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Business of AES Tietê
Business Management
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and Outlook
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Home  Social Management
Relationship with Stakeholders
1 | Internal Public
One of AES Tietê’s priorities is to invest in human capital, with the goal of attracting and
retaining talent. In order to do so, it offers all legal benefits and concedes extent benefits,
centralizing investments in training and actions that improve the quality of life of its employees.

Extremely trimmed down, the Company has very high productivity rates. At the end of 2005,
it had a workforce of 272 persons, distributed among 10 power plants and central and
regional offices, located in the capital of São Paulo and Bauru (São Paulo State), respectively.
The average productivity of these employees, calculated by the “net revenue per employee”
indicator, rose 15.5% in 2005, totaling R$ 4.5 million.
In 2004, a strategic plan was implemented to normalize and consolidate standards and
procedures throughout the Company’s power plants and, in 2005, AES Tietê created
new professional and personal growth opportunities, such as:
Leadership Development Program for Managers and Coordinators
LDP

Designed to prepare Company leaders in personnel management.

Emerging Leader Program,
Leadership Development Program and Senior Executive Program

offered by the AES Corp to its executives, these courses are taught at the Darden Graduate School of
Business Administration, in the University of Virginia (USA), and are designed to prepare
senior managers for the challenges of AES’ businesses globally.
Workforce Profile
2 | Health and Safety
Because of the risks inherent to its activities, the Company maintains an intensive training program
and strict workplace safety regulations, as well as providing high quality equipment for the
good task performance. The investments in safety, which totaled R$ 1.5 million during the year,
have led to repeated records.

On average, AES Tietê’s power plants have gone seven years without registering any cases of
lost time injuries. Some units have surpassed this mark, such as the Ibitinga plant which
has not had an accident involving lost time for 17 year. This performance is the result of
an awareness raising effort, of permanent investments in training and technology and in the
adoption of operating procedures that are increasingly more efficient.
Power Plant
Ibitinga
Mogi Guaçu
Bariri
Nova Avanhandava
Água Vermelha
Limoeiro
Barra Bonita
Promissão
Caconde
Euclides da Cunha
Period Without Accidents* | Years
17.5
10.9
9.5
8.0
7.4
5.3
5.3
3.8
2.7
2.3
* Accidents involving employee time-off
3 | Government and Society
In the condition of an electricity sector concessionaire, and therefore subordinated to specific
regulations, the Company has frequent dialogue with federal, state and municipal authorities,
always respecting the various parties and maintaining transparency in its actions.
All of AES Tietê’s initiatives linked to governmental agencies or civil and community organizations
are in line with its Code of Ethics, which foresees strict compliance with existing legislation and
encourages cordial relationships and mutual collaboration.

Because of the very nature of its activity, the Company has close contact with communities,
always seeking solutions that make it possible to carry out its functions in a fair and
coherent manner, associated with the collective interest.
4 | Suppliers
AES Tietê reorganized its logistics and supplies area, centralizing the acquisition of products and
services. This change standardized requirements and criteria adopted for hiring suppliers,
which has facilitated negotiations.

The Company maintains strict standards of quality for deciding upon partners and, among other
actions, requires that companies adopt security measures and equipment similar to the models
that its own employees use.
5 | Cultural Policy
In 2005, AES Tietê, together with the other AES Group companies in Brazil, formally instituted its
cultural policy. The objective was to establish coherent, clear and transparent rules for the
process of selecting projects in this field. The cultural policy’s function is to enhance the institutional
image of the Company and the AES Group with the various target audiences and communities in
which it is inserted. The actions must not only lead to cultural, artistic and educational activities
but also be in step with the corporate strategy.

According to the new policy, the initiatives in this area must also be synchronized with the
social responsibility program and the principles of the health, safety and environment policy.
A cultural policy committee was created to present suggestions, evaluate and decide upon the
projects that will be implemented. Representatives of AES Tietê, AES Uruguaiana and
AES Eletropaulo sit on the committee, which is coordinated by the Communication and
Social Responsibility department.
6 | Communities
To be socially responsible, to interact and to participate in the sustainable growth of the
communities is one of the missions of AES Tietê. With initiatives focused on transparency and in
line with its strategic planning, the Company consolidated projects that were initiated in 2004 and
adopted new initiatives for getting closer to the communities in the cities where it has power plants.

In order to reinforce its image, a change was made to the Company’s brand logo and, in 2006,
the new visual identity will be well on its way to being fully implemented. Among the actions in
this process were a series of communications campaigns about safety, such as warnings regarding
flooding caused by summer rains and information about the maintenance of the lock system.

Of the social-cultural actions taken during the year, the following were particularly noteworthy:
Citizenship Generation
The Citizenship Generation project is an innovative program to which the Company is
planning tomake investments of about R$ 1 million every year, through Rouanet Law incentives,
focusing in cultural, educational and social projects in cities in the São Paulo countryside.
The first edition was concluded during 2005: seven projects out of 25 presented were selected and
will receive support from the Company. The selected projects will be implemented in the cities of
Mogi-Guaçu, Mococa, São José do Rio Pardo, Buritama and Ibitinga.

Besides supporting the development of the activities, AES Tietê ran a course on Sustainability
Training aimed at the individual responsible for managing the projects in the municipalities.
The course was taught by the Third Sector Center and Studies unit of the
Fundação Getúlio Vargas (FGV).

Kids Project
Organized by the government of the state of São Paulo, this project is supported by AES Tietê.
The goal is to encourage musical education of low income children and teenagers in
municipality of Caconde (SP).

Wake up to the Environment
Each year AES Tietê sponsors the project named Acorde para o Meio Ambiente (Wake up to the
Environment), created by Pró-Cultura Marketing Cultural, designed to attract large crowds to
quality musical events. The 23rd edition of the project was held at the Botanical Gardens in
São Paulo and presented the spectacle Bibi Ferreira Canta Edith Piaf, together with the
Orquestra Phylarmonik directed by João Nelson Merlin. Held on December 18, 2005,
more than 6,000 people were in attendance. Over the course of the year, the project was
put on the in the cities of Bauru, Ouroeste, Promissão, Boracéia and Mococa.

Engineer: Energy Profession
The “Engineer: Energy Profession – A Photographic Trip through Engineering Works” presented an
historic overview of the profession and its strategic role in the growth and development of the
city of São Paulo. AES Tietê is the only sponsor of this exhibit, which was promoted by the São Paulo
State Syndicate of Engineers (SEESP), with the support of the Historic Energy Heritage Foundation.
After a run in São Paulo, the exhibition traveled to some cities in the countryside such as Itu,
Jundiaí, São José do Rio Preto and Caconde.

The exhibit is part of a wider project sponsored by AES Tietê, which also included the book
“Engineering in the State of São Paulo and its Contribution to the Country”,
launched in 2004 in São Paulo by SEESP.

Ecological Tour – The Mogi-Guaçu River
The Company sponsored the 1st Ecological Tour of the Mogi-Guaçu River organized by the
Rotary Club. One hundred participants in 17 boats were involved in the trip along the river,
and they picked up approximately 500 kg of garbage on the river bottom and also
planted native tree seedlings in the riparian vegetation.