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| Capital Expenditures |
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AES Tietê’s annual capital
expenditures are mainly focused in the maintenance and refurbishment
of the plants as a way of increasing the useful life and reliability
of its equipment, contributing to
the reduction of operating costs.
In 2005, the Company capital expenditures amounted
R$ 27.5 million,
earmarked for:
—R$ 16.3 million
Maintenance of hydroelectric power plants, with a highlight being the
refurbishing and
modernization of Generating Unit 02 at the Bariri
Plant;
—R$ 5.1 million
Projects for the environment, mainly reforestation;
—R$ 2.3 million
Improvement of waterway locks;
—R$ 3.8 million
Other capital expenditures (construction work, information technology).
Capital expenditures scheduled for 2006 amounts to R$ 50.5 million
and the main focus will be:
—Refurbishing and modernization of Generating Unit 03 at the Bariri
Plant, in continuation of
the revamping initiated in 2005;
—Reforestation of areas, designed to take advantage of the Carbon
Credit market;
—Construction work for the bi-annual maintenance of the waterway;
—Generation supervision and control systems. |
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| Outlook |
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Because it has a long term supply agreement
that is equivalent to 100% of its assured energy as
of 2006, AES
Tietê should post excellent financial performance, taking
into account the fact
that until 2005 the Company complied with
initial supply contracts with other distributors,
commitments
that had been assumed before privatization, with lower tariffs.
In parallel, the Company has been registering consecutive production
of electricity above the
assured energy level. Even with the date
for the review of this amount having been delayed,
it is possible
to pass through the surplus through the Energy Reallocation Mechanism
or
on the spot market. |
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