November 8, 2005

     Bovespa: CPFE3 R$ 25.10 / share
NYSE: CPL US$ 34.65 / ADR (1 ADR = 3 shares)
Total Shares = 460.9 million
Market Value: R$ 11,6 billion
Quotes on 11/08/2005

Conference Call - Portuguese Wednesday, November 9, 2005 Time: 3:00 pm (SP), 12:00 pm (US ET) (55 11) 2101-1490 Code: CPFL *Webcast: http://ri.cpfl.com.br/ Conference Call - English Wednesday, November 9, 2005 Time: 5:00 pm (SP), 2:00 pm (US ET) (1-973) 935-2403 Code: CPFL or 6625627 *Webcast: http://ri.cpfl.com.br	CPFL ENERGIA ANNOUNCES NET INCOME OF R$ 641 MILLION IN THE 9M05 São Paulo, November 8, 2005 – CPFL Energia S.A. (Bovespa: CPFE3 e NYSE: CPL), announces its third quarter (3Q05) and 9 months accumulated results (9M05). The financial and operating information herein is presented in accordance to the Brazilian Corporate Law and on consolidated basis, unless otherwise indicated. Comparison refers to the 3Q04 and 9M04, unless otherwise indicated.
	9M05 AND 3Q05 HIGHLIGHTS
	Net Income of R$ 640.6 million in 9M05 and R$ 240.0 million in 3Q05. Gross Revenue of R$ 8.0 billion in 9M05 and R$ 2.8 billion in 3Q05, a 14.6% and 17.1% growth, respectively. EBITDA(1) of R$ 1.631 billion in 9M05 and R$ 570.1 million in 3Q05, corresponding to 40% and 79% increase, respectively. CPFL Energia Shares included in Electric Energy Index (IEE) and IBX-100 – Bovespa (São Paulo Stock Exchange). 56% increase in the Commercialization Company’s Gross Revenue in 9M05 and 44.9% in 3Q05, with EBITDA increase of 44% in 9M05 and 31% in 3Q05. SUBSEQUENT EVENTS Start up of UHE Barra Grande Plant operations and the beginning of UHE Campos Novos Plant reservoir filling. CPFL Energia announces incorporation of the shares of its subsidiaries CPFL Paulista and CPFL Piratininga, expecting a free float change from 16.8% to 17.8%. (1)The 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.

PERFORMANCE OF ON SHARES / ADR’s IN 3Q05 AND 9M05

In September, 2005, CPFL Energia shares begin to be part of the “IBX-50” Index and in the Electric Energy Index (“IEE”).

Since the 1^st. half of 2005, CPFL Energia shares are also part of BOVESPA Corporate Governance (“IGC”), Tag Along (“ITAG”) Indexes, and of “Dow Jones Brazil Titan 20 ADR Index”, an important reference index for Brazilian stocks traded in the international market.

ON shares’ performance negotiated in Bovespa presented variation superior to the main comparative indexes, i.e. “Ibovespa” and “IEE”, both in 3Q05 and 9M05. ADR’s negotiated in NYSE presented similar performance, overcoming the main comparative indexes.

CPFL Stocks x Main Comparative Indexes

CPFL Energia also expects to be included in the “IBX-50” and “ISE” (Business Sustainability Index).

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CORPORATE STRUCTURE OF CPFL ENERGIA

CPFL Energia is a holding Company, which results rely directly on the results of its subsidiaries: CPFL Paulista (94.94%), CPFL Geração (100%) and CPFL Brasil (100%).

The following are the main ongoing corporate events:

• Incorporation of CPFL Piratininga and CPFL Paulista

On coming November 23, 2005, CPFL Energia will hold an Extraordinary General Meeting to approve the joint transaction to incorporate the total common and preferred shares of its subsidiaries CPFL Paulista and CPFL Piratininga into its equity.

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In fact, this corporate reorganization will imply initially in the incorporation of all stock held by minority shareholders of CPFL Piratininga into CPFL Paulista´s equity and subsequently, the incorporation of shares held by minority shareholders of CPFL Paulista into CPFL Energia´s equity, according to the following exchange ratio:

This operation will bring benefits to CPFL Piratininga´s and CPFL Paulista´s current shareholders, which will start to have the same rights and advantages attributed to CPFL Energia stocks, which is currently negotiated in Novo Mercado – Bovespa and in NYSE (New York Stock Exchange), it also includes tag along rights in the event of controlling stake sale, under the same terms and conditions of the controlling shareholder, beyond a stockholding position with higher liquidity to that one presented by CPFL Paulista and CPFL Piratininga.

In addition to the benefits, the transaction is also positive for the whole CPFL Energia, which will increase its free float by 0.95%, from the current 16.80% to 17.75%, with the increase in new shareholders of nearly 10,500, owning more than a standard lot (100 shares) of the Company, concentrating the liquidity of the group companies stocks in CPFL Energia stocks.

• Extension of CPFL Group corporate restructuring deadline

In September 2005, ANEEL approved the extension of the deadline to transfer to CPFL Energia the stakes held by CPFL Paulista in its subsidiaries CPFL Piratininga and Rio Grande Energia

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(RGE). This corporate restructuring process shall be implemented in stages: the transfer of CPFL Piratininga´s control is expected to occur until April 14, 2006 and for RGE, the transfer is expected to occur until March 14, 2007.

DIVIDENDS AND INTERESTS ON CAPITAL

CPFL Energia paid dividends and interest on capital related to 1H05 of R$ 400.6 million, corresponding to 100% of the net income of the period.

In the 12-month period before June 2005, the Company paid R$ 0.85 per share, corresponding to a dividend yield of 6.32% .

CPFL Energia’s dividend policy states that a minimum of 50% of net income, adjusted on semiannual basis, should be paid to shareholders. However, in the last 3 semesters, the Company paid the entire net income to shareholders, after the provision of legal reserves.

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MAIN ECONOMIC–FINANCIAL DATA –
BY BUSINESS SEGMENT AND CONSOLIDATED

3Q05 vs. 3Q04 Comparison

9M05 vs. 9 M04 Comparison

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MARKET

The energy sold by CPFL group through its distribution and commercialization activities for final customers totaled 9,293 GWh in the 3Q05 and 27,852 GWh in the 9M05, increases of 1.5% and 4.0% (without calendar adjustments), respectively. It is worth emphasizing that the residential and commercial classes consumption growth were mainly due to increase in employment levels and income, as well as higher temperatures in the period.

Sales to Final Customers (Billed Supply) – Without Calendar Adjustment

Sales Comparison – Without Calendar Adjustment

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Considering the same calendar base, the electricity sales of CPFL Group grew by 1.7% in 3Q05 and 4.2% in 9M05, highlighting the growth in residential and commercial classes of 5.8% and 5.9% in 3Q05 and 6.0% and 8.9% in 9M05.

Sales to Final Customers (Billed Supply) – Same Calendar Base

It is worth emphasizing that the demand in concession area for the CPFL group’s distribution companies grew 3.1% in the 3Q05 and 5.5% in the 9M05, higher than the Brazilian average growth of 2.6% in 3Q05 and 5.1% in 9M05.

CPFL Brasil has played a relevant role in the growth of energy sales of the group, totaling 1,652 GWh in 3Q05 and 4,643 GWh in 9M05 in sales to free market, growth increases of 85% and 114%, respectively. Currently, CPFL Brasil has a total of 83 free clients in the free market, thereof conquered 9 new clients in 3Q05.

(1) Excluding transactions with group’s companies, CCEE and energy supply

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ECONOMIC AND FINANCIAL PERFORMANCE

Gross Revenue

Gross operating revenue reached R$ 2.8 billion in 3Q05 and R$ 8.0 billion in 9M05, representing a growth of 17.1% and 14.6% respectively.

The main factors that contributed to this increase were:

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Cost of Energy Services

The cost of energy services, which includes (i) acquired energy costs and (ii) system use charges, totaled R$ 995.8 million in 3Q05 and R$ 2,941 million in 9M05, an increase of 0.3% and 3.6%, respectively. These changes are due to the reduction of costs derived from charges for the use of transmission and distribution system, offset by the increase in costs of acquired energy.

Operating Costs / Expenses

Operating costs and expenses totaled R$ 480.1 million in 3Q05 and R$ 1.372 billion in 9M05, increases of 4.8% and 6.5%, respectively. The main changes in 3Q05 and 9M05 are described as follows:

• Manageable Costs - Personnel, Material, Third-Party Services and Others
Manageable expenses totaled R$ 206.2 million in 3Q05 and R$600.0 million in 9M05, representing a reduction of 0.3% and an increase of 4.4%, respectively. These changes are mainly due to continuous cost control programs, expenses management measures and operating synergies capturing efforts in every Group’s subsidiary.

• Private Pension Fund
Private Pension Fund costs and expenses reached R$ 22.4 million in 3Q05 and R$ 67.2 million in 9M05, a reduction of 58.3% in 3Q05 and 52.7% in 9M05. The reduction reflects the adjustments made in the actuarial calculations due to a revision in the assumptions of mortality tables and increase in the expected rates of return on assets of these pension funds.

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Additionally, there is the extraordinary item resulting from CVM Instruction # 371/2001, totaling R$ 8.1 million in 3Q05 and R$ 24,4 million in 9M05. This item accounts for the actuarial deficit up to 2001 on results, for the 5-year period starting in 2002.

The total private pension fund costs, i.e. operating costs and expenses added to the extraordinary item, reached R$ 34.7 million in 3Q05 and R$ 104.2 million in 9M05, reduction of 47.5% and 41.8%, respectively.

• Amortization of Incorporated Goodwill

Totaled R$ 2.0 million in 3Q05 and R$ 6.1 million in 9M05, and had an important role in the reduction of operating expenses as a whole, with a decrease of 89.6% in 3Q05 and 89.6% in 9M05.

This reduction is due to CPFL Paulista´s and CPFL Piratininga´s compliance with CVM Instructions # 319 and # 349, as of December 2004, which generated goodwill on its controlling companies (CPFL Energia and CPFL Paulista) accounting its amortization as financial expenses. The remaining goodwill balance refers to the acquisition of RGE.

• Subsidies for CCC and CDE (Fuel Usage Quota and Energy Development Account)

CCC and CDE subsidies expenses totaled together the higher increases of R$ 174 million in 3Q05 and R$ 473.2 million in 9M05, representing 61.9% in 3Q05 and 52.7% in 9M05. These increases were due to readjustments in these contributions.

CCC subsidy is calculated based on the expected generation of thermal units and on the cost of fuel, and its increase is directly related to these factors. The total amount of CCC is divided among the distribution companies pro-rata to their corresponding market size.

The Energy Development Account – CDE was created aiming the Brazilian States´ energy development and the competitiveness of energy generated from wind, small hydroelectric power

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plants, biomass, natural gas and national coal, in the areas covered by interconnected systems and promoting the total access of electricity services to the whole national territory. The total amount is defined by ANEEL and shared among the distribution companies pro-rata basis to their corresponding market sizes.

However, the effect of these expenses is offset in the final result, since their deviations are reported by CVA mechanism, fully compensated in the following tariff readjustment.

Income from Electric Utility Services

Income from electric utility services reached R$ 480.6 million in 3Q05 and R$ 1.365 billion in 9M05, representing increases of 172.4% and 75.2%, respectively. This positive performance is due to the following factors:

i. Increase in Revenues

• Increase in total energy billed;
• Tariff readjustments from the distribution and generation companies;
• Increase in the TUSD revenue.

ii. Operating Costs Control:

• Reduction of goodwill amortization from the acquisition of CPFL Paulista and CPFL Piratininga, in compliance with CVM Instructions # 319 and # 349;
• Reduction in expenses related to private pension funds and;
• Active monitoring of manageable expenses.

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EBITDA

Consolidated EBITDA of R$ 570.1 million in 3Q05 and R$ 1.631 billion in 9M05 represented an increase of 79.2% and 39.9%, respectively. The EBITDA is calculated by adding up net income, taxes, financial results net of interest on capital, depreciation/amortization and private pension fund, in addition to adjustments related to the extraordinary item and eventual non-recurring transactions.

Financial Result

Financial result, represented by a net financial expense of R$ 71.4 million in 3Q05 and R$ 297.1 million in 9M05, dropped by 51.2% and 37.3% respectively. Such reduction is a result of lower financial expenses combined with increased financial income.

The financial expenses, net of goodwill amortization and Interest on Capital, reached R$ 166 million in 3Q05 and R$ 578.8 million in 9M05, decreasing by 31.2% and 22.1% respectively, mainly due to the decrease in indebtedness, changes in debt profile and improvement in some macroeconomic indicators.

Financial income increased by 12.8% in 3Q05 and 17.8% in 9M05, as a result of the yield over cash investments, which in turn is a consequence of the improved operating cash generation and cash equivalents.

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Net Income

Net income reached R$ 240.0 million in 3Q05 and R$ 640.6 billion in 9M05, representing increases of 4,105.4% and 439.0% respectively, as direct result of the increase in income from electric utility services, coupled with better financial results.

INDEBTEDNESS

Mainly as a result of amortization payments according to schedule, the balance of the group’s financial debt was reduced by 22.1% in the end of 9M05, totaling R$ 4.6 billion, as shown in the following “Loans and Financing” table.

In December 2004, BNDES approved CPFL Paulista and CPFL Piratininga compliance to the Electric System Expansion and Modernization Program (FINEM), corresponding to credits of R$ 241 million and R$ 89 million, respectively, both indexed to TJLP and six-year maturity. Regarding CPFL Paulista were released two installments, one in April in the amount of R$ 89.0 million and other in August in the amount of R$ 28.9 million, totaling R$ 117.9 million. For CPFL Piratininga were released three installments in the amount of R$ 33.6 million, R$ 8.9 million and R$ 11.3 million, respectively, in March, June and August 2005, totaling R$ 53.8 million.

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Loans and Financing (R$ thousand)

In April 2005, ENERCAN, controlled by CPFL Geração, received R$ 75 million in loans from IDB – Inter-American Development Bank, destined to finance the HPP Campos Novos. Of the total amount, US$ 60 million were released considering that US$ 50 million were released in April and US$ 10 million in July, 2005.

In April 2005, the International Finance Corporation (IFC) converted the remaining balance of its loan into CPFL Energia’s shares, in the amount of US$ 30 million, consequently eliminating the entire debt from the holding.

Following the trend observed in the previous periods, the improvement in debt profile can be observed by the 22% reduction of the nominal cost, from 18% per year in 9M04 to 14% per year in 9M05 and by the increase of the average maturity term, from 5.1 to 6.1 years.

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Such improvement also is perceived in the indexes composition, with increased exposure to TJLP as a consequence of resources released from FINEM and financing for generation plants, in addition to reduced exposure to the CDI.

The adjusted net debt balance reported in September 2005 was R$ 3.9 billion, representing a reduction of 14% compared to the September 2004 balance. The adjusted net debt is calculated from the total debt (loans and financing + derivatives + private pension fund), excluding the regulatory assets / CVA and cash equivalents.

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CAPEX

In the 9M05, CPFL group invested R$ 421 million for maintenance and business expansion, of which R$ 156 million were invested in 3T05.

CPFL Energia’s main investments over the last years have been as follows:

• Distribution Segment: Expansion in client base, with 17.1 thousand new clients per month added in 3Q05, as well as the modernization and maintenance of the electric system, aiming at securing the quality standards in electric energy supply, and the administrative and technological infrastructure to support operating processes of distribution companies;
• Commercialization Segment: Improvement of portfolio and risk management systems;
• Generation Segment: Fulfillment of the construction schedule of hydroelectric power plants, highlighting the beginning of reservoir filling in Campos Novos HPP on October 10, 2005, and the beginning of commercial operations of Barra Grande HPP on November 1, 2005.

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BUSINESS PERFORMANCE

Distribution Segment

Gross Revenue

Gross revenue totaled R$ 2.6 billion in 3Q05 and R$ 7.4 billion in 9M05, corresponding to increases of 14.5% and 11.8%, respectively. The main factors which contributed to this performance were the annual tariff readjustments of distribution companies - CPFL Paulista and RGE with 18.76 ⁽¹⁾% and 21.93%, respectively, in April 2005 and CPFL Piratininga with 14.00% in October 2004, in addition to the increase in revenue for the use of electricity network (TUSD) by 111.2% in 3Q05 and 122.4% in 9M05.

Additionally, the reduction of commercial losses in CPFL Paulista and CPFL Piratininga reached 2.63% and 1.86%, respectively, and contributed to an additional revenue of R$ 49 million in 9M05.

(1) As of April 8, 2005: 17.74% plus 1.01% readjustment defined by ANEEL in July, 2005.

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Sales Comparison – Without Calendar Adjustments

Revenue increase would have been higher if captive customers had not migrated to the free market, which resulted in the reduction of industrial sales by 22.0% in 3Q05 and by 19.6% in 9M05, thus contributing to the reduction in the total sales volume by 7.6% in 3Q05 and by 5.7% in the 9M05.

Sales Comparison – With Calendar Adjustment

Considering the same calendar base, sales of electricity in the distribution segment would be reduced by 7.4% in 3Q05 and by 5.5% in 9M05.

In the distribution segment, the migration of clients to free market is offset by the results of distribution companies, as there is the balancing revenue in TUSD amounting to R$ 127.6 million in 3Q05 and R$ 333.9 million in 9M05, a 111.2% and 122.4% growth, respectively.

TUSD Sales Comparison – With Calendar Adjustment

The energy sold to clients in the free market in the group’s distribution companies concession area totaled 1,864 GWh in 3Q05 and 5,079 GWh in 9M05, representing 92.8% and 123.7% increases, respectively.

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Considering the consolidated sales in group’s distribution companies (captive clients + free clients), the sales growth would have been 3.1% in 3Q05 and 5.5% in 9M05.

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• Final Tariff Revision for CPFL Piratininga

In October 2005, ANEEL approved the final tariff revision for CPFL Piratininga, setting the remuneration base of the company in 9.67% .

From the total liability of R$ 103.1 million generated by 2003 tariff revision, CPFL Piratininga has already accounted for a loss of R$ 71.3 million, due to adjustments made by ANEEL in 2004, and the remaining balance of R$ 31.8 million will be recognized during this fiscal year, of which R$ 28.6 million in 3Q05 and R$ 3.1 million in 4Q05.

EBITDA

EBITDA in the distribution segment was R$ 443.4 million in 3Q05 and R$1.242 billion in 9M05, representing a 102.6% and 43.3% growth. This performance is mainly due to:

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Net Income

Consolidated net income in the distribution segment reached R$ 190.2 million in 3Q05 and 501.2 million in 9M05, a growth of 1,026.1% and 385% respectively.

This increase is mainly due to the EBITDA increase and the reduction of net financial expenses.

Main Economic – Distribution Companies Financial Data

3Q05 vs. 3Q04 Comparison

9M05 vs. 9M04 Comparison

Commercialization Segment

Gross revenue

Gross revenue of CPFL Brasil totaled R$ 372.5 million in 3Q05 and R$ 1.013 billion in 9M05, increasing respectively by 44.9% and 56.0%, mainly as a result of the operating growth of electricity sale for free clients and other concessionaires.

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The performance in results of CPFL Brazil demonstrates the efficient performance of the commercialization company which conquered 9 clients in the free market, totaling 83 free clients in the period.

Final Customers Sales Comparison – CPFL Brasil

EBITDA

EBITDA of CPFL Brasil totaled R$ 49.2 million in 3Q05 and R$ 163.7 million in 9M05, presented increases of 31.1% and 43.9% respectively, mainly due to growth in energy commercialization and related-services providing.

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Net Income

CPFL Brazil net income reached R$ 34.2 million in 3Q05 and R$ 112.3 million in 9M05, presenting growth of 38.1% and 47.8%, respectively.

Generation Segment

Gross revenue

Gross revenue of CPFL Geração reached R$ 110.3 million in the 3Q05 and R$ 319.8 million in the 9M05, a 42.3% and 31.4% growth, respectively. This growth is due to the following factors:

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EBITDA

EBITDA of CPFL Geração totaled R$ 88.9 million in 3Q05 and R$ 258.4 million in 9M05, increases of 35.9% and 24.4%, respectively. This increase is basically due to the increase in revenue coming from electricity sales and due to the start-up of Monte Claro HPP which generated EBITDA of R$ 11.4 million in the 3Q05 and R$ 20.6 million in the 9M05.

Net Income

Net income in the generation segment totaled R$ 31.8 million in 3Q05 and R$ 87.1 million in 9M05, 124.6% and 66.5%, respectively.

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Main Events Related to the Projects

There were two relevant events related to generation projects in October, as follows:

With the beginning of commercial operations of Barra Grande HPP and Campos Novos HPP, CPFL Geração will have the current installed capacity increased by 75% until the beginning of 2006.

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Investor Relations:

ri.cpfl.com.br

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CPFL Energia S.A.
Balance Sheets as of September 30, 2005 and June 30, 2005
(Stated in thousands of Brazilian Reais)

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CPFL Energia S.A.
Balance Sheets as of September 30, 2005 and June 30, 2005
(Stated in thousands of Brazilian Reais)

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(Convenience Translation into English from the Original Previously Issued in Portuquese)

CPFL Energia S.A.
Statement of Operations for the Quarters Ended September 30, 2005 and 2004
(In thousands of Brazilian reais - R$)

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(Convenience Translation into English from the Original Previously Issued in Portuguese)

Companhia Paulista de Força e Luz
Statement of Operations for the Quarters Ended September 30. 2005 and 2004
(In thousands of Brazilian reais - R$)

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(Convenience Translation into English from the Original Previously Issued in Portuguese)

CPFL Geração de Energia S.A.
Statement of Operations for the Quarters Ended September 30. 2005 and 2004
(In thousands of Brazilian reais - R$)

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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.