EXHIBIT 99.1


                ESPIRITO SANTO CENTRAIS ELETRICAS S.A. - ESCELSA
                             Publicly Listed Company
                             CNPJ 28.152.650/0001-71


                         ANNOUNCEMENT OF A MATERIAL FACT




Espirito Santo Centrais Eletricas S.A. - Escelsa ("Escelsa"), today announced
that EDP - Electricidade de Portugal, S.A., the Company's indirect controlling
shareholder, initiated a public tender offer to acquire the total amount of
Escelsa's outstanding 10% Senior Notes due 2007(the "Notes"). The Offer to
Purchase and Consent Solicitation Statement ("Offer Notice") was filed today
with the Depository Trust Company in New York.

Furthermore, the Offer Notice indicates that EDP - Electricidade de Portugal,
S.A., holds the equivalent of US$151.58 million in Escelsa Notes that had been
purchased in open market transactions.

Upon the termination of the Public Purchase Offer by EDP Electricidade de
Portugal, S.A., or in the event of any other material development that occurs up
to that time, Escelsa will disclose such information to the market by way of
another public announcement.



                           Vitoria, November 20, 2002

                              Sergio Pereira Pires
                           Investor Relations Officer
                ESPIRITO SANTO CENTRAIS ELETRICAS S.A. - ESCELSA