operating performance and
that approved the financial statements for the strategic goals. It is supported by
the year ended 2012. the companys executive officers and
leaderships. (Read more in page xx).
Sustainability Committee
GRI: 4.9
It is responsible to ensure the management
and rendering of accounts related to
sustainability, including the validation of the
strategy and the oversight of the progress by
monitoring the action plans, development of
indicators and measurement of goals (read
more in page xx)
AES Tiet
Focused areas
and groups
Compliance subordinated to the vice-chair
of Legal Matters of the AES Brasil, the area
is responsible for the Code of Ethics and
conduct and its dissemination, for Trainings
related to ethics and compliance, for the
investigations of accusations made to AES
Helpline Channel and for the evaluation of
reputation and ethics of suppliers, agents,

Fiscal council
services providers and currently or future
business partners.

Safety of the Information it ensures the members*

confidentiality, integrity and availability of Effective Directors
the business information complying with the Cludio Jos de Oliveira Magalhes
requirements of Corporate Governance and Kurt Janos Toth (chairman)
the laws and regulations. Luis Eduardo Frisoni Jnior
Maria Carmen Westerlund Montera
Internal Audit prepares, together with AES Mauro Thomaz de Oliveira Gomes
Corp., an annual audit plan that includes the
business risks, regulations and controls, as well Alternate Directors
as performs the work established in such plan. Luiz Alberto de Castro Falleiros
Luiz Ferreira Xavier Borges
Internal Controls it proposes, improves and Paulo Roberto Miguez Bastos da Silva
monitors the implementation of the best Roberto Lamb
corporate governance practices. Sebastio Bergamini Jnior

GRI: 4.2

Members of the Board Members of the Board of

of directors* Executive Officers*
Effective Directors Britaldo Pedrosa Soares Chief Executive Officer
Andrew Martin Vesey (Chairman) Arturo Enrique Gris Lindenthaler (vice chief executive officer)
Berned Raymod da Santos vila Rinaldo Pecchio Jnior - Financial and Investor Relations Officer
Britaldo Pedrosa Soares Cibele Castro (officer)
Carlos Augusto Galvani Marchese (employees representative) Italo Tadeu de Carvalho Freitas Filho (officer)
Fernando Agustn Pujals Pedro de Freitas Almeida Bueno Vieira (officer)
Francisco Jose Morandi Lpez Sheilly Caden Contente (officer)
Luiz Gonzaga de Mello Belluzzo (conselheiro independente)
Marcelo de Carvalho Lopes *As of December 31, 2011.
Marco Antonio De La Rosa Ascanio
Srgio Silva do Amaral (independent director)
Vincent Winslow Mathis

Alternate Directors
Managers 2009 2010 2011
Airton Ribeiro de Matos 3.515 4.662 5.252
Compensation and/or total fees (R$
Antonio Carlos de Oliveira thousand) (A)
Gustavo Duarte Pimenta Number of Officers (B) 6 7 7
Lucio da Silva Santos Compensation and/or average fees (A/B) (R$ 703 666 750
Marco Aurlio Deboni (employees representative) thousand)
Marcos Ponce de Leon Arruda Management Directors Fees (R$ thousand) 176 806 584
(C)
Pedro de Freitas Almeida Bueno Vieira
Number of Management Directors (D) 11 11 11
Rinaldo Pecchio Junior
Average fees (R$ thousand) (C/D) (only taken 16 73 53
Sidney Simonaggio into account the remunerated directors)

Sustainability Report 2011 21

Capital markets
AES Tiet has the commitment to reinforce
the sustainability levels of its operation,
ratified through the transparency of its
relation with several public. The use of good
corporate governance practices is a conduct
valued by its shareholders and managers.
AES Tiets shares are traded in the
BM&FBOVESPA traditional market under
the codes GETI3 (common) and GETI4
(preferred). Additionally, the Company also
has ADRs Level I traded in the US OTC
market under the codes AESAY (common)
and AESYY (preferred).
AES Tiets shares are part the of the Electric
Power Index (IEE), which has as a purpose
measure the performance of the electricity
sector, in addition to the BM&FBOVESPA
Business Sustainability Index (ISE)4, which
gathers companies with recognized
commitment with social responsibility and
business sustainability.
In 2011, the AES Tiet common shares
(GETI3) ended the exercise quoted at R$
23.64, up 10.0%, while the preferred shares
(GETI4) ended the exercise quoted at R$
26.88, up 12.0%. On this same period,
Ibovespa depreciated 18.3% and IEE
appreciated 19.0%.
4
ISE is a BM&FBovespas share portfolio, revised on an annual
basis, comprised by actions of companies with recognized
commitment with the social responsibility and business
sustainability
22
During 2011 357,281 business were carried
out involving preferred shares (21.3%
above the total in 2010), while 117,519
negotiations with the Companys common
shares were observed, 31.9% above the total
registered in 2010.On December 31, 2011,
the Companys market value was of
R$ 9.6 billion.
AES Tiets total shares is 381,253,493,
provided that 197,461,211 common shares
and 183,792,282 preferred shares.
The holder of common shares is entitled
to vote in the resolutions of the ordinary
and extraordinary general shareholders
meetings, in which the decisions are taken
based on the majority of votes, and tag
along of 80%.
The preferred shares ensure priority in the
reimbursement of the capital (based on the
paid-up capital, with no right to premium,
no event of liquidation of the company) and
provide to its holder right to dividends 10%
5 years
higher to those addressed to the common
shares and restricted vote to certain matters
(provided for in paragraph two of article 5 of
the Companys Bylaws). . More information is consecutive mark of
related to capital markets are available to AES Tiets shares presence in
public access in the AES Tiets Investor the BM&FBovespas Business
Relations website (aestiete.com.br/ri). Sustainability Index.
AES Tiet
In 2011 the company upheld itself for the
fifth consecutive year in the BM&FBOVESPAs
ISE. The highlight is the fact that AES Tiet is
one of the eight companies among the 38
that are part of the portfolio which enabled
the opening of their questionnaires, thus,
enabling a greater knowledge of the web of
relationships on the companys operation and
stance

Disclosure policy AUDITS GRI: 4.4

With the purpose of developing a
continuous flow of information, disclose to
investors the results realistic expectations
and comply with a CVMs (Brazilian
Securities and Exchange Commission)
determination, AES Tiet keeps the
Disclosure Police of Relevant Information,
which sets forth the dissemination of
information in a wide and transparent way.
In addition, AES Tiet adopts the Securities
Trading Policy, aiming at avoiding the use of
proprietary and insider information in the
trading of the securities, thus, preventing the
occurrence of the practice of operations with
insider information (insider trading), also
pursuant to Instruction No. 358/02 of CVM.
The financial statements are disclosed
on an annual basis, in newspapers with
high circulation, including the analysis of
its operating, economic, environmental
and social performance. All information
useful to the investors, such as quarterly
results, annual reports, notices to the
market, material facts, press releases,
teleconferences, corporate policies and other
institutional information, is permanently
available at http://ri.aestiete.com.br.
GRI: 3.13
Independent audit: Ernst&Young Terco
Auditores Independentes S.S. performed
an independent audit of the financial
statements in 2011. In accordance with the
rule established by CVM Instruction 381/03,
the company did not provide services other
than outside audit. KPMG Risk Advisory
Services Ltda. verified the information
included in this report and will, beginning
2012, audit the companys financial
statements.
Internal audit: the main purposes are to
review and evaluate the effectiveness,
sufficiency and application of the
accounting, regulatory, financial and
operational controls.
Communication with
shareholders and
investors
For communication with its shareholders
and investors, AES Tiet provides:
email: ri.aestiete@aes.com
access to Investor Relations (IR) website
through cell phone
system of updates alert sent directly to
the email of the requesting shareholder
Twitter account focused exclusively in IR
quarterly conference calls open to all
shareholders
public meetings with presentation of
the business and results landscape

Sustainability Report 2011 23

AES Tiet strategy is aimed to
ensure the creation of value for
the web of relationships

Strategy and
Management
Focus on quality

AES Tiets management, so as those from As an integral part of Management

other companies of AES Brasil, is lined by
Management Excellence Model (MEG), of
the National Quality Foundation (FNQ).
MEG is constituted of 11 excellence basis5,
that must be followed by the organization.
Such basis are converted into excellence
criteria which, among other things, allow
the determination of the maturity degree
of the companys management. The
performance in this criterion is carried out
through an independent evaluation and
within the cycle of the National Quality
Award (PNQ), a FNQs initiative that
acknowledges the world class companies,
deemed as those which adopt the best
management practices.
Excellence Model of AES Brasils companies
and an important instrument for
organizational directioning, the strategic
plan is reviewed on an annual basis.
This review counts on the leaderships
participation and involves all Companys
areas. The process is developed during the
first semester of the year as a way to direct
and strength the culture of organizational
performance and the competitive position,
on the short and long terms (periods of one
and five years, respectively), in accordance
with Strategic Plan Cycle.

5
Systematic thought; organizational learning; innovation culture,
leadership and during purposes; direction by proceedings and
information, future view; generation of value; people appreciation;
knowledge on the customer and the market; development of
partnerships and social responsibility.

24 AES Tiet
Sustainability Report 2011 25
Strategic Plan Cycle
Formulao da estratgia
Strategy elaboration
Mission, Vision and values
1 Step Xtrategy
Strategies elaboration
strategy execution
Learning and review
Analysis of cause and effect
6 Step New strategies
Improvements of the key process
Evaluation of the performance
Strategies review
5 Step Operating plan review
The process of AES Tiets strategic plan
includes two stages:
(i) strategic structuring; and
(ii) strategic implementation. This process
is performed between March and
November prior to the first year included
in the plan and comprises several areas
and leaderships of the company to define
the long-term strategy.
On the first stage, defined as strategy
elaboration, which occurs during the period
from March to June, the Xtrategy occurs (see
more on the next page), in which discussions
and meetings are conducted on:
(i) macroeconomic perspectives;
(ii) regulatory & political;
(iii) market growth projections;
(iv) business risk matrix;
(v) Swot matrix; and
(vi) specific challenges of each business,
including specific competitive
advantages. Based on the findings,
three scenarios are prepared: base,
good and bad, with combination of the
assumptions discussed.
26
Business strategy
Strategic Map
2 Step Goals, indicators and maps 1 and 2 Steps
Projects e strategic initiatives ...Where and what we will do!
3, 4, 5 and 6 Steps
...How, when, how much, and who will do it!
Organization alignment
Management agreements
3 Step Communication to employees
Operating plan
Allocation plan: OPEX e CAPEX
4 Step Goals and targets, per areas
Based on the assumptions defined for the In the second stage, defined as strategic
base case, the following set of corporate implementation, beginning June, discussions
principles is reviewed: are performed for the preparation of the
following:
(i) mission;
(i) budget of revenues;
(ii) long-term vision;
(ii) budget of expenses (Opex);
(iii) strategic guidelines; and
(iii) budget of investments (Capex);
(iv) strategic map
(iv) allocation of funds and operational
For 2012-2016, four strategic guidelines costs; and
were established:
(v) selection of the main initiatives/projects
(i) focus on customer (customers to reach the strategic guidelines and
satisfaction); long-term goals.
(ii) expansion (focused on business Between September and October, the
development for AES Tiet); budgeting assumptions and the financial
statements are discussed and approved with
(iii) improvement of relations management, AES Corp. In accordance with the approved
including the development and relation allocation of funds, such detailed action
with suppliers, political role, corporate plans for each one of the projects/initiatives
and strategic communication of persons; related to the strategic drivers are defined
and and approved in executive board, containing:
terms, targets and relevant responsible.
(iv) efficiency and accuracy in the
performance, including governance In November and December, the individual
and management model, improvement goals and targets of the Group companies
in the business key procedures, main executives are defined in accordance
modernization, automation and with the approved strategic plan and budget.
environment. Finally, all commitments are delivered
AES Tiet
The strategic
through management agreements (read
more in the chart below). Management Agreement
and Contribution Panel
plan is reviewed The last action within the stage strategy The AES Brasil Strategic Plan Cycle stands

on an annual
implementation refers to the learning and out for Management Agreement and
adapting that occur in each step of the process Contribution Panel tools. Management

basis to direct
and, also, in each new planning cycle, in which Agreement is a formalization of the
the learning of the previous process is the targets and commitments of the

and improve our

starting point for the new cycle. managing level positions and above.
Upon these agreements, indicators

organizational
The report and disclosure of the long-term for the monitoring of the employees
strategy, purposes and strategic goals for all performance during the year are created.

performance
companys employees take place in February However, the Contribution Panel has
of the next year. the same role, but with focus in the

culture and
coordinator and expert levels. In 2011,
all employees up to the coordination

our competitive
level already had access to the tools.
The target is that, until the end of 2012,

position
all employees may participate in the
Contribution Panel.

Xtrategy methodology

1. 2. 3. 4. 5. 6. 7.
Business Web of Risk scenarios Strategic Analysis of  igh impact
H Strategic summary
definition relationships and analyses foundation alternatives projects (each business in
(expectations Brazil) and BSCs
and needs) (Balanced Score
Cards)

Operational area and Shareholder,
identity. customers, employees,
community,
suppliers e regulators
(Requirements of
the Interested Party
(RPIs) Comparative
References (RCs))
Qualifies the business Elements to reach the Study on probabilities Business triggers.
risks and defines strategies, including and parameters.
scenarios (external intangible assets.
and internal), based
on noncontrolling
guidelines.

RPI interested party requirement: represents the expectations RC compared reference: proper reference to determine the BSC Balanced Score Card: management methodology to support
and needs of the parties that are subsequently considered to superior competition levels of the results reached in the market the companies to convert the strategic plan in purposes, plans, goals
define the organizational goals. or operational sector, considering the organizational strategies. and organized indicators, allowing the continuous monitoring of its
performance.

Sustainability Report 2011 27

Performance Intangible
Forum Assets
The strategy performance is monitored at In order to keep the intangible assets aligned
the performance meeting, whose purpose with the corporate strategy, AES Tiet makes
is to evaluate the operating and financial use of a set of mechanisms that allow
performance, the goals and the status of the the renovation of knowledge, attraction
projects and initiatives. and retention of people, improvement
of consumers satisfaction levels and
The meetings are divided into three stages: development of communities, in addition to
product and proceedings innovation.
Level 1 AES Brasils meetings;
The nonaccounting intangible assets are
Level 2 Meetings per company; and identified and evaluated based on the
market trends (new services, demand and
Level 3 preparatory meetings. integrated solutions), technological trends
(new equipment and business process) and
administrative trends (management model
1. AES Brasils meetings Sustainability Committee and human resources demand). Based on
this analysis, the following classification
is applicable:
2. Meetings per company
Human: capacity, experience and
knowledge. The development and
3. Preparatory meetings Operational Cycle maintenance of talents are essential
Commercial Cycle for the companys expansion. AES
Finance and Market
Eletropaulo has plans and programs
Legal
that aim to provide employees with the
Personnel Management
tools necessary for their professional
Investment Management development.
Supllies
Image and Reputation Market: brand, consumers and relationship.
IT The companys reputation and perception
Inovation and P&D by consumers are the core of a work
developed in 2009, involving the
repositioning of AES Brasil brand.
Infrastructure: sundry systems and
customers registry. Currently, investments
are performed in equipment and systems
that aim at improving the companys
operating performance
Technological: research and development,
proceedings and products. On an annual
basis, investments are performed in
projects and modernization of the
distribution networks and products
offered.
57
Categories comprising the
definition of the risks mapped
related to the business.
28
Risk management
GRI: EU6
The companies of the AES Brasil Group
count on the Integrated Risk Management
process. This process allows that the most
significant enterprise risks which may affect
AES Tiets image and ability to reach goals
and strategic targets are identified and
controlled based on the COSO-ERM (The
Committee of Sponsoring Organizations
Enterprise Risk Management) methodology.
The risk management process has a matrix
denominated heat map, whereby the risks
identified are classified based on two
variables: probability and impact. The risks
related to the businesses are grouped into
four areas: strategic, financial, operational
and regulatory. These areas are subdivided
into 57 categories.
All risks are properly addressed, including the
related action plan and monthly monitoring
of key risk. The other risks are monitored
considering an interval from four to
12 months.
In addition, some risks are monitored by
using the KRI (Key Risk Indicator), whose
purpose is to verify the risk behavior, as a
rapid and advanced warning with respect to
the related exposure or potential future loss.
The indicator is associated with the areas in
charge, in accordance with the specifications
of each segment analyzed, in order to ensure
preventive or corrective actions in the event
the analysis determines that the risk took
place or may take place.
AES Tiet
AES Tiet has mechanisms that
provide knowledge updating,
attraction and retention of
persons, development of the
communities and products and
proceedings innovations

risk management

strategic

Intangible asset GOVERNANCE Market Market strategy/Electricity sector

Technological Internal controls Organizational Relationship/Water Macroeconomic

Reputation Innovation and policy structure shortage Political scenario

Recruitment Integrity on
and retention the customers Unethical Relationship with Development of Continuity of
of talents registration conduct stakeholders Energy contracting Products and Services the operations

Succession and Planning and Performance Competition Investment Consolidation

personnel reliance budget incentive and market interest decision and acquisition

FINANCIAL Operations Regulatory

Industry Information
Actuarial Credit Liquidity Process infrastructure Personnel andTechnology Community General Electricity sector

Supply of
Pension Collection and material and Equity Access to Publics
Plan default Commodities services management Training information safety Labor Tariff revision
Accounts Quality in
receivable Contractual rendering of Health Systems Concessions
concentration Exchange obligation services and safety availability Environment Civil renewal
Technical losses Relationship Integrity of
Commercial and energy with trade systems and IT
Commodities losses efficiency unions environment Tax/fiscal

Access to the Projects Operational Accounting

capital monitoring capacity Outsourcing practices

Debt Operating
anticipation Efficiency Benefits

Cash flow

Insurance
policies

Sustainability Report 2011 29

Sustainability
Platform
GRI: 1.2
At the beginning of 2012, AES Brasil
undertook a significant step to integrate
and align the sustainability to the planning
and strategy of the company with the
launching of the Sustainability Platform,
comprising a set of aligned guidelines that
will affect all organizational procedures.
The Platform commenced to be developed
in 2010, in order to align the programs
and initiatives directed to the economic,
environmental and social development of
the communities where we operate.
The construction process was performed
based on the identification of the business
priorities, considering not solely the
organizations strategic guidelines, but also
the relation network expectations.
Accordingly, 18 executive officers were
interviewed, including the CEO, vice-
chief executive officers and the officers.
Additionally, performance analyses of AES
Eletropaulo and AES Tiet were carried out
in ISE, of BM&FBovespa; performance of
AES Eletropaulo and AES Sul in the
questionnaire provided by Ethos; community
studies; and national and international
benchmarkings.
30
Comments from the web
of relationships
How the Sustainability Platform
is within the Companys decision
process?
Comment of and employee during
the 3rd Dialogue Cycle with Web of
Relationships)
Continuous
Companys actions, in the improvement of
the relation network and progress of the
Discussion sustainability report, as well as feedback on
the initiatives and projects performed.
GRI: 4.16
One of the main concerns of AES Brasil The 2011 edition was attended by 113
with respect to the relations is to provide persons, including representatives of the
an environment opened to conversation, community, public authorities, residential,
participation and transparency, in order commercial and industrial customers,
to align and improve the knowledge on suppliers and employees.
sustainability and provide opportunities of
improvement and management with respect The sustainability report, published on an
to the key matters of our Platform. It is a annual basis, is also an important channel
double way in the sense that the demands that seeks to meet the demands of the
are received and treated, and the results are web of relationships on our management in
shared with all employees. economic, social and environmental themes.
In order to improve on a continuous basis
the transparency o four synergy and further
meet the expectations and needs of our
relations, the definition of the commitments
and action plans of the Sustainability
Platform was based on discussions with
our employees over one year, involving
approximately 130 professionals of all areas
of the companies comprising AES Brasil.
In October and November 2011, we carried
out the third edition of the Discussion
Cycle, comprised of several groups involved
with the companys relation network to
evaluate how the organization is meeting
the expectations and demands. The matters
discussed in these meetings are used in the
AES Tiet
 Materiality Matrix

Weather
changes
Innovation and Renewable
excellence for energy
the customers
satisfaction Power
efficiency
Responsibility in
the Value Chain
Development and
AES themes

valorization of
personnel
Education for sustainable
Waste development
management Public dialogue (water and power)
Customers
satisfaction
Safety
Transparency

Stakeholders themes

Materiality
GRI: 1.2; 4.14; 4.17
After the interviews and analyses, 30
themes potentially strategic were pointed
for the Group. After, in a workshop that last
eight hours, the main executives pointed the
themes that should be deemed strategic.
In order to ensure the Sustainability Platform
success, the Group carried out also three
Dialogue cycles with Web of Relationships,
a commitment process that had the
participation of employees, suppliers,
customers (corporate and residential) and
representatives from different society sectors
(as public authorities, NGOs and other
institutions), in a total of 250 persons.
Based on the relation network
recommendations, the executive officers of
AES Brasil defined five strategic aspects for
the period between 2012 and 2016:
Safety;
Innovation and excellence for the
customers satisfaction;
Generation of Sustainable Power
Development and evaluation of employees,
suppliers and communities.
The construction of the Sustainability
Platform commenced in 2010 and, since
this date, it is subject to improvements and
restructuring, always focused on reflecting,
with transparency, the commitment of AES
Brasil with its relation network. In view of
this, in 2012, the foundation denominated
Innovation in Products and Services was
replaced by Innovation and Excellence for
the Customers Satisfaction, in order to
clearly represent the commitment of the
companies AES Brasil with the customers
satisfaction, both through excellence in the
rendering of services and continuous search
for innovative solutions.
In addition to the five main foundations,
the strategic matters, the Sustainability
Platform is comprised of three transversal
themes. These themes are used as tools
whereby AES Brasil is able to disclose the
sustainability matter throughout the relation
network. The transversal themes include:
Education for sustainability;
Integration of relation network;
Transversal theme
commitments
GRI: 1.2
Education for sustainability
1. Be a reference in the education for the
responsible consumption of natural
resources, mainly electric energy and
water, by 2016.
2. Have 100% of the employees trained
in sustainability by 2013.
Relation network integration
1. Define a systematic procedure for
integration with all business relation
networks of AES Brasil, as set forth in
international rule AA1000, by 2012.
2. Contract again or identify and
comply with the commitments of
volunteers related to the sustainable
development, by 2013.
Communication, knowledge
and information
1. Disclose the Sustainability Platform
findings.

Efficient use of resources (natural, power Communication, knowledge and

and financial); information.

Sustainability Report 2011 31

The Sustainability Platform
was integrated to the
strategic plan of AES Brasil
GRI: 1.2

safety

Generation of
Sustainable Power

32 AES Tiet
 Innovation and excellence for
the customers satisfaction

efficient use Development and Appreciation

of resources of Employees, Suppliers
and The Communities

Sustainability Report 2011 33

Dialog with Sustainability
Vice presidential of Institutional Relations,
Communication and Sustainability,

the web of governance which respond to chief executive

officer, is the facilitator of sustainability

relationships GRI: 1.2; 4.9

GRI: 4.16
Between October and November 2011,
AES Brasil performed the 3rd Discussion
Cycle with Relation Networks, whereby 113
persons, including employees, suppliers,
residential and corporate customers, public
authorities and community, discussed the
commitments of AES Brasil with sustainable
development.
The event also proposed the alignment
and improvement of the knowledge on
sustainability of AES Brasil, review of the
significant matters to the report that is,
the most relevant matters for the businesses
in connection with the relation networks
and presentation of the opportunities to
improve management in connection with
these matters.
In order to establish a sustainability
governance Platform, AES Brasil established
Committee of Sustainability, which has
as leadership chief executive officer of
the Group, Britaldo Soares, and the vice
presidents.
Committee of Sustainability monitors action
plans, indicators development and goals
measurement. In 2011, the Committee
approved commitments in sustainability for
the period of 2012-2016.
These action plans were responsibility of six
work groups: one for each strategic theme
and one for transversal themes.
integration process in culture and business
management, ensuring good operation of
governance model and the rhythm and
effectiveness in implementation of the
action plans.
Committee of Sustainability activities
which refers to Board of Directors of each
AES Brasil company initiated in 2011,
when they validated Group commitment
with sustainability for the next five years.
The Boards of Directors of the Group
companies are responsible for monitor,
guide and validate Company long-
term strategies regarding integration of
sustainability in the process of company
management.
All strategic themes of the Sustainability
Platform are aligned with the strategic
plan guidelines, including goals, specific
commitments and plans of action.

Sustainability Governance at AES Brasil

AES Sul AES Eletropaulo AES Tiete AES Uruguaiana

Board of Board of Board of Board of
Directors Directors Directors Directors

Chairman

Sustainability
Committee

Vice-Chairman of
Comments from the web Communication
of relationships and Sustainability
An important step was the
integration of Sustainability Platform
with the strategic plan. It provides
safety and that, in anyway, it is really
being seen by the company.

Opinion of an employee during the

3rd Cycle of Dialog with Web of
relationships Working Working Working Working Working Working
Group Group Group Group Group Group
1 2 3 4 5 6

34 AES Tiet
The Sustainability Committee
is responsible to ensure the
management and rendering of
accounts through sustainability
and, in 2011, approved the
commitments for the period
between 2012 and 2016

Education for
Sustainability
GRI: LA10
To engage web relationships in
commitments with sustainability is
fundamental to disseminate knowledge
about this theme. For this reason, one of
the transversal themes of Sustainability
Platform is the Education for sustainability.
In 2011, more than 600 employees of AES
Brasil participated in workshops, lectures
and Trainings focused on the theme. The
113
Company seeks to gradually increase the
number of participants and the quality of
offered activities, in order to reach 100% of
people,
among employees, suppliers,
the employees until the end of 2013, with Take a look at the video about what customers and representatives of
platform of Education for sustainability. sustainability is to the AES leaderships: public authority and the company,
http://youtu.be/m9a5MaiB34k. participated of the 3rd Cycle of
Dialog with Web of relationship.

Trained HHT (man-hour/

Program Public Purpose Hour
employees training)

Leadership Managers and Train the leaderships to disclose the sustainability 48 2 96

Development Coordinators matter with the teams
Program (PDL)

Leadership Managers and Train the leaderships to disclose the sustainability 231 4 924
Communities Coordinators matter with the teams

Workshops and Officers, VPs, Ensure that the employees are able to understand 262 8 2,096
lectures coordinators the sustainability matter in AES Brasil
technicians,
operational and
administrative

Knowledge Managers and Qualify the leaders with respect to the concepts, 84 6 504
Management Coordinators practices and activities of sustainability of AES Brasil
Program

Total 625 20 3,620

Sustainability Report 2011 35

Sustainability
Policy
Safety
GRI: 1.2
In 2011, one of the first important actions in
connection with the Sustainability Platform
was the approval by senior management of
the Sustainability Policy of AES Brasil that
includes and replaces the Environment,
Occupational Health and Safety Policy. In
this policy, the commitments of the Groups
companies with each of the strategic
themes of the Sustainability Platform are
clear, ensuring the effective contribution of
AES Brasil for the sustainable development.
The commitment of Group with
sustainability is: to operate as transformers
agents, understanding, complying and
anticipating the needs for electric power
of the customers with safe and innovative
solutions to the economic, environmental
and social development of the communities
where it is.
Aware of decisions and activities affect
web relationships (customers, employees,
suppliers, shareholders, regulatory bodies,
Innovation and
public authorities, press, agents of
electricity sector, organized civil company
excellence for
and communities) in the places in which
operates, the Group undertook the
the customers
commitment of incorporate principles and
practices of sustainability in the culture and
satisfaction
the daily management of the business. This
position inspires to plan and make short-,
medium- and long-terms decisions, taking
into account, in a balanced way, economic,
environmental and social aspects.
The Sustainability Platform sets forth the
guidelines to guide the decision-making
process of the several companies comprising
Grupo AES Brasil, based on the five main
themes:
36
The Sustainability
Platform sets
Operate focused on the prevention of
accidents, incidents and occupational
forth the
diseases, on a proactive basis, occupational
health indicators, safety and community
guidelines to
occupational indicators, by applying
Technologies, procedures and inputs that
guide the decision-
would reduce the risks and continuously
improve the performance of operations,
making procedure
aiming at the health and safety of
employees, suppliers, customers and
of the several
community.
companies of
Ensure the compliance with applicable
legislation and other requirements related
Grupo AES Brasil
to the health and safety in our activities,
operation and maintenance of all units
Develop the safety culture with employees,
suppliers, customers and community in
general in order to reduce accidents.
Generation of
Sustainable
power
5
Stimulate the use of alternative and
Provide an environment and a culture that renewable power.
inspire innovative and effective solutions,
ensure quality and the excellence of Consider the economic, social and
the service rendered to the costumer, environmental aspects of the current and
potentiate positive impacts, minimize future power developments of Grupo AES
negative impacts and improve quality no Brasil, by maintaining the commitment
of people life, aggregating value to the of mitigating and reducing the negative
products and services of Grupo AES Brasil. effects and improving the positive effects.
5
O compromisso de gerao de energia sustentvel no se aplica
s empresas AES Eletropaulo e AES Sul.
AES Tiet
Efficient use
of resources
Natural resources
Operate focused on the prevention of and
control over pollution and environmental
damages, mainly considering the benefits
to all communities with which Grupo
AES has relations in Brazil, by monitoring,
on a proactive basis, the environmental
indicators and applying technologies,
procedures and inputs that would reduce
the environmental effects and ensure
continuous improvement.
Use, on a rational and sustainable basis,
the natural resources and other resources
necessary to the procedures under the
responsibility of the companies of Grupo
AES in Brazil, by stimulating the adoption
of techniques that aim the preservation
of biodiversity, proper consumption and
reuse of materials or waste, reducing the
effects from its activities, and consumption
and post consumption of its products and
services, by seeking solutions economically
and technically sustainable.
Ensure compliance with applicable
legislation and other requirements
related to the environmental matters in
connection with our activities, operation
and maintenance of all units.
Identify and promote the reduction of
issuances, effluents and residues against
the environment and work environment,
by actively participating in the discussions
and implementing actions related to
climate changes.
Sustainability Report 2011
Financial resources Act in partnership with suppliers, guiding
Allocate financial resources in order to and developing them in order to be adjusted
ensure positive effects for all parties, by to the requirements of health, safety and
respecting the values practiced by the environment and the code of conduct,
companies comprising Grupo AES in Brazil. pursuant to standards of Grupo AES Brasil, as
well as stimulate them for the development
Energy efficiency of continuous improvement proceedings with
Plan and develop activities continuously respect to its socioenvironment, health and
improving performance of the operations safety impacts, covering its productive chain.
and stimulating energy efficiency
Maintain open and permanent
communication with relationships web,
through dialogs and disclosure in a
Development
transparent and systematic way of the
financial and socioenvironment practices
and Appreciation
and performances, as well as the actions
performed to mitigate negative impacts and
of Employees,
power up positive impacts caused by the
activities.
Suppliers and
Communities
Know, engage in a transparent way and
positively influence employees, suppliers
and communities where Grupo AES Brasil
is inserted to the collective construction
of solutions and practices which generate
value to everybody.
Provide an ethical and inclusive work
environment for the employees and
which appreciate diversity and promote
personal and professional development,
through education to the sustainability
and application of criteria in the selection
and management proceedings and in the
talent retention, valuing the commitments
of Grupo AES Brasil.
37
Public
Commitments
GRI: 4.13
AES Tiet is signatory of Global Pact and
promotes eight Objectives of Millennium,
initiatives of United Nations (ONU). The
first stimulates the business community to
adopt, support and promote ten universal
basic principles of human rights, labor
practices, environment and bribery and
bribe fighting. The signatory are invited to
implement ten principles of its business
and activities conducting and to declare
its progress to ONU and the company
on an annual basis. On the other hand,
the Millennium Goals, known in Brazil
as the Eight Ways to Change the World,
defined eight measures targeted at hunger
eradication, education, equality, child death
reduction, pregnant health, AIDS and other
disease combat, environmental respect and
development.
In 2011, Grupo AES Brasil sponsored the
Land Letter, a global initiative that seeks
to promote more sustainable forms of life
and a global community supported by a
shared ethical model, including respect
and care with life community, ecological
integrity, democracy and peace. The
favorable aspect of this integration was the
participation of Brendan Mackey, member
of the International Land Letter Board and
professor at Fenner School of Environment
and Society (Australia University), in the
event promoted to discuss the effects from
the climate changes in life and professional
activities of employees of AES Brasil.
38
AES Tiet agreed with Business Agreement
by Integrity and against Bribery, taking part
of discussion with civil society about its
operation, aiming to encourage business
citizenship. The source power maintains
relation especially with:
Brazilian Association of Source Power of
Electric power (ABRAGE): its objective is
to facilitate information exchange between
the companies associated and execute
accords and agreements of technical
cooperation with public and private
entities, nationals and internationals.
Union of the Energy Industry in the State
of So Paulo (Siesp): studies, coordinates,
protects and represents the agents of the
energy sectors in the State of So Paulo.
Institute, Foundation and Company
Group (Gife): promote private social
investment, by disseminating concepts
and practices relating to the use of private
resources in projects focused on the
development of the well being.
Instituto Ethos de Empresas e
Responsabilidade Social: assists
companies in incorporating the concept of
social responsibility in their management,
by making use of an incessant evaluation
and improvement process.
Abrinq Foundation: mobilize the society
towards issues related to the children
and adolescent rights. AES Eletropaulo
participates in the Company Friend of the
Children Program (Programa Empresa
Amiga da Criana), which encourages
private social investment in measures on
behalf of the children and adolescents.
+Unidos Group: a partnership between
the U.S. Diplomatic Corps in Brazil and U.S.
companies headquartered in the Brazilian
territory, which purpose is to disseminate
the investment of member companies in
environmental and social and economic
development projects and promote
corporate social responsibility before
diverse segments of the society
Global pact
GRI: 4.12
Since 2005, AES Tiet supports Global
Pact and discloses, on an annual basis, the
performance of its activities, as well as
the socioenvironment impacts, through
sustainability report.
AES Tiet
 Millennium
Development
Purposes
1. Combat the extreme poverty and hunger.

2. Reach basic education.

3. Promote equal rights between man and

woman and independency of women.

4. Reduce child mortality table.

5. Improve motherly health.

6. Combat HIV/Aids, malaria

and other diseases.

7.Ensure environmental sustainability.

10
Are the principles of the Global
8. Defines a worldwide partnership
for development.
pact, of ONU, that the signatories
must implement to their business
management.

Sustainability Report 2011 39

40 AES Tiet
 safety

It is the attitude
protecting employee,
suppliers and
population lives

Daily challenge
GRI: LA7; LA8
The AES Tiet efforts in terms of safety have AES Tiet
as objective to anticipate risks and seek
preventive actions which reduce accident
Commitments
occurrence. The daily challenge is to ensure (2012-2016)
to the society the welfare proportionate
by electric power, and it is necessary to Zero fatal accident (own or
do it with the best safety conditions, contracted) per annum
because nothing is more important that
ensure employees, suppliers and population Reduce in 20% per annum total
physical integrity. accidents with population

In AES Tiet, as in all companies of Grupo Reduce in 20% of accidents

AES Brasil, safety is the value number with and without removal
1, and all activities performed have (own and contracted)
as principal focus the prevention of
accidents with employees and population.
Therefore, powers are concentrated in
the identification work of possible risks
which involve day to day of the operations,
in addition to engage professionals in
campaigns for a more secure attitude inside
and outside the Company.

Sustainability Report 2011 41

Safety management
In order to verify if the companies are aligned with the 12 pillars
of the Safety Management System, all companies of Group AES
Brasil receive on an annual basis a visit from AES Corp. technicians
to a safety audit. The pillars are: Management Commitment; Policy
& Principles; Goals; Objectives & Plans; Procedures & Performance;
Accounting of Indicators & Responsibility of Operational
Management; Safety Personnel; Integrated organizational structure;
Motivation & Awareness; Investigation of Fatalities; Inspections &
Audits; Effective Communication and Training & Development.
In 2011, AES Tiet reached XX% of adherence to the corporative
standards, comparing to XX% in 2010. This result places the
company between the ones that have a management system for
world-wide class, considering that, to reach this recognition, it is
necessary to obtain more than 80% of adherence to standards. This
increase is granted to the maturity of management system and to
the constant refinement of practices.

The AES Tiets Safety Program is based on the AES Corp. global
guidelines and in the Occupational Health and Safety Management
System (OHSMS). The OHSMS requirements are based on
specifications of OHSAS 18001 standard (Occupation Health Safety
Assessment Series).

At the end of 2011, AES Tiet obtained the certification of Integrated

Management System (IMS), adopting the ISO 14001:2004
(Environment) and BS OHSAS 18001:2007 standards (Occupational
health and safety). The qualification was recommended by the
auditors of the external certifying body ABS Quality Evaluations
which visited the company at the end of November.

The certification occurred in an integrated and multi-sites manner,

i.e., for the ten AES Tiets plants.

ISO 14001 is the international standard that certifies the excellence

of the organizations environmental programs, through identification
and control of the aspects and impacts of its activities in the
100%
of employees are represented by
environment. OHSAS 18001 is an international standard that focus CIPA (Internal Commission for the
on occupational health and safety, aiming at preservation of physical Prevention of Accidents) and by
integrity and the employees and partners health, through practices internal safety committees
of mitigation of risks in activities and facilities.

With this certification, AES Tiet guarantees the standardization and

integration of processes related to health, Occupational Safety and
environment in all plants.

42 AES Tiet
In 2011 were carried out 3.065
safety walks by the companys
leaders, result that overcame at
32% the goal and had as a highlight
the participation of the CEO, with
25 inspections per annum

Today, AES Tiet is deemed the AES Corp.
company with the best safety practices in
the world. This result was constructed over
the last two years. In 2009, the Company
started to develop an action plan with a
strategy designed by the Occupational
Safety and Environment Executive board,
aiming at the improvement of equipment
and installation infrastructure in plants of
generation of electric power.
It were created ten taskforce teams,
composed by AES Tiet employees, which
visited each of the units to map the main
risks linked to health and safety on day
to day operation. To each of the found
deficiencies, the Occupational Safety and
Environment area defined a technical
procedure specific to the adjustment of
the fragility.
Safety walk
It is not secure to go into field to observe
work activities focusing on identify and
eliminate conditions and behaviors. This is
the Safety walk goal, a program that evolves
leaderships (presidents, vice president,
Officers, Managers and Coordinators) from
different areas.
In addition to evolve and engage the
leadership with the topic, Safety walk is a
source of good ideas and innovation, provided
by the interaction between professionals of
different areas with different perspectives.
Comments from the
relation networks
AES has a comprehensive and
efficient policy in terms of safety of
its consumers and employees. It has
full understanding on the risks of
its product and adopts a very good
prevention performance; however, this
could be more strict with respect to
the prevention and guidelines to its
customers.
Comment from a representative of the
community during the 3rd Cycle of
Relation Network Discussions.

With the teams work, we managed to

meet AES Corp. requirements, which define
the safety procedures to be followed by Walks and safety inspections Annual goal
all Group companies. Internally, these
President, vice presidents and Operational officers (O&M engenharia) 24
proceedings are accepted as standards.
With them, it is possible to foresee risk Officer of Health, Safety and Environment 12
situations, standardize actions and evolve Administrative Officers ( non-operational) 6
all employees in the construction of a new
Regional, Safety and Environment Managers 72
prevention culture.
Non-operational Managers 24

Operational Coordinators 132

Occupational Safety Technicians 60

Environmental walks (managers, coordinators and operational technicians) 12

Environmental walks (regional manager, plants coordinator , safety coordinator, Safety
2
technician, Safety and Environment manager and environmental engineer)

Sustainability Report 2011 43

The highest commitment of the Hands Care

companies of Grupo AES Brasil

In 2011, AES Tiet carried out the
1st Campaign of Hands Protection

is with the safety of all public

that engaged more than thousand
employees of its hydro power plants,

involved in the business of

in order to establish a more secure
attitude. The idea was to make, on a

generation and distribution

daily basis, its own employees and
subcontracted ones aware about the

of electric power
relevance of protecting yourself and
correctly using the personal protection
equipment (EPIs).

Among the activities performed, it

is worth to mention lectures and
simulations that showed how to avoid
accidents with the hands.

Rate of health and safety employees and third parties**

RATE 2009 2010 2011
Daily Safety
GRI: LA6; LA7
Rate of lesions 1.27 0.95 1.14
During the reported period, it was registered
Rate of occupational illness rate 0.00 0.00 0.00 12 fatalities involving own employees (two
Total of not worked days* 0.00 5.32 4.27 without removal) and contracted (nine
Total of deaths during the period 2.00 0.00 0.00 without removal and one with removal).
Total number of lesions 9.00 8.00 12.00
These numbers reflects the actions carried
out over 2011.For example, the campaigns
of perception of risks and reports of events,
Taxas de health e safety third parties** which presents a video with employees
RATE 2009 2010 2011 testimonies about safety.
Rate of lesions 1.44 1.15 1.42
Rate of occupational illness rate 0.00 0.00 0.00 The year was also marked by the team
work we did with the Casas de Cultura e
Total of not worked days* 0.00 8.63 6.39
Cidadania of the cities where we operate
Total of deaths during the period 1.00 0.00 0.00
(read more on page XX). The employees had
*Counting from the day after the accident. an opportunity to watch theater plays (with
**For the calculation, it was adopted the Regulatory Rule 4 (Services Specialized on Safety Engineering and on
Occupational Medicine) and management system OHSAS 18001. children and teenagers) that talked about
safe behavior. The same action was reapplied
in the Internal Week of Workplace Accident
Prevention (SIPAT); the theme addressed
was home safety. In AES Tiet, 100% of the
employees are represented by CIPA and by
Safety Committees.

44 AES Tiet
Trainings
GRI: EU16; EU18
All employees, own and third parties, receive
specific Trainings to properly exercise
their functions, focusing on occupational
safety issues. AES Corp. establishes safety
standards for some types of work performed
in AES Tiet and, in addition to corporative
standards (the safety standards), OHSAS
18001 standard are adopted, which
certifies the Occupational health and safety
Management System in all plants.
The third parties contracted are submitted
to a specific procedure of contracting in
which requirements related to health and
occupational safety are defined
that, aligned to the trainings offered by
AES Tiet, minimize the risks of occurrence
of accidents. The compulsory Trainings
are required, as established by NR-33
and NR-10 standards that talks about
health and safety in confined space and in
services related to electricity, respectively.
All contracted ones are submitted to an
Occupational Safety integration process
hosted by AES Tiet, approaching procedures
to mitigate risks in the activities they
will perform, such as working at height,
evaluation of risks and other applicable
safety rules.
Challenges for
Additionally, AES Tiet hosts local school,
in order to submit the themes related
to populations safety to students. The
Promisso and Barra Bonita units host the future
80% of these visits. There are situations The highest commitment of the companies
in which the communication with the of AES Brasil Group is with the safety of all
community needs to be fast and effective, public involved on the business of generation
as in this case of flood in the reservoirs. and distribution of electric power. In AES
Therefore, the company has the Operating Tiet, we believe that the performance of
System for Emergency Situations (SOSEM), a good work is based on safe attitudes.
which consists in alarms to alert people Therefore, the Company undertakes to
about the danger of inundation around eliminate the accidents with employees,
the plant. Every three months, hearing both own or contracted ones, and with the
tests are carried out to ensure the action population. The Company has the challenge
affectivity. to maintain the standard of excellence
acquired in the last two years, in addition to
search for new improvement opportunities.
GRI: 3.10, LA7
Health and safety at work 2009 2010 2011
Average of extra hours per employee per year 276.00 179.64 225.32
Total number of work accidents with employees 3 2 21
Total number of work accidents with subcontracted/contracted 6 6 102
Average of work accidents per employee per year 0.010 0.006 0.006
Accidents with employees and/or service providers temporary
0.0 12.5% 8.3%
absence (%)
Accidents that resulted in mutilation or other damages to
employees and/or service providers physical integrity, with 0.0 0.0 0.0
temporary absence from the job (including RSI) (%)
Accidents that resulted in employees and or service providers
22.22 0.0 0.0
death (%)
Companys total TF1 index (rate of frequency) during the
5.17 3.09* 2.86
period, for employees
Companys total TF1 index (rate of frequency) during the
7.20 5.75* 7.10
period, for subcontracted/contracted*

Population Companys TG2 index (rate of gravity) during the period, for
employees
10,347.36 0.0 0.0

Safety Companys index (rate of frequency) during the period, for

subcontracted/contracted*
7,204.54 43.15* 244.79

The main risk to the population related to Rate of accidents, with or without absence, for each one million of worked hours.
1

Rate related to days missed as a result of accidents with absence, for each one million of worked hours.
2

AES Tiet business is the permanence in the Data published in the report from 2010 were amended for this edition as a result of adjustments in the calculation methodology.
*

proximity of the dams and the edges of the

reservoir, focusing on leisure activities. Therefore
the Company performs a constant work of
awareness and alert on the risks of possible Safety in the consumers final use of power 2009 2010 2011
overflowing and flooding as a result of heavy Rate of gravity (TG) of accidents with third parties by electric
NA NA NA
rainfall, especially from October to March. shock in concessionaire area (total events*)
Number of improvements implanted aiming at offering safer
NA NA NA
products and services
During this period, the company intensifies
*Up to 2011 it was reported the total of accidents and not the rate of gravity as ANEELs guideline suggests. Since 2012, data shall be reported
the safety campaigns to the population, pursuant to the guideline.

encouraging the safe behavior in these areas

through regional newspaper, and spots on
local radio, in addition to explicative folders
distributed in the points of greater circulation in
the cities where our plants are located.

Sustainability Report 2011 45

46 AES Tiet
 Innovation and
excellence for
customers satisfaction
GRI: EU8

Is to provide an
environment and culture
that offer solutions
to improve the life of
persons and ensure the
quality and excellence
in the services rendered
to the customer
In order to satisfy its customers through This performance, considering the useful
clean and quality power supply, AES Tiet availability for the generation, was higher
invested in the operational efficiency of its than the standard established by ANEEL and
generating units. by National Electricity System Operator,
which is 85%.
The year of 2011 was highlighted by the
high productivity in AES Tiet plants, which, However, the company faced some
together, produced 13,860.4 GWh of energy, operational issues related to machinery
a volume 23.6% higher than its physical throughout the year. One of them is the
guarantee6. The good performance is result golden mussel, a shellfish from China which
of the preventive maintenance program, arrived to South America by mercantile ship
responsible for the index of 88.3% of ballast water. It fixes on a surface, enters
availability of the machines. the refrigeration system of the plants and
causes the block of water pipelines.
6
The maximum amount of energy that the hydroelectric and
thermoelectric plants and Energy Import Projects can sell is
their physical guarantee.
Source: Empresa de Pesquisa Energtica.

Sustainability Report 2011 47

 AES Tiets
Commitments
(2012-2016)
Implement an internal structure
which guarantees the promotion
and management of practices and
innovative projects until 2012
Promote an organizational culture of
innovation incentive until 2014
Implement five innovative solutions
and clean technologies in AES Brasil
which create value to interested
parties, with increase of quality
and reduction of costs and of
environmental and social impacts of
the operations until 2016
Spread the innovation concept and
strategy in the value chain and
establish partnerships which extend
the results until 2016
Favorable scenario
The electric power consumption
demand is connected to GDP growth.
For 2012, Brazilian economy is expected
to grow approximately 3%, and the
challenge for the generators is to keep
themselves prepared to meet their
customers expectations.
48
To clean it and remove the mussel, it is genereted power (mw averege)
necessary to turn the machines off, what
contributes to reduce the availability index.
Even though, the generation capacity of 130%
energy was not significantly affected and, in 125% 124%
accordance with the network procedure, 72
hours per generating unit may be expurgated,
which is above the availability standard
1,665
established by ANEEL and by National 1,599
1,582
Electricity System Operator for the year to
reach 13.86 GWh of generated power.
There is not a control for the golden
mussel yet, but AES Tiet is investing in
research projects to solve the issue. Among
them there are the application of ozone
in refrigeration system of plants and the
development of protective system through
material and technical selection to control
2011
2009
2010
the incrustation through a special ink which
prevents the mussel fixes on surfaces, in
addition to the implementation of closed
refrigeration circuits in the plants.
Generation physical guarantee
AES Tiet
Research,
development
and innovation
AES Brasil believes that innovative ideas do
not necessarily need to involve technology.
Simple attitudes may also contribute to
improve peoples daily routine in developing
their activities inside and outside the work
environment. To spread this concept among
its employees, the company created an area
of innovation incentive.
The plan started to be designed in 2011
by AES Brasils Research and development
Executive board staff, which had as main
focus the compulsory7 investment in
research and development. With this new
path, the company wants to take advantage
of peoples talent and create new projects
which help in good performance of the
businesses this is one of the Sustainability
Platform challenges.
The big challenge, however, is to cause this
practice to become recurrent among the
employees. For this happens, AES Brasil
counts on Innovation Forum, a space where
the employees have the chance to express
their view about different ways of doing the
same thing. The tool is available on intranet
of all Groups companies and it works as an
idea base to which everyone has access
and may contribute to the construction of a
new initiative.
For 2012, improvements to Innovation
Forum are expected, including statistics
of registered ideas, grouping of ideas
and implemented project results, as
well as a new functionality, referred to
as Challenges, which purpose is to
bring material themes to the companies
and catch ideas which contribute to
improvement of the results.
7
By determination of ANEEL, power distributors must allocate
0.50% of its net operating revenues to programs of research
and development (R&D).
Sustainability Report 2011
In AES Tiet, the innovation culture pervades
all areas. Under this aspect, in 2011 there
were investments in developing a new
technology capable of anticipate accidents
with barrage, which might happen in case
of natural disaster such as earthquakes or
heavy storms or even by operating faults.
Dam Break project performs simulations and
draws an emergency action plan to remove
people which live in areas of risk mapped in
case of upcoming disaster.
Developed in partnership with State
University of Campinas (UNICAMP),
the project has among its objectives to
identify all areas which may be flooded
in cases of barrage disruption. The system
has implementation expected to the first
semester of 2012.
Other measure which will provide more
safety with respect to the level of the
reservoirs is the investment of R$ 600
thousand in the revitalization of the
telemetric network, responsible for gathering
and transmitting plant information to the
Center of Operation of the Generation and
Locks (COGE).
The system update will enable faster and
more efficient emergency actions. Technology
calculates the discharge of water of the rivers
where the plants are established and enables
to set forth more accurately the rain volume,
in millimeters, for certain period. Data arrive in
real time to COGE.
The new transmission model through
satellite and GPRS (cell phone chip)
which replaced the former radio system is
already operating in the whole companys
telemetric network, which has a structure of
11 stations through GPRS and 20 stations
through satellite.
In addition, the company has been investing
in machine automation plans and the
remote monitoring of plants through COGE
to obtain more control on the operations.
The purpose is to match information of
existing equipment in all of the operating
units with maintenance plans, spare
parts, historical information and material
documents. For that, AES Tiet counts on a
database in which the registration of all of
its physical assets is contained.
Apex
One of the channels to which the
creativity of our employees turns into
an innovation and results is Apex (AES
Performance Excellence), program of AES
Corp. comprised by quality methods and
tools that, in a structured way, permits to
identify opportunities for improvements
and aims to improve the proceeding
through innovative projects.
In order to disseminate the concept of
pursuit of ongoing improvement and
inspire an innovative attitude, AES Brasil
counts on some Training to motivate
employees to understand how day to day
attitude can lead to excellent results.
Rather than encouraging an innovative
approach, AES Brasil is concerned about
the recognization and valuation of
ideas that could represent projects with
multiply results. On an annual basis the
staff for Continuous Improvements, in
partnership with Internal management of
Communication of AES Brasil, performs
the ERA (Apex Awareness Event).
This event, traditionally held on
November 4 of each year, with
participating of members and leaders
of projects, governing body of the
companies of the Group and very happy
to celebrate and recognize those that
made a difference in practice, through
several projects carried out throughout
the year.
49
Research and
the intangible results (masters, PhDs,
specializations of employees) provide

development expectations and future opportunities,

To continuously improve the service quality,
AES Tiets research and development
(P&D) program encourages the innovation
and creates investment opportunities
aligned to the business strategy and to the
appreciation of the knowledge produced
by the employees, in partnership with
institutes, universities, manufacturers and
public and private companies fomenting
technology.
which may be economically valued.
Currently, the Company aims 0.40% of the net
operating income (ROL) to the P&D program,
in compliance with the laws and regulations
of the electricity sector. The projects include
technical, commercial and operational
proceedings and employee and subcontracted
employees safety, in addition to the promotion
of sustainable initiative for communities,
among other correlated themes.
COMMENTS FROM THE WEB
OF RELATIONSHIPS
Remains to define what is the goal of
AES Brasil in terms of innovation, disclose
it and devise a plan for the company can
say if it is innovative or not.
Comment from a supplier during the 3
Cycle of Dialogue with relationships web

The P&D program gives tools to ensure the
safety and reliability of the services. The
program also promotes opportunities for
sustainable growth, creating benefits for
the consumers, shareholders, employees,
partners, suppliers, and society in general.
In addition to practitioners results,
In 2011, AES Tiet invested R$ 19.5
million in P&D provided that 39% of total
in improvements of the planning and
operation, in addition to 18% in renewable
energy sources or alternatives.

Social and sectorial dimension

Funds invested in research, technological and scientific development R$ thousand
By research themes (R&D Manual ANEEL) 2009 2010 2011 goal 2011
Energy efficiency (A) 0 0 0 0
Renewable or alternative source (B) 0 782 3.529 5.325
Environment (C) 102 737 684 833
Quality and reliability (D) 227 518 2.250 2.205
Planning and operation (E) 368 5.322 7.565 8.485
Supervision, control and protection (F) 211 1.616 3.795 4.003
Assessment (G) 0 2 517 326
Data transmission by power grid (H) 0 0 932 940
New material and components (I) 457 932 209 1.162
Technological development to combat fraud and theft (J) 0 0 0 0
Total R&D investments (K) 1.365 9.909 19.482 23.279
Investment in the energy efficiency theme (A) on total R&D investments (K) 0.00% 0.00% 0.00% 0.00%
Investment in the renewable or alternative source theme (B) on total R&D investments (K) 0.00% 7.90% 18.10% 22.90%
Investment in the energy theme (A) on total R&D investments (K) 7.50% 7.40% 3.50% 3.60%
Investment in the quality and reliability theme (D) on total R&D investments (K) 16.60% 5.20% 11.50% 9.50%
Investment in the planning and operation theme (E) on total invested in R&D (K) 27.00% 53.70% 38.80% 36.40%
Investment in the supervision, control and protection theme (F) on total invested in R&D (K) 15.50% 16.30% 19.50% 17.20%
Investment in the assessment theme (G) on total R&D investments (K) 0.00% 0.00% 2.70% 1.40%
Investment in the transmission of data theme by power grid (H) on total R&D investments (K) 0.00% 0.00% 4.80% 4.00%
Investment in the new material and components theme (I) on total R&D investments (K) 33.50% 9.40% 1.10% 5.00%
Investment in the development of technology theme to combat fraud and theft (J) on total R&D
0.00% 0.00% 0.00% 0.00%
investments (K)

50 AES Tiet
In 2011, AES Tiet invested R$19.5
million in research and development,
provided that 39% in improvements of
planning and operation and 18% in
renewable sources or alternatives
of energy generation

r&D main Projects

Project Dynamic Attenuator of Occupational Noise with Acoustical Events Registration and Management , for
use in hydroelectric plants

Description Single use device for dynamic environment noise reduction and amplification of the verbal
communication associated with a registrant of intensity and sound frequency spectrum which the
employee will be exposed for use in hydroelectric plants, with software for analysis and diagnosis

Project GISHELE: Integrated Management of Hydroelectric Energy Systems

Description Risk analysis and management tool for AES Tiets power generation with the capacity of
outlining preventive management strategies of multiple risk factors relating to the production and
commercialization of energy

Project  evelopment of a system to communicate with and locate people in confined spaces and galleries of
D
the hydroelectric power plant UHE

Description People communication and location system with com a pilot implemented and assessed in the UHE. The
solution comprise: small emission/reception devices of radio frequency RF, reader devices (antennas)
distributed in a way that covers the entire area to be monitored and supervision software. In addition,
contemplates gas monitoring and also ensure more safety to employees

Project Geothermal Energy: technical alternatives for the implementation of generation of hybrid geothermal
electric power in Brazil from low temperature sources

Description The project aims to identify the potential to generate energy from thermal sources and its contribution
to the Brazilian energy parent company

Project Center of Monitoring of Physical Magnitudes and Diagnosis of Occupational Safety Conditions to
Employees in the UHEs

Description Methodology capable to measure, analyze and diagnose risks underlying to the physical magnitudes in
the work environment. Uses the monitoring of variable multiples in an intelligent computer platform,
with online diagnosis, in a continuous and dynamic way, allowing expedition and reliability when
determining the risks involved. Considers the prevailing laws and regulations in making decisions and
predicting the risks involved

Sustainability Report 2011 51

Generation of
sustainable power
The use of
economic, social
and environmental
resources on a
balanced basis,
preserving the
present and ensuring
the future
AES Tiet has big challenges for the next five A new power will operate in a combined
years. The commitment undertaken with cycle system8 and will be capable to
the government of the State of So Paulo generate, in full capacity, 550 MW of electric
to expand by 15% (400 MW) the capacity power, increasing AES Tiets installed
of the generation complex is included. capacity in approximately 21%.
Additionally, by launching the Sustainability
Platform of Grupo AES Brasil, at the By choosing the construction of a thermal
beginning of 2012, the Company undertook plant in So Paulo, AES Tiet took into
the goal to add 3,000 MW to its generation account some key aspects that reaffirmed
capacity until 2016. the viability of the project in the region. The
state offers a favorable gas pipeline structure,
In this scenario, the Termo So Paulo in addition to the last oil discovery in the
construction project, a thermoelectric power coastline of So Paulo. Capture of water
plant that will generate energy from natural will be made in Paraba River, which has an
gas in the city of Canas, State of So Paulo, ensured availability to supply the plant.
with investment estimated in R$ 1.1 billion.

8
A combined cycle plant uses gas and vapor to move turbines
in a sole industrial unit, generating electric power from burning
the same fuel only once. This happens because the heat from
exhaustion gases of gas-fired turbines is recovered, producing
fuel required to add a vapor-fired turbine.

52 AES Tiet
Sustainability Report 2011 53
 AES Tiet commitments
(2012-2016)
Add 3,000 MW of installed capacity or in construction of projects to
generate sustainable power until 2016
Invest at least 20% of the proceeds of R&D in the development of
technologies to generate sustainable power until 2016
Promote proper use of the Permanent Preservation Areas surroundings
the plants and reservoirs until 2016
Environmental
Viability
In order to reduce the effect on potential
impacts that an undertaking of this
magnitude would cause on the environment,
the project to construct Thermo So Paulo
was initiated with social and environmental
studies that sets monitoring and control
programs of the atmospheric emissions,
water consumption and solid waste and
liquid effluent generation, as well as
accidents prevention.
In 2011, were carried out public audits
in which there was a presentation of the
Environmental Impact Study (EIA) and
Environmental Impact Report (RIMA) on
the communities of Canas, Cachoeira
Paulista and Lorena. Based on the results
of these documents and what was
addressed in meetings with population,
Companhia Ambiental do Estado de So
Paulo (CETESB) granted the prior license
that confirms the environmental viability of
the undertaking and the compliance with
all legal requirements carried up to now.
With this license and after conclusion of all
negotiations to ensure the supply of gas,
AES Tiet may attend to energy sale
auctions, execute an energy sale agreement
and raise funds to construct the plant.
54
Challenges of
generation
GRI: SO1
In 2012, one of AES Tiets focus point will
be to establish the commercial conditions
required to make the Termo So Paulo
project possible. Therefore, it is necessary to
mainly define the machine and equipment
suppliers and service providers and to insure
the natural gas supply source and financial
conditions of the project.
Meet all environmental conditions to obtain
the license to install the new thermoelectric
plant is also among the challenges.
Comments from the web
of relationships
I get excited with the possibility to
add 3 thousand MW to generation
capacity and be able to produce
sustainable power.
An employees comment during the 3rd
Dialogue Cycle with Web of relationships
3,000 MW
is the goal to expand the
generation capacity undertook
by AES Tiet until 2016
Open dialogue
GRI: SO1
The installation of a thermoelectric power
plant in Canas, which has proximately 5
thousand inhabitants, will affect peoples
way of live. In order to manage these effects,
by increasing benefits and reducing negative
impacts, AES Tiet will develop, together
with the population, a plan for a sustainable
development of the region.
Therefore, a communication plan was
created to answer the questionings made by
inhabitants of the city and the region, which
included the cities of Lorena and Cachoeira
Paulista. The plan is to identify the main
needs in terms of infrastructure of the
region, as well as skills that generate income
in the cities and support the town halls in
developing work plan and directing funds.
Throughout 2011, were carried out 32
meeting with the communities involved
and we sought to clarify doubts on
about the functioning of a combined
cycle thermoelectric plant and explain
the impacts that it may cause on the
environment, especially on the waters of
Paraba River, reason of high concern to
the inhabitants. The planning also included
speeches in local schools and associations
and conversations with regional farmers.
AES Tiet already undertook to offer
professional qualification and to prioritize
the contracting of local labor to construct
the plant.
AES Tiet

Solar energy
for the opening
of the 2014
World Cup
Seeking to perform, in practice, the technical
studies on the viability of the use of
photovoltaic panels in the generation of
electric power, AES Tiet, together with AES
Eletropaulo, submitted to ANEEL a project
that aims the installation of a solar power
plant with capacity to generate up to 1
MWp where the stadium to be used in the
opening of the 2014 World Cup is being
constructed.
The research is strategic, as it allows the
preparation of proposals on the contracting
and marked mechanisms for solar energy,
alternative energy matrix deemed clean,
that do not emit carbon or wastes with
proved durability of up to three decades.
The project will allow the assessment
and certification of the results obtained
in labs in industrial scale, by observing
the actual operation of the plant in a
urban environment and the connection to
the network. Additionally, the matter on
competitive scale is already being overcome.
In 2010, more than 13 GW installed was
reached in the world.
Besides AES Tiet and AES Eletropaulo, the
project counts on the participation of other
companies of the electricity sector and
funds from private initiative.
This initiative reaffirms AES Tiets
commitment with sustainability through
the generation of sustainable power and low
environmental impact.
Reforestation
GRI: EN11; EN13
AES Tiet counts on an area of 480,300
hectares, in which the units generating
power are installed. From this total, 193,626
hectares are deprived for environmental
protection and all the companys area is
deemed Area for Permanent Protection
(APP) by the national laws and regulations.
The Clean Development Mechanism (CDM)
project to reforest native species with
Sustainability Report 2011
Border Project
In 2011, AES Tiet intensified the focalization and control work of the
irregular occupations of the borders of its ten reservoirs, considered
Areas for Permanent Protection (APPs). Now, the monitoring through
satellite images is made every three months, associated with a change
detection process, new among the companies of the sector. Before
that, the frequency was made once a year. Thus, it is possible to faster
note changes on vegetation, due mainly to irregular occupations, as the
technology allows to cross information from different data and identify
changes in the use of soil in the companys property. In possession of this
mapping will be possible to exactly locate the regions with interventions
and collect precise information about the inhabitants, which will help on
the mitigation of impacts and recovery of areas. After the identification
of irregularities, the company begins a notification stage, requesting the
documents that evidence the regular occupation. If this license is not
obtained, the inhabitant is summoned to obtain the license and, if he/she
does not attend, a repossession proceeding is filed.
There are situations9 in which the occupation of the borders is allowed
by CONAMA Resolution 369/2006. In these cases, the inhabitant must
access our webpage on the Internet and request for a use agreement
commitment. This document allows that the interested party seeks, at
the environmental body, the occupation licensing. In possession of the
environmental licensing, AES Tiet executes a use assignment agreement
with effectiveness of five years.
9
At AES Tiets website you can find information about the concession for revervoir border use and the
procedures to be adopted. Please access www.aestiete.com.br/responsabilidade/bordas_de_reservatorio.
no industrial purpose in the area of AES In 2010, the project passed through a
Tiets plants is deemed groundbreaking new stage to improve the proceedings.
in the world and, in 2011, was registered Improvements in Promisso nurseries were
by the United Nations UN United carried, such as expansion of the production
Nations Framework Convention on Climate area, in the reforesting database, control of
Change UNFCCC. At the end of 2010, suppliers and identification and mapping of
the company executed an agreement with new areas to be reforested, among others.
International Bank for Reconstruction and During the year, the total reforested area
Development (IBRD), dealing the first 400 was 30 hectares in the reservoir borders
thousand tons in carbon credits. of Bariri plant and were further performed
maintenance activities in 1,100 hectares
AES Tiet performs reforesting works since reforested in 2009 in the reservoir borders
2001. The seedlings are produced in own of Barra Bonita, gua Vermelha and
nursery and the seeds collected come from Promisso plants.
matrixes selected in remaining forests of the
region. In order to guarantee biodiversity, In 2011, reforesting projects were not
in average 120 species native from Mata carried. However, we expect to improve, in
Atlntica are cultivated and planted with the next years, plantation and maintenance
specific handling techniques flora. techniques and promote partnerships with
owners of the area, as to increase the success
Between 2001 and 2008, 1,542 hectares index in the reforested areas and in the
of APPs were reforested. In 2009, another plantation area, reducing pressure on
1,100 hectares were planted. these areas.
55
Efficient use
of resources

It is the proper
allocation of these
resources in order
to ensure balanced
results with respect
to all relation
networks,
in accordance with
the companys values
56 AES Tiet
Sustainability Report 2011 57
Efficient use of
power resources
AES Tiet;s commitments
IFRS Adoption
(2012-2016) In compliance with Law 11,638/07, AES
Tiet S.A. and its controlled companies
Operate with costs that place us in the first quartile of ANEELs ranking of presented its financial statements consistent
operational efficiency (among 25% of the more efficient companies) with the International Financial Reporting
Standards IFRS.
Restructure the management of Intangible Assets until 2014
Among the effects of the applicability of the
IFRS on the income, we highlight:

adoption of the amount allocated as to

Financial and
increase results from the adjustments made initially assess its property and equipment,
in July 2010 (5.2%) and July 2011 (8.7%) which increase the Companys expense

Economic and from the increase of 83.9% in the

power volume sold through other bilateral
with depreciation, which started to be
calculated by the economic life of the

Performance agreements (553.9 GWh in 2011 compared

to 301.2 GWh in 2010).
assets instead by the tax useful life;

In 2011, AES Tiet presented a gross
revenue of R$ 1.98 billion, 7.6% higher to
that registered in the previous year, of R$
1.8 billion. This result is explained by the
increase of 7.4% in the average price of
power sold through the bilateral agreement
with AES Eletropaulo, from R$ 155.79/MWh,
in 2010, to R$ 167.29/MWh, in 2011. This
granting, until 2029 (end of the concession
Thus, the EBITDA of the Company totaled of AES Tiets plants) of the amount paid
R$ 1.47 billion in the year, 11.1% higher to the granting authority for the use of
than in 2010. public property use (PPU);
The net income assessed in 2011 was declaration, in the shareholders equity, of
R$ 844.86 million, a result 14.6% higher obligations and rights resulting from the
compared to the previous period. benefit plan (AES Corp.s share options)
granted to executives.

2011 results highlights Revenue

Consolidated IFRS (R$ thousand) 2010 2011 Variation AES Tiet registered, in the year, R$ 97.8
Gross revenue 1,844,496 1,983,779 7.60% million as deductions of revenue, increase of
Net income 1,754,323 1,885,956 7.50%
8.5% with respect to the amount assessed
Operational costs and expenses* (433,867) (419,540) -3.30%
in 2010 (R$ 90.2 million).
Gross Profit 1,151,888 1,302,323 13.10%
EBITDA 1,320,455 1,466,416 11.10%
The net income totaled R$ 1.89 billion,
Financial results (57,132) (46,582) -18.50%
Financial income 86,470 53,980 -37.60%
increase of 7.5% compared to 2010,
Financial expenses (143,602) (100,562) -30.00% resulting mainly from adjustments of the
Net income 737,339 844,864 14.60% price of power sold through the bilateral
*Excluding depreciation. agreement with AES Eletropaulo, made
in July 2010 and July 2011 and from the
increase of the power volume sold through
other bilateral agreements, as previously
referred to.

58 AES Tiet
Operational costs and expenses
The operational costs and expenses totaled
R$ 419.5 million, a reduction of 3.3%
compared to the costs registered in 2010
(excluding depreciation). This variation is
mainly explained by three factors:
decrease of R$ 7.6 million in the operation
provisions, resulting from:
(a) reduction of R$ 6.1 million in the labor
provisions (added to the reversals
of provision) compared to that registered
in 2010;
(b) partial reversal, in the amount of R$ 3.7
million, of provision related to ANEEL Order
No. 288/02, which has issued at the end
of 2009, in the amount of R$ 20.9 million,
and was supplemented by R$ 4.5 million
in the first quarter of 2010. Such provision
was made due the re-booking, made by the
Electric Power Commercialization Chamber
(CCEE), of operations performed in the
short-term market in 2002, bounding AES
Tiet to AES Sul. Based on studies performed
by experts on the incidental financial on this
process, the Company concluded that the
amount of the provision is only subject to
a monetary adjustment, thus reverting the
amount related to interest and penalties;
(c) registration of provisions for environmental
contingencies, in the amount of R$ 3.5 million,
regarding a lawsuit filed by a prefecture that
requires AES Tiet to reforest 72 hectares,
in addition of lawsuits that challenge the
Companys responsibility regarding the
preservation of the reservoir borders.
reduction in expenses referred to energy
purchased for resale (R$ 9.9 million),
principally as a function of the lower prices
prevailing on the spot market (R$ 29.55/
MWh in 2011, compared to R$ 70.24/
MWh in 2010);
a decrease of R$ 3.6 million in material
and third-party services expenses, basically
due to the biannual maintenances in the
floodgates that took place in 2010.
On the other hand, the cost of transmission
and connection charges increased by 6.4%,
rising from R$ 92.5 million in 2010, to R$
98.4 million in 2011. This increase was due
to adjustments to the connection charges,
TUSD-g and TUST-rb, of the Companys
power plants.
Sustainability Report 2011
Ebitda
AES Tiet reported EBITDA of R$ 1,47 billion
in 2011, with margin of 77,8%, showing
an increase of 11.1% when compared to
that verified in 2010. The performance
is explained, principally, by the annual
adjustment in the price of energy sold
through the bilateral contract with
AES Eletropaulo, and through the reduction
of R$ 14.3 million in costs and expenses
mentioned previously.
Financial results
In 2011, the Company reported a negative
financial result of R$ 46.6 million, compared
to a result, also negative, of R$ 57.1 million
in the previous year. The performance was
affected by the positive effect of replacing
the debt with Eletrobrs with debentures,
and the capitalization of debt interest in
2011 (R$ 20.9 million). Such variation
was partially offset by the lower financial
revenue obtained this year.
Financial revenues in 2011 were down
37.6% compared to the previous year.
This variation was influenced by the lower
average balance of investments ( R$ 435.9
million in 2011, compared to R$ 580.9
million in 2010) and by the receipt of R$
27.7 million referring to interest and fines
involved in the litigation between Furnas
and the Company. Disregarding this effect,
the financial revenue in 2010 would have
totaled R$ 58.8 million, R$ 4.8 million
higher than the financial revenue reported in
2011 (R$ 54.0 million).
Financial expenses and monetary variation
amounted to R$ 100.6 million in 2011,
R$ 43.0 million lower than the amount
recorded in 2010. This reduction was
influenced by the positive effect of the
replacement of the debt with Eletrobrs,
indexed by the IGP-M + 10% p.a, by
debentures adjusted by the CDI rate +
1.2% p.a.; and by the capitalization of debt
interest which took place in 2011.
Net income
The net income earned by AES Tiet in 2011
was of R$ 844.9 million, result 14.6% higher
than that obtained in 2010. This result was
principally influenced by the adjustment to
the price of energy sold to AES Eletropaulo,
by the reduction in operational costs and
expenses, and the better performance of the
financial results.
Shareholder compensation
AES Tiet proposed the full distribution
of the basis for the payment of dividends
(R$ 922.2 million) for 2011 as earnings,
corresponding to 109.2% of the net income
for the year. This allocation was approved by
the general shareholders meeting , of April
2012, when occurred:
ratification of interest on equity capital, in
the amount of R$ 30.1 million, deliberated
through meeting of the Board of Directors
held on December 7, 2011, as well as the
definition of the effective payment date;
approval of the supplementary dividend
proposal, relative to the 4Q11, and the
payment date;
ratification of the interim dividends,
relative to 1Q11, 2Q11 and 3Q11, paid on
May 26, 2011, September 22, 2011, and
November 25, 2011, respectively, in the
amount of R$ 639.0 million.
To calculate the value of the dividends to
be distributed by AES Tiet, it is necessary
to the profit the realization value of the
book value evaluation adjustment (this
realization is comprised by the depreciation
and/or write-off of assets reevaluated), in
the amount of R$ 75.6 million, as well as
the amount referring to prescribed dividends
and interest-on-equity capital (JSCP) up to
December 31, 2011 (R$ 1.7 million).
Thus, the supplementary dividend amount
proposed by the Companys management is
of R$ 253.1 million, and the JSCP, of R$ 30.1
million, corresponding to R$ 0.71 per ordinary
share and R$ 0.78 per preferred share.
Dividends in 2011
(R$ thousandslion)
Income for the fiscal year 844.9
Realization of revaluation reserve 75.6
Prescribed dividends and JSCP 1.7
Statutory reserve constitution (5%) -
Dividends distribution base 922.2
Interim dividends already distributed 639
Interest on equity capital already
30.1
allocated
Supplementary dividends proposed 253.1
59
430 thousand GWh
Was the consumption of electric
power in Brazil in 2011, a 3.6% growth
compared to 2010.

Indebtedness
As of December 31, 2011, AES Tiets gross
debt totaled R$ 924.2 million, basically
represented by the issue of debentures(see
hereafter), at a cost of the CDI rate +1.2%
p.a. and falling due in 2015. This amount is
practically stable compared to the position
as of December 31, 2010 (R$ 922.1 million)
such stability among periods is resulting
from the fact that the repayments are
carried out in annual and equal installments
upon the third, fourth and fifth years.
In 2011, cash and equivalents amounted to
Investments
Investments in 2011 amounted to
R$ 175.3 million, R$ 93.1 million higher
than that realized in 2010. This performance
is also higher than the Companys historic
average, as a result of the program for the
modernization of its generation units, which
seeks to maintain operational excellence
and ensure available energy generation.
Investiments history
175
Performance
in the capital
markets
In 2011, the AES Tiet common shares
(GETI3) ended the exercise quoted at R$
23.64, up 10.0%, while the preferred shares
(GETI4) ended the exercise quoted at R$
26.88, up 12.0%. On this same period,
IBOVESPA depreciated 18.3% and IEE
appreciated 19.0%.

R$ 441.9 million, R$ 123.2 million less than The Companys shares were traded in
the balance registered at the end of 2010. 100.0% of BM&FBOVESPAs trading sessions
This variation is explained by the higher during 2011. During the period, 117.5
19

disbursements for payment of dividends thousand business with the common shares
during 2011 (R$ 878.6 million in 2011, were recorded, involving approximately 39
82

compared to R$ 771.3 million in 2010). million of shares. The daily average volume
156

traded in the year was of R$ 3.4 million,

Thus, the net debt at the end of 2011 compared to a daily average volume of
56

12

amounted to R$ 482.2 million, 35.1% R$ 4.2 million traded in 2010. As for the
higher compared to the position at the end preferred shares, 357.3 thousand business
13

of 2010, basically due to the lower cash in 2011, involving approximately 99 million
70

and equivalents average balance (R$ 441.9 of shares. The average volume traded in the
million in 2011 compared to R$ 565.1 Investiments year was of R$ 9.5 million, 1.4% below the
43

million in 2010). As of December 31, 2011, Capacity average recorded in 2010.

the net debt/EBITDA ratio, considering expansion
the EBITDA over the preceding 12 months, On December 31, 2011, the Companys
2009

2010

2011

was 0.3x market value was of R$ 9.6 billion..

Main Investments in 2011 Expected Performed

Maintenance and modernization R$ 145.2 million R$ 127.6 million
SHPP Jaguari-Mirim R$ 5.5 million R$ 19.4 million
IT projects R$ 7.1 million R$ 7.5 million
Total R$ 157.8 million R$ 175.3 million

60 AES Tiet
 new stance
Since 2011, AES Tiet passes through a
moment of stance change with respect
to the purchase and sale of energy
market. Nowadays, the Company is a
trader company and already starts to
draw up its commercialization plan for
the next years, aiming at creating its
own customers portfolio and making an
effective transition for the new scenario
of power commercialization post 2015.
This process initiated the definition at
the end of 2010, with the restructuring
of AES Brasils commercial area, which
will focus mainly on the execution
of this new strategy. The idea is to
consolidate the Companys image and
add a new aspect to the company.
The companys challenge is to expand
the operation in the free market through
new energy bilateral agreements. In
order to do this, a project was created,
which through researches, identifies
the best opportunities in the national
market, following AES Performance
Excellence guidelines, a structured set
of quality methodologies and tools
that may be used to improve business
proceedings and identify solutions for
its daily challenges.
Sustainability Report 2011
Investments
estimated
for 2012
In 2012, AES Tiet will be continuing its
modernization program for its generation
units, aiming to maintain the
R$ 141,.2 million for maintenance and
modernization of the generation units are
expected, especially for the plants at gua
Vermelha, Ibitinga, Caconde and Nova
Avanhadava, until 2016. In addition, the
allocation of R$ 16 million for IT is expected
to, especially in versions update and
implementation of additional functionalities
in the Companys information systems.
The investments expected for 2012 do not
include the development of new projects.
Billed energy (consolidated) GWh
Billed Energy
AES Eletropaulo bilateral agreement
CCEE
- Spot
MRE
Other bilateral agreements
Commercial
performance
In 2011, AES Tiet assumed a new position
in the purchase and sale market of electric
power and started to position in an active
way as trader. To take advantage market
opportunities and improve profitability of
energy from its SHPP, the Company also has
been signing since 2009, short and long-
term bilateral agreements to sell energy.
Such agreements registered an increase of
83.9% in 2011, amounting to 553.9 GWh
(read box below). Currently, there are 18
agreements effective, provided that 17 are
signed with free customers.
The billed energy by AES Tiet in 2011,
amounted to 15,122 GWh, recording an
increase of 2.7%, compared to the previous
year. A large proportion of this energy is
allocated to compliance with a bilateral
agreement with AES Eletropaulo (11,108
GWh), being adjusted by the IGP-M index
every July. The current tariff is R$ 173.68/MWh.
The excess volumes are in the first instance
allocated to the Energy Reallocation System
(MRE) and, subsequently, to the Electric
Energy Sale Chambers (CCEE) Spot Market.
In 2011, there was an increase of 4.2% in
billed energy by CCEE.
2011 x 2010
2010 2011
Variation
14,728.8 15,122.3 2.70%
11,107.7 11,107.7 0.00%
3,319.8 3,460.7 4.20%
1,339.6 1,518.6 13.40%
1,980.3 1,942.1 -1.90%
301.2 553.9 83.90%
61
 creating value
Seeking more efficient results, in 2011 AES Tiet continued the
project Creating value, an AES Brazils initiative that aims at
optimization in the use of financial resources.

This project As a result, the Company had a decrease in the

hierarchical levels.

As for the seasonality review of the agreements allowed greater

financial return on the energy volume marketed.

Yearther front was the improvement in management of agreements

with third parties. The mapping, review and renegotiation these
agreements were made, which allowed establishing a better
relationship, more transparent, with our suppliers.

In 2011, with initiatives of resources efficient use, o Grupo AES Brasil

saved R$ 125 million. With the Creating Value, the expectation is
saving R$ 400 million up to 2015.

Statement of Added value (R$ thousand) 2011 Distribution of Added Value

A - Revenues 1,983,696 GRI: EC1
Sales of goods and services 1,983,779
Bad debt provision (83)
B - Inputs Acquired From Third Parties (286,876) 6% 4%
Costs of the merchandise and services (189,838)
Materials, electric energy, outsourced services and other (97,038)
C Gross Added value (A-B) 1,696,820
D Withholdings (164,093)
37%
E - Net added value by the entity 1,532,727
F Added Value transferred from others 53,980
Financial income 53,980 53%
G - Total added value to be distributed 1,586,707

Employees
Government
Shareholders
Interest and rents

62 AES Tiet
GRI: EC1
Financial-economic Indicators DVA in detail
2009 2010 2011
Generation of wealth (R$ thousands) R$ R$ R$
Change%. Change%. Change%.
thousands thousands thousands
Operating revenue (gross revenue of energy and services
1,754,602 4.29 1,844,497 5.12 1,983,779 7.55
sales)
Power supply - 0.00% - 0.00% - 0.00%
Residential - 0.00% - 0.00% - 0.00%
Low income residential - 0.00% - 0.00% - 0.00%
Commercial - 0.00% - 0.00% - 0.00%
Industrial - 0.00% - 0.00% - 0.00%
Rural - 0.00% - 0.00% - 0.00%
Public lighting - 0.00% - 0.00% - 0.00%
Public service - 0.00% - 0.00% - 0.00%
Public authorities - 0.00% - 0.00% - 0.00%
Other amortization Extraordinary Tariff Recomposition
- 0.00% - 0.00% - 0.00%
(RTE), unbilled
Transfer for distribution activities - 0.00% - 0.00% - 0.00%
Electric power supply 1,754,557 4.29% 1,844,450 5.12% 1,983,763 8.00%
Making the transmission and distribution system available - 0.00% - 0.00% - 0.00%
Other operating income 45 -43.75% 47 4.44% 16 -66.00%
Provision/Reversal of allowance for doubtful accounts 244 0.00% 6,157 0.00% (83) 0.00%
Other income (expenses) - 100,00% 0.00% 0%
Revenue related to the construction of own assets 54,740 38.38% 81,855 49.53% 175,374 114.00%

Year 2009 2010 2011

R$
Basic R$ thousands Change%. Change%. R$ thousands Change%.
thousands
(Inputs acquired from third parties: purchase of power,
(345,129) 23.64% (394,171) 14.21% (462,249) 17.00%
material, third party services etc.)
Materials (4,747) 56.51% (5,688) 19.82% (6,232) 10.00%
Other operational costs (83,184) 390.85% (39,990) -51.93% (22,165) -45.00%
Cost of purchased energy and transmission (157,629) -14.84% (193,834) 22.97% (189,838) -2.00%
Third party services (44,829) 29.90% (72,804) 62.40% (68,640) -6.00%
Construction of own assets (54,740) 38.38% (81,855) 49.53% (175,374) 114.00%
Depreciation and amortization (172,253) 165.42% (168,568) -2.14% (164,093) -3.00%
Net value added generated by the company 1,292,204 -6.17% 1,369,770 6.00% 1,532,727 12.00%
(+) Added value received in transfer
77,611 -19.88% 86,470 11.41% -53,980 -38.00%
(financial income, equity account result)
Equity account result - 100.00% - 0.00% - 0.00%
Financial income 77,611 -17.87% 86,470 11.41% 53,980 -38.00%
Total value added to distribute 1,369,815 -7.07% 1,456,240 6.31% 1,586,708 9.00%
R$
Distribution of the wealth per interested parties [GRI EC1] R$ thousands Change%. Change%. R$ thousands Change%.
thousands
Employees 51,794 3.78% 57,636 4.00% 60,378 4.00%
Government (taxes, fees and contributions and sector
505,828 36.93% 516,676 35.00% 580,223 37.00%
charges)

Sustainability Report 2011 63

In 2011, AES Tiet obtained
a net income of R$ 844.9
million, result 14.6% higher
than that obtained in 2010

Year 2009 2010 2011

Financing/third parties 106,031 7.74% 144,588 10.00% 101,243 6.00%
Shareholders/retained 706,162 51.55% 737,340 51.00% 844,864 53.00%
Added value distributed 1,369,815 100.00% 1,456,240 100.00% 1,586,708 100.00%
Distribution of the wealth governments and sector charges
Taxes, fees and contributions R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
ICMS 740 0.05% - 0.00% - 0.00%
PIS/Pasep 11,302 0.83% 11,576 1.00% 12,598 9.00%
Cofins 52,159 3.81% 53,423 4.00% 58,139 9.00%
INSS 7,295 0.53% 7,862 1.00% 7,519 -4.00%
ISS - 0.00% - 0.00% - 0.00%

Year 2009 2010 2011

IPTU - 0.00% - 0.00% 2 0.00%
Social charges other 2,529 0.18% 3,610 0.00% 3,377 -6.00%
Other 1,603 0.12% 163 0.00% 116 -28.00%
IRPJ, CSSL and CPMF payable of the year 349,006 25.40% 357,418 25.00% 410,877 15.00%
Sector charges R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
RGR (Global Reversal Reserve) - 0.00% - 0.00% - 0.00%
CCC - Fuel Consumption Bill - 0.00% - 0.00% - 0.00%
CDE - Energy development account - 0.00% - 0.00% - 0.00%
Consumer charges PROINFA - 0.00% - 0.00% - 0.00%
CFURH 60,608 4.42% 60,906 4.00% 63,676 5.00%
TFSEE 4,447 0.32% 4,834 0.00% 5,128 6.00%
ECE + EAEE - 0.00% - 0.00% - 0.00%
P&D, efficiency, Fn/aCT and EPE 16,139 1.18% 16,884 1.00% 18,790 11.00%
Other 0,00% - 0,00% - 0,00% -
(=) Amount distributed (total) 1,369,815 100.00% 1,456,240 100.00% 1,586,708 9.00%
Sector default R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
Purchased energy NA NA NA NA NA NA
Sector charges R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
RGR NA NA NA NA NA NA
CCC NA NA NA NA NA NA
CDE NA NA NA NA NA NA
CFURH NA NA NA NA NA NA
TFSEE NA NA NA NA NA NA
ESS NA NA NA NA NA NA
P&D NA NA NA NA NA NA
Total (A) NA NA NA NA NA NA
Percentage of default NA NA NA NA NA NA

64 AES Tiet
 Total default (A)/net operating revenue NA NA NA NA NA NA
Investments R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
Maintenance and modernization 30,671 1.20% 64,393 110.00% 127,592 51.00%
Construction of new SHPP 13,386 -34.38% 11,678 -13.00% 19,390 38.00%
Other investments 12,591 46.41% 6,090 -52.00% 7,467 57.00%
Other indicators R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
Gross Operating Revenues (R$) 1,754,602 4.29% 1,844,496 5.00% 1,983,779 8.00%
Deductions from revenue (R$ thousands) (84,728) 1.48% (90,173) 6.00% (97,823) 8.00%
Net operating income (R$ thousands) 1,669,874 4.43% 1,754,323 5.00% 1,885,956 8.00%
Service Operating costs and expenses (R$ thousands) (587,108) 42.46% (602,435) 3.00% (583,633) -3.00%
Unrecoverable revenues (R$ thousands) - 0.00% - 0.00% - 0.00%
Service result (R$ thousands) 1,082,766 -8.77% 1,151,888 6.00% 1,302,323 13.00%
Financial results (R$ thousands) (27,597) -82.72% (57,132) 107.00% (46,582) -18.00%
IRPJ/CSSL (R$ thousands) (349,006) 3.54% (357,417) 2.00% (410,877) 15.00%
Net profit (loss) (R$ thousands) 706,163 1.98% 737,339 4.00% 844,864 15.00%
Interest on equity capital (R$ thousands) 30,689 -2.00% 30,062 -2.00% 30,062 0.00%
Distributed dividends (R$ thousands) 757,361 14.55% 787,488 4.00% 892,111 13.00%
Operational costs and expenses per MWh sold (R$
(0,04) 27.10% (0,04) 2.00% (0,04) -6.00%
thousands)
Wealth (net added value) per employee (R$ thousands) 3,756 -13.26% 4,138 10.00% 4,143 0.00%
Wealth (net added value) per gross operating revenue (R$
0,71 -10.75% 0,71 -1.00% 0,71 0.00%
thousands)
EBITDA or LAJIDA (R$ thousands) 1,255,019 0.30% 1,320,455 5.00% 1,466,416 11.00%
EBITDA or LAJIDA margin (R$ thousands) 75,20% -3.95% 75,30% 0.00% 77,80% 3.00%
Current liquid (current assets/current liabilities) 1,10 0.00% 1,50 36.00% 1,20 -20.00%
General liquidity (current assets+ realizable in long-term) /
0,50 -28.96% 0,40 -1.00% 0,40 -5.00%
(current liabilities+ payable in long-term)
Gross margin (net income/ gross operating revenue) (%) 40,20% -2.21% 40,00% -1.00% 42,60% 7.00%
Net margin (net income/net operating revenue) (%) 42,30% -2.35% 42,00% -1.00% 44,80% 7.00%
Shareholders equity profitability (net income/shareholders
35,00% -74.66% 37,20% 6.00% 43,20% 16.00%
equity) (%)
Capital Structure R$ thousands Change%. R$ thousands Change%. R$ thousands Change%.
Capital stock (R$ thousands) 2,016,011 302.37% 1,981,002 -2.00% 1,954,076 -1.00%
Third party capital with interest (loans and financings) (R$
969,036 -20.28% 922,071 -5.00% 924,173 0.00%
thousands)
Customers default (overdue bills up to 90 days/gross
- 0.00% - 0.00% - 0.00%
operating revenue of the last 12 months)

Sustainability Report 2011 65

Efficient use
of power
resources

AES Tiet, aware of the efficient use of
AES TIET power resources relevance, invested
R$ 175.3 million, provided that R$ 141.2
commitment million were invested in the operating units
(2012-2016) modernization and maintenance.
Reduce the own consumption of The idea is that, up to 2013, all plants
electric power in 20% until 2016 became remotely operated, based on a new
supervision and control system. The new
tool shall be installed in the Operations
Center of Generation and Floodgates, in the
city of Bauru in the State of So Paulo.
New operations
In 2011, a new small hydroelectric power
plant (SHPP) SHPP So Joaquim started
its operation and, for the beginning of
2012, the SHPP So Jos is expected to
start operation. The units are installed in
Jaguari-Mirim River, in So Joo da Boa Vista
(SP), and added 7 MW to AES Tiets energy
generation capacity.

From the total

With the implementation of the new
technology, it is possible to make faster and

of R$ 175.3
more accurate diagnosis, which contributes
for the reduction of the time required for

million invested
repairs and for the increase of machines
availability. Now, four plants are already

by AES Tiet,
remotely operated by COGE, in addition to
the Small Hydroelectric Plants So Joaquim

R$ 141.2 million
and those installed in the State of Minas
Gerais. In 2012, Caconde, Ibitinga and

were allocated
Mogi-Guau plants, as well as the Barra
Bonita, Bariri, Ibitinga, Promisso and Nova

to the plants
Avanhandava floodgates, should migrate to
the new system.

modernization
4
AES Tiet made also a survey of all critic

and maintenance
points, subject to failures, in its generator
units. The initiative is part of the plants

process
modernization plan, which aims at making
a general and preventive maintenance of all
mapped equipment and modernizing the
supervision, command and control systems.
AES Tiets hydroelectric plants
re remotely operated by the
Operations Center of Generation
and Floodgates (COGE)

66 AES Tiet
Efficient use
of natural
resources
AES TIET
commitment
(2012-2016)
Increase in 40% the waste recycling
and reduce in 25% the disposal for
landfills up to 2016
prioritize suppliers that have
certificate of origin of acquired
material (energy efficiency and
socioenvironmental aspects) up to
2016
Prioritize partners that receive
approved waste with tracking up to
2016
Reduce in 10% the water
consumption, in 10% the CO2
emissions and in 5% the paper
consumption and prioritize the use
of renewable fuel in the fleet up to
2016
Merge at least 20% of recycled and
reused material and/or equipment
in the power grid up to 2016
Structure, up to 2013, the Risk
Management and Opportunities
Identification System associated
with weather changes.
Sustainability Report 2011
AES Tiet, aware of the natural resources
relevance for the full development and
maintenance of its energy generation
activities, counts on the System of
Environmental Management (SGA),
which focuses mainly in prevention,
correction, mitigation and control of
environmental impacts . SGA provides
a system of continuous improvement
through development of goals, targets
and management programs, standardizing
the companys proceedings and activities,
especially those that offer higher risks to the
environment.
The system also refers to themes that
involve management of services and
material suppliers , taking into account
issues related to the compliance with
the environmental laws and regulations
and the Companys policies, in addition
to prevention of impacts and accidents.
Yearther attention point of SGA is the
impacts that AES Tiets activities cause
in the surrounding communities. All this
actions are guided by the Grupo AES Brasils
Sustainability Policy, which promotes an
operation in consonance with the prevailing
environmental laws and regulations and
with respect to the natural resources.
Environmental
management
Environmental Management System (SGA)
of AES Tiet is guided by Sustainability
Policy of Grupo AES Brasil, which defines
the commitment to be undertaken by all
professionals of the Grupo and anticipates
investments in environmental e projects
de research and development voltados
conservao technology.
SGA objective is to ensure that rules
related to environment are met and to
organize companys activities, specifically
with respect to those representing
potential impacts. It also comprises themes
as qualification and management of
service and material suppliers, compliance
with environmental laws and regulations
and Companys policies of prevention of
environmental impacts and accidents and
continuous improvement of proceedings.
67
Emission Monitoring of
inventories vehicle fleet
GRI: EN16; EN17; EN19
Since 2007, AES Tiet accounts and disclose, AES Tiet performs a strong management work of vehicle fleet use
in its inventory, emission of gas causing that provides services to the company.
greenhouse effect (GEE) resulting from
its activities of electric power generation. In terms of fuel consumption and speed control, leaders have
Mapping is made pursuant to guidelines of access, through an electronic equipment, to report of driver conduct
Brazilian Program of GHG Protocol and, in evaluation, as well as about consumption of fuel used. This action,
2011, a reduction of 4% in the GEE emission in addition to provide a more secure conduct to the employees,
was registered. enables reduction of renewable and non-renewable resources use,
through economy of fuel use.
In 2011, an external audit verified the
effectiveness of this process inside the From time to time, a monitoring of CO2 emission in all units is
company. After the evaluation, both strong performed. In addition, 30% of diesel fleet receives visual inspections
points and improvement opportunities were to verify black smoke emission. Those which are out of the standards,
identified. Emission inventory is disclosed in in accordance with Ringelmann* scale, go to maintenance.
several reports and to different public. *Measure basic scale for smoke opacity.

Fugitive emissions10 correspond to 55% of all *Escala bsica de medida para a opacidade de fumaa.
AES Tiet emissions and originate from SF6 gas,
used as insulating in some substations.

In addition to these emissions, AES Tiet maps

indirect emissions of business trips. In 2010
were 278 tons of equivalent CO2; in 2011, it
was possible to measure flights only as of June,
as a result of travel agency exchange. From
this month until the end of the year, 142 tons
of equivalente CO2 were emitted.

Other action that reflects the concern

regarding climatic changes is the participation
in Municipal Committee of Climate Change
and Ecoeconomy of Municipal Government
Emission of greenhouse gas in tCO2eq 2009 2010 2011
of So Paulo and in the Energy Chamber
Direct - 266 254
of Environmental Company of State of Sao
Paulo (Cetesb), in addition to CDP Investors, Generators fuel - 43 26
greater global database on corporative climatic Transportation (own fleet) - 70 84
governance and inventory of GEE emissions. Fugitive emissions (SF6) - 153 145
AES Tiet also integrates the Companies for Indirect - 9 10
Climate platform, organized by Fundao Consumption of electric power - 9 10
Getulio Vargas, and publishes its inventory on Total 49 275 264
an annual basis in the public registration of
initiative emissions.
Emissions of ozone layer depleting gases 2009 2010 2011
The company also monitors fugitive emissions Consumption (kg) 6.70 0.40 5.40
of gas non-greenhouse controlled by Montreal Ozone depletion potential 0.37 0.02 0.30
Protocol and has effect on the ozone layer. Equivalent tons of CFC-11 0.37 0.02 0.30
In 2011, 0.30 tons equivalent of CFC-11 was
emitted, related to refrigerant gas R22 use in
our air conditioning system equipment.
more information
about Companies for Climate on the internet:
empresaspeloclima.com.br.
10
Emissions of gas and steam of equipment under pressure. They
occur as a result of leaks and other unintentional or irregular
releases of gas, especially upon industrial activities.

68 AES Tiet
Environmental Management
System has as a purpose to
organize AES Tiet activities,
specifically those representing
potential impacts

water
GRI: EN8
Water consumption in AES Tiet
Comments from hydroelectric plants had an increase
Consumers of 26% compared to 2010.
The report does not enlighten the
measures adopted to protect water
resources and to recover areas damaged
on account of the generation of power. water consumption (m3)

Comment from a representative of the 2009

community during the 3rd Cycle of 94,014
Discussions with the Consumers 2010
105,035
2011
132,311
*Consumption does not consider the water used for power generation.

water consuption (m)* 2009 2010 2011

Surface water 5,022 4,971 2,564
Ground water 87,905 99,557 129,218
Supply companies 1,087 507 529
Total 94,014 105,035 132,311

Waste
*Water captured from rain or from effluents of other organizations are not consumed. There is no water consumption for cooling or process in
thermoelectric or nuclear power, as there is no this type of plan in the organization.

Managements
GRI: EN22
With respect to waste management,
Total of generated Wastes1 2009 2010 2011
AES Tiet has as focus prevention of soil and
Non-hazardous (t) 50,60 116,50 71,50
water contamination and follows guidelines
Recycling (t) 39,80 104,00 57,10
of Environmental management System
(SGA) and AES Corp. Landfill (t) 10,80 12,50 14,40
Hazardous
All waste (hazardous and non hazardous) Co processing (t) 16,50 10,70 27,40
generated by the Company operations Decontamination (units) 20.000 13.478 4.806
is submitted to a segregation process, Re-refining (I) 48.400 109.510 70.129,50
identification, packaging and final destination *Wastes disposal was confirmed directly by the organization. There is no waste sent to composting, incineration, underground injection or
stocked. Also, there is no generation of radioactive wastes.
process, in compliance with environmental
legislation and the best management practices.

Sustainability Report 2011 69

Environmental
education
In order to the local population be aware
of the relevance of natural resource
preservation and care with Rio Tiet, the
company initiated a process, in 2011, for the
publication of an environment spelling book
and re-edition of an environment dictionary.
The work was made in partnership with
ONG Me Natureza Movimento de
Amparo Ecolgico, in Barra Bonita (SP),
and is part of the Environmental Education
Program, created to disseminate knowledge
and attitudes related to natural resources.
Digital
certificate
With adoption of digital certificate system
to agreements execution, in August 2011,
AES Brasil innovated in the relationship with
its suppliers chain and started counting
on one more tools for the environmental
resources management.
The main advantages of the new technology
are related to paper economy, increase of
employees productivity and time reduction
of contracting process and file space. The
digital certificate has judicial recognition
and serves as legal document.

In order to access tools and enter into new

Other highlighting action of environmental agreements with the company, the supplier
education related to the society is will need to acquire the digital certificate,
the monitored visits of students and a kind of electronic signature which serves
communities people to the plants. In 2011, to identify someone or an entity. It is a

4%
2,816 people were benefited with the action. computer file in which all information that
ensure document authenticity are stored.
In the archeology program, during the
year of 2011, it was created social medias is reduction of greenhouse
(spelling books, blog and virtual museum) gas emission registered with
and, in December, cultural workshops AES Tiet in 2011
initiated with participation of reservoirs
environment municipalities, aiming at GRI EN30
disclosure of the program and community Investments and expenditures in
engagement. In order to align our employees 2009 2010 2011
environmental protection
knowledge, all of them were trained in the Waste disposal and mitigation
environmental program, which address Waste treatment and disposal 87,225 89,112 114,106
themes as management of chemical and Cleaning costs 0 0 50,980
waste products (hazardous, non-hazardous
Prevention and environmental management
and recyclable). Additionally, in all plants
External services of environmental management 0 0 7,400
there is an environmental facilitator,
External certification of environmental
professional responsible for daily monitoring 0 10,045 37,700
management
of amount of waste generated and
Research and development 102,000 737,460 354,995
discharged in the units.
Other costs of environmental management 21,452,376 12,179,153 11,948,241
Environmental protection
In the other extremity, it is made the
Costs of prevention and environmental
homologation of all companies where the 32,400 32,400 32,400
management
hazardous waste are allocated, which need
Total 21,674,000 13,048,170 12,545,822
to meet minimum standards required by
AES Brasil, as certification and licenses of
installation and operation. In 2011, four
industries are no longer part of the suppliers
chain after been submitted to this evaluation.
70 AES Tiet
With monitors visits, 2,816
students and communities
people could know AES Tiet
plants in 2011

Environmental Dimension GRI EN13; EN28

Recovery of degraded areas 2009 2010 2011 Meta 2011
Area preserved and/or recovered by sustainable handling of vegetation on transmission and
NA NA NA n/a
distribution lines (in ha)
Preserved area/ total of preserved area in the concession area required by law (%) 39.17 39.48 39.48 n/a
Contribution for the increase of municipalities green area by Programa de Arborizao
NA NA NA NA
Urbana (in ha)
Isolated protected network (ecological net or green line) in the urban area (in km) NA NA NA NA
Percentage of protected and isolated network/ total distribution network in the urban area NA NA NA NA
Expenditures with management of environmental impact (forestry, sustainable handling
21,674.00 13,048.17 12,545.82 n/a
with equipment and protected network) (R$ thousand)
Number of accidents by breach of the environmental safety rules 0 0 0 0
Number of notifications and/or fines by breach of environmental rules 0 0 1 0
Value incurred in notifications and/or fines by breach of environmental rules (R$ thousand) 0.00 0.00 0.00 0,00
Waste generation and treatment 2009 2010 2011 Meta 2011
Emission GRI EN16; EN19
Annual volume of greenhouse gas (CO2, CH4, N2O, HFC, PFC e SF6) issued in the atmosphere
49,00 268,08 890,16 406,24 n/a
(in tons of equivalent CO2)
0.28
Annual volume of destructive emissions of ozone (in tons of equivalent CFC) 0.37 0.02 n/a
0.30
Effluents GRI EN21
Total volume of effluents n/a n/a n/a n/a
Total volume of effluents with treatment n/a n/a n/a n/a
Percentage of treated effluents 100.00 100.00 100.00 100,00
Solids GRI EN22; EN30 2009 2010 2011 Meta 2011
Annual amount (in tons) of generated solid waste (garbage, waste, dump etc.) 11.00 12.50 15.40 n/a
Percentage of waste forwarded to recycling with no bond to company 80.00 92.00 92.00 n/a
Percentage of waste recycled by unit or entity bound to company (specific project) 0.00 0.00 0.00 n/a
Expenditures with waste recycling (R$ thousand) 0.00 0.00 0.00 n/a
Percentage of reused consumption material (raw materials, equipment, wires and electric
0.00 0.00 0.00 n/a
cables)
Expenditures with final destination of non-hazardous waste (R$) 0.00 0.00 234.00 n/a
Handling of hazardous waste GRI EN22; EN30 2009 2010 2011 Meta 2011
Percentage of equipment replaced by insulating mineral oil with no PCB (Ascarel) 0.00 100.00 NA n/a
Percentage of decontaminated lamps with respect to total replaced in the company 100.00 100.00 100.00 n/a
Percentage of decontaminated lamps with respect to total replaced in the consumer units NA NA NA n/a
Expenditures with toxic waste treatment and destination (incineration, landfill and
87,224.50 89,112.28 202,258.65 n/a
biotreatment) (R$)

Sustainability Report 2011 71

 Use of resources in the production process and in organization
2009 2010 2011 Meta 2011
management proceedings
Total consumption of power, per source GRI EN3; EN4
Hydroelectric (%) 100.00 100.00 100.00 n/a
Fossil fuel (%) 0.00 0.00 0.00 n/a
Alternative sources (gas, wind power, solar power etc.) (%) NA NA NA NA
Total consumption of power (kWh) 25,789.50 25,247.38 38,269.88 n/a
Energy consumption by kWh distributed (sold) NA NA NA NA
Total consumption of fossil fuel by companys vehicles fleet, per km
2009 2010 2011 Meta 2011
traveled (l/km): GRI EN3; EN29
Gasoline 0.09 0.10 0.20 n/a
Diesel 0.19 0.14 0.24 n/a
Alcohol 0.12 0.09 0.10 n/a
Natural gas NA NA NA NA
Total consumption of water, per source (m3) GRI EN8 2009 2010 2011 Meta 2011
Supply (public) 1,087.00 507.00 529.00 n/a
Underground source (well) 87,905.08 92,748.81 129,217.80 n/a
Superficial capture (watercourse) 5,021.91 5,632.79 2,564.30 n/a
Total consumption of water (m3) 94,013.99 98,888.60 132,311.10 n/a
Water consumption per employee (m3) 298.46 314.33 397.24 n/a
Reduction of costs obtained by reduction of energy consumption, consumption water and
0.00 2.27 0.00 n/a
material (R$ thousand)
Origin of the products Consumption material 2009 2010 2011 Meta 2011
Percentage of material purchased in conformity with the environmental standards verified
n/a 5.90 100.00 n/a
by the company/total material purchased
Percentage of acquired material with Green Stamp and others (PROCEL, INMETRO etc.) n/a n/a NA NA
Percentage of acquired material with forest certification (IMAFLORA, FSC and others) 0.00 50.00 50.00 n/a
Environmental education and awareness GRI EN30 2009 2010 2011 Meta 2011
Environmental education Community In the organization
Number of employees trained in the environmental education programs 115 199 188 n/a
Percentage of employees trained in the environmental education programs/total of
36.00 81.58 36.99 n/a
employees
Number of hours of environmental Training/total of hours of Training 0.44 2.56 0.60 n/a
Applied resources (R$) 6,235.68 0.00 67,478.04 n/a
Environmental education Community GRI SO1; EC8 2009 2010 2011 Meta 2011
Number of fundamental and high school education units 107 93 39 -
Percentage of participating schools/total number of school of the concession area n/a n/a n/a -
Number of participant students 4.370 5.619 2.633 -
Percentage of students served/total number of students in the schools in the concession
n/a n/a n/a -
area
Number of trained teachers n/a n/a n/a -
Number of participant units of technical and higher education 1 27 7 -
Percentage of participant schools/total number of school of the concession area n/a n/a n/a -
Number of participant students 15 736 183 -
Environmental education Community 2009 2010 2011 -
Percentage of students/total number of students in the schools in the concession area n/a n/a n/a -
Applied resources (R$) 73,033.41 114,368.60 78,380 -
R&D in environment GRI EU8 2009 2010 2011 Meta 2011
Applied resources (R$ thousand) 102.00 737.46 684.09 833.23
Number of patents registered with INPI 0 0 0 0

72 AES Tiet
 Environmental performance indicators for electric power generating companies
Maximum consumption of electric power of the generating
2009 2010 2011
units and auxiliary plants (KWh)
UHE Barra Bonita 1,880,760 1,924,470 1,180,170
UHE Bariri 540,319 565,200 6,039,716
UHE Ibitinga 1,679,174 1,612,570 6,579,880
UHE Promisso 3,889,442 4,222,490 6,901,843
UHE Nova Avanhandava 4,280,280 3,668,870 5,390,179
UHE Caconde 768,000 647,800 557,396
UHE Euclides da Cunha 954,400 1,034,500 1,698,500
UHE Limoeiro 953,135 1,124,660 1,089,104
UHE Mogi-Guau 299,000 291,110 572,181
UHE gua Vermelha 10,545,000 1,0155,700 8,145,974
AES Tiet 25,789,510 2,5247,380 38,154,941
Water consumption per kWh generated2 (m/s) 2009 2010 2011
UHE Barra Bonita 0.0058 0.0055 0.0054
UHE Bariri 0.0053 0.0054 0.0054
UHE Ibitinga 0.0053 0.0057 0.0057
UHE Promisso 0.0049 0.0047 0.0048
UHE Avanhandava 0.0039 0.0037 0.0037
UHE gua Vermelha 0.0021 0.0022 0.0022
UHE Caconde 0.0012 0.0012 0.0011
UHE Euclides da Cunha 0.0013 0.0014 0.0014
UHE Limoeiro 0.0049 0.0046 0.0046
UHE Mogi-Guau 0.0100 0.0095 0.0096
AES Tiet 0.0030 0.0031 0.0031
Erosion of reservoir edges Eroded area units (ha) per year 2009 2010 2011
AES Tiet n/a n/a 45.99 ha
Restoration of ciliary forest4 seedling units or areas planted/ recovered per year (ha) 2009 2010 2011
AES Tiet 1.100 30 0
Reservoirs water and settling quality5 Units of water, sediment
2009 2010 2011
and level of eutrophication quality parameters
AES Tiet 42 42 42
Rescue of fish in engines kg fish per equipment stoppage
6
2009 2010 2011
AES Tiet 90.15 1,116.71 1501.00
Fish Repopulation7 Number of fingerling released in reservoirs per year 2009 2010 2011
AES Tiet 2,500,000 2,750,000 2,500,000
Consumption of lubricating oils and greases8 Liters of lubricating oil used monthly per turbine
2009 2010 2011
water (m3/s)
AES Tiet 0.0078 0.0040 0.0016
Withdrawal of waste in reservoirs (trash, macrophytes, industrial and domestic
water and settlements)9 Tons/year or m3/year according to the type of 2009 2010 2011
extracted from reservoirs
AES Tiet n/a 0 0
Launching of sanitary water without management and lubricant and hydraulic
2009 2010 2011
oil leakages from engines10 Tons/year or m3/year, according to the type of oil
AES Tiet 0 0 0
1. Measure the energy consumption used in generating and auxiliary plants, so this consumption may be monitored in weather.
2. Measure the relationship between hydro availability and the demand used to generate power and compares it to the weather per plant.
3. Measure the preservation actions of the reservoir banks and Permanent Preservation Areas (APP).
4. Measure the recovery and preservation actions of riparian forests in the concession areas and APPs.
5. Measure the changes to the water and sediment quality in the reservoir to assess the factors exogenous to the concession area and that generate impacts on the reservoirs.
6. Measure the quantity of fish removed in each equipment stoppage.
7. Measure the quantity of fingerling released in reservoirs.
8. Measure the consumption of oil and lubricating grease that generates waste for the environment.
9. Measure recovery and preservations actions of the reservoir in order to guarantee the useful life of the engineering project.
10. Measure the corrective and preventive actions for the quality of the turbine water.

Sustainability Report 2011 73

74 AES Tiet
 Development and Valorization
of Employees, Suppliers
and Communities

Know, engage in a
transparent way and
positively influence
employees, suppliers
and communities to the
collective construction
of an agenda which
generates value to
everybody
AES Tiet employees are essential for the the previous year, the strategy for the next
development of continuous improvement period, the investment plan and the goals to
policy, focused on ensuring the quality of be fulfilled.
customer service and the satisfaction of
customer. Therefore, the Company makes Before the event, that in 2011 reached the
them feel part of the business, involving fourth edition, the employees participate
them and encouraging the participation in of round tables, in which they show
important day to day companys issues. The improvement proposals that may be used
focus is to make the professional to feel in the Groups strategic plan. Based on ideas
good with his/her activities and be aware and suggestions presented at the time,
that his/her work benefits the sustainability. AES Brasil formulated a plan with 65
initiatives, of which ten were focused in
An example of this is the event P na AES Tiet.
Estrada, a program that join components of
the senior management and employees to a
chat that has a purpose to submit results of

Sustainability Report 2011 75

Development and
evaluation of
employees
Commitment AES New head office
To increase synergy and interaction between AES Brazil Administrative areas in
Tiet (2012-2016) So Paulo, the Grupo will promote a relocation of head office in 2012.With this
E ach an index above 85% of measure, the company intends to accelerate the decision making and reduce
satisfaction in AES Brasil work operating costs by reducing the displacement time between the units, for
environment until 2016 example.

The theme was discussed internally over months. It was carried out several
studies to evaluate places, possibilities and benefits, and the City of Barueri, in
Great So Paulo, was the chosen place. It will host the Administrative employees
located in the capital.

AES Tiet people

To talk about subjects related to relocation, as infrastructure available in the site
and transportation services, the Company created a committee, comprised by

management
representatives of several areas. The group tried to identify options that meet the
employees expectations and needs.

focus is that In transportation issues, for example, visits to the companies in the new head

each employee
office surroundings that passed by the same process were carried out, in order to
listen lived experiences. The region mapping was also made in order to identify

feels good with

points of interest, as parking lot and restaurants and viability studies.

his/her activities
The company also carried out an internal research with employees to identify
and find ways to meet expectations as to the new workplace. This research

and be aware
results will guide the project development, in order to provide an innovative work
environment which valorizes the collaborative activity and show the integration

that his/her
between the teams and proximity between areas.

work benefits
the society

Comments from the relation network

The decision of a new head office, with thousands of employees involved,
was not approached (on the previous report). Where is the information
about the decision procedure?

Comment of an employee during the 3rd Cycle of Relation Network

Discussions

76 AES Tiet
 climate survey
GRI: LA2
Know its employees opinion with
respect to work environment is also
a priority to AES Brasil. Through a
specialized consultancy, the company
carries out annual researches of
organizational environment, considering
six dimensions: competence, leadership,
communication, affiliation to the
company, safety, and code of conduct.
The AES Brasil organizational climate
reached 79% of satisfaction in 2011.In
AES Tiet, the index reached 77% in the
same period.
In 2011, AES Brasil innovated and
included questions specifics to evaluate
its employees perception about the
concerning with the quality in the
customer service to internal and external
customers and the compliance with their
relationships web requirements.
Employees
Profile
GRI: LA1
In 2011, AES Tiet staff counted with 355
own employees and 963 contracted, all
located in the region Southeast of the
country and in full-time. From them,
355 have an agreement for indefinite
period and 19 (trainees and apprentices), of
determined time.
In relation to 2010, the number of
employees grew 56.5%. With this great
number of people working in operations,
the big concern of the company is to
maintain and respect the diversity between
its employees. Therefore, it adopts inclusion
policies that take into account racial, age,
gender and social issues. This work starts
in the admission process and involves all
human resources and leaderships areas.

The results indicated that 78.6% of AES

Brasil employees and 79.7% of AES Tiet
employees agree that the company is
concerned with the quality of customer
service to internal and external
customers. Number of employees

With respect to the relationship with OWN Subcontracted

its interested parties, 72.7% of AES
Brasil employees and 79.2% in AES Tiet 2009 315 2009 339
evaluated positively the compliance with
the needs of their main relationships web. 2010 313 2010 529

2011 355 2011 963

Sustainability Report 2011 77

Diversity and
inclusion
GRI: LA1; LA13
AES Tiet adopts inclusion policies, ensuring
racial, age, gender and social equity in its
workforce through the performance of
human resources and leaderships areas since
the admission process.

The percentage of female professionals

in AES Tiet is 14.1%. In management Percentage of black people by functional and gender level
positions the proportion is of 26.70% and, in
vice presidency, of 33.34%. Board
6,70%
Additionally, the leaderships are encouraged
to support the inclusion of disabled people. 0%
To receive them, the company performs a
mapping of suitable activities and locations
to this public, in addition to hire technical Administrative
schools that prepare them to the work
market and to internal opportunities. In
5%
2011, 15 disabled people participated of 5%
a preparatory course for the work market,
and it has already been initiated a new class
with 15 disabled people in 2012.Among Production
the offered courses are the quality control
analyst, Administrative assistant, supply
7%
assistant and products programmer, offered 0%
by SENAI (National Service for Industrial
Learning). Disabled employees represent
1% of the employees on the Administrative Men
sector and 1% of the production sector. Women

The Company also runs the Programa de

Empregabilidade de Pessoas com Deficincia Percentage of employees, by functional level Below 30 Between 30 Above 50
that aims to increase the workforce and age group 2011 2011 years and 50 years years
awareness to receive these employees. Board - 40.00% 60.00%
Executive board - 100.00% -
Management 4.00% 92.00% 4.00%
Administrative 39.00% 58.00% 3.00%
Production 24.00% 63.00% 13.00%
Trainees 100.00% - -

Percentage of employees, by functional

Men Women
level and gender 2011
Board 3.30% 96.70%
Executive board - 100.00%
Management 32.00% 68.00%
Administrative 41.00% 59.00%
Production 1.00% 99.00%
Trainees 50.00% 50.00%

78 AES Tiet
AES Tiet adopts
inclusion
policies to
honor the
commitment
of maintaining
and respecting
the diversity
between its
employees

GRI: LA1; LA13

General information 2009 2010 2011

Total number of employees 315 313 374
Employees up to 30 years old (%) 22.0 23.3 25.6
Employees between 31 and 40 years old (%) 32.0 33.2 33.2
Employees between 41 and 50 years old (%) 36.0 33.9 31.6
Employees above 50 years old (%) 10.0 9.6 9.6
Number of female employees in relation to total employees (%) 11.1 12.1 14.1
Women holding management positions in relation to total management positions (%) 11.8 21.4 26.7
Black female employees in relation to total employees (%) 0.6 1.3 0.6
Black male employees in relation to total employees (%) 7.3 6.7 6.2
Black employees holding management positions in relation to total management positions (%) 0.3 0.0 0
Trainees with respect to total employees (%) 1.9 3.6 2.3
Employees under apprenticeship program (%) 3.8 3.7 3.1
Disabled employees 3 3 3
Investments in specific programs especficos for people with HIV (R$ thousand) 0 0 0
Investments in drugs and alcohol prevention and treatment programs (R$ thousand) 0 0 0

Sustainability Report 2011 79


feel free
Through Feel Free Programa de
Crescimento Profissional, which brings
information about hierarchical levels,
knowledge, formation and experience
required to exercise each position, AES
Brasil Groups professionals have the
chance to draw career plans and to
establish targets for their professional
growth. The program helps in the
definition of classifications in salary
ranges and increases by promotion,
in addition to act together with the
recruitment and internal selection plans,
succession plans, Training plans and
development and allocation of resources.
Since its creation, in 2009, the Feel Free
was responsible for 20 classifications,
193 merits (amendments to the
compensation without position change)
and 55 promotions only in AES Tiet.
80
Internal
recruiting
Invest in talents and in its development for
the good performance of the business. That
is what AES Brasil believes. Because of it, it
priorizes the internal recruiting with respect
to the new opportunities.
Only in 2011, through the Programa de
Recrutamento e Seleo Interna, 45% of
the spaces were occupied by employees
who already worked in the company, in
other functions. The main objective of the
program is to strenghten the succession
plan, as well as to encourage the employees
to create a career plan so that, in the future,
they may occupy new positions inside the
organization.
So that the spaces may reach everyone in
a democratic manner, the company uses
the internal communication tools, such
as intranet, board and bulletins, to do the
disclosure.
When AES is not able to fill internally out
all spaces, an external selection process is
opened, coordinated by human resources
area, with active participation of the
requesting area manager.
45%
of the work opportunities
offered by AES Eletropaulo in
2011 were filled by internal
recruiting.
Trainees
In December, 2011, AES Brasil formed its
first trainee panel. From the 20 professionals
who started in January, 2010, three
developed the program inside AES Tiet, and
two of these youth were contracted to act in
the company. In each stage of the Training,
which has a duration of two years (divided
into four semesters), the trainees know a
specific area of the company and delivered
a high impacting project, which is part of its
performance evaluation. The formation is
complemented with great exposure to the
high leadership and technical and behavioral
courses which enable to develop systematic
vision and management skills. AESs leaders
also act as mentors of these professionals,
helping them in several questions about how
to develop themselves in their career and
deal with the adversities.
The Trainee Program has as purpose to
prepare successors for strategical positions,
in addition to contribute for the personal
and professional development of the
participants.
The pursuit is to find highly qualified youth,
questioning and creative, who bring new
looks to former proceedings, with focus
on always promoting the change and on
improving the company.
AES Tiet
AES Brasil Groups companies invest
in the development of talents aiming
at ensuring the good business
performance, so that it priorizes the
internal recruiting with respect to
the new opportunities

Currently we have four active trainees in

AES Tiet, provided that three newly hired turnover rate
employees through an admission process
which counted on almost 10 thousand Turnover rate, Turnover rate, by
candidates. by gender age group

Turnover 14
4
GRI: LA2
In 2011, the company had 56 hirings and 14
43 layoffs, being 14 women and 29 men.
The higher turnover rates were identified
among men (67%) and employees between
30 and 50 years old (58%). During the
period, the turnover rate was 14.42% of all
disconnections. The target established by all 29
25
AES Brasil Groups companies is of up to 6%.

Male 67% Under 30 years 33%

Female 33% Between 30 and 50 years 58%
Above 50 years 9%

Behavior before layoffs 2009 2010 2011

Number of employees in period end 315 313 355
Number of hirings during the period 46 31 56
Labor complaints initiated by total of dismissed
9.00 4.00 10.00
employees during the period GRI: SO8
Labor complaints 2009 2010 2011
Amount claimed in judicial (thousand R$) 24,318 50,020 52,806
Amount provisioned for the liability (thousand R$) 3,260 5,081 3,218
Number of claims 90 86 78
Number of employees related to in the proceedings 90 143 135

Sustainability Report 2011 81

In AES Tiet, employees with
differentiated historical performance
participated in an evaluation which
identifies potentialities and
development needs

Compensation
GRI: LA14; EC5
AES Tiet is concerned about keeping Profile of compensation
attracting and competitive in the market; % of employees by range of salary 2009 2010 2011
Up to 5 Minimum wages 9.90 18.21 16.62
therefore, it adopts a compensation policy
From 6 to 10 Minimum wages 47.40 47.92 42.54
in accordance with Hay methodology.
From 11 to 15 Minimum wages 23.40 18.21 25.07
Additionally, it uses Balanced Scorecard to
Above 15 Minimum wages 19.30 15.65 15.77
spread global targets and to encourage its
Salary average, by category (R$) 2009 2010 2011
employees to reach always better results. Executive board positions 28,861.00 31,073.33 30,817.17
The market comparatives take into account Management positions 11,715.00 12,634.11 14,359.60
the electric power segment for technical Administrative positions 5,779.00 6,186.76 4,919.43
positions and, for other levels, same size Production positions 3,597.00 3,819.32 1,291.97
companies are deemed.

Companys salary policy includes nominal

salary (fixed compensation), additional
compensations and benefits, in addition Ratio between base salary for women and men, by functional level
to profits and results sharing (PLR). Fixed
compensation is tied to the position
and job duties, according to the level of 87%
responsibility. On the other hand the Management
variable compensation is based on the
individual performance evaluation and on
Companys result and it is paid through 124%
Programa de Participao nos Lucros e Administrative
Resultados.

Considering all AES Tiets units, no employee 110%

receives the equivalent to minimum wage. Production
The lowest salary paid by the organization is
5% higher than the minimum established by
law. In turn, with respect to the operational 110%
positions, the employees received an Trainees
addition of 10% in salary.

82 AES Tiet
Benefits Compensation, benefits and career
Compensation
2009 2010 2011
GRI: LA3
Gross payroll (thousand R$) 33,969.00 53,634.55 54,289.52
AES Tiet believes that employees should
Compulsory social charges (thousand R$) 12,509.00 15,187.04 14,473.07
receive incentives and be satisfied in order
Benefits
to develop any type of activity. Therefore, Education (thousand R$) 855.80 1,397.90 1,079.47
the company offers to all employees a Food (thousand R$) 2,203.00 2,360.19 2,609.53
number of benefits, services and policies Transportation (thousand R$) 1,938.00 1,157.30 1,234.83
that are continuously improved by the Health (thousand R$) 1,516.00 2,146.23 2,057.28
organizational and market researches, by Pension fund (thousand R$) 1,551.02 1,630.91 1,503.42
using the Hay methodology. Others (thousand R$) 0.00 0.00 0.00
Participation in GRI EC5 results GRI: EC5 2009 2010 2011
Total investment in interest program in the results of the
6,912.00 8,693.91 8,587.08
company (thousand R$)
Amounts distributed with respect to the gross payroll (%) 20.30 16.21 15.82
Companys shares held by employees (%) n/a n/a n/a
Division of the highest compensation by the lowest
compensation in cash paid by the company (includes interest 23.90 61.20 75.00
in the results and bonus)
Division of the lowest compensation of the company by the
minimum wage in effect (includes interest in the results and 3.00 1.00 1.10
bonus program)

Main benefits
Life insurance Offered to all employees, without monthly payments. Death for any reason and disability. All
Capital R$49.213.309,50Mapfre Seguros
Funeral allowance Offered to all employees and direct dependents by Mapfre Seguros. Without monthly All
payments. Up to R$3 thousand
Personal support program Existing channel to deal with personal, psychological or social issues, conflicts, finances, All
chemical dependence etc. With confidentiality and no cost
Meal ticket Paid in the amount of R$ 510 to all active employee. Gradual discounts between R$ 0.01 to All
R$ 40.66, according to salary
Food ticket Paid in the amount of R$110 to all employees, with discount of R$5 in payroll All
Transportation ticket Paid to the employee. Discount of up to 6% of salary All
Food ticket for Christmas Benefit offered to all employees, in the amount of R$510 All
Lunch ticket Paid to the employee who perform overtime in the amount of R$6.82 for three to five hours, All
R$13.69 for five to eight hours and R$23.15 for more than eight hours.
Pension fund The employee may choose the plans: mixed plan benefit offered by Fundao CESP and by All
Ita, contribution and benefit defined and Plan PGBL or VGBL
Health care Benefit operated by Bradesco Health and by Fundao CEPS with co-interest and deductible. It All
is applicable to dependents and persons filed through 2000
Dental care Benefit operated by Odontoprev, without monthly installment. It discounts co-interest. It is All
applicable to dependents and persons filed through 2000
Supplement of work accident O employee subject to temporary lease receives the salary supplementation as from the 16th All
to the 23th month of leave
Allowance to employee with special Benefit paid to the employee with child with special needs duly confirmed by medical report. All
needs Amount of R$ 410
Allowance to employee with physical Benefit paid to the employee with confirmed disability by medical report. Amount of R$ 195 All
disabilities
Day-care assistance Offered to employees with children up to 7 years that are at school, nursery school or day All
nursery during working hours or for those employees legally responsible for the children.
Amount of R$ 385
Nursery care Offered to employees with children up to 7 years that are at school, nursery school or day All
nursery during working hours or for those employees legally responsible for the children.
Amount of R$ 385
Check-up Annual benefit offered to management, without co-participation Executive board and
management
Continuing education Subsidy granted to the leadership and high-level professionals Executive board, management,
coordination and high-level
professionals
Language Subsidy of up to R$ 800 to Officers and R$ 250 to leaderships and analysts Executive board, management,
coordination and high-level
professionals
Loans Plan with Fundao CESP and Banco BMG, discounted directly from payroll All
Travel insurance Granted to senior executive officers for business travel Executive board

Sustainability Report 2011 83

Pension
Group 1: members with contribution salary
greater than 10 URA (R$ 3,429.80) basic

fund plan contribution of 1% plus supplementation of

1% to 10%.
GRI: EC3; LA11
The interest in AES Tiets pension fund Group 2: members with contribution
plans is voluntary and covers all companys salary lower than 10 URA (salary below R$
employees. The offered plans are Fundao 3,429.80) basic contribution of 1%.
CESP, Previdncia Ita Unibanco and
MetLife11 and have three choose options In MetLifes case, AES Tiet makes an annual
defined, additional and volunteer. The contribution to its executives, in December.
contributions are stipulated in accordance
with the characteristics of each of them,
with disbursements made by the employees
and by the company.

The calculation of the benefit defined by

Fundao CESP is based on 70% of the

5%
salary of the employee multiplied by the
corresponding rate in the Supplementation
Plan of Retirements and Pensions (PSAP),
in which case the company contributes above the minimum wage established
with 100% of the value. With respect to by law is the amount of the lowest
the voluntary contribution, the calculation salary paid to an AES Tiets employee.
is based on 30% of the beneficiarys
compensation that may elect to contribute
between 1% and 100%. In this type, the GRI: LA3
organization contributes based on the limit Participation in profit and revenue
of 5% of the value. Type of benefit Metrics SCOPE
Performance with respect to
All employees (except for Officers and
With respect to Ita Unibanco, the pension Collective PLR corporative targets (established by
chief executive officer)
plan contribution is divided into two groups, executive offices)
All employees (except for managers,
and the company contributes with 100% of Individual PLR Individual Performance Evaluation
Officers and chief executive officer)
the basic contribution: Business and individual performance Managers, Officers and chief executive
Bonus
evaluation officer
Long term incentive policy is of the
Long-term incentives AES Corp., and the program has a Officers and chief executive officer
triennial cycle for assessment

Preparation for retirement 2009 2010 2011

Investment in complementary pension plan (thousand R$) 300.48 1,630.91 1,713.94
Number of processed by complementary
262 294 277
pension plan program
Number of processed by program of
0 6 2
preparation for retirement
11
Previdncia Ita Unibanco and MetLife are not defined benefits;
however, the company contributes to the plans (companys
general resources) and there is no social security fund. In these
cases, the plans cover benefits for total and permanent disability
and benefit due to death.

84 AES Tiet
315 employees did Performance
under pressure; and initiative. For the
supervisor and coordinator level, there are

internal courses, evaluation

management competences of people and
change management.
GRI: LA12
and other In order to allow the employees and The performance evaluation process takes

314 received
leaders to better know the individual and place over the year; however, it has two
organizational performances, direct the important semiannual cycles:

financial support the positive behavior and results in the

development of careers and reinforce
Semiannual feedback it is an

for external
different companies of Grupo AES Brasil, the opportunity of full feedback, focused
Company adopts an integrated performance exclusively on the behavior and

capacitation
evaluation model that comprises 100% development.
of the employees and is one of the main

or formation,
references of the management practice Performance evaluation evaluation of
of the persons within the organization, by the annual performance of the employee,

amounting to
measuring the feedback procedure and the including the findings (results) and his/her
development and compensation policies. behavior.

almost R$550 Firstly, all persons are responsible for a Both cycles have, in the last stage, a formal

thousand in
self-evaluation, followed by the evaluation feedback procedure between the leader
of their peers and subordinated employees and employee. This stage aims at providing

investments
(with respect to the leaderships) and, finally,
their managers, through the use of this
information as the basis for the analysis and
evaluation.
For evaluating the positions in operational,
Administrative, technical and analyst level,
five competences are deemed. They are:
safety; technical and functional; orientation
towards results; interpersonal relationship,
and commitment with the organization
and AES Values. For positions in specialist
analyst and trainees level, in addition to
aforesaid competences, it can be included:
communication; capacity of working
meetings for the development through the
sharing of the evaluation with the employee,
by emphasizing the positive aspects
and improvement opportunities, by also
directing the Individual Development Plans.
In the last three years, AES Tiete reached in
these stages, the ratio of XX% of feedbacks
carried out by employee.
Based on the performance evaluation
findings, AES Brasil also seeks to identify
talents and successors for the companys
strategic positions.

Professional Development 2009 2010 2011

Education Profile
Fundamental education 0.86% 3.19% 2.54%
High School 34.77% 43.13% 43.10%
Higher Education 54.02% 44.41% 43.38%
Post-Graduation (specialization, Masters, PhD) 10.35% 9.27% 10.98%
Illiterate in the workforce 0.00% 0.00% 0.00%
Amount invested in professional development and education 2.52% 2.61% 1.99%
Number of hours of professional development
54 49 58
for employees, per year

Sustainability Report 2011 85

In 2011, AES Tiete offered 19,235
training hours, development
and training in various subjects
related to business
Recognition to
the employees
To encourage and reward the employees
that excel in the development of their daily
activities, since 2009, AES Brasil has the
Recognition Program, which includes three
types of recognition. In AES Tiete, in 2011,
51 people were processed:
Dynamic awareness: oriented towards
employees and/or teams whose actions
had positive impact on the company
and generates above expected results for
the responsibilities of the position. The
nomination is made by the director of the
area, and the award is given on a monthly
basis. In 2011, 38 people were recognized
by leadership, in their work environments;
Management recognition: award for the
leaders that demonstrate the skills and
values in terms of leadership of Grupo
AES Brasil through actions that would
supersede the expectations and would
represent high effects to the business.
In 2011, two executive officers were
recognized at the quarterly meetings of the
executive board;
Recognition for AES Values: the employees
that stand out for presenting the AES
Values are rewarded. In AES Tiete, 11 people
were recognized in 2011.This recognition
happens during the P na Estrada event.
86
Trainings
GRI: LA10
To train capable professionals to operate
and control complex machines and power
plant facilities and their reservoirs, AES
Tiete created the Programa de Formao
Profissional para Usina Hidreltrica, a
partnership with SENAI (National Service
of Industrial Learning) which contributes to
overcoming one of the greatest challenges
of the Brazilian energy sector, which is
finding specialized workers in the market.
The program classes are administered by
employees of AES Tiete and professors
from SENAI and have as different the
content, which is specifically focused on the
generation of energy business. Altogether, ten
employees pass their knowledge, acquired
throughout the years, to future professionals.
There are orientations of the company in
the preparation of class curriculum, which
includes internship in the plants.
After the conclusion of the course, with
duration of one year, the students receive
a registered certification in the National
Electricity System Operator (ONS), entity
responsible by coordination of National
Integrated Systems (NIS), under Brazilian
Electricity Regulatory Agency (ANEEL)
inspecting authority.
The program was implemented in 2010 and
already graduated 16 students in its first
class, in the city of Bauru. Last year, two
new classes were assembled, the first in
Araatuba city and the second in the city of
Bauru. For 2012, the creation of new classes
in Bauru and Araatuba and one class in
region of Mococa is expected .
In addition, on an annual basis the AES Tiet
employees receive trainings that involving
several subjects related to the essential skills
to the company business and to leadership
development such as ethics, compliance e
safety. In the aggregate, in 2011 55 hours of
training, development and qualification for
employees were counted.
The training and capacity programs are
divided into five categories in AES Tiet:
Development of leaderships: aims at
preparing the managers to promptly
respond to the daily chanlleges, support
their employees in the compliance with
their duties and disclosure the companys
culture and values.
Education allowance for continuing
education and language: the employees of
AES Tiet have the right to receive education
allowance for post graduation courses,
masters degree and doctorate whose theme
is related to the business strategy and the
learning and improvement of languages for
those cases when the qualification is a part
of their duties or for future tasks.
Yearther initiative of the company is the
partnership entered into with the School
Superior de Propaganda e Marketing
(ESPM) and with Fundao Instituto de
Administrao (FIA/USP), which allows the
employees of the Company and its family
AES Tiet
members to attend to MBA in Business
Management, Finance and Electric Energy
Management for a value lower than that
practiced in the market.
The company also offers educational
allowance for those employees who
intends to attend to a technical course or a
graduation course.
Lecturers and workshops: the employees
may also attend to the lecturers and
external workshops. Based on this, the
company promotes internally events
related to the management of knowledge
and improvement, in addition to lectures,
information technology courses and self-
development actions through e-learning.
Technical and occupational training:
towards to operational positions, the
program is divided into three groups:
training 2011 GRI: LA10
Functional Category
Executive board
Management
Head/coordination
Technical/supervision
Administrative
Operations
Trainees
Aggregate
Total
Sustainability Report 2011
compliance with specific laws and
regulations of the electricity sector,
that represents 26% of the annual grid
technical-operational capacity; basic
51,43
capacity, minimum and mandatory
for professionals of the operational,
Administrative, technical and commercial
areas (approximately 400 courses, hours of training per employee
which represent 50% of technical were offered by AES Tiet in 2011
capacity volume); and specialization for
management functions and proceedings
control, basic notions of people
management and integration activities.
In 2011, AES Tiet obtained the average
of 51.43 training hours per employee,
upper the 49 hours registered in 2010.
The category that more stood out was
the technical/supervision, which received
15,416 Training hours divided among 192
employees, an average of 80.29 hours of
training per employee.
Total credit hours Total employees of the category Hours per employee
8 5 1.60
442 25 17.68
1,698 30 56.60
15,416 192 80.29
1,422 94 15.13
32 6 5.33
208 3 69.33
9 8 1.13
19,235 374 51.43
87
Quality of life
Concerned with the employees quality of
life inside and outside of work environment,
AES Tiet invests in programs and actions
to identify hazard and risk factors related to
occupational health.
Through Safety and Occupational Health
and Safety Management System (OHSMS),
based on OHSAS 18001 and BBS Behavior
Based on Safety, the company implements
control measures that aim to ensure health,
safety and ergonomics of the peoples.
One of the highlighting initiatives is the
program Viva Bem Viva Mais, divided
into three approaches, which aims to
reduce stress and promote quality of
life, contributing to the professional and
personal development of the employees:
Viva o corpo focused on the care of
employees health, counts on actions in
two aspects: the Respire Sade, that fights
smoking and aims employees and families.
Include informative and motivational
speeches and weekly sessions of group
psychological support, in addition to
medicine allowances, when necessary. To
other members of the family, psychological
treatments are offered from distance,
in addition to discounts in the purchase
of medicines. In 2011, the success index
of Respire Sade in AES Brasil reached
98% (participants that quitted smoking).
Regarding Alimente-se Bem, it offers
educational speeches on the importance
of a balanced feeding and a healthier
routine. Employees also receive, every
15 days, personal support and physical,
diet, nutritional and body composition
evaluations, aiming to reduce weight and
improve health in general. In 2011, 421
people enrolled in the program, provided
that seven are hosted by AES Tiet.
Viva a mente aims to reduce stress
and sedentarism, acting in two aspects.
For street walking and running, AES
Brasil makes 24 training points available,
where employees and their families can
practice the activities. In 2011, 172 people
enrolled the program; of this total, two
are AES Tiets employees. To improve the
performance of the runners, the Project
Vero was carried and aimed to guide them
about healthy feeding, hydration, nutrition
88
Program Viva
and sports, among others. Agita Julho
promotes, during school vacations, sports
Bem Viva Mais
championships between employees and
their families. It will be seven modalities
aims at reducing
all futsal, volley ball, court tennis, walking,
street running, trick and chess, besides
the stress
interacting activities for all. In 2011, the
event received 1.514 enrollments in total,
and promoting
being 148 from AES Tiet.
quality of life, by
Viva mais campaigns to promote physical
and mental welfare, in four aspects. Labor
contributing to
gymnastics is provided three days per
week, in all units of the company, focusing
the professional
on the control over ergonomic risks and
prevention against muscular problemas
and personal
caused by stress resulting from muscle
tension during work and from not corrected
development of
wrong posture, as well as from movements
or efforts that harm articulation health.
employees
The average of attendance during 2011
was 78%. In 2011, speeches and lectures
addressed subjects related to obesity and
hypertension, health of shoulders, STD/
AIDS prevention, ergonomics and hearing
protection. Of all, 46,443 people attended.
During the vaccine campaigns, 4,523 doses
of seasonal flu vaccine were distributed.
As to Program Gestao Saudvel, which
offers important information to pregnant
employees of Grupo AES Brasil, distributed
in seven meetings every fifteen days, it
create awareness about the importance
to breast feed, physical activities, nutrition Communication with the staff
and care of babies, among other subjects In addition to the organizational research,
relevant to the pregnant and babys health. which is held annually, AES Brasil have
It counted on 68 participants, provided that other communication channels thereby
four are AES Tiets employees. the employees can express their opinion,
clarify doubts and know the company
Yearther highlight in 2011 was the creation better. It is: evaluation research of inside
of Blog Gestao Sadavel, which includes communication, carried quarterly with
information related to the program, all approximately 600 employees of the Group,
content addressed and pictures of meetings selected randomly; e-mail comunicacao@
and babies, in addition to answers to aes.com, an open channel that the employee
possible questionings, aiming to provide can access whenever he/she wants; and
information to the pregnant wives of Rede Ligado, comprised by five integrated
employees of Grupo AES in practical and communication channels, as follows:
interactive manner.
Conexo Ligado: mural updated every six
months with information about Grupo
AES Brasil, indicators, internal selection,
news related to subjects as environment,
safety, quality of life, culture and family,
internal classified advertisements, photo
sharing and employees testimonies.
AES Tiet
 98%
of the participants of
Respire Sade program
QUITTED smoking

Safety and Environment Mural: mural Boletim Ligado: bulletin sent by e-mail to
monthly updated with safety and all employees with News about awarding,
environment information and indicators of policies and important procedures of the
AES Eletropaulos operational areas. company, organizational changes and
messages from the execute officer. It is
Revista Ligado: monthly publication that classified by subjects, in accordance with
provides the main news of the month with the Management Excellence Model. Its
respect to the Grupo AES Brasils companies frequency is not defined.
as to the strategic, safety, environment,
social responsibility and services side of Gestor Ligado: informative bulletin
view, among other subjects, with a parlance send by e-mail to all Grupos managers,
especially towards to operational employees. including information about leadership and
communication campaigns.
Portal Ligado: corporate intranet launched in
2010, which includes daily news, important
information about the Companys corporate
areas, procedures and policies, in addition to
the possibility to interact with employees.
In the main page of Portal Ligado is found
Videojornal, a space reserved for publication
of interviewing videos with personalities in
evidence in the media, AES Brasils executive
and employees. The channels reporters can
work for the Internal Communication staff
or other Grupos employees interested.

Sustainability Report 2011 89

DESENVOLVIMENTO
DEVELOPMENT AND
VALORIZATION OF
SUPPLIERS
AES Tiets
sustainability
commitments
(2012-2016)
Implement the Contracted Companies
Development and Improvement
Management Program until 2014
Have 100% of service suppliers
qualified in sustainability, encouraging
them to adopt sustainable practices
and seek certification of its products
and services until 2016
Implement the Furtherance Program
for Small and New Suppliers until 2014
Implement a contracting model of
suppliers at total cost until 2012
90
Among the commitments made by
AES Brasil in its Sustainability Platform
is the creation of a clear and transparent
relationship with all of its stakeholders. In
the case of the suppliers, the company set
up a performance evaluation system for
those which are deemed to be of critical
importance, because they have a direct
impact on the companys business and
because they entail recurring agreements
with significant monetary values. The
entire process is based on the ISO 9001
certification procedures.
Implemented in July 2011, the Suppliers
Performance Index (IDF) includes
participation by managers from areas of
all of the groups companies. Every month
these managers are required to
fill in a questionnaire that includes
aspects related to safety, the environment,
social responsibility, quality, management,
productivity, relationship and contractual
clauses.
This new tool, which was developed
AES Brasils Executive Board for Supplies,
utilizes a scoring system that measures the
degree to which the supplier meets the
companys demands. If the supplier fails
to achieve the minimum score, it will be
required to follow an improvement action
plan, developed by the manager who carried
out the suppliers performance evaluation.
In addition to this, the group is developing
a satisfaction survey with all of its critical
suppliers. The idea is to carry out this
analysis before the end of the first half of
2012, and to make this a recurring practice.
Incentive and
recognition
In order to reinforce its commitment
to the development and appreciation
of its suppliers, in December 2011 AES
Brasil held the first edition of the AES
Brasil Best Suppliers Award. With the
slogan Great partnerships deserve great
recognition, the award is based on the
IDF and recognizes the best practices of
our partners, taking into consideration
criteria in relation to Safety,
Environment, Social Responsibility,
Quality, Management, Productivity,
Relationships and Contractual Clauses.
Out of the 60 suppliers who took part
(and which account for 114 service
provision agreements), 22 were selected
as finalists and five were chosen as the
winners, in the categories: IT Services;
Administrative and Support Services;
Construction Projects and Services in
relation to the Electric Energy System
(an AES Eletropaulo supplier and an
AES Sul supplier were recognized) and
Customer Service.
AES Brasil also awarded one supplier
with the Sustainability Highlight,
recognizing and encouraging the
sustainable practices of its partners.
AES Tiet
The Suppliers Performance Index
(IDF) promotes continuous and
sustainable development and
encourages good market practices

In addition to allow continuous and

sustainable development of the commercial
partners, IDF was already used to reward the
best suppliers, as to recognize and stimulate
good practices in the market. In 2011, 60 Comments from the
stakeholders

60
suppliers went through the evaluation and
XX were rewarded. The goal for 2012 is to
evaluate a hundred suppliers.
suppliers for AES BRASIL, among
those considered fundamental,
were analyzed by the performance
evaluation system in 2011
We want to be multiplier agents, but
we want to have a basis for this, to
take this to meetings or associations.
I myself have learnt a great deal that I
previously used to ignore.

Profile of
Comment from a customer during the
3rd Dialogue Cycle with Stakeholders

the Suppliers
In 2011, AES Tiet held commercial
relationship with 2,085 companies of
small, medium and large sizes, national
and multinational to supply materials,
equipment and services to meet the
technical, operational and Administrative
needs of the plants.

The providers of service are qualified for, Subcontracted workers 2009 2010 2011
mainly, maintenance activities of the plants, Number of subcontracted/contracted workers 339 529 963
environmental preservation, vigilance and Total Cost (R$ thousand) 50,071 70,215 29,554
safety, clean and reform of equipment. More Subcontracted/contracted workers regarding total workforce (%) 52.00 62.83 73.07
than 90% of the hired staff is comprised by Compensation profile n/a n/a n/a
suppliers and regional service providers. In Educational level profile with respect to the total of subcontracted (%)
2011, 963 professionals acted for AES Tiet Fundamental education n/a n/a n/a
through service providers. High school n/a n/a n/a
Under graduation and post-graduation n/a n/a n/a

Sustainability Report 2011 91

Contracting
AES Tiet
In these proceedings, suppliers needs

policy and expectations are pointed, which are

carries PERIODIC
subsequently analyzed and used to improve
GRI: EC6; EU16; HR2 the practices related to the relationship.

inspections
AES Tiet adopts specific rules to choose Thus, we seek means to adjust the
its suppliers by applying, already in the companys expectation to the suppliers

to ensure
beginning of the registration process, execution ability in a sustainable manner.
where information about the basic safety

that suppliers
and environmental guidelines and Value During the effectiveness of the agreements,
Guide is available. In this stage, the events, meetings and workshops are carried

comply with the

Company requires legal entity, fiscal and tax out to ensure the continuity of supply
documentation and specific inquiries are without harming the parties. The main

technical, ethics
carried regarding the companys financial subjects addressed are ethics and safety.
health and the compliance with social and

and social and

environmental laws and regulations.

environmental
To choose its suppliers, AES Tiet counts on
a simpler registration policy for companies

contracting
located in the local community, by requiring
different documentation, but without

requirements
prejudice to the ethics, quality and safety
requirements. This allows the contracting
of these companies, increasing the local
economy. In 2011, of all expenses with
suppliers, 67% were used in local supplying,
that is, within the State of So Paulo.

Compliance with requirements, by suppliers,

is assured through periodic inspections
of receipt, industrial assessment, ethics
inquiries, social and environmental
compliance with and responsibilities and
technical audits carried by specialized
companies.

For more complex proceedings, AES Tiet

may require specific environmental licenses,
evidences of compliance with the conditions
and requirements of Occupational Safety
and Trainings regarding the regulatory rules
NR-10 and NR-33, prototype evaluation,
industrial homologation and compliance
inquiries.

92 AES Tiet
Contractual Registry of new suppliers depends on

Compliance the submission of legal documents and

certifications. Additionally, carry audits

Review at the suppliers, in which one of the

aspects evaluated is child and slave labor.
To ensure the highest ethical standard in Safety inspections carried out also include
the commercial relationships and anti- evaluation of these issues. Since 2010,
corruption, Grupo AES Brasils Ethics and AES Brasil, group of which AES Tiet is part,
Compliance department analyzes the is signatory of the National Pact for the
reputation of the commercial partners, Eradication of Slave Labor.
ensuring the ethical conduct of its business
and mitigating potential reputation risks
to the company. Thus, before completing
an operation, the Ethics and Compliance Selection and assessment of suppliers 2009 2010 2011
Program sets forth a series of analysis and Suppliers inspected by the company / total suppliers(%) as to
n/a 0.00 0.00
investigations, referred to as compliance due child labor and forced labor
diligences of involved partners. Additionally, Suppliers inspected by the company / total suppliers (%) as to
100.00 100.00 100.00
health and safety conditions
an Exhibit is included in the agreements,
Non-qualified suppliers (non-compliance with the companys
referred to as Compliance Exhibit, which social responsibility criteria) / total suppliers (%)
0.00 0.00 0.00
provides for the commitments of the Support to suppliers development 2009 2010 2011
business partner with respect to not getting
Number of qualification courses provided to suppliers 570 855 837
involved in corrupt acts and provides for the
termination of the agreement in cases of Number of Training hours provided to suppliers 1,791 2,766 3,009
failure to comply with the terms.

In 2011, 265 operations, involving a total

amount of R$ 183 million in AES Tiet
were analyzed provided that this amount
corresponds to the amount analyzed, and
not contracted, by the company, as some
agreements are effective for more than one year.

In AES Tiet, the risks to occur child labor

or similar to slave occur in small family
suppliers that provide service to the

265
company and can use this type of labor.

In order to avoid the occurrence of child or

slave labor in its network, AES Tiet makes operations, involving a total
information regarding the Code of Ethics amount of R$ 183 million,
available to suppliers and includes a specific were assessed by the Ethics and
contractual clause regarding this subject. Compliance Program in 2011.

Sustainability Report 2011 93

DEVELOPMENT AND
VALORIZATION OF
COMMUNITIES
In 2011, AES Tiet
AES Tiet is aware of its role in the Culture and Citizenship House
socioeconomic development of the The objective of AES Brasils main project, that

injected
company, considering the relevance of the is the Culture and Citizenship House, is to
energy generation service for everyone. transform the reality of thousands of children,

R$ 12 million
Through own and encouraged resources, the young people and adults, by means of activities
company invests in projects that promote that are focused on art, culture, citizenship, the

into social
the social inclusion and citizenship, the quality of life and income generation.
education for conscious and insurance use

inclusion,
of energy, culture, sports and generation of Focused primarily on low-income
income in the low income communities. communities, in 2011 the project assisted,

citizenship and
directly, about 5,600 people in its activities
In 2011, the financial contribution was of and indirectly, 226.9 thousand people,

income generation
R$ 120 million, between own and through presentations and talks made. In
encouraged resources. AES Tiet facilities, these figures were of 3.7

projects
thousand people assisted by the activities
and 135.5 thousand assisted by the
presentations and talks.

AES tiet
sustainability
commitments
(2012-2016)
Define policy, strategy and sources
for the private social investment,
seeking to get closer to Grupo AES
Brasils core business, up to 2013
Define own mechanism for revenue
generation of Culture and Citizenship
House up to 2013
Participate from preparation e
implementation of three public
policies aimed at sustainability up
to 2016

identify and recognize the best
practices in company sustainability
up to 2014
Social projects
GRI: EC8; SO1
In AES Tiet, the implementation process of
a social project in a certain local involves
an analysis of the regions socio-economic
profile, through So Paulo State index of
social Vulnerability (IPVS), to evaluate the
size of the population to be benefited.
Once the company identifies the
community to be benefited, based on IPVS
analyses, a work of alignment with the
Public Authorities and the local leaders is
done in order to relate the expectations of
the community with the AES Tiets social
responsibility strategy. By the end of the
process, the Company monitors the project
results through surveys with the people
benefiting from it.
Acting in the two spheres of social
responsibility (Education, Culture and Sport
and Inclusive and Social Business), the project
has seven units: So Paulo and Osasco, with
investment from AES Eletropaulo; Barra Bonita,
Lins, So Jos do Rio Pardo and Caconde,
under the responsibility of AES Tiet; and
Novo Hamburgo, in Rio Grande do Sul state,
sponsored by AES Sul.
The programming covers two areas of activity,
which involve related themes, namely the safe
and efficient usage of electric energy and the
responsible consumption of natural resources.
The first of these, which is offered between
Monday and Friday, from 8.00 a.m. to 5.00
p.m., is aimed at children and teenagers and
includes activities such as storytelling, circus
arts, visual and digital arts, music, theater,
dance and artistic gymnastics. The pedagogical
methodology applied was developed by a
multidisciplinary team of curators.
The other area, which is aimed at young
people and adults, promotes access to
vocational and entrepreneurship courses,
workshops for income generation, lectures
and cultural events.

94 AES Tiet
 Environment and
Citizenship Day
To commemorate Environment Day,
discuss sustainability practices and assist
in the awareness of the population on
the care with environment and the
actions to preserve it, in 2011 Culture
and Citizenship House units, located
in AES Tiet area, prepared a special
programming. Lins and So Jos do Rio
Pardo units had activities that addressed
themes such as seedlings planting,
awareness talks; dance shows and plays
and ecological walks. About 3.3 thousand
people participated in the activities.

AES Tiet also carried out fingerlings

release, as well as sent letters to 95
municipalities, basin committees and
environmental agencies divulging the
environmental programs and companys
contacts and making seedlings of native
species produced in Promissos Nursery
available. More than 200 thousand
seedlings got out the nursery for
promotion and donation.

For more information about the

Culture and Citizenship House go to the site
www.casadeculturaecidadania.com.br.

Sustainability Report 2011 95

When implementing a social
Project in a location, AES Tiet
makes an analysis of the regions
socio-economic profile, through
So Paulo State index of social
Vulnerability (IPVS)
Energia do
Bem Volunteer
Program
Energy for Good is an AES Brasil volunteer
program aimed at engaging and offering
support to direct and outsourced company
employees and their family members who
want to, voluntarily, contribute to the
development of the communities in which
the Grupo is inserted. In 2011, the project
counted on the participation of 1,108
employees from AES Brasil and 149 from
AES Tiet.
The Grupo provides support to volunteer
projects in three aspects:
Distributing Energia do Bem: aims at
mobilizing employees to take part in periodic
and emergency campaigns, such as the
Campanhas do Agasalho e de Natal (Clothes
Donation and Christmas Campaigns),
encouraging donations for social projects in
aid of children and adolescents.
Agindo para Transformar: incentives social
engagement and the employees voluntary
participation in partner institutions. It also
includes the selection and monitoring of
social projects registered in the Municipal
Councils for Childrens and Adolescents
Rights (CMDCAs), which receive 1% of
income tax owed by the company.
For further information about the
program Energia do Bem access
www.energiadobem.com.br.
96
Empreendendo na Comunidade:
implemented in 2010, the goal is to
encourage social enterprise among
employees through the presentation of
social projects to be developed in the
communities.
To support the program, AES Brasils
companies offer a portal to divulge
volunteering opportunities, and the
donation is up to four hours per month from
working hours for voluntary work, including
transportation by a company-licensed taxi
to the institution closest to the workplace.
Number of volunteers AES Tiet
YEAR Volunteers
2009 168
2010 153
2011 149
5,600
persons were directly benefited
from the project Culture and
Citizenship House in 2011.
Other projects
AES Tiet sponsored, with encouraged
resources the project Circuito de Tnis,
promoted by So Paulo Tennis Federation.
Ten municipalities were contemplated with
tournaments between first class players and
amateurs in the municipalities clubhouses.
Additionally, clinics for children from public
school networks education and from Culture
and Citizenship House units were carried out,
benefiting 5,500 children and adolescents.
Comments from the
stakeholders
AES Brasil has a set of education
programs that target conscious
consumption along with programs that
cater to the community in relation
to safety at electrical installations
and in the electricity networks. These
programs are very daring given that
for all intents and purposes they are
intended to transform the populations
behavior and attitude.
Comment from a customer during the
3rd Dialogue Cycle with Stakeholders
AES Tiet
 Management of the companys impact on the surrounding community GRI: SO1 2009 2010 2011
Number of community complaints impacts caused by the companys activities 0 0 0
Number of improvements implemented in the companys processes as of community complaints 0 0 0
involvement of the company in claims related to third parties GRI: SO8 2009 2010 2011
Resources invested in education (R$ thousand) 1,852 1,779 2,024
Resources invested in health and sanitation (R$ thousand) 0 0 0
Resources invested in culture (R$ thousand) 6,961 7,459 8,045
Other resources invested in social actions ( R$ thousand) 1,569 1,870 1,789
Amount used in social action (do not include legal obligations, taxes, or benefits associated with the position of
14.50 16.07 11.00
companys employee) (%)
Of the total used in social action percentage corresponding to donations in products and services (%) 5.00 0.00 0.00
Of the total used in social action, percentage corresponding to donations in cash (%) 0.00 0.00 0.00
Of the total used in social action, percentage corresponding to investments in own social project (%) 77.58 72.14 49.00
Employees who carry out voluntary work in community external to the company/total employees (%) 53.33 53.67 42.00
Number of monthly hours donated (waived from normal working hours) by the company to employees volunteer work) n/a 572 49
Consumers enrolled with Programa Bolsa Famlia/number of consumers of low income segment (%) NA NA NA

Company involvement in cultural, sports projects, etc. (Rouanet Law, state incentives) GRI: EC4 2009 2010 2011
Amount of resources used in projects (R$ thousand) 9,415 8,216 8,173
Number of projects benefitted by sponsorship 22 27 15
Amount of resources used in the largest project (R$ thousand) 8,230 7,786 4,784
*
Culture and Citizenship House. Proponent: H. Melilo.

Government and society GRI: SO1

Management of the companys impact on the surrounding community 2009 2010 2011
Resources allocated to federal, state and municipal governmental programs (not provided for in law) (R$ thousand) 0 0 0
Number of initiatives, events and campaigns focused on the citizenship development (voting exercise, conscientious
3 214 n/a
consumption, anti-corruption practices, childrens rights etc.)
Advertizing resources set aside for institutional campaigns for the development of citizenship (R$ thousand 238.00 212.30 119.64
Resources invested in tax incentive-based programs/total of Resources allocated to social investments (%) 85 70 69

Sustainability Report 2011 97

 ANNUAL BALANCE SHEET 2011
Company: AES TIET S.A.
1 Calculation Basis Amount n 2011- R$ - thousand Amount in 2010- R$ - thousand
Net income (RL) 1,885,956 1,754,323
Operating result (RO) 1,302,323 1,151,888
Gross payroll (FPB) 71,274 72,098
Amount Amount
2 Internal social indicators % on FPB % on RL % on FPB % on RL
(thousand) (thousand)
Meals 2,610 3.66% 0.14% 2,360 3.27% 0.13%
Compulsory social charges 14,473 20.31% 0.77% 13,498 18.72% 0.77%
Pension fund 1,980 2.78% 0.10% 1,896 2.63% 0.11%
Health 2,386 3.35% 0.13% 2,146 2.98% 0.12%
Labor safety and health 4,900 6.87% 0.26% 11,484 15.93% 0.65%
Education 0 0.00% 0.00% 0 0.00% 0.00%
Culture 0 0.00% 0.00% 0 0.00% 0.00%
Professional education and development 1,080 1.52% 0.06% 1,398 1.94% 0.08%
Day-cares or day-care assistance 20 0.03% 0.00% 20 0.03% 0.00%
Participation in profits or results 9,104 12.77% 0.48% 8,694 12.06% 0.50%
Other 0 0.00% 0.00% 0 0.00% 0.00%
Total Internal social indicators 36,553 51.29% 1.94% 41,496 57.55% 2.37%
Amount Amount
3 External Social Indicators % on RL % on RL % on RL % on RL
(thousand) (thousand)
Education 2,024 0.16% 0.11% 1,779 0.15% 0.10%
Culture 8,045 0.62% 0.43% 7,459 0.65% 0.43%
Health and sanitation 0 0.00% 0.00% 0 0.00% 0.00%
Sports 1,762 0.14% 0.09% 1,566 0.14% 0.09%
Hunger fight and food safety 0 0.00% 0.00% 0 0.00% 0.00%
Other 27 0.00% 0.00% 304 0.03% 0.02%
Total contributions to society 11,858 0.91% 0.63% 11,108 0.96% 0.63%
Taxes (social charges excluded) 78,258 6.01% 4.15% 73,288 6.36% 4.18%
Total External Social Indicators 90,116 6.92% 4.78% 84,396 7.33% 4.81%
Amount Amount
4 Environmental indicators % on RO % on RL % on RO % on RL
(thousand) (thousand)
Investments related to production/operation in companies 12,546 0.96% 0.67% 12,311 1.07% 0.70%
Investments in external programs or projects 0 0.00% 0.00% 737 0.06% 0.04%
Total investments in environment 12,546 0.96% 0.67% 13,048 1.13% 0.74%
As to setting out annual goals for minimizing waste
and consumption in general production/operation and ( ) has no goals ( ) meats 51% 75% ( ) has no goals ( ) meats 51% 75%
increasing efficiency on the use of natural resources, the ( ) meats 0% 50% (x) meats 76% 100% ( ) meats 0% 50% (x) meats 76% 100%
company
5 Operating staff indicators 2011 2010
Number of employees at the year-end 355 313
Number of people hired during the year 56 30
Number of outsourced employees 963 529
Number of trainees 8 11
Number of employees above 45 years old 100 87
Number of women working for the company 50 38
% lead positions occupied by women 26.70% 21.40%
Number of Black people who work for the company 24 25
% lead positions occupied by Black people 0.00% 0.00%
Number of disabled or people with special needs 3 3

98 AES Tiet
 6 Relevant information as to the exercise of
Amount in 2011- R$ - thousand Goals 2012
corporate citizenship
Relation between the highest and the lowest
75 None
compensation in the company
Total number of labor-related accidents 2 0
Social and environmental projects developed by company
were defined by (X) (X)
( ) management ( ) all employees ( ) management ( ) all employees
management management

Safety and salubrity standards in the workplace were (X) (X)

( ) all employees ( ) all + Cipa ( ) all employees ( ) all + Cipa
defined by management management
As to union-related freedom, the right to collective
( ) does not get ( ) follows OIT (X) encourages ( ) does not get ( ) follows OIT (X) encourages
bargaining and internal representation of companys involved rules and follows OIT involved rules and follows OIT
workers
(X) (X)
Pension fund contemplates: ( ) management
management
( ) all employees ( ) management
management
( ) all employees

(X) (X)
Participation of profits or results contemplates ( ) management
management
( ) all employees ( ) management
management
( ) all employees

When selecting suppliers, the same ethics and social and

( ) are not ( ) are not
environmental responsibility standards are adopted by the considered
( ) are suggested ( X ) are required
considered
( ) are suggested ( X ) are required
company
As to employees participation in voluntary work programs, ( ) does not get ( X ) organizes ( ) does not get ( X ) organizes
( ) supports ( ) supports
the company involved and encourages involved and encourages
in the company in the company
Total number of consumer complaints and criticism 0
in Procon 0 in Court 0
0
in Procon 0 in Court 0

in the company in the company

% of complaints and criticism met or resolved 0%
in Procon 0% in Court 0%
0%
in Procon 0% in Court 0%

Total added value to distribute (R$ thousand): In 2011: 1,586.71 In 2010: 1,376.42
37% government 4% employees 31% government 5% employees
Distribution of added value (DVA)
53% shareholders 46% third parties 54% shareholders 10% third parties
7 - Other information

Sustainability Report 2011 99

AES Tiets sustainability report
is published for the sixth year
in a row under the guidelines of
the Global Reporting Initiative
(GRI), meeting level B in terms of
compliance with the guidelines

Content
index
The summary below shows where to find, during the report, the
following information:

Forms of management requested by Global Reporting Initiative

Global Reporting Initiative performance indicators

Correlation between GRI indicators and Global Pact principles

Indication whether the indicator is fully or partially answered

Indication of when indicator was not answered

Profile Information
Strategy and Analysis
Indicator Description Reported Page Reason for omission
1.1 Mensagem do presidente 4 and 5
As metas esto colocadas ao longo do
1.2 relatrio, junto com os Indicatores de 13, 30, 31, 32, 33, 34 and 36
desempenho
The goals are all over the report associated with performance indicators
Organizational Profile
Indicator Description Reported Page Reason for omission
2.1 Organizations name AES Tiet
2.2 Main brands, products and/or services 7 and 8; Generation and commercialization of electric power
2.3 Organizations operational structure 7 and 8
Organizations principal place of
2.4 So Paulo (SP), Brazil
business location

100 AES Tiet

 Countries in which the company 8; The agreement of concession enables the company to maintain plants in the State of So
2.5 operates and in which its main Paulo. The company also maintain plants in Minas Gerais through its controlled company,
operations are located AES Minas PCH
Type and judicial nature of the AES Tiet S.A. is a joint-stock company controlled by Companhia
2.6
property Brasiliana de Energia.
2.7 Assisted markets 7
2.8 Organizations size 7, 8, 12 and 15
Main changes during period covered
2.9 There were no changes with respect to previous report
by the report
Premiums received in the period
2.10 5 and 15
covered by the report
Parameters to the Report
Indicator Description Reported Page Reason for omission
Period covered by the report to the
3.1 1 de janeiro a 31 de dezembro de 2011
submitted information
3.2 Date of the last most recent report 2011, regarding 2010
3.3 Reports emission cycle Anual
Contact data in case of questions
3.4 3
related to the report or its content
Process for definition of report
3.5 3
content
3.6 Report limit All AES Tiet operations
Representation about any specific
3.7 limitations as to the scope or the There are no specific limitations as to the scope other limit of this report
report limit
3.8 Base to the report preparation All AES Tiet operations
Measurement techniques of data and Measurements follow orientations of GRI guidelines. Otherwise, explanatory notes informs
3.9
calculation basis the techniques used
Reformulations of information 45; There were reformulations of information. When reported, explanatory notes inform the
3.10
provided for in previous reports change and justify it
Significant changes to the scope, limit
3.11 or methods of measurement applied There was no change during the period covered by the report
in the report
Table that indentifies the location of
3.12 100 to 107
information in the report
Current policy and practice related
23; Global Reporting Initiative verified the adherence level of this report to its guidelines,
3.13 to the external verification pursuit to
however, there was no verification in the indicators for a third party.
the report
Governance, Commitment and Engagement
Indicator Description Reported Page Reason for omission
Organizations governance structure,
4.1 including committees of governance 20
high body
Presidency of the highest governance
4.2 21
body
Independents and non-executive
4.3 members of the highest governance 20
body
Mechanisms for the shareholders and
4.4 18 and 23
employees do recommendations
Relation between compensation and
4.5 performance of the organization
(including social and environmental)
The compensation of the officers and executive board members, as well as benefits of any nature and representation amounts, is determined in general shareholders meeting.
Proceeding to ensure that conflicts of
4.6
interest are avoided
It is forbidden for management to:
- intervene in any social operation where their interests conflict with those of the company;
- intervene in the decisions that the other members of management take in relation to this matter, being obliged to inform the others of this fact;
- stating, in the minutes of a meeting of either the Board of Directors or of the Executive board, the nature and extent of their interest.
The AES Brasil group offers training focused on ethics and compliance called Positive Behavior, which concentrates on situations in which conflicts of interest may
occur. It is aimed at the companys professionals and the goal is that 100% of them take the course each year

Indicator answered in full Indicator answered to a partial degree Indicator not reported

Sustainability Report 2011 101

 Qualification of the members of the
4.7 20
highest governance body
The Board of directors members of AES Tiet show professional competence and experience recognized in the sectors of power, finances, capital markets and public
administration
Representations of mission and values,
4.8 conduct codes and relevant internal 13
principles
Responsibilities for the
4.9 implementation of economic, 20 and 34
environmental and social policies
Proceedings to the performance self-
4.10 assessment of the highest governance
body
The company does not have a process for evaluating the performance of the members of the Board of Directors nor any qualifications.
Explanation about if and how the
4.11 organization applies the precaution
principle
AES Tiet does not consider precaution principle in the strategies, policies and position of the organization.
Letters, principles or other initiatives
4.12 17, 18 and 38
externally developed
Participation in associations and/or
4.13 38,
national/international organisms
Relation of stakeholders groups
4.14 31
engaged in the organizations
Employees, suppliers, customers (corporate and residential) and representatives from different sectors of society (such as public authorities, NGOs and other institutions).
Base for the identification and selection
4.15
of stakeholders with who it engages
The stakeholders are determined and chosen internally, bearing in mind the strategic importance of each one of the groups selected to the companys activities.
Approaches to stakeholders
4.16 30 and 34
engagement
Main themes and concerns discussed
4.17 31
through stakeholders engagement

Information on Management Approach

Management Approach Aspects Online Page/PDF
Economic performance
EC Presence in the market 7, 28, 47, 49, 73
and 94
Indirect economic impacts
Materials
Energy
Water
Biodiversity
EN 37 and 68
Emissions, Effluents and Waste
Compliance
Transportation
General
Employment
Relation between Workers and Governance
LA Health and safety at work 36, 37, 42, 45 and 91
Training and education
Diversity and equality opportunity
Purchasing process
Non discrimination
Liberty of Association
HR Child labor 37
Forced/slave labor
Safety practices
Indian rights
Community
corruption;
SO Public policies 36 and 45
Anticompetitive behavior
Compliance
Health and Safety of the customer;
labeling of goods and services
PR Marketing and communication 36
Customer privacy
Compliance

102 AES Tiet

 Performance indicators
ECONOMIC PERFORMANCE
Global
Indicator Description Reported Page Reason for omission
Pact
Economic performance
EC1 Direct economic value generated and distributed 62 and 63 -
Financial implications and other risks and opportunities
EC2
resulting from climatic changes 7
Coverage of the obligations of the pension plan of
EC3 84 -
benefit
Significant financial assistance received from
EC4 97 -
government
Presence in the market
Variation in the proportion of the lowest salary
EC5 82 1
compared to the local minimum salary
Policies, initiatives and proportion of expenditures with
EC6 92 -
local suppliers
EC7 Local hiring 6
Indirect economic impacts
Impact of investment in infrastructure offered for
EC8 94 -
public benefit
EC9 Description of significant indirect economic impacts -
ENVIRONMENTAL PERFORMANCE
Global
Indicator Description Reported Page Reason for omission
Pact
Materiais
EN1 Material used, by weight or volume 8
Percentage of the material used originating from
EN2
recycling 8 and 9
Energy
Direct energy consumption detailed by primary energy
EN3 72 and 73 8
source
Indirect energy consumption detailed by primary
EN4 73 8 and 9
energy source
Power saved as a result of improvements in
EN5
conservation and efficiency 8
Initiatives to provide products and services with low
EN6
energy consumption -
Initiatives to reduce indirect consumption and
EN7
reductions obtained -
Water
EN8 Total of water removed by source 70 and 73 8 and 9
Water sources significantly affected by removing of
EN9
water 8
Percentage and total volume of recycled and reused
EN10
water 8
Biodiversity
EN11 Location and size of owned area 55 8
Significant impacts on activities, products and services
EN12
biodiversity 8

EN13 Habitats protected or restored 55 and 72 -

EN14 Strategies to management of impacts on biodiversity -
Number of species included in the IUCN Red List and
EN15
other preservation lists. -
Emissions, Effluent and Waste
EN16 Total of direct and indirect emission of greenhouse gas 69 and 72 8
EN17 Other material indirect emissions of greenhouse gas 69 8
Initiatives to reduce emissions of greenhouse gas and
EN18
the reductions achieved 7, 8 and 9

EN19 Emissions of ozone depleting substances 69 and 72 8

EN20 NOx, SOx, and other significant atmospheric emissions 8
EN21 Total discharge of water, by quality and allocation 72 8

Indicator answered in full Indicator answered to a partial degree Indicator not reported

Sustainability Report 2011 103

EN22 Total weight of Waste, by type and disposal method 70 and 72 8
EN23 Volume and number of significant spills 8
No significant spills were record in AES Tiet operations in the last three years.
EN24 Weight of transported waste deemed dangerous -
Description of protection and biodiversity index of
EN25 water bodies and habitats affected by water disposal -
and drainage
No water body was significantly affected by effluents capture or disposal.
Products and services
EN26 Initiatives to mitigate environmental impacts 7, 8 and 9
Percentage of products and packages recovered by
EN27
product category 8 and 9
Conformity
Monetary value of significant fines and total number
EN28 72 8
of non-monetary sanctions
Transportation
Significant environmental impacts referring to
EN29 69 and 73 8
products and employees transportation
General
Total investments and costs in environmental
EN30 72 and 73 7, 8 and 9
protection
SOCIAL PERFORMANCE LABOR PRACTICES
Reason for Global
Indicator Description Reported Page
omission Pact
Employment
Total of workers by type of job, work agreement and
LA1 77, 78 and 79 -
region
Total number of turnover rate of employees by age
LA2 81 6
group, gender and region
Comparison between benefits for full-time and
LA3 83 and 84 -
temporary employees
Relationship between Employees and Governance
Percentage of employees included in collective
LA4 1, 2 and 3
negotiation agreement
In AES Tiet, 100% of the employees are included by collective negotiation agreement.
LA5 Description of notifications (terms and procedures) -
The collective negotiation agreements do not include a minimum period to notifications in relation to significant operational changes. If any change happens, it would be
previously discussed with the union.
Health and safety at work
Percentage of employees represented in safety and
LA6 44 1, 2 and 3
health committees
LA7 Injuries, occupational diseases and days lost rate 41, 44 and 45 1
LA8 Education, prevention and risk control programs 41 1
There are no specific programs to education, training, counseling, prevention, risk control and treatment in relation to serious diseases. All employees are trained to
exercise their functions in order to reduce the risks. The activities that have greater risks for occupational or specific diseases are installation and maintenance operations
carried out next to electric power distribution network.
Issues regarding health and safety covered by
LA9 1
agreements with unions
The formal agreements with unions cover health and safety issues, such as supply of personal protective equipment (EPI); formation of health and safety joint
committees composed by the governance and employees; participation of workers representative in inspections of health and safety; inspections and investigations of
accidents; training and educations on the issue; complaints system; right to refuse unsafe work; periodical visits; compliance with ILO (International Labor Organization);
and measures or structures to solve problems and commitments related to the desired performance standards or practice level to be applied.
Training and education
LA10 Average of Training hours, per year 35, 84, 86 and 87 6
Programs for management of competencies and
LA11 84 -
continued education
Percentage of employees that receive performance
LA12 85 -
analyses
Diversity and Equality of Opportunity
Composition of groups responsible for corporate
LA13 78 and 79 1 and 3
governance and proportion by groups and gender
Proportion of minimum wage between men and
LA14 82 1, 2 and 3
women by functional category

104 AES Tiet

 HUMAN RIGHTS
Reason for Global
Indicator Description Reported Page
omission Pact
Purchasing Process
Percentage and number of investment agreements
HR1
which include human right clauses -
Percentage of contracted companies submitted to 1, 2, 3
HR2 92
evaluations referring to human rights and 4
AES Tiet counts on 67 significant suppliers. All of them count with agreements that include criteria or are submitted to human rights evaluations. There were no
suppliers refused by these evaluations.
Hours of employee training in policies and procedures
HR3 related to human rights, including the percentage of -
employees trained
Non discrimination
HR4 Total number of discriminations and the actions taken 1, 2 and 3
Freedom of Association
HR5 Policy of freedom of association and application grade 1, 2 and 3
There were no operations identified in which the right to exercise freedom of association may be at significant risk. It is reported on the AES Tiet Collective Bargaining
Agreement a Policy of Union Relationships clause, recognizing the union as the employees legitimate representative. This ensures that the union exercise its
representations through releasing union leaders, performing meetings, access of union leaders to AES Tiet facilities, union membership, distribution of informative,
participation in corporative meeting and availability of Cipas minutes.
Child labor
Actions taken to contribute to the extinguishment of 1, 2, 3
HR6
child labor and 5
The operations that run the risk of instances of child labor are the small family business that provide services to the industry and which may utilize this type of labor. In
order to avoid instances of child labor throughout its productive chain, AES Eletropaulo provides suppliers with information regarding the Code of Ethics and includes a
specific contractual clause in relation to this topic. The registration of new suppliers is dependent upon the presentation of documents and legal certificates. In addition
to this, audits of suppliers are carried out, and on these occasions one of the aspects evaluated is that of child labor. The safety inspections that are carried out also
include the evaluation of this question.
Forced/slave labor
Actions taken to contribute with the extinguishment 1, 2, 3
HR7
of forced labor and 4
The operations that run the risk of instances of forced labor are the small family business that provide services to the industry and which may utilize this type of labor.
In order to avoid instances of forced labor throughout its productive chain, AES Eletropaulo provides suppliers with information regarding the Code of Ethics and includes
a specific contractual clause in relation to this topic. The registration of new suppliers is dependent upon the presentation of documents and legal certificates, as well
consulting the Labor Ministrys list of companies with forced labor. In addition to this, audits of suppliers are carried out, and on these occasions one of the aspects
evaluated is that of forced labor. The safety inspections that are carried out also include the evaluation of this question. Since 2010, AES Brasil, the group to which AES
Eletropaulo belongs, has been a signatory of the National Pact for the Elimination of Forced Labor.
Safety practices
HR8 Percentage of safety personnel trained in human rights -
Indians Rights
Total number of events of violation of the Indians
HR9
rights and the actions taken. -
SOCIETY
Reason for Global
Indicator Description Reported Page
omission Pact
Community
Programs and practices to evaluate and manage the
SO1 54, 73, 94 and 97 -
impacts of the operations in the communities
Corruption
Units subject to assessment of risks related to
SO2 10
corruption
AES Tiet business units are not submitted to risk assessment regarding corruption.
Percentage of employees trained in the anti-corruption
SO3
policy and procedures 10

SO4 Actions taken in response to incidents of corruption 10

Polticas pblicas
SO5 Positions as to public policies 10
Policies of financial contribution to political parties or
SO6
institutions 10
SO7 Number of lawsuits for unfair competition -
Conformity
Description of significant fines and sanctions resulting
SO8 81, 97 -
from non-compliance with laws and regulations

Indicator answered in full Indicator answered to a partial degree Indicator not reported

Sustainability Report 2011 105

 RESPONSIBILITY FOR THE PRODUCT
Reason for Global
Indicator Description Reported Page
omission Pact
Health and Safety of the customer;
Evaluation of health and safety impacts during the
PR1
products and services cycle life 1
Non-conformity related to impacts caused by products
PR2 -
and services
In 2011, AES Tiet did not receive any official notifications or penalties in relation to consumer health and safety as a result of the inspections carried out by the
Government Attorneys Office. It is our opinion that this result is due to the improvement process that entailed various actions for a greater control of the legal documents.
Despite this fact, a number of internal protocols generated improvement recommendations. The SMS Scorecard Validation process (internal protocol based on the DuPont
methodology, which evaluates the safety culture level within the company) resulted in 35 recommendations. The validation of the implementation of AES Corp.s Safety
Standards generated 20 recommendations. These recommendations resulted in the carrying out of improvement proceedings. The targets established for 2012 are as follows: zero
governmental fines related to safety; 100% implementation of the recommendations resulting from internal audits (SMS Scorecard and AES Corps Safety Standards.); maintain
the level of implementation of AES Corps Safety Standards above 90%; maintain the SMS Scorecard above 80%; and adhere to OHSAS 18001:2007 by December 2012.
Labeling of goods and services
Type of information about products and services
PR3
required by labeling products 8
Non-conformity related to products and services
PR4
labeling -
Practices related to customer satisfaction, including
PR5 77 -
researches results
Marketing and communication
Programs of adhesion to laws, rules and volunteers
PR6
code -
Events of non-conformity related to products and
PR7
services communication -
Proved complaints related to violation of privacy of
PR8 -
customers
There were no cases identified in 2011.
Compliance
Fines for non-conformity related to products and
PR9
services supply and use -

Sectoral Indicators
Global
Indicator Description Reported Page Reason for omission
Pact
Installed capacity (MW) described by energy source
EU1 8 and 9
and regulatory system
Net energy of energy described by primary energy
EU2 8
source and by regulatory system
Number of residential, industrial, institutional and
EU3
commercial consumer units
Length of transmission and distribution lines of AES Tiet does not have transmission or
EU4
underground areas distribution lines
This indicator is not applied to Brazil, because it is an
EU5 allocation of issue permissions, which does not exist in
the country
Management way to ensure the availability and
EU6 reliability of the supply of electricity in short and 28
long-terms.
Management programs at demands side, including
EU7 residential, commercial, institutional and industrial
programs
Research and development related activities and
EU8 expenses aimed at ensuring electricity supply reliability 47, 49 and 73
and promoting sustainable development
The Company does not have nuclear electric centers in its
EU9 Supply for decommissioning of nuclear power plants investment portfolio and, therefore, it is not necessary a
supply for decommissioning
Planned capacity compared to the projection of
EU10 electricity demand in long-term, described by energy
source and regulatory system
Average efficiency of generation of thermoelectric
EU11
plants, by energy source (%)
Percentage of transmission and distribution loss with
EU12
respect to the total energy

106 AES Tiet

 AES Tiet does not have biodiversity programs regarding
Biodiversity of replacement habitats compared to
EU13 the replacement of habitats of areas affected by the
biodiversity of affected areas
reservoirs
Programs and proceedings which ensure the availability
EU14
of qualified workforce
Percentage of employees entitled to retirement in
EU15 the next five and ten years, described by functional
category and region
Policies and requirements regarding the employees
EU16 and subcontracted and subcontractor workers health 45 and 92
and safety
Days worked by subcontracted and subcontractor
EU17 workers engaged in construction, operation and
maintenance activities.
45; From the safety point of view, 100% of the
professionals who are contracted undergo some type of
instruction or training. All of them are required to take
Percentage of contractor and subcontractor the standardized Occupational Safety course. Those
EU18 employees who have undergone relevant professionals hired who operate in the SEP (Electrical
health and safety training Power System) have all the training that is required by
the legislation to operate in this category, such as NR-10
and CMRDA (Construction and Maintenance of Aerial
Distribution Network).
Stakeholder participation in the decision making
EU19 process related to energy planning and infrastructure
development
Contingency planning measures and management plan
EU20 and training programs for disasters/emergencies, as
well as recovery/restoration plans
Contingency planning measures, disaster/emergency
EU21 management plan and training programs, as well as
recovery/restoration plans
Programs, including those in partnership with
EU22 government, to improve or maintain access to
electricity services
Programs, including those in partnership with
EU23 government, to improve or maintain access to
electricity and customer support services
Practices aimed at addressing language, culture, low
EU24 literacy and special needs barriers to accessing and
safely using electricity and customer support services
Number of accidents and fatalities among users of
the service involving company assets, including legal
EU25
judgments and settlements, in addition to pending
legal cases related to diseases
Percentage of the population unattended in regulated
EU26
distribution or service areas
Number of residential disconnections for non-
EU27 payment, broken down by duration of disconnection
and by regulatory system
EU28 Frequency of interruptions in the power supply
EU29 Average duration of interruptions in the power supply
Average plant availability factor, broken down by
EU30
energy source and by regulatory system

Indicator answered in full Indicator answered to a partial degree Indicator not reported

Sustainability Report 2011 107

 KPMG Risk Advisory Services Ltda.
R. Dr. Renato Paes de Barros, 33
04530-904 So Paulo, SP Brasil
Caixa postal 2467
01060-970 - So Paulo, SP Brasil
Central Tel 55 (11) 2183-3000
Fax Nacional 55 (11) 2183-3001
Internacional 55 (11) 2183-3034
Internet www.kpmg.com.br

Limited assurance report of the independent auditors

To
The Board of Directors and the Other Interested Parties of
AES Tiet
So Paulo SP

Introduction
We were engaged to perform limited assurance procedures to the information disclosed in the report 3rd Dialogue Cycle with AES Stakeholders for the
fiscal year ended December 31, 2011, prepared under the responsibility of the companys management.

Our responsibility is to provide a limited assurance report in relation to this information.

Procedures applied
Our limited assurance work was carried out in accordance with the Brazilian Standard NBC TO 3000 Assurance Engagements Other than Audit
and Review, issued by the Federal Accounting Council (CFC), and with ISAE 3000 the International Standard on Assurance Engagements, issued by
the International Auditing and Assurance Standards Board IAASB, both for assurance engagements other than audit or review of historical financial
information.

The limited assurance procedures included: (a) planning the work, taking into consideration the relevance, the coherence and the volume of quantitative
and qualitative information along with the operating systems and internal control systems that serve as a basis for the preparation of the report 3rd
Dialogue Cycle with AES Stakeholders; (b) obtaining an understanding of the engagement methodology and of the consolidation of the indicators by
means of participation in dialogue panels with the stakeholders that took place between October and November of 2011; and (c) comparing, on a test
basis, the qualitative information with the information disclosed in the 3rd Dialogue Cycle with AES Stakeholders.

Preparation Criteria of the information

The information disclosed in the report 3rd Dialogue Cycle with AES Stakeholders was drawn up in accordance with the guidelines for sustainability reports
issued by the Global Reporting Initiative (GRI G3) and with the principles of the AA 1000 APS standard (2008).

Scope and Limitations

The objective of our work was to apply limited assurance procedures to the information disclosed in the report 3rd Dialogue Cycle with AES Stakeholders,
not including the assessment of the suitability of its sustainability policies, practices and performance.

The procedures applied do not represent an examination in accordance with Brazilian and international audit regulations. In addition, our report does not
provide limited assurance regarding the extent of future information (such as for example targets, expectations and ambitions) and descriptive information
which is subject to subjective evaluation.

Conclusion
Based on our review, we are not aware of any significant change that should be made to the information included in the report 3rd Dialogue Cycle with AES
Stakeholders for the fiscal year ended December 31, 2011 in order for this information to be prepared in accordance with the records and files that served
as a basis for its preparation.

So Paulo, April 17, 2012

KPMG Risk Advisory Services Ltda.

CRC 2SP023233/O-4

Eduardo V. Cipullo
Accontant CRC 1SP135597/O-6

KPMG Risk Advisory Services Ltda., a Brazilian limited liability

company and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative
(KPMG International), a Swiss entity.

108 AES Tiet

Sustainability Report 2011 109
Credits
Overall Coordination
Paulo Camillo Vargas Penna
Vice-President of Institutional Relations, Communication and Sustainability

Mrcia Magno
Executive Communication and Sustainability Board

Content Guidance
Luciana Alvarez
Sustainability Management

Content coordination
Luiz Pires
Expert in Sustainability

GRI consultancy services, wording and edition

Comunication Report

Revision
Assertiva Produes Editoriais

English version
Brauns&Brauns Language Consultancy

Graphic project, layout development and graphic production

Report Comunicao

Infographics and illustrations

Flvia Ocaranza

Photos
AES Brasils Image Bank
Na Lata Photograph Agency

Typefaces
Bliss (Jeremy Tankard Typography, 1998)
Claire Hand (Studio Teamscope, 2011)

110 AES Tiet