ONS economic-financial management, in 2009, continued the process of improving the budget control, resulting in better utilization of financial resources from the charges for the use of the transmission system and the contribution of its members.

Fiscal Year Budget

ONS economic-financial Budget approved by ANEEL for the year 2009 was of R$ 342,564,00, being R$ 163.356,00 through ANEEL Resolution No. 1425/2008, complemented by ANEEL Resolution No. 1.634/08 for the first semester and R$ 179.208,00 through ANEEL Resolution 1.982/2009 for the second semester. The budget execution for the year was of R$ 334.928,00, representing 97.8% of the expected budget.

ONS Funds Sources

Under the terms of the article 34 of the Bylaws, amended by ANEEL Resolution no. 1.888, of April 22nd, 2009, the following are ONS funds sources:

I. Contributions from its associate members, proportional to the number of votes in General Assembly, included in Parcel “A” for purposes of tariff transfer and collected by other associate members and agents who are not subject to tariff transfer.

II. Funds resulting from the budget developed by ONS and approved by ANEEL:

a) Re-passed by members and agents of the electricity sector connected to the Main Transmission Grid, whose values are included in the Tariff for the Use of the Transmission System (TUST) and in the Parcel "A" of the Electric Energy Service Tariffs;

b) Collected by other associate members and agents of the electric sector who are not subject to tariff transfer;

c) Other revenues authorized by ANEEL.

For the viability of its budget, ONS used the resources from charges for the use of transmission and the contribution from associate members collected during the year 2009.

Financial Statements for the Year 2009

In compliance with the accounting practices required by Law 11.638/07, complemented by ANEEL Resolution no. 344/08, ONS continued the process of improvement of its accounting practices in the fiscal year of 2009.

Therefore, in compliance with provisions by ANEEL, as of January 1st, 2008, these resources began to be appropriated as anticipated revenue and amortized in the result in proportion to: (i) the development of the expenditure allocated in funding, (ii) the expenses allocated in fixed assets, (iii) charges for depreciation and amortization and (iv) the liquidation of financial liability, which comprises the funding and installments of taxes, so that any excesses or shortages of resources, when compared to expenses and related costs, are offset by reductions or increases in the following budget cycle.

Result of 2009 Fiscal Year

The current accounting practice adopted by ONS considers that the resources collected through the Charges for the Transmission System Use should be simultaneously recognized in return for the corresponding expenditures, and should not, therefore, present a surplus or deficit accounting, and should be recognized asset or liability balance for compensation. Thus, as a result of the adoption of this treatment, in 2009, the balance of R$ 15.859,00 was investigated, which, added to the balance of 2008, reaches the total value of R$ 30.704,00, recorded in current assets, which will be subject to compensation in the budget of the current or the following cycle.