Companhia Paranaense de Energia - COPEL (ELP)
Filed: 5 Mar 18, 12:00am
Related-Party Transaction–01/18
Notice about Related-Party Transaction
Companhia Paranaense de Energia–Copel, a company that generates, transmits, distributes and sells power, with shares listed on the NYSE (ELPVY, ELP), the B3 (CPLE3, CPLE5, CPLE6) and the LATIBEX (XCOP), pursuant to CVM Instruction 480, of December 7, 2009, hereby informs its shareholders and the market in general of the following related-party transaction, entered into on January 31, 2018:
| Name of Related Parties | Usina Elétrica a Gás de Araucária Ltda.–UEG Araucária e Petróleo Brasileiro S.A–Petrobras. |
| UEG Araucária is a private-law legal entity,incorporated as a limited-liability company, ownedby Copel, which holds 20% of the capital stock; CopelGeração e Transmissão, which holds 60% of thecapital stock; and Petrobras, which holds 20% of the capital stock. | |
| Relationship with the Company | |
| Transaction Date | January 31, 2018. |
| The agreement for the purchase and sale of naturalgas in the interruptible mode for generation ofthermoelectric energy. | |
| Purpose of the Agreement | |
Effective period: on February 1, 2018 until December31, 2018. Maximum daily volume up to 2,190,000 Nm³ / day. | |
| Main Terms and Conditions | |
| Information about the participation of thecounterparty, its partners or management in theCompany’s decision-making process about thetransaction or negotiation of the transaction asrepresentatives of the Company, describing such participation | |
| The counterparty did not participate in theCompany’s decision-making process. | |
Araucária TPP (a plant owned and operated by UEGAraucária) does not have Energy CommercializationAgreements related to the sale of generated energy,operating as a Merchant. This means that it is calledupon to generate energy by the National SystemOperator (ONS) when the Marginal Cost of Operation(CMO) exceeds the Unit Variable Cost (CVU) of theplant. Araucária TPP’s operation is, therefore, determined | |
| Detailed justification of why the issuer’smanagement considers that the transaction isconducted on an arm’s length basis or envisagesappropriate compensatory payment: | |
Related-Party Transaction–01/18
| by the merit order of its costs or request by the ONS. In light of this, the Company’s managementconsiders that the transaction was conducted on anarm’s length basis and envisages appropriate compensatory payment.
|
Curitiba, March 02, 2018.
Adriano Rudek de Moura
Chief Financial and Investor Relations Officer
For further information, please contact the Investor Relations team:
ri@copel.com or (41) 3222-2027
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date March 2, 2018
| COMPANHIA PARANAENSE DE ENERGIA – COPEL | ||
| By: | /S/ Antonio Sergio de Souza Guetter | |
Antonio Sergio de Souza Guetter Chief Executive Officer | ||
FORWARD-LOOKING STATEMENTS
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.