CESP was created in 1966 by the São Paulo state government through the merger of 11 companies in the state. Up to the end of the 90’s, the Company was vertically integrated, operating in the power generation, transmission and distribution areas in São Paulo state.
In July 1996, the São Paulo State Legislative Assembly approved State Law 9.361, which authorized the corporate restructuring of the state’s energy sector and the sale of the government’s holdings in the companies controlled by it, including CESP. By the end of the 90’s, its assets had been reorganized in compliance with the state’s Privatization Program.
Distribution assets and operations were merged into a wholly-owned subsidiary, Elektro e Serviços S.A., which was subsequently privatized. Transmission assets were transferred to CTEEP – Companhia e Transmissão de Energia Paulista, under state government control, and generation assets and operations were divided among three companies: CESP and two other generators which were privatized: Companhia de Geração de Energia Elétrica Tietê, currently AES Tietê S.A., and Companhia de Geração de Energia Elétrica Paranapanema, currently Duke Energy International Geração Paranapanema.
On November 1, 2000, the state government published an Invitation to Bid establishing the terms for the sale of its 38.67% stake in the Company’s total capital, equivalent to 61.62% and 14% of the total common and preferred shares respectively. The divestiture was suspended because none of the 6 pre-qualified companies submitted bids.
In May 2001, there was another attempt at privatization, which was suspended by the state government before the proposed May 16 auction date, due to several factors, including the uncertainties triggered by the imminent energy crisis. The state government then announced that CESP’s privatization would be suspended indefinitely.
On June 28, 2006, the Company concluded the Primary Public Offering of preferred class B shares amounting to R$3.2 billion. Of this total, the market subscribed R$2.0 billion and the controlling shareholder, the São Paulo State Treasury Department, R$1.2 billion, under the terms of the AFAC Agreement for the Subscription and Paying In of Shares signed on July 10, 2006. The controlling shareholder’s funds resulted from the privatization auction of CTEEP at the Bovespa (São Paulo Stock Exchange), in which the Colombian company Interconexión Eléctrica S.A. Esp acquired 50.1% of the common shares owned by the state government, equivalent to 21% of CTEEP’s total equity.
CESP – Companhia Energética de São Paulo (São Paulo’s Electricity Company) has as its mission statement: “Acting with excellence in the energy sector, adopting practices that reflect the commitment towards corporate sustainability” and as its vision: “Being a leader in its area of operation, with excellence and sustainability.”