Companhia de Energia Eletrica de Pernambuco (CELPE)

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CELPE is the electricity distribution utility of the state of Pernambuco. It serves 184 municipalities in Pernambuco and 1 municipality in the state of Paraiba (total of 1.8 million customers). In Feb. 2000, a consortium acquired 79.62% of the total capital of CELPE (88.7% of CELPE's shares) for US$ 1 billion. The consortium comprised ADL Energy, Iberdrola, Previ, and the state-owned bank Banco do Brasil. Iberdrola was controlling 60.9% of CELPE's shares, while Previ was holding 17.9% and Banco do Brasil 10.8%. In December 2000, the consortium transfered 84.38% of CELPE's shares to Guaraniana, a holding company later renamed Neoenergia. As of December 2005, after several changes in shareholder composition, Neoenergia had a participation in CELPE of 89.7% of the total capital (owning 99.6% of common stocks). Neoenergia's shareholders were Previ (49%), Iberdrola (39%) and Banco do Brasil (12%). CELPE had a 30-year concession contract to provide electricity in Pernambuco. In 2005, Celpe received a US$50 million loan from BNDES to fund an expanssion of the network, including three new substations. Banco Santander, Bradesco, Itau BBA, Unibanco and Vorantium participated in the loan. Celpe was using internal funds to complete the US$100.1 million project. In 2009, Celpe was granted a total of US$ 50.7 million in loans from Eletrobras, Banco do Nordeste, BNDES and FINEP. These funds were directed to finance its investment expenditures. In 2001 the company invested US$ 86.6 million (R$ 192.8 million) and reach the mark of 2,121,276 consumers units by the end of the year. The total electricity consumption in 2001 was 6,897,300 MWh, smaller than the total consumption verified in 2000 (7,533,100 MWh). This reduction was due to the electricity rationing program implemented by the Brazilian government to overcome to electricity supply crises occurred in Brazil during 2001. In 2002, with the end of the electricity rationing program, the total consumption raised slightly to 6,993,300 MWh . In that year CELPE keep its capex program, investing a total of US$ 48 million (R$ 140.4 million) along the year. By the end of the year the company increased its consumers units to 2,200,421.