CPFL ENERGIA S.A.
A Publicly Held Company
Corporate taxpayer's ID (CNPJ) 02.429.144/0001-93
Company Registry (NIRE) 353.001.861-33

CPFL Geração de Energia S.A.
A Publicly Held Company
Corporate taxpayer's ID (CNPJ) 03.953.509/0001-47
Company Registry (NIRE) 353.001.795-95

ANNOUNCEMENT TO THE MARKET

CPFL Energia S.A. ("CPFL Energia") and the subsidiary CPFL Geração de Energia S.A. ("CPFL Geração"), together denominated "Companies", hereby announce to its shareholders and the market that, in meetings held on April 15, 2014, Companies' Boards of Directors approved the execution of New Agreement of Energy Supply by CPFL Geração, and Furnas - Centrais Elétricas S.A. ("Furnas"), which will include similar terms as agreed in the Energy Supply Agreement No. 12,291 signed on January 2, 1998 and subsequent Amendments, whereby the conditions of the sale of the energy of Serra da Mesa Hydroelectric Power Plant ("Serra da Mesa HPP") were detailed, which follow:

•Amount: 51.54% stake of the availability of power and energy of Serra da Mesa HPP, corresponding to 345.4 average MW;
•Term: April 01, 2014 to April 16, 2028;
•Annual Readjustment: variation of the IGP-M inflation index;
•Price: R$ 156.70 per MWh, net of sector charges, in the base date of April 01, 2014. The equivalent gross price, including the respective sector charges, is of R$ 182.90 per MWh.

São Paulo, April 16, 2014.

CPFL Energia S.A.
Gustavo Estrella
Chief Financial and Investor Relations Officer

CPFL Geração de Energia S.A.
Gustavo Estrella
Chief Financial and Investor Relations Officer

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