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<SEC-DOCUMENT>0001104659-05-057051.txt : 20060925
<SEC-HEADER>0001104659-05-057051.hdr.sgml : 20060925
<ACCEPTANCE-DATETIME>20051121171046
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-05-057051
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20051121

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENERGY CO OF MINAS GERAIS
		CENTRAL INDEX KEY:			0001157557
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC SERVICES [4911]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		AVENIDA BARBACENA 1200
		STREET 2:		30190 131 BELO HORIZONTE
		CITY:			MINAS GERAIS BRAZIL
		STATE:			D5
		BUSINESS PHONE:		2128395300

	MAIL ADDRESS:	
		STREET 1:		C/O SIDLEY AUSTIN BROWN & WOOD LLP
		STREET 2:		ONE WORLD TRADE CENTER
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10048-0557
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MILBANK,
TWEED, HADLEY&nbsp;&amp; McCLOY LLP</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1 Chase
Manhattan Plaza</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">New York,
NY 10005-1413</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;21, 2005</font></p>

<p style="margin:0in 0in .0001pt 3.75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;George
F. Ohsiek,&nbsp;Jr.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Branch Chief</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Division of
Corporate Finance</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Securities and
Exchange Commission</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">450 Fifth
Street, N.W.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, DC
20549</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Re:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font style="font-weight:bold;">Companhia Energ&#233;tica de Minas Gerais - CEMIG<br>
</font></b>Form&nbsp;20-F for the Fiscal Year Ended December&nbsp;31, 2004</p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed May&nbsp;25, 2005</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">File No.&nbsp;1-15224</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Mr.&nbsp;Ohsiek:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On behalf of
our client, Companhia Energ&#233;tica de Minas Gerais &#150; CEMIG (&#147;CEMIG&#148;), we submit this
response to your letter dated September&nbsp;27, 2005 relating to CEMIG&#146;s Form&nbsp;20-F
for the year ended December&nbsp;31, 2004 (the &#147;Form&nbsp;20-F&#148;).&#160; To assist in the Staff&#146;s review of the
responses, we precede each response with the text (in bold type) of the comment
as stated in your letter.&#160; CEMIG believes
that it has replied to your comments in full.&#160;
As requested, this letter is being filed on EDGAR as correspondence and
a copy is being faxed to your attention.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capitalized terms used in
the responses set forth below and not otherwise defined herein have the
meanings set forth in the Form&nbsp;20-F.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form&nbsp;20-F
for Fiscal Year Ended December&nbsp;31, 2004</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">General</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Where
a comment below requests additional disclosures or other revisions to be made,
these revisions should be included in your future filings, as applicable.</b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As requested by the Staff, CEMIG will make the applicable revisions in
future filings, as indicated in the responses below.</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 5.&#160;
Operating and Financial Review and Prospects, page&nbsp;51</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Year Ended December&nbsp;31, 2003 Compared to
Year Ended December&nbsp;31, 2002, page&nbsp;64</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Operating Costs and Expenses, page&nbsp;65</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In
2003, we note you recorded R$174 million reversal for loss on deferred
regulatory assets to reduce the allowance for losses from R$178 million to R$4 million.&#160; Based on your disclosure, it appears this
resulted from the reduction of the recovery period from 84 months to 72 months
in January&nbsp;2004.&#160; Please explain why
a reduction in the recovery period, with no apparent change in the recovery
rate, caused a decrease in the allowance for losses.</b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We understand
that pursuant to ANEEL Resolution No.&nbsp;484, dated of August&nbsp;29, 2002,
the following regulatory assets relating to the Brazilian Energy Rationing Plan
(the &#147;Plan&#148;) were subject to a recovery period limit of 82 months:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>Loss of revenues
resulting from, and incurred during the period of, the Plan;</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>Energy purchased on the CCEE/MAE during
the period of the Plan; and</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>Certain additional
&#147;Parcel A Costs&#148; incurred from January&nbsp;1, 2001 to October&nbsp;25, 2001.</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In 2002, based
on CEMIG&#146;s estimate of the timing of the recoverability of these assets, a
reserve of R$178 million was recorded. On January&nbsp;12, 2004, the Brazilian
National Electric Energy Agency, or ANEEL, issued another resolution, which
stipulated that (i)&nbsp;the additional Parcel A costs described above are no
longer subject to a recovery period limit and are therefore fully recoverable
and (ii)&nbsp;the recovery period limit for the other items was reduced from 82
to 74 months.&#160; In accordance with this
resolution, on December&nbsp;31, 2003 CEMIG revised its estimates of
recoverability based on the exclusion of the additional Parcel A costs, which
resulted in a reversal of R$178 million of the allowance for losses since the
Parcel A costs are fully recoverable.&#160; This
reversal was partially offset due to an increase in the allowance for losses of
R$4 million resulting from the reduction of the recovery period of the other
regulatory assets from 82 to 74 months.&#160;
Based on these revised estimates, CEMIG recorded a net reversal of R$174
million of the original reserve that was recorded in 2002.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Tabular Disclosure of Contractual
Obligations, page&nbsp;70</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
revise your table of contractual cash obligations to include the following:</b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:-.35in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(a)</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Estimated
interest payments on your debt; and</b></p>

<p style="margin:0in 0in .0001pt .85in;text-indent:-.35in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:-.35in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(b)</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Estimated
payments under interest rate swap agreements.</b></p>

<p style="margin:0in 0in .0001pt .85in;text-indent:-.35in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Because
the table is aimed at increasing transparency of cash flow, we believe these
payments should be included in the table.&#160;
If you choose not to include these payments, a footnote to the table
should clearly identify the excluded items and provide any additional
information that is material to an understanding of your cash requirements.&#160; See Section&nbsp;IV.A and footnote 46 to the
Commission&#146;s MD&amp;A Guidance issued December&nbsp;19, 2003, available at
www.sec.gov.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We understand
that since these payments are subject to future variations in variable interest
rates and foreign currency exchange rates, CEMIG believes that the presentation
of the projected interest payments and payments under interest rate swap
agreements may not meaningful. Consequently, in future filings, CEMIG will
include a footnote to the tabular disclosure of contractual obligations to
clearly identify the excluded items and provide additional information to enable
the reader to understand its cash requirements.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Report of Independent Registered Public
Accounting Firm, page&nbsp;F-2</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
revise your &#147;Report of Independent Registered Public Accounting Firm&#148; to include
the city and state where issued.&#160; See Rule&nbsp;2-02
of Regulation S-X.</b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CEMIG will
revise the &#147;Report of Independent Registered Public Accounting Firm&#148; to include
the city and state where issued in future filings.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 2.&#160;
Summary of Significant Accounting Policies, page&nbsp;F-10</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(c)&nbsp; Principles of consolidation, page&nbsp;F-11</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
revise your principles of consolidation disclosure in Note 2 to include a
discussion of your consolidation policy with respect to all investments in
which you own less than a majority interest.&#160;
Please specify whether you eliminate transactions between related
parties for investments recognized using the equity method.&#160; Please also explain your policy for your
remaining interest in GASMIG.&#160; Page&nbsp;F-11
of the Form&nbsp;20-F indicates that the investment is accounted for using the
equity method.&#160; However, page&nbsp;24 of
the Form&nbsp;6-K for the month of September&nbsp;2005 indicates that GASMIG is
consolidated proportionally, which suggests application of SAB Topic 10:C,
rather than the equity method.</b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We understand that CEMIG will present a
discussion of its consolidation policy in future fillings.&#160; CEMIG advises the Staff that it eliminates
intercompany gains and losses on transactions with investments accounted for
using the equity method.&#160; CEMIG also advises
the Staff that the financial information included in CEMIG&#146;s Form&nbsp;6-K for
the month of September&nbsp;2005 with respect to its remaining interest in
GASMIG is presented under accounting practices adopted in Brazil which allows
for proportional consolidation.&#160; However,
we under that under US GAAP, and as reported on page&nbsp;F-11 of the Form&nbsp;20-F,
this investment is accounted for using the equity method of accounting.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(d)&nbsp; Regulation and deferred regulatory assets,
page&nbsp;F-13</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>On
page&nbsp;8, you disclose that the new industry model law limits your ability
to pass through costs of electricity purchases to your customers if your costs
exceed the annual reference value.&#160; Given
these limitations, please explain in detail how you believe you meet the
criteria outlined in paragraph 5.b of SFAS 71 to apply the provisions of SFAS
71.</b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">CEMIG advises the Staff that, consistent with
other electric distribution companies in Brazil, it applies SFAS 71 to &#147;Parcel
A&#148; costs which represent non-manageable costs that are not controlled by the company
(i.e. electricity purchases and certain transmission costs and regulatory
fees). The rate mechanism established by ANEEL is designed to enable
electricity distributors to recover 100% of these costs on an annual
basis.&#160; Recent changes in the regulations
require distribution companies to participate in public auctions to contract
their forecasted electricity needs for the next five years. The limitation
under the New Industry Model Law referred to on page&nbsp;8 of the Form&nbsp;20-F
under &#147;<i><font style="font-style:italic;">Risk Factors &#150; Risks relating to
CEMIG</font></i> &#150; </font><i><font style="font-style:italic;">Companies holding
concessions for distribution of electricity are required to purchase all of
their electricity demand&nbsp;by&nbsp;means of public auctions.</font><b><font style="font-weight:bold;">&#160; </font></b>We may not be able to pass on
through our distribution rates a portion of the costs of our electricity
purchases.&#148;</i>  </font>relates to
specific circumstances in which a distribution company over- or under-contracts
for its total captive consumption.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The regulation under the New Industry Model
Law stipulates that distribution companies that contract less than 100% of
their total captive consumption may be subject to fines. There are mechanisms
to reduce this possibility, such as the purchase of energy from other
distribution companies whose energy purchases exceeded forecasted demand, or
the purchase of energy in four auctions during the year.&#160; Any remaining shortfall from 100% of total
captive consumption can be bought at the spot market price and the concession
holder would be subject to a penalty payment equivalent to the shortfall
multiplied by the reference value rate established by ANEEL.&#160; If a company contracts more than 103% of its
captive consumption, it would be subject to price risk if it sells this energy
in the spot market in the future.&#160; To
reduce such price risk, a company may reduce the purchase contracts in the &#147;existing
energy&#148; auction by up to 4% each year.&#160;
If there is still a surplus, a company may negotiate with other
companies that have a deficit or sell its surplus in the spot market.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Based on the mechanisms for reducing over- or
under-contracted amounts described above, CEMIG does not expect a material loss
on energy purchases due to such limitations.&#160;
Since any losses are expected to be immaterial, this risk factor will be
deleted from future filings.&#160; In
accordance with SFAS 71, CEMIG only recognizes regulatory assets relating to
energy purchases of up to 103% of its captive consumption.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 4.&#160;
Deferred Regulatory Assets, page&nbsp;F-17</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>You
disclose that certain regulatory assets have been monetarily restated based on
SELIC.&#160; Please explain to us what you
mean by &#147;monetarily restated.&#148;&#160; We assume
that you mean that the assets in question are remeasured to reflect the impact
of</b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">inflation resulting in an increase in the
asset balance during periods of rising prices and a corresponding non-cash
credit to the income statement.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have been
advised that SELIC is one of Brazil&#146;s benchmark interest rates. CEMIG&#146;s regulatory
assets are restated in value based on the SELIC rate. CEMIG confirms that the
application of such restatement results in an increase in the asset balance and
a non-cash credit to the income statement during periods of rising prices.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>You
disclose that you are required to collect from customers and transfer to
generators the special rate adjustment amounts related to the energy
transactions on the CCEE/MAE.&#160; Please
explain to us how you calculated the R$1,002 million regulatory asset related
to such transactions.&#160; We assume the
balance includes the R$364 million that will be transferred to other generators
as disclosed on page&nbsp;F-28.&#160;
Additionally, you state that you are entitled to receive R$200 million
from other distributors.&#160; Please tell us
whether the unrecovered portion is included in the R$1,002 million regulatory
asset and, given the lack of payment by certain concessionaires as a result of
your claim against CCEE/MAE, why you believe it is probable of recovery based
on paragraph 9.a of SFAS 71.</b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have been
advised that the regulatory asset amounting to R$1,002 million is comprised of (i)&nbsp;R$634
million that CEMIG expects to collect from other distribution companies,
representing amounts billed in connection with CEMIG&#146;s generation activities during
the energy rationing period that were not collected and (ii)&nbsp;R$368 million
that CEMIG expects to collect through the special rate adjustment and transfer
to other Brazilian generators for energy purchased on the MAE/CCEE by such
other generators from June&nbsp;1, 2001 to February&nbsp;28, 2002 at a price
exceeding R$49.26/MWh.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At December&nbsp;31,
2004, R$148 million, representing the unrecovered portion of the R$200 million
that CEMIG is entitled to receive from other distribution companies, is
included in the balance of R$634 million referred to in the above paragraph. As
of December&nbsp;31, 2004, CEMIG was in the process of challenging the
methodology used to calculate the values to be attributed to certain CCEE/MAE
transactions. The distribution companies that owed the R$148 million to CEMIG
had postponed payment of this amount, alleging that these payments could not be
made since CEMIG is in the process of challenging the general agreement of the
electricity sector. However, the eventual recovery of this amount was not
questioned at this time. CEMIG subsequently withdrew its claim with ANEEL and
the distributors began to make payment on these amounts. As of the date of this
letter, CEMIG had received approximately 70% of this remaining balance.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 5.&#160;
Deferred Income Taxes, page&nbsp;F-21</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
disclose the amounts and expiration dates of operating loss carryforwards.&#160; If operating loss carryforwards do not
expire, please clarify.&#160; See paragraph 48
of SFAS 109.</b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We advise the
Staff that as of December&nbsp;31, 2004, CEMIG had recorded tax loss
carryforwards amounting to R$16 million which we understand do not expire under
Brazilian tax law. &#160;In response to the
Staff&#146;s comment, CEMIG will include this disclosure in future fillings.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 14.&#160;
Financing, page&nbsp;F-29</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(f)&nbsp; Restrictive Covenants, page&nbsp;F-31</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">10.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>As
a result of covenant violations, you disclose that you obtained a waiver which
affirms that creditors will not exercise their rights to demand accelerated or
immediate payment of the total amount due until December&nbsp;31, 2005.&#160; As it appears immediate payment could be
required one year from the balance sheet date, please explain your basis for
classifying a portion of the related debt as long-term.&#160; See SFAS 78 and EITF 86-30.&#160; Also, please tell us your consideration of
the cross-default provisions of your debt agreements on your classification of
your other debt.</b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have been advised that as of December&nbsp;31,
2004, Infovias had defaulted on covenants principally related to debt coverage
ratios. In March&nbsp;2005, Infovias obtained a waiver relating to these
covenants through December&nbsp;31, 2005. During this time period, Infovias&#146;s
creditors were unable to demand accelerated payment of the related debt.
Infovias, CEMIG and the creditors are currently finalizing negotiations to
provide a new guarantee relating to the Infovias debt and modify the debt
agreement to eliminate the covenants that were in default. &#160;Considering the waiver agreement, the default
on the Infovias debt did not trigger any cross-default provisions on the other
debt agreements. &#160;The long-term portion
of the Infovias debt amounted to R$58 million, which represents 0.5% and 0.7%
of long-term and short-term liabilities, respectively, and 1.4% of CEMIG&#146;s
total debt as of December&nbsp;31, 2004. CEMIG considered the qualitative
factors set forth in SAB 99 and believes that the effect of any potential
misclassification would be immaterial.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 16.&#160;
Employee Post-Retirement Benefits, page&nbsp;F-33</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">11.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
disclose the accumulated benefit obligation for your defined benefit pension
plan and contributions expected to be paid to the plan during the next fiscal
year.&#160; See paragraphs 5.e and 5.g of SFAS
132R.</b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CEMIG advises the Staff that the accumulated
benefit obligation for its defined benefit pension plan and contributions
expected to be paid to this plan during the next fiscal year are R$5,585
million and R$200 million, respectively.&#160;
In response to the Staff&#146;s comment, CEMIG will include this disclosure
in its future fillings.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">12.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
explain to us how you calculate the market related value of plan assets as that
term is defined in SFAS 87.&#160; Since there
is an alternative to how you can calculate this item, and it has a direct
effect on pension expense, we believe you should disclose how you determine
this amount in accordance with paragraph 12 of APB 22.</b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CEMIG advises the Staff that the market
related value of plan assets is calculated based on the fair market value of such
plan assets. CEMIG will disclose this in future fillings.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 17.&#160;
Contingencies, page&nbsp;F-37</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(h)&nbsp; Contingencies for which an adverse
outcome has been deemed remote or possible; (ii)&nbsp;COFINS, page&nbsp;F-39</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">13.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
note that as a result of an unfavorable court ruling you were required to pay
R$239 million of COFINS tax in 1999.&#160; In
light of this ruling, please explain to us why you believe an adverse ruling in
a dispute to pay R$230 million in additional fines and interest relating to the
non-payment of COFINS is remote.</b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CEMIG advises
the Staff that in 1999 the Brazilian Government enacted Provisional Measure 1,858-6 allowing taxpayers to join
an amnesty program that granted taxpayers relief from any outstanding interest
and penalties provided such taxpayers pay the outstanding principal amount of
their tax debt.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CEMIG joined
the amnesty program in July&nbsp;1999 and paid the R$239 million principal
amount of the COFINS tax debt.&#160; However,
the Brazilian Attorney General claimed that CEMIG did not comply with the
requirements for joining the program, since prior to CEMIG&#146;s application to the
amnesty program the tax debt had already been included in the active list of
debts of the Federal Government. The
inclusion of the debt in such list is a formality that must be complied with by
the Brazilian Attorney General prior to the filing of a lawsuit for the
collection of tax debts.&#160; At the time
CEMIG joined the amnesty program, such a lawsuit had not been filed by the
Brazilian Attorney General.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CEMIG has taken the position that Provisional
Measure 1,858-6 only bars from
inclusion in the amnesty program those tax debts for which a lawsuit for the
collection of such tax debts has been filed by the Brazilian Attorney
General.&#160; CEMIG believes that a
subsequent re-issuance of Provisional Measure 1,858-6 confirms its position
because it explicitly expands the amnesty program to cover any tax debt paid
prior to September&nbsp;1999 regardless of whether it was registered in the
list of debts of the Federal Government by the Brazilian Attorney General.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Since a
lawsuit had not been filed by the Brazilian Attorney General for the collection
of CEMIG&#146;s tax debt prior to CEMIG&#146;s entering into the amnesty program, and in
light of the re-issuance of Provisional Measure 1,858-6, CEMIG believes that it
has complied with the requirements of the tax amnesty program and that it has a
meritorious defense to the government&#146;s claim of R$230 million in additional
fines and interest related to the non-payment of COFINS.&#160; In addition, CEMIG&#146;s external Brazilian
counsel is of the opinion that an adverse outcome is remote.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As requested
in your letter, the Company acknowledges the following:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company is responsible for the adequacy and accuracy of the disclosure in the
filing;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Staff
comments or changes to disclosure in response to Staff comments do not
foreclose the Commission from taking any action with respect to the filing; and</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company may not assert Staff comments as a defense in any proceeding initiated
by the Commission or any person under the federal securities laws of the United
States.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>*<font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>*</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:27.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Should you have any questions about the
responses in this letter, kindly contact the undersigned at (212) 530-5224 or
Steven Sandretto at (212) 530-5476.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="66%" valign="top" style="padding:0in 0in 0in 0in;width:66.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="33%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very truly yours,</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="top" style="padding:0in 0in 0in 0in;width:66.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="33%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="top" style="padding:0in 0in 0in 0in;width:66.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:19.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Michael L. Fitzgerald</font></p>
  </td>
  <td width="13%" valign="top" style="padding:0in 0in 0in 0in;width:13.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="top" style="padding:0in 0in 0in 0in;width:66.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="33%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="top" style="padding:0in 0in 0in 0in;width:66.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="33%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael L. Fitzgerald</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

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