Elektro Eletricidade e Servicos SA (Elektro)

Active

Prospective

Elektro Eletricidade Servicos SA was carved out of an integrated utility CESP. Elektro is Brazil's sixth largest distributor, efficiently serving a 1.5 million customer base spread over 228 municipalities in Sao Paulo and Mato Grosso do Sul. In 1998 it served 121,000 square kilometers and its network was 82,963 km long. Enron International Corp. bid US$ 1,273.6 million (twice a minimum price), via its wholly owned subsidiary Terraco Participacoes SA, to win 46.6% of the total stake of Elektro on July 16, 1998. This stake comprised a 90% voting stake of the enterprise. After purchasing an additional share in August 1998, Enron held a 99% stake in Elektro and it was expected to buy CESP's remaining share in 1999. Elektro planned to invest between US$80 million and US$90 million per year within 5 years following the acquisition. It was not allowed to raise energy fares until August 1999. In Aug. 2000, Elektro was awarded a US$ 100.8 million loan from the state-owned bank BNDES, which will help finance its expansion plans. In August 2003, ANEEL implemented the five-yearly price revision for Elektro and authorized an increase of 20.25%. In 2003, Prisma Energy International Inc. was created as a holding company to, through its subsidiary Prisma Energy International Services LLC, provide management and operational support for the remaining major international assets owned by the bankrupt Enron, including Elecktro. The company was created after Enron's board and creditors decided the Enron estate would raise more revenues from ongoing operations than through individual asset sales. Once the Enron bankruptcy is concluded, Prisma was to be owned by Enron's creditors. They were likely to sell their positions as soon as market conditions allow. As of 2005, Enron still controlled through Prisma 88% of Elektro. In 2006, Ashmore Energy International purchased 100% of Prisma. In 2009, Elektro was granted the following loan contracts: US$ 50 million (BRL 99,7 million) from BNDES, US$ 13.9 million (BRL 27.8 million) from Eletrobras and US$ 50 million (BRL 99,7 million) from FINEP, a total of US$ 65.4 million (BRL 130,8 million). In January 2011, AEI liquidated 80% of its assets to focus on distribution. As of 2005, Enron was in the midst of liquidating its operations and distributing its assets to its creditors. http://www.prismaenergy.com/businesses/map/americas.html http://www.enron.com/corp/pressroom/icoassets.html By the end of 2000 the company had 1.632 million of consumers units and the total electricity consumption in 2000 was 11,215,000 MWh. In 2001, the company invested US$ 53.5 million (R$ 119 million) and increased it consumers units to 1.716 million. However the company saw the total electricity consumption decreases to 9,916,300 MWh. This reduction was originated by the electricity rationing program conducted by the government to overcome the electricity supply crises occurred in 2001. In 2002 after investing US$ 35.9 million (R$ 105 million) the company had its consumers units increased to 1.769 million. With the end of the rationing program in 2002, the total electricity consumption raised to 10,550,000 MWh, but still lower than the 1999 level (10,767,000 MWh). 2006 and onward figures net of "Luz para todos" program which is federally subsidized.

Energy

World Bank Group

Project

Power Generation (CCGT), Government, Manufacturing (Industrial), Power Transmission, Commercial