6-K 1 a06-25359_16k.htm CURRENT REPORT OF FOREIGN ISSUER

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13 a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of December, 2006

Commission File Number 1-15224

Energy Company of Minas Gerais
(Translation of Registrant’s Name Into English)

Avenida Barbacena, 1200
30190-131 Belo Horizonte, Minas Gerais, Brazil
(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Index

Item |  | Description of Item |
1. |  | Summary Minutes of the 386th Meeting of the Board of Directors, June 29, 2006
2. |  | Summary Minutes of the 388th Meeting of the Board of Directors, August 9, 2006
3. |  | Summary of Decisions of the 397th Meeting of the Board of Directors, November 30, 2006
4. |  | Market Announcement, November 30, 2006
5. |  | Notice to Stockholders, December 12, 2006
6. |  | Acquisitions – New Companies Add Value, 2006 Earnings Report – 3rd Quarter
7. |  | Earnings Forecast Review 2006-2010
8. |  | Guidance Revision 2006-2010

1

COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
Listed company – CNPJ 17.155.730/0001-64 - NIRE 31300040127

Summary minutes of the 386th meeting of the Board of Directors.

Date, time and place: June 29, 2006, at 10 a.m., at the company’s head office, Av. Barbacena 1200, 18th Floor, Belo Horizonte, Minas Gerais, Brazil.

Meeting committee: Chairman: Wilson Nélio Brumer. Secretary: Anamaria Pugedo Frade Barros.

Summary of business:

I - The Board approved the minutes of this meeting.

II - The Board approved:

a) Concession of a corporate guarantee by the company for the Promissory Notes (“commercial paper”) to be issued by Cemig GT, in the amount of up to R$ 900 million, and by Cemig D, in the amount of R$ 300 million, structured and placed by BB Banco de Investimento S.A., and for all the instruments to be signed in the loan transactions, via Bank Credit Notes and or Working Capital Notes, to be contracted by Cemig GT, in the amount of up to R$ 900 million, and by Cemig D, in the amount of R$ 300 million, with Banco do Brasil S.A. (and other financial institutions, if the transaction is syndicated by the Bank), to be used for redemption of the said promissory notes, and the proceeds to be used solely to rollover existing debt and not in new investments; and

b) filing of appropriate legal actions, with or without deposit of amounts registered in the Federal Debt, plus fees of Counsel and procedural costs, against the State of Minas Gerais, for suspension of the demandability of the tax credits found by the Finance Secretariat of the State of Minas Gerais (SEF/MG), and consequent issuance of a tax liability release certificate.

III - The Board granted annual paid leave to the Chief Corporate Management Officer, from July 17 to 28, 2006.

IV - The Board re-ratified CRCA-012/2006, altering the dates of calculation of the stockholding base for payment of interim dividend from: 10 June 2004, 9 September 2004, 10 December 2004 and 10 January 2005; to: 11 July 2006; so as to ensure that stockholders whose names are in the Nominal Share Registry on that date shall receive the minimum obligatory dividends regularly, as approved by the Ordinary General Meeting of Stockholders of April 29, 2005, in the amount of R$ 76,500,000, authorizing the actual payment of this amount on August 10, 2006. The other terms of that CRCA remain unchanged.

V - The following matters were withdrawn from the agenda:

a) contracting of services for modeling of the services site within the company’s premises; and

2

b) entering into an agreement with the Minas Gerais Integrated Development Institute (INDI) for assignment of personnel.

VI - The Board Member Wilson Nélio Brumer abstained from voting on the matter relating to the taking of legal actions against the State of Minas Gerais for suspension of demandability of tax credits found by the State’s Finance Secretariat and obtaining of a tax release certificate, mentioned in item II, sub-item “b”, above.

VII - The following spoke on general subjects and matters of interest to the company:

· The Vice-Chairman;

· the Board Members Andréa Paula Fernandes Pansa, Carlos Augusto Leite Brandão, Evandro Veiga Negrão de Lima, Haroldo Guimarães Brasil, José Augusto Pimentel Pessôa and Wilton de Medeiros Daher;

· Flávio Decat de Moura, Director; and

· Manoel Bernardino Soares and Pedro Carlos Hosken, Superintendents.

The following were present:

· The Board Members Wilson Nélio Brumer, Djalma Bastos de Morais, Andréa Paula Fernandes Pansa, Alexandre Heringer Lisboa, Antônio Adriano Silva, Carlos Augusto Leite Brandão, Evandro Veiga Negrão de Lima, Francelino Pereira dos Santos, Haroldo Guimarães Brasil, José Augusto Pimentel Pessôa, Nilo Barroso Neto, Wilton de Medeiros Daher, Eduardo Lery Vieira, Luiz Henrique de Castro Carvalho, Fernando Lage de Melo and Lauro Sérgio Vasconcelos David;

· Flávio Decat de Moura, Director;

· Manoel Bernardino Soares and Pedro Carlos Hosken Vieira, Superintendents; and

· Anamaria Pugedo Frade Barros, Secretary.

Anamaria Pugedo Frade Barros

3

COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
Listed company – CNPJ 17.155.730/0001-64 – NIRE 31300040127

Summary minutes of the 388 th meeting of the Board of Directors.

Date, time and place: August 9, 2006, at 3:00 p.m., at the company’s head office, Av. Barbacena 1200, 18th Floor, Belo Horizonte, Minas Gerais, Brazil.

Meeting Committee: Chairman: Wilson Nélio Brumer. Secretary: Anamaria Pugedo Frade Barros.

Summary of business:

I - The Board approved the minutes of this meeting.

II - The Board authorized signing of the First Amendment to the Stock Purchase Agreement between Rio Minas Energia Participações S.A. – RME, as purchaser, and EDF Internacional S.A. – EDFI, as vendor, and, as consenting parties: Cemig; Andrade Gutierrez Concessões S.A.; Luce Brasil Fundo de Investimento em Participações, successor of J.L.A. Participações S.A.; and Pactual Energia Participações S.A.

III - The following spoke on general subjects and matters of interest to the company:

· The Vice-Chairman:

· the Board Members Andréa Paula Fernandes Pansa, Carlos Augusto Leite Brandão, Evandro Veiga Negrão de Lima, Haroldo Guimarães Brasil and José Augusto Pimentel Pessôa; and

· Flávio Decat de Moura, Director.

The following were present:

· the Board Members Wilson Nélio Brumer, Djalma Bastos de Morais, Aécio Ferreira da Cunha, Andréa Paula Fernandes Pansa, Alexandre Heringer Lisboa, Antônio Adriano Silva, Carlos Augusto Leite Brandão, Evandro Veiga Negrão de Lima, Francelino Pereira dos Santos, Haroldo Guimarães Brasil, José Augusto Pimentel Pessôa, Nilo Barroso Neto, Wilton de Medeiros Daher and Luiz Henrique de Castro Carvalho;

· Flávio Decat de Moura, Director; and

· Anamaria Pugedo Frade Barros, Secretary.

Anamaria Pugedo Frade Barros

4

COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG
Listed company
CNPJ 17.155.730/0001-64
NIRE 31300040127

SUMMARY OF DECISIONS OF THE 397 TH MEETING OF THE B OARD OF D IRECTORS

At its meeting held on November 30, 2006, the Board of Directors of Companhia Energética de Minas Gerais made the following decisions:

1) Timetable of planned meetings of the Board of Directors for 2007. Approved.

2) Concession of annual paid leave to the Chief Corporate Management Officer. Approved.

3) Signature of electricity sales contract and amendments with Sá Carvalho S.A. Approved.

4) Signature of contracts for use of the distribution system, connection to the distribution system and constitution of guarantees, with the Capim Branco Energia Consortium and Cemig D. Approved.

5) Contracting of corporate digital mobile phone services. Approved.

6) Contracting of advertising services. Approved.

7) Private issue of non-convertible debentures. Approved.

8) Gathering of proposals to serve as a base for contracting of the stockholder services function. Withdrawn from the agenda.

5

COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG
LISTED COMPANY
CNPJ 17.155.730/0001-64
Market announcement

In accordance with its commitment to best corporate governance practices, Cemig (Companhia Energética de Minas Gerais), a listed company holding public service concessions, with share securities traded on the stock exchanges of New York, Madrid and São Paulo, is pleased to report that for the second year running it was selected for inclusion in the Corporate Sustainability Index (“the ISE”) of the São Paulo Stock Exchange (Bovespa).

This index selects the Brazilian listed companies with significant liquidity that are most highly rated in terms of social responsibility and sustainability.

More information on the ISE can be found on the Bovespa website, www.bovespa.com.br.

Inclusion in this index represents confirmation by the Brazilian financial market of Cemig’s excellent reputation in actions related to sustainability. Cemig is also recognized internationally as a leading company in sustainability, evidenced by its inclusion in the Dow Jones Sustainability World Index for all of the last 7 years.

Belo Horizonte, November 30, 2006
Flávio Decat de Moura
Chief Financial and Investor Relations Officer

6

COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG

LISTED COMPANY

CNPJ 17.155.730/0001-64

NOTICE TO STOCKHOLDERS

We hereby inform stockholders that the payments of Interest on Equity approved by the meetings of the Board of Directors on June 29, 2005, October 27, 2005 and December 12, 2005, and the dividend approved by the Annual General Meeting held on April 28, 2006, will be paid on December 28, 2006.

The payment will be made automatically to all stockholders whose registration data are up-to-date with Banco Itaú S/A.

Belo Horizonte, December 12, 2006.

Flávio Decat de Moura

Chief Financial and Investor Relations Officer

7

Aquisitions
New companies add value

2006 Earnings Report - 3rd Quarter

8

Disclaimer |

· Some statements in this presentation are regarded under U.S. Securities law as forward-looking statements, i.e., statements that are subject to risks and uncertainties. Forward-looking statements are forecasts which may differ materially from the final figures and which are not under our control. For further information on the risks and uncertainties as they relate to us, please see our 20-F form for 2005, in particular, item 3 which contains “Basic Information – Risk Factors.”

All figures are expressed in Brazilian GAAP.

9

Agenda

1. Strategy and Results

· Wilson Brumer

2. Growth: new projects add new capacity

· Djalma Morais

3. Acquisitions as an avenue for growth in the short-term

· Flávio Decat

4. Cemig Corporation

· Wilson Brumer

5. Financial strategy and results analysis

· Flávio Decat

10

Agenda

1. Strategy and Results

· Wilson Brumer

2. Growth: new projects add new capacity

· Djalma Morais

3. Acquisitions as an avenue for growth in the short-term

· Flávio Decat

4. Cemig Corporation

· Wilson Brumer

5. Financial strategy and results analysis

· Flávio Decat

11

Growth through Acquisition:
Synergies Strengthen Fundamentals.

· Acquisitions added significant value though only partially reflected in the third quarter results:

· We serve more than 10 million clients as of today;

· EBITDA reached R$ 905 million in the third quarter 2006, 30% higher than the 3Q05;

· Record sales of 38,057 GWh in the first nine months of 2006, including 752 GWh of Light.

· New projects added more operational capacity:

· Generation capacity increased by 169 MW;

· New lines increased network by 8,839 km, with 468 Km of LT’s and 8,371 Km of RD’s;

· 3.8 million more consumers in 31 municipalities in the state of Rio de Janeiro.

· Third quarter operating performance demonstrates strengthening of Cemig’s fundamentals:

· Cemig GT revenue increased 22% compared with the same period of 2005;

· Cemig D energy sales demonstrate consistent growth throughout 2006;

· 22% growth of network revenues compared to the same period of 2005.

12

Growth of Adjusted Income and EBITDA confirm solid fundamentals

· Non-recurring factors impacted profitability growth as outlined on slide 43.

· For the nine months ending in September 2006, net income reached R$ 1,113 million, or R$ 6.87 per thousand shares:

· adjusted net income was R$ 1,217 million – a 13% increase compared to the first nine months of 2005

· For the same period, EBITDA was R$ 2,102 million:

· Adjusted EBITDA increased 21%, to R$ 2,307 million versus the same period of 2005

R$ millions

13

Excluding non-recurring items...

(R$ millions)

... Fundamentals assure positive results for the quarter

14

Consolidated Results -R$ thousands -

Company |  | Net Income |  | EBITDA |
Cemig Geração/Transmissâo |  | 487,590 |  | 1,010,103 |
Cemig Distribuição |  | 552,606 |  | 926,044 |
Cemig Holding |  | (55,781 | ) | (60,878 | )
Gasmig |  | 28,207 |  | 39,909 |
Infovias |  | 3,469 |  | 33,941 |
Sá Carvalho |  | 16,586 |  | 23,110 |
Efficientia |  | 217 |  | 249 |
Ipatinga |  | 5,127 |  | 8,602 |
Horizontes |  | 8,974 |  | 10,173 |
Pai Joaquim |  | 204 |  | (95 | )
Transleste |  | 2,193 |  | 3,205 |
Cogeração |  | 1,599 |  | 1,687 |
Rosal Energia |  | 15,359 |  | 16,549 |
Capim Branco |  | 13,578 |  | 15,378 |
Cemig PCH |  | 8,597 |  | 8,815 |
UTE Barreiro |  | 81 |  | 1,080 |
RME Light |  | 14,799 |  | 46,848 |
TBE |  | 9,862 |  | 17,514 |
Cemig Consolidated |  | 1,113,267 |  | 2,102,234 |

· Acquisitions accountable for 2.2% of net income and 3.1% of cash generation

Earnings per share
R$ lots of one thousand shares

Consolidated EBITDA Margin (%)

15

Agenda

1. Strategy and Results

· Wilson Brumer

2. Growth: new projects add new capacity

· Djalma Morais

3. Acquisitions as an avenue for growth in the short-term

· Flávio Decat

4. Cemig Corporation

· Wilson Brumer

5. Financial strategy and results analysis

· Flávio Decat

16

New projects undergo strict evaluation process

Our strategy to expand installed capacity includes generation efficiency requirements:

· Fair economic-financial balance

· Installed capacity expansion on three performance levels to contribute to efforts to generate economic development

· Improve financial capacity to finance own projects

· Protect the interests of shareholders, employees, clients and suppliers

Through

· Thorough investment selection with returns always above WACC

· Technological and operational improvements

· Superior management practices

17

New projects add installed capacity in order to meet increasing demand for electricity

Projects |  | 2005 |  | Through 06 |  | 2006 |  | Growth (%) |  | After 2006 |
Installed capacity |  |  |  |  |  |  |  |  |  |  |
Generation (em MW) |  | 6.113 |  |  |  | 6.736 |  | 10 | % |  |
UHE Irapé – 100% |  |  |  | 360 |  | 360 |  |  |  |  |
UHE Capim Branco I* - 21,0526% |  |  |  | 50 |  | 50 |  |  |  |  |
UHE Capim Branco II* - 21,0526% |  |  |  |  |  | 44 |  |  |  |  |
UHE Baguari* - 34% |  |  |  |  |  |  |  |  |  | 48 |
PCH’s * - 49% |  |  |  |  |  |  |  |  |  | 23 |
RME – LIGHT – 25% |  |  |  | 169 |  | 169 |  |  |  |  |
Network reach |  |  |  |  |  |  |  |  |  |  |
Transmission (km) |  | 4.892 |  | 468 |  | 5.360 |  | 10 | % | 236 | *
Distribution |  | 379.400 |  | 18.569 |  | 397.969 |  | 5 | % |  |
Sub-transmission (km) |  | 16.040 |  | 452 |  | 16.492 |  | 3 | % |  |
Total |  | 400.332 |  |  |  | 419.821 |  | 5 | % |  |
Consumers |  | 6.009.987 |  | 4.008.920 |  | 10.018.907 |  | 67 | % |  |

* Investments made in partnerships with diverse investors

18

Preparing for the future...

· Investment in Chile:

· | Charrúa transmission line – Nueva Temuco, 220 kV, 190 km
· | Concession period: | 20 years
· | Partner: | Alusa (51%)
· | Investment: | US$60 millions
· | Annual Revenue: | US$6.5 millions
· | Financing: | 70% the investment
· | Investment up to date: | US$6 millions
· | Start of implantation: | June/2005
· | Environmental license: | February/2007
· | Start of work: | March/2007
· | Start of operation: | July/2008

· Development of administrative capacity to operate in the regulatory environments in other countries.

19

Energy sales exceeded expectations

Projects |  | Through 3Q06 |  | Through 3Q05 |  | 3Q06 |  | 3Q05 |
Cemig GT |  | 22.147 |  | 18.628 |  | 7.881 |  | 7.497 |
Supply to distributors |  | 8.629 |  | 6.310 |  | 3.321 |  | 2.882 |
Free Market |  | 13.518 |  | 12.318 |  | 4.560 |  | 4.615 |
CEMIG Supply |  | -763 |  | -5.615 |  | -315 |  | -2.539 |
Cemig D |  | 14.911 |  | 15.244 |  | 5.069 |  | 5.004 |
Other companies |  | 1.010 |  | 920 |  | 338 |  | 340 |
Total |  | 37.305 |  | 29.177 |  | 12.973 |  | 10.302 |

Does not include acquisitions made during 2006

20

Cemig Generation and Transmission Sales — GWh

Quarterly Evolution

Through Sept. 2006

· Third quarter sales increased 5% compared with 3Q05

· Volume of energy sold in 2006 was 19% higher than in the same period of 2005

21

Cemig Distribution Sales — GWh

Quarterly Evolution

Through Sept 2006

· After the migration of free clients, the evolution of sales return to natural seasonality

22

Cemig Distribution Market Composition

(9M06)

· New consolidated market profile after the migration of free clients

23

Cemig energy sales Increased 28% in the first nine months of 2006

|  | 9 Months (MWh) |  |  |
|  | 2006 |  | 2005 |  | Var. % |
Residential |  | 4,962,046 |  | 4,927,351 |  | 0.7 | %
Industrial |  | 17,950,748 |  | 17,157,542 |  | 4.6 | %
· captive |  | 3,617,649 |  | 4,113,285 |  | -12.0 | %
· free |  | 14,333,099 |  | 13,044,257 |  | 9.9 | %
Commercial |  | 2,858,594 |  | 2,785,455 |  | 2.6 | %
Rural |  | 1,461,706 |  | 1,412,153 |  | 3.5 | %
Others |  | 2,011,402 |  | 1,936,501 |  | 3.9 | %
Supply |  | 8,060,257 |  | 958,353 |  | 741.1 | %
TOTAL |  | 37,304,753 |  | 29,177,355 |  | 27.9 | %

· Results reflect increases in the industrial class, the end of initial contracts, and a strong migration of consumers to the free market

· Continued growth for the past 7 quarters

· Cemig commercializes the most energy volume in the free market in the country

Does not include acquisitions made during 2006

24

Investment Program

Business ( * ) |  | 2005 |  | 2006 |  | 9M06 |  | 2007 |
CONSOLIDATED |  | 1.356 |  | 1.399 |  | 1.029 |  | 1.531 |
Segmentation |  | 1.165 |  | 1.399 |  | 1.029 |  | 1.531 |
GENERATION |  | 397 |  | 130 |  | 77 |  | 98 |
TRANSMISSION |  | 20 |  | 93 |  | 51 |  | 16 |
DISTRIBUTOR |  | 691 |  | 1.136 |  | 874 |  | 1.335 |
Distribution |  | 665 |  | 1.009 |  | 831 |  | 1.005 |
Extension and reinforcement of existing networks |  | 276 |  | 288 |  | 162 |  | 544 |
Light for All |  | 291 |  | 711 |  | 655 |  | 461 |
Others |  | 98 |  | 10 |  | 14 |  |  |
Sub- transmission |  | 26 |  | 127 |  | 43 |  | 330 |
HOLDING |  | 57 |  | 40 |  | 27 |  | 82 |
Other businesses |  | — |  | — |  |  |  | — |
Reconciliation to Cash Flow ( ** ) |  | 191 |  | — |  | — |  | — |
INVESTMENT IN ACQUISITIONS |  | — |  | 523 |  | 523 |  | — |
LIGHT(20%) US$80 milion |  | — |  | 175 |  | 175 |  | — |
TBE(21%) |  | — |  | 348 |  | 348 |  | — |
TOTAL |  | 1.356 |  | 1.922 |  | 1.552 |  | 1.531 |

( * ) Values in millions of reais

( ** ) Includes advancement of suppliers and warehouse

We added the last turbine of Irapé in operation: plant sold energy at R$125/MWh for 30 years

25

Agenda

1. Strategy and results

· Wilson Brumer

2. Growth: new projects add new capacity

· Djalma Morais

3. Acquisitions as an avenue for growth in the short-term

· Flávio Decat

4. Cemig Corporation

· Wilson Brumer

5. Financial strategy and results analysis

· Flávio Decat

26

Accelerated growth from acquisitions

· Focus on electricity business

· Expansion opportunities evaluated using strict profitability criteria

· Low risk business portfolio

· Adequate structural balance of the electric energy business segments : generation, transmission, and distribution

· Strong presence in all of the segments that create value

· Financial stability

· Clear objectives guarantee sustainability for the long-term

· Indebtedness

· Cash flow

· Credit quality

· Higher standards of Corporate governance and integrity

· Incorporation of practices that add value for the shareholder

· Code of ethics

27

Accelerated growth from acquisitions

· We look for partners that add value through:

· Reducing the necessity of using own resources

· Transparency of the economic-financial evaluation of projects

· Access to financing at low costs

· Maximization of cash generation:

· Surplus generation

· Rolling debt maturity

· Look for the best opportunities for financial funding

· Continued improvement in our credit risk classification

28

Novas empresas agregam valor significativo ao grupo

Values in millions of reais

|  | Gross Revenue |  |  |  | Energy Sales |  | Number of |  | EBITDA |  | Debt |
|  | R$ million |  | Consumer |  | GWh |  | employees |  | R$ million |  | R$ million |
Cemig GT |  | 1.724 |  | 171 |  | 22.147 |  | 2.255 |  | 1.010 |  | 3.630 |
Cemig D |  | 5.916 |  | 6.167.752 |  | 14.911 |  | 8.062 |  | 926 |  | 2.446 |
Light |  | 289 |  | 3.850.984 |  | 752 |  | 4.174 |  | 47 |  | 826 |
TBE |  | — |  | — |  |  |  | 54 |  | 18 |  | 222 |
Others |  | 79 |  | — |  | 247 |  |  |  | 101 |  | 1.092 |
Consolidated total |  | 8.008 |  | 10.018.907 |  | 38.057 |  | 14.891 | * | 2.102 |  | 8.216 |

* Included employees of Cemig Holding

29

Acquisitions stimulate sales to end consumers GWh

· 750 GWh in addition from Light increase 2% of sales in the 3th quarter.

30

Consolidated Sales for Distribution Business – GWh

Quarterly evolution

Nine months 2006

· Cemig Corporation is a leader in the Brazilian market for sales to end consumers

· Acquisition of Light increased sales by 12%

31

Consolidated Position of energy generation assets

|  | Installed Capacity |  | Assured Energy |
Plant |  | (MW) |  | (MW médios) |
Major Hydroelectric plants |  |  |  |  |
São Simão |  | 1,710 |  | 1,281 |
Emborcação |  | 1,192 |  | 497 |
Nova Ponte |  | 510 |  | 276 |
Jaguara |  | 424 |  | 336 |
Miranda |  | 408 |  | 202 |
Três Marias |  | 396 |  | 239 |
Volta Grande |  | 380 |  | 229 |
Irapé |  | 360 |  | 206 |
Aimorés |  | 162 |  | 84 |
Light Generation (25%) |  | 213 |  | 159 |
Others |  | 796 |  | 476 |
Total Hydroelectrics |  | 6,551 |  | 3,986 |
Total Thermoelectrics |  | 184 |  | 115 |
Eólica |  | 1 |  | 0 |
Total |  | 6,736 |  | 4,101 |

· Cemig Corporation is the fifth largest Generator in the country

· Light acquisition increased installed capacity by 4%

32

Consolidated Sales for Generation Business + Light – GWh

Quartely evolution

Nine months 2006

· Cemig corporation is the fifth largest Generator in the country

· With generation from Light, Generation sales increased 2.0%

33

Consolidated Posisiton of energy Transmission assets

Extension of Transmission Network - Km

|  | 2003 |  | 2004 |  | 2005 |  | 09/2006 |
Lines of 500 KV |  | 2.163 |  | 2.163 |  | 2.165 |  | 2.581 |
Lines of 345 KV |  | 1.921 |  | 1.942 |  | 1.976 |  | 1.977 |
Lines of 230 KV |  | 745 |  | 751 |  | 751 |  | 779 |
Total |  | 4.829 |  | 4.856 |  | 4.892 |  | 5.337 |

· Incorporation of TBE increased installed capacity for transmission lines for Cemig by xx%

· Cemig Corporation is the sixth largest Transmitor of energy in the country

34

Agenda

1. Strategy and results

· Wilson Brumer

2. Growth: new projects add new capacity

· Djalma Morais

3. Acquisitions as an avenue for growth in the short-term

· Flávio Decat

4. Cemig Corporation

· Wilson Brumer

5. Financial strategy and results analysis

· Flávio Decat

35

International class company in performance

· | Total assest : | R$ 24.5 billion
· | Shareholders’ equity : | R$ 8.1 billion
· | Consolidated debt: | R$ 8.2 billion
· | Consolidated net earnings: | R$ 7.0 billion
· | Energy sales to the principal states of Brazil |
· | Initiating foreign investments |

36

Quality growth ensures sustainability

Obligations to diverse “stakeholders”

· Shareholders:

· Corporate Governance

· Conform with Sarbanes-Oxley Law: section 404

· Minimize cost of investments

· Guarantee adequate returns

· Employees:

· Human capital development

· Best company to work for: included in the top 100 best companies by Exame magazine

· Clients

· Assets with superior operational performance

· Qualification of activities through the ISO 9000

· Community

· For the seventh consecutive time, Cemig was selected to be part of the Dow Jones World Sustainability index

37

New map of Cemig in the country

38

Acknowledging the market

39

Agenda

1. Strategy and results

· Wilson Brumer

2. Growth: new projects add new capacity

· Djalma Morais

3. Acquisitions as an avenue for growth in the short-term

· Flávio Decat

4. Cemig Corporation

· Wilson Brumer

5. Financial strategy and results analysis

· Flávio Decat

40

Financial management in line with Strategic Plan

· Long-Term Strategic Plan Commitment:

· Debt/ EBITDA

· Debt/(Debt+ stockholders’ equity)

· Adequate cash flow to Cemig desverticalizada and by expansion

· Projects initiated only with guaranteed resources

· Expansion financing structure that allows for average cost reduction considering capital

· Extension of debt maturity for the long-term

· Optimization of foreign exchange risk

· Combined with a natural hedge (energy sales contracts are indexed to the dollar)

· Expectation of improving credit quality evaluation by risk classiciation agencies

41

Consolidated indebtedness - September 2006 R$ million

Principal Indexes

Principal Creditors

Banco ItaúBBA |  | R$ 1.290 milhões |  | (22 | %)
Debenturistas |  | R$ 1.287 milhões |  | (22 | %)
Unibanco |  | R$ 701 milhões |  | (12 | %)
Bradesco |  | R$ 616 milhões |  | (11 | %)
Banco do Brasil |  | R$ 592 milhões |  | (10 | %)
Eletrobrás |  | R$ 274 milhões |  | (5 | %)
BNDES |  | R$ 234 milhões |  | (4 | %)

Average cost of debt is 9.89% p.a., with constant prices (as of September 2006) without considering Light and TBE debts.

42

Lengthened Debt Maturity Profile

2006 considers R$1,200 million regarded to Commercial Papers from 90 day period raised in July.

43

Debt matured schedule with subsequent events

44

Forecast values to 2006

Net Debt |
Net Debt + PL |
Debt |
EBITDA |
Debt |
EBITDA ajusted |

A |  | B |  | C
Debt = Total Debt — Regulatory Assets |  | A - FIDC |  | Covenants Banks

45

Strong cash flow guarantees expansion

Statement of Cash Flows (consolidated)
Values in millions of reais

|  | 9M06 |  | 9M05 |  | 2005 |
Cash at start of period |  | 1.469 |  | 896 |  | 896 |
Cash from operations |  | 1.542 |  | 1.224 |  | 1.657 |
Net income |  | 1.113 |  | 1.487 |  | 2.003 |
Depreciation and amortization |  | 479 |  | 444 |  | 595 |
Suppliers |  | (39 | ) | (41 | ) | 91 |
Deferred tariff adjustment |  | — |  | (591 | ) | (591 | )
Other adjustments |  | (11 | ) | 146 |  | (220 | )
ICMS on TUSD |  | — |  | (221 | ) | (221 | )
Financing Activity |  | 433 |  | 117 |  | 147 |
Financing obtained |  | 2.204 |  | 1.031 |  | 1.556 |
Payment of loans and financing |  | (216 | ) | (598 | ) | (818 | )
Others |  | (1.555 | ) | (316 | ) | (591 | )
Investment Activity |  | (1.412 | ) | (940 | ) | (1.356 | )
Investments outside concession area |  | (507 | ) | (49 | ) | (69 | )
Investments in concession area |  | (1.060 | ) | (935 | ) | (1.360 | )
Special obligations - consumer contributions |  | 159 |  | 44 |  | 73 |
Others |  | (4 | ) |  |  |  |
Cash at end of period |  | 2.032 |  | 1.297 |  | 1.344 |

46

Evolution of Consolidated Results

Statement of Results (Consolidated)

Value in millions of reais

|  | 9M06 |  | 3Q06 |  | 9M05 |  | 3Q05 |  | FY2005 |
Net Revenue |  | 6.970 |  | 2.599 |  | 6.148 |  | 2.063 |  | 8.236 |
Operating Expenses |  | (5.347 | ) | (1.918 | ) | (4.198 | ) | (1.503 | ) | (6.342 | )
EBIT |  | 1.623 |  | 681 |  | 1.950 |  | 560 |  | 1.894 |
EBITDA |  | 2.102 |  | 905 |  | 2.363 |  | 699 |  | 2.489 |
Financial Result |  | (208 | ) | (38 | ) | (43 | ) | 124 |  | (3 | )
Non-operating result |  | (13 | ) | 7 |  | (39 | ) | (19 | ) | (53 | )
Provision for Income taxes, Social Cont. and Deferred income tax |  | (456 | ) | (200 | ) | (665 | ) | (219 | ) | (471 | )
Interest on own capital reversal |  | 169 |  | — |  | 283 |  | — |  | 635 |
Minority shareholders |  | (2 | ) | (2 | ) | 1 |  | — |  | 1 |
Net income |  | 1.113 |  | 448 |  | 1.487 |  | 446 |  | 2.003 |

47

Net revenues

Consolidated Operating Revenues
Value in millions of reais

|  | 9M06 |  | 3Q06 |  | 9M05 |  | 3Q05 |  | FY2005 |
Sales to end consumers |  | 7,316 |  | 2,729 |  | 6,538 |  | 2,382 |  | 8,919 |
TUSD |  | 907 |  | 319 |  | 864 |  | 292 |  | 1,201 |
Subtotal |  | 8,223 |  | 3,048 |  | 7,402 |  | 2,674 |  | 10,120 |
Supplies |  | 692 |  | 318 |  | 160 |  | 52 |  | 237 |
Network transmission revenue |  | 458 |  | 172 |  | 285 |  | 107 |  | 322 |
Gas supply |  | 220 |  | 80 |  | 195 |  | 64 |  | 265 |
Others |  | 149 |  | 55 |  | 114 |  | 36 |  | 168 |
Subtotal |  | 9,742 |  | 3,673 |  | 8,156 |  | 2,933 |  | 11,112 |
Deferred tariff readjustment |  | — |  | — |  | 591 |  | — |  | 591 |
Deductions |  | (2,772 | ) | (1,074 | ) | (2,599 | ) | (870 | ) | (3,467 | )
Net Revenues |  | 6,970 |  | 2,599 |  | 6,148 |  | 2,063 |  | 8,236 |

48

Operating Expenses impacted by non-controllable costs

Consolidated Operating Expenses (Values in millions of reais)

|  | 9M06 |  | 3Q06 |  | 9M05 |  | 3Q05 |  | FY2005 |
Purchased Energy |  | 1,578 |  | 590 |  | 1,053 |  | 397 |  | 1,455 |
Personnel/Managers/Board/Profit Shares |  | 908 |  | 255 |  | 694 |  | 213 |  | 1,106 |
Depreciation and Amortization |  | 479 |  | 176 |  | 444 |  | 149 |  | 595 |
Fuel Consumption Account - CCC |  | 363 |  | 141 |  | 305 |  | 109 |  | 416 |
Energy Development Account - CDE |  | 244 |  | 93 |  | 220 |  | 74 |  | 296 |
Charges for the use of Basic Transmission Network |  | 621 |  | 199 |  | 506 |  | 149 |  | 641 |
Third Party Services |  | 344 |  | 127 |  | 290 |  | 114 |  | 423 |
Pension Fund (Forluz) |  | 116 |  | 41 |  | 115 |  | 38 |  | 153 |
Materials |  | 59 |  | 21 |  | 66 |  | 24 |  | 96 |
Production Materials |  | 36 |  | 36 |  | — |  | — |  | — |
Royalties |  | 94 |  | 39 |  | 110 |  | 31 |  | 145 |
Purchased Gas for Resale |  | 119 |  | 43 |  | 116 |  | 40 |  | 156 |
Operational Provisions |  | 117 |  | 37 |  | 116 |  | 101 |  | 127 |
PROINFA |  | 31 |  | 16 |  | — |  | — |  | — |
Energy Efficiency and R&D |  | 67 |  | 22 |  | 17 |  | 7 |  | — |
Other expenses |  | 171 |  | 82 |  | 146 |  | 57 |  | 733 |
Total |  | 5,347 |  | 1,918 |  | 4,198 |  | 1,503 |  | 6,342 |

49

Non-recurring items: Adjusted results show sustainable growth

Values in thousands |  | 9M06 |  | 9M05 |
Net Income |  | 1,113,267 |  | 1,487,200 |
(a) Deferred Tariff adjustment |  | — |  | (412,597 | )
(b) CVA Recomposition of TUST |  | 61,555 |  | — |
(c) Annual Salary Increase |  | 117,040 |  |  |
(d) Reversal of Provision for RGR |  | (43,402 | ) |  |
(e) Income from overdue bills Inc. cl |  | (31,869 | ) |  |
Adjusted net income |  | 1,216,591 |  | 1,074,603 |

EBITDA |  | 2,102,234 |  | 2,394,124 |
(a) Deferred Tariff Adjustment - |  | — |  | (487,576 | )
(b) CVA Recomposition of TUST |  | 93,265 |  | — |
(c) Annual Salary Increase |  | 177,425 |  |  |
(d) Reversal of Provision for RGR |  | (65,760 | ) |  |
Adjusted EBITDA |  | 2,307,164 |  | 1,906,548 |

50

Integrated business structure benefits results

Statement of Consolidated Results Values in millions of reais - 9M06

|  | Cemig H |  | Cemig D |  | Cemig GT |
Net Revenue |  | 6,970 |  | 4,660 |  | 1,765 |
Operating Expenses |  | (5,347 | ) | (4,009 | ) | (901 | )
EBIT |  | 1,623 |  | 651 |  | 864 |
EBITDA |  | 2,102 |  | 926 |  | 1,010 |
Financial Result |  | (208 | ) | 19 |  | (368 | )
Non-Operating Result |  | (13 | ) | (21 | ) | (1 | )
Provision for Income taxes, Social Cont. and Deferred Income taxes |  | (456 | ) | (222 | ) | (167 | )
Interest of Own Capital Reversal |  | 169 |  | 126 |  | 160 |
Minority Shareholders |  | (2 | ) | — |  | — |
Net Income |  | 1,113 |  | 553 |  | 488 |

51

Results

Cemig Generation and Transmission

Statement of Results - Cemig Generation and Transmission
Values in millions of Reais

|  | 9M06 |  | 3Q06 |  | 9M05 |  | 3Q05 |  | FY2005 |
Net Revenue |  | 1,765 |  | 651 |  | 1,462 |  | 534 |  | 1,964 |
Operating Expenses |  | (901 | ) | (342 | ) | (606 | ) | (218 | ) | (1,154 | )
EBIT |  | 864 |  | 309 |  | 856 |  | 316 |  | 810 |
EBITDA |  | 1,010 |  | 365 |  | 991 |  | 361 |  | 988 |
EBITDA Margin |  | 57.2 | % | 56.1 | % | 67.8 | % | 67.6 | % | 50.3 | %
Financial Result |  | (368 | ) | (132 | ) | (282 | ) | 17 |  | (526 | )
Non-Operating Result |  | (1 | ) | 1 |  | (4 | ) | (3 | ) | (5 | )
Provision for Income taxes, Social Cont. and Deferred Income taxes |  | (167 | ) | (59 | ) | (194 | ) | (112 | ) | (93 | )
Interest of Own Capital Reversal |  | 160 |  | 76 |  | 137 |  | — |  | 282 |
Net Income |  | 488 |  | 195 |  | 513 |  | 218 |  | 468 |
Net margin |  | 27.6 | % | 30.0 | % | 35.1 | % | 40.8 | % | 23.8 | %

52

Cemig Generation and Transmission

Operating Revenues
Values in millions of reais

|  | 9M06 |  | 3Q06 |  | 9M05 |  | 3Q05 |  | FY2005 |
Sales to end consumers |  | 1,075 |  | 384 |  | 1,105 |  | 388 |  | 1,489 |
Wholesale supply |  | 649 |  | 276 |  | 442 |  | 163 |  | 597 |
Network transmission revenue |  | 437 |  | 151 |  | 285 |  | 107 |  | 396 |
Others |  | 8 |  | 3 |  | 7 |  | 2 |  | 11 |
Subtotal |  | 2,169 |  | 814 |  | 1,839 |  | 660 |  | 2,493 |
Deductions |  | (404 | ) | (163 | ) | (377 | ) | (126 | ) | (529 | )
Net revenue |  | 1,765 |  | 651 |  | 1,462 |  | 534 |  | 1,964 |

53

Cemig Generation and Transmission

Operating Expenses
Values in millions of reais

|  | 9M06 |  | 3Q06 |  | 9M05 |  | 3Q05 |  | FY2005 |
Personnel/ management/Board/Profit Share |  | 207 |  | 57 |  | 141 |  | 46 |  | 235 |
Depreciation and Amortization |  | 146 |  | 56 |  | 136 |  | 45 |  | 181 |
Fuel Consumption Account - CCC |  | 50 |  | 19 |  | 22 |  | 7 |  | 29 |
Energy Development Account - CDE |  | 32 |  | 12 |  | 13 |  | 5 |  | 17 |
Charges for Use of the Basic Transmission Network |  | 171 |  | 63 |  | 84 |  | 31 |  | 157 |
Third Party Services |  | 61 |  | 26 |  | 47 |  | 20 |  | 78 |
Pension Fund - Forluz |  | 26 |  | 9 |  | 26 |  | 9 |  | 35 |
Materials |  | 12 |  | 4 |  | 10 |  | 4 |  | 17 |
Royalties |  | 91 |  | 32 |  | 83 |  | 27 |  | 109 |
Operational Provisions |  | 3 |  | 1 |  | 2 |  | 1 |  | 200 |
Other Expenses |  | 102 |  | 38 |  | 42 |  | 23 |  | 95 |
Total |  | 901 |  | 317 |  | 606 |  | 218 |  | 1,153 |

54

Results

Cemig Distribution

Statement of Results - Cemig Distribution
Values in millions of reais

|  | 9M06 |  | 3Q06 |  | 9M05 |  | 3Q05 |  | FY2005 |
Net Revenue |  | 4.660 |  | 1.597 |  | 4.755 |  | 1.565 |  | 6.397 |
Operating Expenses |  | (4.009 | ) | (1.316 | ) | (3.672 | ) | (1.317 | ) | (5.225 | )
EBIT |  | 651 |  | 281 |  | 1.083 |  | 248 |  | 1.172 |
EBITDA |  | 926 |  | 370 |  | 1.354 |  | 339 |  | 1.454 |
EBITDA Margin |  | 19,9 | % | 23,2 | % | 28,5 | % | 21,7 | % | 22,7 | %
Financial Result |  | 19 |  | (56 | ) | 161 |  | 81 |  | 26 |
Non-Operating Result |  | (21 | ) | (7 | ) | (23 | ) | (10 | ) | (31 | )
Provision for Income taxes, Social Cont. and Deferred Income taxes |  | (222 | ) | (75 | ) | (417 | ) | (108 | ) | (398 | )
Interest of Own Capital Reversal |  | 126 |  | 60 |  | 107 |  | — |  | 221 |
Net Income |  | 553 |  | 203 |  | 911 |  | 211 |  | 990 |
Net Margin |  | 11,9 | % | 12,7 | % | 19,2 | % | 13,5 | % | 15,5 | %

55

Cemig Distribution

Operating Revenue
Values in millions of reais

|  | 9M06 |  | 3Q06 |  | 9M05 |  | 3Q05 |  | FY2005 |
Sales to End Consumers |  | 5,887 |  | 2,044 |  | 5,366 |  | 1,968 |  | 7,335 |
TUSD |  | 885 |  | 297 |  | 864 |  | 292 |  | 1,201 |
Subtotal |  | 6,772 |  | 2,341 |  | 6,230 |  | 2,260 |  | 8,536 |
Wholesale Supply |  | 30 |  | 24 |  | 44 |  | 14 |  | 95 |
Others |  | 39 |  | 13 |  | 40 |  | 10 |  | 53 |
Subtotal |  | 6,841 |  | 2,378 |  | 6,314 |  | 2,284 |  | 8,684 |
Deferred Tariff Adjustment |  | — |  | — |  | 591 |  | — |  | 591 |
Deductions |  | (2,181 | ) | (781 | ) | (2,150 | ) | (719 | ) | (2,878 | )
Net Revenue |  | 4,660 |  | 1,597 |  | 4,755 |  | 1,565 |  | 6,397 |

· Revenue from industrial consumers declined 12% as a result of the migration of consumers from capitive to free.

56

Cemig Distribution

Operating Expenses - Values in millions of reais

|  | 9M06 |  | 3Q06 |  | 9M05 |  | 3Q05 |  | FY2005 |
Personnel |  | 587 |  | 151 |  | 445 |  | 137 |  | 595 |
Profit Shares |  | 43 |  | 14 |  | 45 |  | 15 |  | 188 |
Obrigações Pós-Emprego |  | 81 |  | 27 |  | 83 |  | 28 |  | 111 |
Materiais |  | 44 |  | 15 |  | 52 |  | 18 |  | 74 |
Third Party Services |  | 233 |  | 77 |  | 210 |  | 81 |  | 312 |
Electric Energy Purchased for Resale |  | 1.544 |  | 524 |  | 1.400 |  | 529 |  | 1.890 |
Depreciation and Amortization |  | 275 |  | 91 |  | 271 |  | 91 |  | 364 |
Operating Provisions |  | 90 |  | 33 |  | 113 |  | 66 |  | 133 |
Fuel Consumption Account - CCC |  | 304 |  | 113 |  | 283 |  | 102 |  | 387 |
Charges for Use of the Basic Transmission Network |  | 422 |  | 112 |  | 420 |  | 116 |  | 554 |
Energy Development Account - CDE |  | 205 |  | 74 |  | 207 |  | 69 |  | 279 |
Efficient Energy and R&D |  | 51 |  | 15 |  | 12 |  | 5 |  | 173 |
PROINFA |  | 28 |  | 15 |  | — |  | — |  | — |
Other Expenses |  | 102 |  | 55 |  | 131 |  | 60 |  | 165 |
Total |  | 4.009 |  | 1.316 |  | 3.672 |  | 1.317 |  | 5.225 |

57

58

Glossário

Average outage frequency (FEC): Average number of outages suffered in a given period per consumer, in a given group of consumers.

Debt coverage index: Ebitda divided by total financial expenses in the year. This gives a figure for the company’s capacity to pay debt servicing.

Deferred Tariff Adjustment (RTD): Every four years Aneel decides on a “periodic” tariff review for each electricity distributor, to adjust the level of annual adjustments to preserve the financial equilibrium of the concession contracts, coverage of efficient operational costs and adequate remuneration of investment. On April 8, 2003, this adjustment for Cemig was set provisionally at 31.53%, but the final adjustment decided was 44.41%, and the percentage difference of 12.88% will be applied to Cemig’s tariffs in “deferred” format: i.e., as an addition to each of the annual tariff adjustments decided for the years 2004 through 2007, cumulatively. The difference between the adjustment to which Cemig Distribuição is entitled and the tariff in fact charged to consumers has been recognized in Cemig’s financial reporting as a Regulatory Asset.

Ebitda: Earnings before interest, tax, depreciation and amortization – a measure of a company’s operational cash flow, providing an indicator of the cash flow generated by a company’s principal business.

Ebitda margin: Ebitda/net operating revenue. This provides a view of the company’s cash generation capacity.

Hedge: Financial mechanism for protection against fluctuations in prices – e.g. of commodities -, or variables such as interest rates or exchange rates.

Hydroelectric power plant: A generating plant that uses the mechanical energy of falling water to operate electricity generators.

Manageable costs: Costs that essentially depend on the efficacy of corporate management, such as personnel expenses, materials, outsourced services, etc. – also referred to as controllable costs.

Net margin: Net income / Net operating revenue – an indication of a business’s profitability.

Outage time per consumer (DEC): Average service outage time per consumer in a given group of consumers over the specified period.

The Extraordinary Tariff Recomposition (RTE): This was a tariff adjustment granted by the government in December 2001 to the distributors and generators of the regions where rationing was imposed. It was one of the conditions of the General Accord for the Electricity Sector: an increase of 2.9% in the tariff of residential consumers (with the exception of Low-Income Residential Consumers), and an increase of 7.9% for other consumers. Its purpose was to make good the losses suffered by distributors and generators as a result of the reduction of consumption imposed by the government. The duration of the adjustment varies in accordance with the time necessary to recover the loss of each concession holder.

The CCC (Fuel Consumption Account): This account was created to accumulate funds to cover the increase in costs associated with greater use of thermal generation plants in the event of drought – since the marginal operating costs of thermal plants are greater than those of hydroelectric plants. All Brazil’s electricity companies are obliged to make an annual contribution to the CCC, calculated on the basis of estimates of the amount of fuel likely to be required by the thermal plants in the following year.

59

The CDE (Energy Development) Account: This is a source of subsidies to make alternative energy sources such as wind and biomass more competitive, and promote universalization of electricity services. It is funded by annual payments made by the concession holders for the use of public assets, and also from penalty payments imposed by Aneel for infringements.

The CRC (Results Compensation Account): Before 1993, electricity concession holders in Brazil were given a guarantee of a rate of return on their investment in the assets used in the provision of electricity to clients, and the tariffs charged to clients were uniform over the whole country. Profits generated by the more profitable concession holders were reallocated to the less profitable concession holders, in such a way that the rate of return on assets was equal to the national average for all of the companies. Though the results for the majority of Brazil’s electricity concession holders were deficits, these were posted by the federal government as assets in the “CRC account” of each company. When the CRC Account, and the concept of guaranteed return, were abolished, concession holders that had positive balances in their “CRC accounts” were able to offset these balances against any liabilities owed to the federal government.

The CVA – the Offsetting Account for Variations of “Portion A” items: “Portion A” is the list, used in the calculation of the electricity distributors’ annual tariff adjustments, of the utility’s cost items that are not under its own control. The CVA mechanism compensates for changes in the list’s total over the year to the new tariff date. The variation – positive or negative – is passed on in the tariff adjustment.

The Global Reversion Reserve (RGR): This is an annual amount included in the costs of concession holders to generate a fund for expansion and improvement of public electricity services. The amounts are paid monthly to Eletrobrás, which is responsible for the management of the resulting fund, and are to be employed in the Procel mechanism.

Thermal power plant: A generating plant that converts chemical energy contained in fossil fuels into electricity.

Total return to stockholders: Sum of the dividend yield and the percentage appreciation in the stock price.

TUSD – Toll for Use of the Distribution System: This is paid by generation companies, and by Free Consumers, for the use of the distribution system belonging to the distribution concession holder to which the generator or Free Consumer is connected, and is revised annually in accordance with inflation and the investments made by the distributor in the previous year for maintenance and expansion of its network. The amount is: the quantity of energy contracted with the distribution concession holder for each link point, in kW, multiplied by a tariff in R$/kW set by Aneel.

Volt: Unit of the electrical potential at which energy is supplied.

Voltage: For the purposes of efficient transport of electrical energy over transmission lines from the generating plant to the consumer, there are various levels of transmission voltage. Similarly, electricity is used by consumers at various different voltage levels.

Watt (W): Unit of power required for a device to operate. 1,000 watts is a kilowatt (kW), 1 million watts is a Megawatt (MW), and 1 billion watts is a Gigawatt (GW).

Watt-hour: Measure of energy (work done by electric power): The kilowatt hour, Megawatt hour, Gigawatt hour and Terawatt hour (KWh, MWh, GWh, TWh) respectively represent 1,000, 1 million, 1 billion and 1 trillion watt-hours.

60

EARNINGS FORECAST
REVIEW
2006 - 2010

CFO AND INVESTOR RELATIONS DIRECTOR

NOVEMBER/06

61

Disclaimer

· Some statements in this presentation are regarded under U.S. Securities law as forward-looking statements, i.e., statements that are subject to risks and uncertainties. Forward-looking statements are forecasts which may differ materially from the final figures and which are not under our control. For further information on the risks and uncertainties as they relate to us, please see our 20-F form for 2005, in particular, item 3 which contains “Basic Information – Risk Factors.”

All figures are expressed in Brazilian GAAP.

62

AGENDA

REASONS FOR UPDATING GUIDANCE FROM MAY 2006

GUIDANCE PROCESS REVISIONS AND EXPLANATION

NEW 2006 GUIDANCE

63

FORECAST DISCLOSED AT 11TH CEMIG ANALYST ANNUAL MEETING

EBITDA FORECAST 2006/09

R$ MM

64

REASONS FOR CHANGING 2006
EBITDA FORECAST

GUIDANCE |  |  |  | GUIDANCE |
MAY 2006 |  |  |  | NOV 2006 |
3,454 |  | (419) |  | 3,035 |

NEGATIVE

TE CASE REVENUE REIMBURSEMENT |  |
RTD | (173 | )
PASEP/COFINS | (67 | )
PROFIT SHARING BONUS |  |
PSB | (80 | )
ACQUISITIONS |  |
Revision LIGHT/TBE | (141 | )
PERSONAL COLLECTIVE AGREEMENT |  |
Odontology Plan | (17 | )

POSITIVE

PROVISIONS |  |
Operational Provisions (Labor, civil, others) | 59 |

65

PROCESS REVISION

· Reasons for redesigning the process

· Enhancement of the accuracy of information disclosed to the public

· Compliance with practices under Sarbanes-Oxley law – section 404: certification of information utilized in projections

· Design of new process

· Creation of a committee with managers from several areas

· Certification of each step of the process

· Dedicated modeling software and hardware

· Connection of management information systems (SAP) and of risk management

· Update and communicate with the financial market two times per year

· Integration of processes that make up the Financial Planning

66

PROCESS REVISION INFORMATION CERTIFICATION

Models |  | Update |  | Authorized by |
Long term projections of CEMIG controlling group |  | Yes |  | DFN/A |
Base year projection for income statement (2006) |  | Yes |  | CR |
Balance sheet projections for base year (Dez/ 2006) |  | Yes |  | CR |
Cash Flow Projections for base year |  | Yes |  | CR |
Macroeconomic indicators |  | Yes |  | PP/PE and ED |
Sales forecast |  | Yes |  | ED, PL and RL |
Invoiced Revenue – Generation, Transmission, Distribution |  | Yes |  | PP/TF |
Invoiced Revenue (Distribution – low income arrival) |  | Yes |  | PP/TF |
RTD – Deferred tariff revenues |  | Yes |  | CR |
RTE – Extraordinary Tariff Adjustment |  | Yes |  | PP/TF |
Pis/Cofins |  | Yes |  | CR and PP/IV |
Operating Expenses (Distribution) |  | Yes |  | PP, DDC and DGE |
Operating Expenses (Generation and Transmission) |  | Yes |  | PP, DGT and DGE |
Other Expenses(*) |  | Yes |  | CR |
Purchased Energy |  | Yes |  | CV and PP/TF |
ONS Payment |  | Yes |  | CV and PP/TF |
Other Charges |  | Yes |  | PP/TF |
Investments |  | Yes |  | Sub Committee CPE |
Depreciation |  | Yes |  | PP/IV |
Debt |  | Yes |  | CR |

67

GUIDANCE ASSUMPTIONS - INDICATORS

PRIOR SCENARIO

· With Brazil obtaining Investment Grade status for 2008/2009, new resources available will contribute to reduce interest rates

· Structural reforms that will be made during 2007 allow for stronger growth in GDP

UPDATED SCENARIO

· Brazil obtaining Investment Grade status is not sufficient to allow a material reduction in interest rates, remembering that other emerging market countries (during this time) have also received Investment Grade status.

The consequence is small.

· The GDP growth assumes a conservative position due to the weak Brazilian economic performance when compared to other Emerging Market countries.

Brazil should continue to have a lower growth rate than other emerging market countries.

68

NEW PROJECTION

Comparison between prior and updated scenarios

|  | Prior |  | Updated |
Year |  | IGP-M |  | PIB |  | Selic |  | Dollar |  | IGP-M |  | PIB |  | Selic |  | Dollar |
|  | % |  | R$/US$ |  | % |  | R$/US$ |
2007 |  | 5.4 |  | 3.0 |  | 13.3 |  | 2.4 |  | 4.7 |  | 3.5 |  | 13.5 |  | 2.3 |
2008 |  | 5.6 |  | 3.8 |  | 12.1 |  | 2.5 |  | 4.8 |  | 3.5 |  | 13.1 |  | 2.4 |
2009 |  | 5.7 |  | 4.2 |  | 10.3 |  | 2.6 |  | 4.8 |  | 3.5 |  | 12.9 |  | 2.6 |
2010 |  | 5.6 |  | 4.6 |  | 8.9 |  | 2.7 |  | 4.8 |  | 3.5 |  | 12.6 |  | 2.7 |

|  | LARGEST DIFFERENCES |

69

FORECAST ASSUMPTIONS FOR POWER GENERATION MARKET

POWER GENERATION PRICE CURVE

Results from auctions and contracts with free consumers

| UPDATED GUIDANCE
| PRIOR GUIDANCE

Fonte: Compra e Venda de Energia

REVIEW

· For contracts that are to be renewed with free clients, new price expectations were considered that reflect a lower future availability of energy in the market.

· Un-contracted energy (PLD) for 2007/08 was sold at a public offering by CEMIG, attaining a superior price level than the May 2006 assumption.

· Surplus energy (PLD) was priced higher than outlined in May 2006, reflecting effective conditions of attendance in September 2006.

· “BOTOX” power plants expected revenues from 2011 to 2009 (average 355MW, R$125.78/MWh).

70

GUIDANCE ASSUMPTIONS FOR DISTRIBUTION MARKET

Captive Market Sales - TWh

| UPDATED GUIDANCE
| PRIOR GUIDANCE

Fonte:Planejamento de Mercado

Total Distributed Energy - TWh

COMMENTS

· Change in macroeconomic environment;

· Move of captive clients to unregulated energy market;

· Move of Network Distribution users to National Grid;

· Planned projects and expansions in the prior cycle that were not carried out.

71

CONSOLIDATED EBITDA Projected Composition 2006/07

CONSOLIDATED EBITDA

R$ MM (Currency as of Jun/06)

PRIOR GUIDANCE includes planning of current companies, and does not consider future acquisition or participation in auctions

72

2006/07 Consolidated EBITDA forecast breakdown

EBITDA – R$ MM

(*) Excluding PR and depreciation

73

PROJECTED EBITDA FOR THE COMING YEARS

|  |  |  | 2006 |  |  |  |  |  |  |  |  |
Companies |  | 2006 |  | adjusted |  | 2007 |  | 2008 |  | 2009 |  | 2010 |
GT |  | 1,391 |  | 1,451 |  | 1,570 |  | 1,630 |  | 1,717 |  | 1,820 |
D |  | 1,364 |  | 1,575 |  | 1,684 |  | 1,529 |  | 1,566 |  | 1,605 |
OTHER COMPANIES(*) |  | 280 |  | 293 |  | 504 |  | 485 |  | 472 |  | 507 |
Consolidated |  | 3,035 |  | 3,319 |  | 3,758 |  | 3,644 |  | 3,755 |  | 3,932 |

(*)Includes HOLDING

COMMENTS ABOUT DISTRIBUTOR EBITDA IN 2008

1. April 2008 rate review

· Capture productivity

2. Interest charge (R$50 million, as of today) – financial compensation on the reimbursement for a lower revenue as of May 2004

74

ASSUMPTION UNCERTAINTIES LEAD TO THE
ADOPTION OF RANGES FOR EBITDA FORECAST

75

EARNINGS FORECAST
REVIEW
2006 - 2010

CFO AND INVESTOR RELATIONS DIRECTOR

NOVEMBER/06

76

GUIDANCE REVISION

2006 - 2010

Director of Corporate Finance and Investor Relations

NOVEMBER/06

77

Disclaimer

· Some statements in this presentation are regarded under U.S. Securities law as forward-looking statements, i.e., statements that are subject to risks and uncertainties. Forward-looking statements are forecasts which may differ materially from the final figures and which are not under our control. For further information on the risks and uncertainties as they relate to us, please see our 20-F form for 2005, in particular, item 3 which contains “Basic Information – Risk Factors.”

All figures are expressed in Brazilian GAAP.

78

AGENDA

REASONS FOR UPDATING GUIDANCE FROM MAY 2006

GUIDANCE PROCESS REVISIONS AND EXPLANATION

NEW 2006 GUIDANCE

79

PROJECTION DIVULGED AT 11TH CEMIG-APIMEC MEETING

EBITDA PROJECTION

2006/09

R$ MM

80

REASONS FOR CHANGING 2006 EBITDA GUIDANCE

GUIDANCE |  |  |  | GUIDANCE
MAY 2006 |  |  |  | NOV 2006
3,454 |  | (419) |  | 3,035

NEGATIVE |  |  |
REGULATORY ACTIONS/SECTOR CHARGES |  |  |
RTD |  | (173 | )
PASEP/COFINS |  | (67 | )
PERCENTAGE OF EARNINGS |  |  |
PR |  | (80 | )
PARTICIPATION |  |  |
Revision LIGHT/TBE |  | (141 | )
PERSONAL COLLECTIVE ACCORD |  |  |
Odontology Plan |  | (17 | )

POSITIVE |  |  |
RESERVES |  |  |
Operational Reserves (employee, civil, other) |  | 59 |

Fonte: Controladoria

81

PROCESS REVISION

· Reasons for redesigning the process

· Increase in precision of information divulged to the public

· Conform with practices under Sarbanes-Oxley law – section 404: certification of information utilized in projections

· Design of new process

· Creation of a committee with management from diverse areas

· Certification of each step of the process

· Dedicated modeling software and hardware

· Connection of management information systems (SAP) and of risk management

· Update and communicate with the market two times per year

· Integration of processes that makeup the Financial Planning

82

PROCESS REVISION INFORMATION CERTIFICATION

Models |  | Update |  | Authorized by
Long term projectinos of CEMIG controlling group |  | Yes |  | DFN/A
Base year projection for income statement (2006) |  | Yes |  | CR
Balance sheet projections for base year (Dez/ 2006) |  | Yes |  | CR
Cash Flow Projections for base year |  | Yes |  | CR
Macroeconomic indicators |  | Yes |  | PP/PE and ED
Market |  | Yes |  | ED, PL and RL
Invoiced Revenue – Generation, Transmission, Distribution |  | Yes |  | PP/TF
Invoiced Revenue (Distribution – low income arrival) |  | Yes |  | PP/TF
RTD – Deferred tariff revenues |  | Yes |  | CR
RTE (amort. And crr. Var.) – Extraordinary Tariff Adjustment |  | Yes |  | PP/TF
Pis/Cofins |  | Yes |  | CR and PP/IV
Expenses - PMSO (ER Distribution) |  | Yes |  | PP, DDC and DGE
Expenses - PMSO (ER – Generation and Transmission) |  | Yes |  | PP, DGT and DGE
Other Expenses(*) |  | Yes |  | CR
Purchased Energy |  | Yes |  | CV and PP/TF
ONS Payment |  | Yes |  | CV and PP/TF
Other Charges |  | Yes |  | PP/TF
Investments |  | Yes |  | Sub Commitee CPE
Depreciation |  | Yes |  | PP/IV
Debt |  | Yes |  | CR

83

GUIDANCE ASSUMPTIONS - INDICATORS

PRIOR SCENARIO

· With Brazil receiving Investment Grade status for 2008/2009, new resources available will aid in reducing interest rates

· Structural reforms that will be made during 2007 allow for higher growth in GDP

UPDATED SCENARIO

· Brazil receiving Investment Grade status is not sufficient to allow a material reduction in interest rates, remembering that other emerging market countries (during this time) have also received Investment Grade status.

The consequence is small.

· The GDP growth assumes a conservative position due to the weak Brazilian economic performance when compared to other Emerging Market countries.

Brazil should continue to have a lower growth rate than other emerging market countries.

84

NEW PROJECTION

Comparison between prior and current projections

|  | Prior |  | Current |
Year |  | IGP-M |  | PIB |  | Selic |  | Dollar |  | IGP-M |  | PIB |  | Selic |  | Dollar |
|  |  |  | % |  |  |  | R$/US$ |  |  |  | % |  |  |  | R$/US$ |
2007 |  | 5.4 |  | 3.0 |  | 13.3 |  | 2.4 |  | 4.7 |  | 3.5 |  | 13.5 |  | 2.3 |
2008 |  | 5.6 |  | 3.8 |  | 12.1 |  | 2.5 |  | 4.8 |  | 3.5 |  | 13.1 |  | 2.4 |
2009 |  | 5.7 |  | 4.2 |  | 10.3 |  | 2.6 |  | 4.8 |  | 3.5 |  | 12.9 |  | 2.6 |
2010 |  | 5.6 |  | 4.6 |  | 8.9 |  | 2.7 |  | 4.8 |  | 3.5 |  | 12.6 |  | 2.7 |

|  |  |  |  |  |  |  |  |  | LARGEST DIFFERENCES |  |  |

85

GUIDANCE ASSUMPTIONS FOR GENERATION MARKET

GENERATION PRICE CURVE

Results from auctions and contracts with free consumers

Fonte: Compra e Venda de Energia

REVISION

· For contracts that are to be renewed with free clients, new price expectations were considered that reflect a lower future availability of energy in the market.

· Uncontracted energy (PLD) for 2007/08 was sold at a public offering by CEMIG, attaining a superior price level than the May 2006 assumption.

· Surplus energy (PLD) was valued at higher levels than outlined in May 2006, reflecting effective conditions of attendance in September 2006.

· Expected BOTOX energy revenues from 2011 to 2009 (average 355MW, R$125.78/MWh).

86

GUIDANCE ASSUMPTIONS FOR DISTRIBUTION MARKET

Fonte: Planejamento de Mercado

COMMENTS

· Change in macroeconomic environment;

· Migration of captive clients to Free;

· Migration of Network Distribution clients to Basic Network;

· Planned projects and expansions in the prior cycle that do not verify their totals.

87

CONSOLIDATED EBITDA
Projected Composition 2006/07

CONSOLIDATED EBITDA

R$ MM (Currency from Jun/06)

INITIAL GUIDANCE includes planning of existing companies, and does not consider future acquisition
or participation in auctions

88

2006/07 Consolidated EBITDA
forecast breakdown

EBITDA – R$ MM

(*) Excluding PR and depreciation

89

PROJECTED EBITDA FOR THE COMING YEARS

Companies |  | 2006 |  | 2006 adjusted |  | 2007 |  | 2008 |  | 2009 |  | 2010 |
GT |  | 1,391 |  | 1,451 |  | 1,570 |  | 1,630 |  | 1,717 |  | 1,820 |
D |  | 1,364 |  | 1,575 |  | 1,684 |  | 1,529 |  | 1,566 |  | 1,605 |
OTHER COMPANIES(*) |  | 280 |  | 293 |  | 504 |  | 485 |  | 472 |  | 507 |
Consolidated |  | 3,035 |  | 3,319 |  | 3,758 |  | 3,644 |  | 3,755 |  | 3,932 |

(*) Includes HOLDING

COMMENTS ABOUT DISTRIBUTOR EBITDA IN 2008

1. Tariff revision in April 2008

· Capture productivity

2. Financial bubble (R$50 million, today’s price) – compensation for the tariff adjustment reduction in May 2004, without the implementation of regulatory activities

90

ASSUMPTION UNCERTAINTIES LEAD TO THE ADOPTION OF EBITDA RANGES

91

GUIDANCE REVISION

2006 - 2010

Director of Corporate Finance and Investor Relations

NOVEMBER/06

92

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

| COMPANHIA ENERGETICA DE MINAS GERAIS – CEMIG
| By: | /s/ Flávio Decat de Moura |
|  | Name: | Flávio Decat de Moura
|  | Title: | Chief Financial Officer and Investor Relations Officer

Date: December 13, 2006

93