Teleconference Portuguese Wednesday, May 4, 2005 10:00 a.m. (SP) 9:00 a.m. ( US ET) (55 11) 2101-1490 Code: CPFL *Webcast: http://ri.cpfl.com.br Teleconference English Wednesday, May 4, 2005 12:00 a.m. (SP), 11:00 p.m. ( US ET) (1-973) 935-2403 Code: CPFL or 6015299 *Webcast: http://ri.cpfl.com.br   APIMEC Meeting SP May 17, 2005 Tuesday, 16:00 p.m. Hotel Renaissance Sala Amazônia Al. Jaú, 1620, São Paulo RSVP: (11) 3107-1571ou apimecsp@apimecsp.com.br ABAMEC Meeting RJ May 23, 2005 Monday, 17:00 p.m. JW Marriott Hotel Sala Wayana Av. Atlântica, 2600 Copacabana, Rio de Janeiro RSVP: (21) 2509-9596 ou secretaria@abamec.com	1Q05 Results May 3, 2005 Bovespa: CPFE3 R$ 20.15 / share NYSE: CPL US$ 24.00 / ADR (1 ADR= 3 shares) Total nº of shares = 451.6 million Market Capitalization: R$ 9.1 billion Prices as of 05/03/05 CPFL ENERGIA REPORTS R$ 166 MILLION NET INCOME São Paulo, May 3, 2005 – CPFL Energia S.A. (Bovespa: CPFE3 e NYSE: CPL), announces today its first quarter (1Q05) results. Financial and operating information herein is presented on a consolidated basis and in accordance with Brazilian Corporate Law. Comparisons refer to 1Q04, unless otherwise indicated.
	1Q05 HIGHLIGHTS
	Net income of R$ 166 million in 1Q05, reverting the net loss of R$ 12 million in 1Q04. Gross revenue of R$ 2.5 billion, representing an increase of 14.2% and net revenue of R$ 1.8 billion, a 15.4% growth. EBITDA(1) added up to R$ 507 million, indicating a 20.7% increase in 1Q05. Debt was reduced by 12.8% and the Company’s indebtedness profile improved. The Company’s free float will present an estimated increase of 1.3%(2) in the next twelve months, due to IFC loan conversion to stocks of CPFL Energia. Energy consumption growth of 4.3%(3) in CPFL’s area and 7.2% demand growth in concession area Consistent operating and results growth of CPFL Brasil.

⁽¹⁾ EBITDA is calculated from the sum of net income, taxes, financial results, depreciation/amortization and private pension fund, in addition to adjustments regarding the extraordinary item and non-recurring transactions.
⁽²⁾ Estimates considering full loan conversion and assumptions of the first installment.
⁽³⁾ Considering calendar adjustments and CPFL Brasil’s bilateral contracts.

CPFL Energia is a non-operating holding Company. Thus, CPFL’s results rely directly on the results of its subsidiaries: CPFL Paulista (94.94%), CPFL Geração (97.01%) and CPFL Brasil (100%).

The following chart provides an overview of stakes held by CPFL Energia in its subsidiaries:

In 1Q05, CPFL Energia shares traded on BOVESPA (“CPFE3”) rose 0.7%, compared to a 1.6% rise of BOVESPA Index (IBOVESPA) and a 2.8% rise of Electricity Index (IEE). The ADRs (CPL) rose 2.7% in the same period, compared to a 2.8% fall in DJIA.

Source: Broadcast

Source: Economática

It is also important to highlight that CPFL Energia’s was included in “Dow Jones Brazil Titan 20 ADR”, a remarkable reference index for Brazilian stocks traded in the international market and the expectation to join IBX 100 Index in September, what will contribute to increase liquidity.

In June 2003, CPFL Energia got hold of a US$ 40 million funding from IFC - International Finance Corporation, with conversion to stock rights (full or not, according to IFC’s option), through a Subscription Bond, given to IFC on the Investment Agreement.

In April 2005, IFC declared to CPFL the exercise of its right to convert a US$10 million installment. Conversion will be set at a price per share of R$ 17.57, equivalent to R$ 17.22 (IPO price in September, 29 2004) capitalized at the TJLP rate in excess of 6%. This conversion will result in a 0.32% stake in the Company’s total capital held by IFC.

Moreover, IFC also informed the Company that it intends to exercise its remaining subscription rights in three additional installments over the next twelve months.

In case IFC decides to exercise its remaining subscription rights, free float may reach approximately 16.7% ⁽¹⁾, totaling a 1.26% ⁽¹⁾ stake in CPFL Energia’s capital held by IFC.

⁽¹⁾ Estimates considering full loan conversion and assumptions of the first installment

Energy sold by CPFL Group through its distribution and commercialization activities to final costumers totaled 9,070 GWh, representing a 3.5% increase (excluding calendar adjustments). This growth reflects basically the increase in the residential, commercial and rural segments due to, mainly, increased income and higher temperatures for the period.

CPFL Brasil played a relevant role in energy sales growth of Group CPFL, mainly by servicing industrial clients which were captive customers from distributors and migrated to the free market.

1Q05 Sales by Customer Breakdown – Excluding calendar adjustments(*)

Sales Comparison 1Q05 vs. 1Q04 - Excluding calendar adjustments (*)

1Q05 Sales Breakdown by Segment

Considering the same 2005 year calendar basis, which has fewer days when compared to 2004 (leap year), CPFL group’s energy sales recorded a 4.3% increase, among which we highlight residential, commercial and rural segment increase of 5.1%, 8.7% and 8.9%, respectively.

Sales Comparison 1Q05 vs. 1Q04 – Same 2005 Calendar Basis

It’s important to point out that, in 1Q05, demand in CPFL group distributors’ concession area increased 7.3%, higher than the 7.1% raise in Brazil and the 6.1% increase in Southeast Region.

Gross operating revenue reached R$ 2.5 billion in 1Q05, representing an increase of 14.2% .

The determining factors for revenue increase in 1Q05 were:

Net Revenue in 1Q05 reached R$ 1.8 billion, representing a 15.4% growth in comparison to 1Q04.

Energy Costs

Cost of energy services in 1Q05 totaled R$ 919.6 million, a 9.9% increase, impacted basically by the higher charges from usage of energy network, adding up R$ 203.6 million, a 75.8% increase, mainly due to the increase in tariffs resulted from the transferring of the generation and transmission costs and from the IGP-M variation. In the quarter, energy cost purchased for resale remained flat, totaling R$ 716 million.

Operating Costs/Expenses

Operating Costs / Expenses reached R$ 427.7 million in 1Q05, representing a 9.1% reduction in comparison to 1Q04.

• Manageable Expenses – Payroll, Material, Third-part services & other

Manageable Expenses totaled R$ 191.8 million in 1Q05, representing a 6.0% increase. This increase, lower than the inflation for the period, occurred basically due to cost control program and the established operating synergies between the group’s companies.

• Private Pension Fund

Expenses related to the Private Pension Fund were 43.9% lower in 1Q05, totaling R$ 22.4 million. This reduction reflects adjusts made from third-party actuarial’s calculations, considering assumptions such as mortality table and expected income from the fund’s investments.

• Amortization of Incorporated Goodwill

Goodwill amortization was reduced by R$ 89.2 million in 1Q05, representing a 97.8% drop. This reduction occurred mainly due to a change in amortization curve of goodwill from RGE and CPFL Paulista (combined with a provision for goodwill amortization, in accordance to the resolution 319 from CVM).

• Energy Development Account CDE and CCC

These expenses refer to contribution made by energy distribution companies to development projects and alternative energy sources incentive programs. CDE expenses totaled R$ 60.5 million, an 84.1% increase and CCC expenses totaled R$ 76.7 million, 30.9% higher than 1Q04. These increases were mainly a consequence of the deferred amortization in 2004 and the tariff adjustments of its subsidiaries.

In 1Q05, income from electric utility service achieved R$ 417.4 million, an 87.3% increase. This evolution is result of two factors:

i. Revenues increase:

• Increase in total energy sold;

• Tariff readjustments by distribution subsidiaries;

• TUSD revenue increase; and

• Energy supply revenue increase.

ii. Operating costs reduction:

• Change in the amortization curve and constitution of goodwill provision in CPFL Paulista;

• Change in the amortization curve of goodwill provision in RGE; and

• Reduction in expenses related to Private Pension Fund.

Consolidated EBITDA was R$ 506.7 million in 1Q05, 20.7% higher when compared to R$ 419.8 million reported in 1Q04. EBITDA is calculated from the sum of net income, taxes, financial results, depreciation/amortization and private pension fund, in addition to adjustments regarding the extraordinary item and non-recurring transactions.

In 1Q05, financial expenses totaled R$ 246.8 million, a 14.1% drop, mainly as a result of the decrease in its debt balance and the change in the Company’s debt profile.

Net financial expenses were R$ 119.4 million in the quarter, representing a 36.2% drop. This reduction is result of lower financial expenses and of the 27.2% increase in financial revenues from market securities and due to the raise in cash balance as a result of funding provided from the IPO.

In 1Q05, net income reached R$ 165.6 million, compared to the R$ 12 million loss in 1Q04. This growth is basically due to the increase in operating profit, combined to reduction in financial results.

Actions commenced in 2004 regarding its debt management, remain improving indebtedness profile. Financial debt drop 12.8% in 1Q05 when compared to 1Q04, totalizing R$ 5.1 billion.

Debt (R$ billion)

In December 2004, BNDES approved CPFL Paulista and CPFL Piratininga’s compliance in the FINEM – Electric System Expansion and Modernization Program, granting R$ 241 million and R$ 89 million credits, respectively, both TJLP indexed and 6-year maturity. In March, the first disbursement of resources was liberated amounting to R$ 33.7 million. In this month, CPFL Paulista achieved the last settlement to Distributors Capitalization (Funding) Program; and the company is in the final round of negotiations with BNDES.

Loans and Financing (R$ thousands)

Efforts towards debt profile improvement can be seen on the debt index composition, where exposure to CDI dropped from 44% to 30% giving in to IGP-M and TJLP indexed debt. Furthermore there was a reduction from 17.2% to 15.6% in the nominal debt cost in 1Q05, and the average term increased from 5.2 to 6 years in the same period.

Debt Profile by Index Type

Adjusted net debt in 1Q05 was R$ 3.7 billion. Adjusted net debt is calculated from the total debt (financial debt + employee pension fund), excluding regulatory assets and cash and cash equivalents.

In 1Q05, CPFL Group invested R$ 147 million to maintain and expand its business, of which R$ 37 million were for maintenance and R$ 110 million for expansion

The main CPFL Energia’s investments in the last three years have been focused on:

• Distribution Segment: Expansion of the customer base, as well as the modernization and maintenance of the electric system, aiming at guaranteeing the quality standards in electricity supply and administrative and technological infrastructure to support operating processes of distribution companies;
  
  
• Commercialization Segment: Improvement of risk and portfolio management systems;
  
  
• Generation Segment: Observance of the hydroelectric power plants (UHE) construction schedule.
  
  
• Operations Maintenance: Until 2008, CPFL Energia expects to invest approximately R$ 657 million for operations maintenance, of which R$ 49 million destined to generation segment and R$ 608 million directed to distribution segment.
  
  
• Business Expansion: Until 2008, the expected CAPEX for distribution and generation businesses expansion are around R$ 1.9 billion, or R$ 634 million and R$ 1.3 billion respectively for each segment. The resources have been obtained for this purpose through financing sources including BNDES, among others, and through the use of the own cash generation added to the incoming resources of the IPO in the amount of R$ 310 million. Investments in generation segment will add 1,113 MW installed capacity to the group, while investment in distribution segment will allow the addition of 600 thousand new customers.

                

• Distribution Segment
  

In 1Q05, gross revenue from the energy sales and/or from the distribution business totaled R$ 2.3 billion, corresponding to an 11.5% increase mainly due to the combined effect from the growth in residential, commercial and rural segments, to tax readjustments in the subsidiaries and to TUSD revenue.

Gross Revenue (R$ million)

Increase in revenue would be higher, if captive customers’ migration to the free market were lower. This migration impacted to the loss of 18.8% and 5.9% in industrial and total sales volumes, respectively. In the comparison excluding this effect, CPFL would have a sales increase of 8.4% in industrial segment, totalizing a 6.3% growth in the distributors.

Sales Comparison 1Q05 vs. 1Q04
Excluding Calendar Adjustments

Considering calendar adjustments, distribution energy sales would reduce 5.0% compared to 1Q04.

Sales Comparison 1Q05 vs. 1Q04
Same Calendar Basis

It’s important to point out the reduction on sales in consequence of captive customers migration to free market has an offset impact in distributors results due to counterpart effect in growth of TUSD revenues. These revenues achieved R$ 95.3 million in 1Q05 from R$ 35.2 million in 1Q04, corresponding to a 170.9% increase.

EBITDA of distribution business was R$ 376.3 million in 1Q05, 23.7% above the R$ 304.2 million reported in 1Q04. This growth was basically from the increase in revenues from the supplied electricity and from TUSD revenues.

Consolidated net income from the distributors reached R$ 121.5 million in 1Q05, representing a 613% growth from a R$ 23.7 million loss in 1Q04. This increment was mainly as consequence of the 34.8% reduction in net financial expenses – resulted from the new indebtedness profile - and from the goodwill amortization criterion change which reduced 97.8% in this account.

In April 2005, ANEEL (Brazilian Electricity Energy Agency) approved the tariff adjustment for CPFL Paulista establishing a 20.29% increase in supply tariffs. The main alteration from 2005’s final version from the temporarily adjustment settled in 2004 was the reduction in Gross Revenue Basis, partially offset by the increase in Reintegration Quota and in the limit of operating costs and provisions for doubtful accounts.

Additionally, CPFL is requiring revision about depreciation rate (from 4.64% to 4.85%) and energy loss rates considered by ANEEL. Financial statements already reflect this revision, once, due to the nature and transparency through which the information to be used by ANEEL when revising this rate may be proved, controlling Company’s management expects to be successful in these discussions.

• Gross revenue: R$ 26.5 million drop (R$ 48.9 million loss from the changes in final version + R$ 22.4 million gained in depreciation rate inquiry);

• EBITDA: R$ 24 million reduction; and

• Net Income: R$ 15.8 million decrease.

Distributor’s current position of tariff conditions:

• Commercialization Segment - CPFL Brasil

In 1Q05, CPFL Brasil gross revenue increased 56.7%, totaling R$ 296.3 million. This growth basically reflects the capture of new costumers in the free market, also the supply increase to group’s companies and short-term market sales. It’s important to point out the 84.5% growth in high-added value services through our distributors.

Gross Revenue (R$ million)

Sales to final custumers totaled 1,356 GWh, representing a 133.4% increase. Industrial segment achieved a 137.7% increase, as a result of capturing costumers from free market, through former CPFL group customers’ retention and out-of-concession area customers’ acquisition.

Sales Comparison 1Q05 vs 1Q04 – CPFL Brasil^(*)

EBITDA

CPFL Brasil EBITDA achieved R$ 57.3 million in 1Q05, 25.2% higher than the R$ 45.8 million reported in 1Q04, mainly as a consequence of the increase in energy sales.

Net Income

In 1Q04, CPFL Brasil net income totaled R$ 38.9 million, increasing 25.8%, when compared to the R$ 30.9 million realized 1Q04.

Initially impact from beginning of Monte Claro hydroelectric power plant, adding a R$ 9 million in 1Q05, CPFL Geração gross revenue reached R$ 100.9 million, corresponding to a 16% growth. Readjusted tariffs in SEMESA and CPFL Centrais Elétricas supply contracts have also contributed for the improvement in revenue.

Gross Revenue (R$ million)

In 1Q05, CPFL Geração EBITDA totaled R$ 81.5 million, representing a 10% increase when compared to the R$ 74.1 million from 1Q04, mainly as result of the revenue increase from energy sales and the 29.5% reduction in cost of electricity energy purchased for resale.

Net income in the generation segment totaled R$ 24.2 million, a 43.7% increase, due to the 11.2% drop in net financial expenses.

In 1Q05, there were material events related to the generation projects, in which it is important to point out:

• Pre-Environmental License Issuing in March 2005 for re-empowerment PCH
  Gavião Peixoto; and

• Conclusion of deforesting activities in the area of Barra Grande hydroelectric power plant’s future reservoir, which enables IBAMA to issue the Operating License for this power plant.

CPFL seeks to add value through the right positioning in different segments of the electricity industry

• Generation Projects

CPFL is involved in four generation projects, composed by 6 hydroelectric power plants. The first one, Monte Claro Power Plant, part of the Ceran Complex, was concluded in December 2004. At the conclusion of these projects, part of the business strategy of the group, CPFL shall increase installed power capacity from 897 MW to 1990 MW up to 2008. In this period, CPFL Energia will be responsible for 35% of all added energy in the electric sector.

Moreover, CPFL may seek investment opportunities in new PCHs – Small Hydroelectric Plants, in the purchase of existing assets and greenfields generation investments.

• Electricity Market

CPFL’s market has shown outstanding growth and registered in 1Q05 a larger growth rate than the rates of Southeast Region and Brazil, reaching a higher level than the pre-rationing period (2000). CPFL Brasil had an important role in this market growth, keeping the free customers within CPFL Group.

Consumption Evolution
Brazil vs. SE vs. CPFL

CPFL Energia S.A.
(Convenience Translation into English from the Original Previously Issued in Portuguese)
Balance Sheets as of March 31, 2005 and December 31, 2004
	(In thousands of Brazilian Reais)
	Company		Consolidated
ASSETS	03/31/2005	12/31/2004	03/31/2005	12/31/2004
CURRENT ASSETS
Cash and cash equivalents	330,964	186,385	967,898	817,724
Consumers, concessionaires and permittees	-	-	1,613,304	1,572,487
Dividends and interest on equity	243,424	387,387	-	-
Other receivables	115	115	69,845	68,944
Securities	-	-	-	-
Recoverable taxes	44,473	48,838	188,953	174,663
Allowance for doubtful accounts	-	-	(47,550)	(50,420)
Inventories	-	-	8,043	7,575
Deferred tariff costs	-	-	521,490	463,928
Prepaid Expenses	-	-	9,754	9,425
Other	-	-	135,303	158,339
	618,976	622,725	3,467,040	3,222,665
NONCURRENT ASSETS
Consumers, concessionaires and permittees	-	-	579,957	582,290
Related parties	-	-	-	-
Other receivables	-	-	112,153	125,259
Escrow deposits	-	-	165,043	145,396
Securities	-	-	850	850
Recoverable taxes	-	-	45,993	33,551
Deferred tax credits	-	-	1,033,691	1,055,675
Advance for future capital increase	-	-	-	-
Deferred tariff costs	-	-	524,537	580,232
Prepaid Expenses	-	-	62,666	49,186
Other	-	-	124,923	97,700
	-	-	2,649,813	2,670,139
PERMANENT ASSETS
Investiments	3,918,898	3,754,635	2,804,359	2,841,132
Property, plant and equipment	-	-	4,518,980	4,414,917
Special liabilities	-	-	(603,638)	(588,053)
Deferred charges	96	-	42,015	57,321
	3,918,994	3,754,635	6,761,716	6,725,317
TOTAL ASSETS	4,537,970	4,377,360	12,878,569	12,618,121

 

CPFL Energia S.A.
(Convenience Translation into English from the Original Previously Issued in Portuguese)
Balance Sheets as of March 31, 2005 and December 31, 2004
(In thousands of Brazilian Reais)
	Company		Consolidated
LIABILITIES AND SHAREHOLDERS´ EQUITY	03/31/2005	12/31/2004	03/31/2005	12/31/2004
CURRENT LIABILITIES
Suppliers	3,886	6,831	636,222	663,857
Payroll		-	3,392	3,792
Debt Charges	1,755	3,556	50,374	39,748
Debenture charges	-	-	147,446	98,490
Loans and financing	21,330	10,618	934,357	864,573
Debentures	-	-	258,435	257,502
Private pension plans	-	-	108,555	100,530
Regulatory charges	-	-	66,430	61,504
Taxes and payroll charges	628	4,489	398,414	409,474
Employee profit sharing	13	-	15,331	5,284
Dividends and interest on capital	140,147	140,147	155,840	158,644
Related parties	58	58	-	-
Accrued liabilities	8	7	24,548	25,935
Deferred tariff costs	-	-	164,135	148,536
Derivative contracts	5,581	2,934	47,375	43,056
Other	2	2	197,925	116,318
	173,408	168,642	3,208,779	2,997,243
LONG-TERM LIABILITIES
Suppliers	-	-	240,377	229,874
Loans and financing	85,318	95,558	2,056,383	2,144,341
Debentures	-	-	1,659,192	1,640,705
Private pension plans	-	-	787,378	798,903
Taxes and payroll charges	-	-	80,759	86,503
Reserve for contingencies	-	-	323,107	304,036
Deferred tariff costs	-	-	20,560	47,209
Derivative contracts	17,616	17,178	32,577	44,696
Other	-	-	62,565	91,611
	102,934	112,736	5,262,898	5,387,878
MINORITY INTEREST	-	-	145,264	137,018
SHAREHOLDERS´ EQUITY
Capital	4,082,036	4,082,036	4,082,036	4,082,036
Capital reserves	13,946	13,946	13,946	13,946
Profit retention	165,646	-	165,646	-
	4,261,628	4,095,982	4,261,628	4,095,982
TOTAL LIABILITIES AND SHAREHOLDERS´ EQUITY	4,537,970	4,377,360	12,878,569	12,618,121

CPFL Energia S.A.
(Convenience Translation into English from the Original Previously Issued in Portuguese)
Statement of Operations for the Quarters Ended March 31, 2005 and 2004
(In thousands of Brazilian Reais)
	Company		Consolidated
	2005	2004	2005	2004
	From January	From January	From January	From January
	to March	to March	to March	to March
OPERATING REVENUES
Energy sales to final consumers	-	-	2,270,094	2,046,889
Energy sales to distributors	-	-	104,374	82,300
Other	-	-	125,998	60,091
	-	-	2,500,466	2,189,280
DEDUCTIONS FROM OPERATING REVENUES
ICMS (State VAT)	-	-	(433,110)	(369,724)
PIS (tax on revenue)	-	-	(39,486)	(63,759)
COFINS (tax on revenue)	-	-	(181,269)	(115,709)
ISS (service tax)	-	-	(161)	(87)
Global Reversion Quota	-	-	(10,787)	(12,007)
Emergencial charges (ECE/EAEE)	-	-	(70,937)	(98,430)
	-	-	(735,750)	(659,716)
NET OPERATING REVENUES	-	-	1,764,716	1,529,564
ELECTRIC UTILITY SERVICE COSTS
Electricity Costs
Electricity purchased for resale	-	-	(716,025)	(720,574)
Electricity network usage charges	-	-	(203,574)	(115,826)
	-	-	(919,599)	(836,400)
Operating Costs
Personnel	-	-	(48,095)	(48,511)
Private pension plans	-	-	(22,213)	(39,253)
Materials	-	-	(7,570)	(6,184)
Outside services	-	-	(20,815)	(17,472)
Depreciation and amortization	-	-	(66,400)	(61,010)
Fuel usage quota (CCC)	-	-	(76,663)	(58,569)
Energy development account (CDE)	-	-	(60,518)	(32,882)
Other	-	-	(1,845)	(1,525)
	-	-	(304,119)	(265,406)
Outside Services Costs	-	-	(1,062)	(1,240)
GROSS PROFIT	-	-	539,936	426,518
OPERATING EXPENSES
Selling	-	-	(43,838)	(39,809)
General and Administrative	(1,487)	(4,643)	(67,525)	(67,301)
Other	-	-	(9,153)	(5,393)
Amortization of goodwill from merger	-	-	(2,037)	(91,211)
	(1,487)	(4,643)	(122,553)	(203,714)
INCOME (LOSS) FROM ELECTRIC UTILITY SERVICE	(1,487)	(4,643)	417,383	222,804
EQUITY IN SUBSIDIARIES	177,700	24,477	-	-
FINANCIAL INCOME
Financial income	10,276	11,297	127,447	100,195
Financial expenses	(20,420)	(43,090)	(246,838)	(287,429)
Goodwill amortization of investment	(13,437)	(18)	(28,362)	(41,019)
Other financial expenses	(6,983)	(43,072)	(218,476)	(246,410)
	(10,144)	(31,793)	(119,391)	(187,234)
INCOME FROM OPERATIONS	166,069	(11,959)	297,992	35,570
NONOPERATING INCOME
Nonoperating income	-	-	377	2,116
Nonoperating expense	-	-	(1,416)	(1,948)
	-	-	(1,039)	168
INCOME BEFORE TAXES ON INCOME AND EXTRAORDINARY ITEM	166,069	(11,959)	296,953	35,738
Social Contribution Tax	(113)	-	(25,661)	(13,620)
Deferred Social Contribution Tax	-	-	(4,858)	4,696
Income Tax	(310)	-	(69,448)	(39,203)
Deferred Income Tax	-	-	(14,933)	9,012
	(423)	-
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM AND MINORITY INTEREST
	165,646	(11,959)	182,053	(3,377)
Extraordinary Item, Net of Tax Effects	-	-	(8,160)	(8,132)
INCOME (LOSS) BEFORE MINORITY INTEREST	165,646	(11,959)	173,893	(11,509)
Minority Interest	-	-	(8,247)	(450)
NET INCOME (LOSS) FOR THE PERIOD	165,646	(11,959)	165,646	(11,959)

Companhia Paulista de Força e Luz
(Convenience Translation into English from the Original Previously Issued in Portuguese)
Statement of Operations for the Quarters Ended March 31, 2005 and 2004
(In thousands of Brazilian Reais)
	Company		Consolidated
	2005	2004	2005	2004
	From	From	From	From
	January to	January to	January to	January to
	March	March	March	March
OPERATING REVENUES
Electricity sales to final consumer	1,276,485	1,135,744	2,192,626	2,015,010
Electricity sales to distributors	468	2,282	5,874	8,587
Other	54,238	25,440	123,082	58,867
	1,331,191	1,163,466	2,321,582	2,082,464
DEDUCTIONS FROM OPERATING REVENUES
ICMS (State VAT)	(240,378)	(204,322)	(420,522)	(364,864)
PIS (Tax on revenue)	(18,135)	(44,311)	(32,981)	(59,437)
COFINS (Tax on revenue)	(83,589)	(44,815)	(151,299)	(99,974)
ISS (Service tax)	(42)	(35)	(83)	(52)
Global reversion quota	(5,759)	(6,547)	(10,268)	(11,418)
Emergencial charges - ECE/EAEE	(42,010)	(57,040)	(70,937)	(98,430)
	(389,913)	(357,070)	(686,090)	(634,175)
NET OPERATING REVENUES	941,278	806,396	1,635,492	1,448,289
ELECTRIC UTILITY SERVICE COSTS
Electricity Costs
Electricity purchased for resale	(438,877)	(419,293)	(740,259)	(768,293)
Electricity network usage charges	(116,193)	(58,569)	(202,750)	(115,309)
	(555,070)	(477,862)	(943,009)	(883,602)
Operating Costs
Personnel	(31,572)	(31,140)	(46,589)	(47,526)
Private pension plans	(16,602)	(31,418)	(22,115)	(39,253)
Materials	(4,270)	(3,315)	(7,212)	(5,801)
Outside services	(9,620)	(7,420)	(17,390)	(14,825)
Depreciation and amortization	(35,490)	(32,171)	(59,152)	(53,937)
Fuel usage quota (CCC)	(33,262)	(31,379)	(76,663)	(58,512)
Energy development account (CDE)	(32,851)	(19,275)	(60,518)	(32,882)
Other	(392)	(415)	(1,633)	(1,357)
	(164,059)	(156,533)	(291,272)	(254,093)
Outside Services Costs	(453)	(957)	(1,062)	(1,240)
GROSS PROFIT	221,696	171,044	400,149	309,354
OPERATING EXPENSES
Selling	(23,967)	(22,421)	(40,514)	(38,337)
General and Administrative	(33,295)	(32,613)	(61,272)	(59,465)
Other	(4,929)	(3,420)	(8,765)	(5,056)
Amortization of goodwill from merger	-	(72,427)	(2,037)	(91,211)
	(62,191)	(130,881)	(112,588)	(194,069)
INCOME (LOSS) FROM ELECTRIC UTILITY SERVICE	159,505	40,163	287,561	115,285
EQUITY IN SUBSIDIARIES	62,072	13,448	-	-
FINANCIAL INCOME
Financial income	82,785	67,438	113,270	89,734
Financial expenses	(142,687)	(154,580)	(191,046)	(208,995)
	(59,902)	(87,142)	(77,776)	(119,261)
INCOME FROM OPERATIONS	161,675	(33,531)	209,785	(3,976)
NONOPERATING INCOME
Nonoperating income	-	1,697	377	1,996
Nonoperating expense	(280)	(598)	(1,416)	(2,298)
	(280)	1,099	(1,039)	(302)
INCOME BEFORE TAXES ON INCOME AND EXTRAORDINARY ITEM	161,395	(32,432)	208,746	(4,278)
Social Contribution Tax	(5,102)	(319)	(15,817)	(5,324)
Deferred Social Contribution Tax	(4,644)	4,179	(4,858)	3,319
Income Tax	(14,743)	(2,298)	(42,149)	(16,273)
Deferred Income Tax	(12,699)	9,847	(14,933)	7,856
Extraordinary Item, Net of Tax Effects	(2,669)	(2,669)	(8,078)	(8,078)
INCOME BEFORE MINORITY INTEREST	121,538	(23,692)	122,911	(22,778)
Minority interest participation	-	-	(1,373)	(914)
NET INCOME (LOSS)	121,538	(23,692)	121,538	(23,692)

CPFL Geração de Energia S.A.
(Convenience Translation into English from the Original Previously Issued in Portuguese)
Statement of Operations for the Quarters Ended March 31, 2005 and 2004
(In thousands of Brazilian Reais)
	Company		Consolidated
	2005	2004	2005	2004
	From	From	From	From
	January to	January to	January to	January to
	March	March	March	March
OPERATING REVENUES
Energy sales to final consumers / distributors	-	-	100,013	86,773
Other	904	189	904	189
	904	189	100,917	86,962
DEDUCTIONS FROM OPERATING REVENUES
ICMS (State VAT)	-	-	-	-
PIS (tax on revenue)	(15)	(71)	(1,617)	(1,176)
COFINS (tax on revenue)	(69)	(224)	(7,452)	(4,010)
ISS (service tax)	(45)	(6)	(45)	(6)
Global Reversion Quota	-	-	(519)	(589)
Tariff Charges - Resolution # 71/2002	-	-	-	-
	(129)	(301)	(9,633)	(5,781)
NET OPERATING REVENUES	775	(112)	91,284	81,181
ELECTRIC UTILITY SERVICE COSTS
Electricity Costs
Electricity purchased for resale	-	(328)	(1,230)	(1,744)
Electricity network usage charges	-	-	(416)	(68)
	-	(328)	(1,646)	(1,812)
Operating Costs
Personnel	-	-	(1,506)	(932)
Private pension plans	-	-	(98)	(52)
Materials	-	-	(93)	(219)
Outside services	-	-	(1,271)	(927)
Depreciation and amortization	-	-	(7,248)	(7,073)
Other	-	-	(212)	(168)
	-	-	(10,428)	(9,371)
GROSS PROFIT	775	(440)	79,210	69,998
OPERATING EXPENSES
Selling	-	-	(5)	(2)
General and Administrative	(2,260)	(2,529)	(4,766)	(3,193)
Other	-	-	(388)	(338)
	(2,260)	(2,529)	(5,159)	(3,533)
INCOME (LOSS) FROM ELECTRIC UTILITY SERVICE	(1,485)	(2,969)	74,051	66,465
FINANCIAL INCOME
Financial income	802	1,243	2,171	3,065
Financial expenses	(7,289)	(13,961)	(35,303)	(40,362)
Interest on capital	-	-	-	-
	(6,487)	(12,718)	(33,132)	(37,297)
EQUITY IN SUBSIDIARIES	32,212	29,572	-	-
Semesa S.A.	24,533	20,334	-	-
CPFL Centrais Elétricas S.A.	5,701	9,238	-	-
Barra Grande Energia S/A	1,978	-	-	-
INCOME FROM OPERATIONS	24,240	13,885	40,919	29,168
NONOPERATING INCOME	-	470	-	470
Nonoperating income	-	120	-	120
Nonoperating expense	-	350	-	350
INCOME BEFORE TAXES ON INCOME	24,240	14,355	40,919	29,638
Social contribution tax	-	1,370	(4,425)	(2,706)
Income tax	-	1,135	(12,254)	(10,072)
INCOME BEFORE EXTRAORDINARY ITEM	24,240	16,860	24,240	16,860
Extraordinary item, net of tax effects	(82)	(54)	(82)	(54)
INCOME BEFORE MINORITY INTEREST	24,158	16,806	24,158	16,806
INCOME BEFORE REVERSAL OF INTEREST ON CAPITAL	24,158	16,806	24,158	16,806
Reversal of interest on capital	-	-	-	-
NET INCOME	24,158	16,806	24,158	16,806

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.