SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of June, 2023

Commission File Number 1-14668

COMPANHIA PARANAENSE DE ENERGIA

(Exact name of registrant as specified in its charter)

Energy Company of Paraná

(Translation of Registrant's name into English)

José Izidoro Biazetto, 158
81200-240 Curitiba, Paraná
Federative Republic of Brazil
+55 (41) 3331-4011

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No ___X____

Companhia Paranaense de Energia

Corporate Taxpayer ID (CNPJ/MF) 76.483.817/0001-20

Publicly-Held Company - CVM 1431-1

www.copel.comcopel@copel.com

Rua José Izidoro Biazetto, 158, Bloco A, Mossunguê - Curitiba - PR

ZIP 81200-240

INTERIM FINANCIAL INFORMATION

March / 2023

COMPANHIA PARANAENSE DE ENERGIA - COPEL

CONTENTS
FINANCIAL STATEMENTS 3
Statements of Financial Position 3
Statements of Income 5
Statements of Comprehensive Income 6
Statements of Changes in Equity 7
Statements of Cash Flows 8
NOTES TO THE INTERIM FINANCIAL INFORMATION 10
1. Operations 10
2. Concessions and Authorizations 15
3. Basis of Preparation 17
4. Significant Accounting Policies 18
5. Cash and Cash Equivalents 19
6. Bonds and Securities 19
7. Trade Accounts Receivable 20
8. Net Sectorial Financial Assets and Liabilities 21
9. Accounts Receivables - Concessions 22
10. Contract assets 23
11. Other Receivables 26
12. Taxes 27
13. Prepaid Expenses 31
14. Judicial Deposits 32
15. Investments 32
16. Property, Plant and Equipment 35
17. Intangible assets 37
18. Payroll, Social Charges and Accruals 39
19. Accounts Payable to Suppliers 39
20. Loans and Financing 40
21. Debentures 44
22. Post-employment Benefits 46
23. Sectorial Charges Payable 47
24. Research and Development and Energy Efficiency 47
25. Accounts Payable Related to Concessions 48
26. Right-of-use Asset and Lease Liability 49
27. Other Accounts Payable 51
28. Provisions for Legal Claims and Contingent Liabilities 51
29. Equity 55
30. Net Operating Revenue 56
31. Operating Costs and Expenses 59
32. Financial Results 62
33. Operating Segments 62
34. Financial Instruments 66
35. Related Party Transactions 80
36. Commitments 83
37. Insurance 84
38. Additional information to the Statement of Cash Flows 84
39. Condensed individual financial information of Companhia Paranaense de Energia - Copel 85
40. Subsequent events 90

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Consolidated Statements of Financial Position

FINANCIAL STATEMENTS

Statements of Financial Position

as of March 31, 2023, and December 31,2022

All amounts expressed in thousands of Brazilian reais

ASSETS Note

03.31.2023

12.31.2022

CURRENT ASSETS

Cash and cash equivalents 5 2,911,274 2,678,457
Bonds and securities 6 92 93
Collaterals and escrow accounts 178 157
Trade accounts receivable 7 3,460,364 3,342,050
Dividends receivable 137,296 138,330
Sectorial financial assets 8 327,135 190,699
Accounts receivable - concessions 9 8,563 8,603
Contract assets 10 242,259 220,660
Other current receivables 11 998,199 897,380
Inventories 223,225 194,850
Income tax and social contribution receivable 374,536 355,065
Other current recoverable taxes 12.2 1,208,196 1,239,694
Prepaid expenses 13 69,775 60,076
Receivable from related parties 35 1,430 1,135
9,962,522 9,327,249
NONCURRENT ASSETS
Long Term Assets
Bonds and securities 6 501,700 430,963
Other temporary investments 26,802 25,619
Trade accounts receivable 7 117,630 109,819
Judicial deposits 14 631,837 632,458
Sectorial financial assets 8 109,045 190,699
Accounts receivable - concessions 9 2,403,465 2,269,690
Contract assets 10 7,536,312 7,452,019
Other noncurrent receivables 11 1,372,447 931,452
Income tax and social contribution receivable 128,108 127,824
Deferred income tax and social contribution 12.1 1,637,997 1,644,299
Other noncurrent recoverable taxes 12.2 2,481,902 2,627,293
Prepaid expenses 13 247 10
16,947,492 16,442,145
Investments 15 3,435,680 3,325,731
Property, plant and equipment 16 11,189,018 10,069,468
Intangible assets 17 11,274,717 10,277,727
Right-of-use asset 26 255,034 261,380
43,101,941 40,376,451
TOTAL ASSETS 53,064,463 49,703,700

Notes are an integral part of this interim financial information

3

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Consolidated Statements of Financial Position

Statements of Financial Position

as of March 31, 2023, and December 31,2022 (continuation)

All amounts expressed in thousands of Brazilian reais

LIABILITIES Note

03.31.2023

12.31.2022

CURRENT LIABILITIES

Payroll, social charges and accruals 18 247,831 252,789
Accounts payable to suppliers 19 1,962,380 2,090,022
Income tax and social contribution payable 81,503 156,191
Other taxes due 12.2 367,540 303,606
Loans and financing 20 336,274 278,838
Debentures 21 1,468,414 1,346,347
Dividend payable 484,759 482,325
Post-employment benefits 22 86,404 73,814
Sectorial charges payable 23 42,338 46,488
Research and development and Energy efficiency 24 376,147 370,244
Accounts payable related to concession 25 105,228 105,003
Sectorial financial liabilities 8 208,178 433,914
Lease liability 26 66,254 64,870
Other accounts payable 27 713,962 601,619
PIS and Cofins to be refunded to consumers 12.2.1 815,321 550,527
7,362,533 7,156,597
NONCURRENT LIABILITIES
Accounts payable to suppliers 19 125,339 125,448
Deferred income tax and social contribution 12.1 1,799,749 1,517,682
Other taxes due 12.2 631,616 633,491
Loans and financing 20 5,113,768 4,371,525
Debentures 21 7,808,247 6,457,508
Post-employment benefits 22 994,854 996,223
Research and development and Energy efficiency 24 256,226 244,514
Accounts payable related to concession 25 830,715 832,539
Sectorial financial liabilities 8 50,945 49,341
Lease liability 26 202,543 208,886
Other accounts payable 27 1,000,001 645,234
PIS and Cofins to be refunded to consumers 12.2.1 1,231,291 1,444,631
Provision for allocation of PIS and Cofins credits 12.2.1 1,876,933 1,851,257
Provisions for legal claims 28 2,013,174 2,037,599
23,935,401 21,415,878
EQUITY
Attributable to controlling shareholders
Capital 29.1 10,800,000 10,800,000
Equity valuation adjustments 29.2 585,053 593,382
Legal reserve 1,512,687 1,512,687
Profit retention reserve 7,911,295 7,911,295
Accumulated profit 634,789 -
21,443,824 20,817,364
Attributable to non-controlling interests 15.2.2 322,705 313,861
21,766,529 21,131,225
TOTAL LIABILITIES & EQUITY 53,064,463 49,703,700

Notes are an integral part of this interim financial information

4

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Consolidated Statements of Income

Statements of Income

for the three-month periods ended March 31, 2023, and 2022

All amounts expressed in thousands of Brazilian reais

Note

03.31.2023

03.31.2022

CONTINUING OPERATIONS
NET OPERATING REVENUE 30 5,530,666 5,587,749
Operating costs 31 (4,102,602) (4,178,804)
GROSS OPERATING PROFIT 1,428,064 1,408,945
Other operational expenses / income
Selling expenses 31 (781) (66,890)
General and administrative expenses 31 (256,079) (196,405)
Other operational income (expenses), net 31 (61,052) (87,951)
Equity in earnings of investees 15 104,088 112,781
(213,824) (238,465)
PROFIT BEFORE FINANCIAL RESULTS AND TAXES 1,214,240 1,170,480
Financial results 32
Financial income 240,639 259,875
Financial expenses (573,778) (473,102)
(333,139) (213,227)
OPERATING PROFIT 881,101 957,253
INCOME TAX AND SOCIAL CONTRIBUTION 12.3
Current (161,823) (273,849)
Deferred (83,788) (13,613)
(245,611) (287,462)
NET INCOME 635,490 669,791
Attributed to shareholders of the parent company arising from continuing operations 626,590 664,341
Attributed to non-controlling shareholders resulting from continuing operations 15.2.2 8,900 5,450
BASIC AND DILUTED EARNING PER SHARE
ATTRIBUTED TO CONTROLLING SHAREHOLDERS - Expressed in Brazilian Reais 29.3
Common shares
Class "A" Preferred shares
Class "B" Preferred shares

Notes are an integral part of this interim financial information

5

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Consolidated Statements of Comprehensive Income

Statements of Comprehensive Income

for the three-month periods ended March 31, 2023, and 2022

All amounts expressed in thousands of Brazilian reais

Note

03.31.2023

03.31.2022

NET INCOME

635,490

669,791

Other comprehensive income

Items that will never be reclassified to profit or loss

Items that may be reclassified to profit or loss

29.2

Adjustments related to financial assets

(282) -

Taxes on other comprehensive income

96 -

Total other comprehensive income, net of taxes

(186) -

TOTAL COMPREHENSIVE INCOME

635,304 669,791

Attributed to shareholders of the parent company arising from continuing operations

626,460 664,341

Attributed to non-controlling shareholders resulting from continuing operations

8,844 5,450

Notes are an integral part of this interim financial information

6

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Consolidated Statements of Changes in Equity

Statements of Changes in Equity

for the three-month periods ended March 31, 2023, and 2022

All amounts expressed in thousands of Brazilian reais

Note

Attributable to controlling shareholders

Attributable to non - controlling

interests

Equity Consolidated

Capital

Equity valuation adjustments

Profit reserves

Shareholders'

equity

Deemed

cost

Other comprehensive

income

Legal reserve

Profit retention reserve Additional proposed dividends

Accumulated

profit

Balance as of January 1, 2023 10,800,000 597,276 (3,894) 1,512,687 7,911,295 - - 20,817,364 313,861 21,131,225

Net income

Other comprehensive income

Adjustments related to financial assets

29.2

-

-

-

-

-

(130)

-

-

-

-

-

-

626,590

-

626,590

(130)

8,900

(56)

635,490

(186)

Total comprehensive income - - (130) - - - 626,590 626,460 8,844 635,304
Realization - deemed cost, net of taxes 29.2 - (8,199) - - - - 8,199 - - -
Balance as of March 31, 2023 10,800,000 589,077 (4,024) 1,512,687 7,911,295 - 634,789 21,443,824 322,705 21,766,529

Note

Attributable to controlling shareholders

Attributable to non - controlling interests

Equity Consolidated

Capital

Equity valuation adjustments

Profit reserves

Shareholders'

equity

Deemed

cost

Other comprehensive

income

Legal reserve

Profit retention reserve Additional proposed dividends

Accumulated

profit

Balance as of January 1, 2022 10,800,000 633,789 (207,619) 1,457,087 7,785,092 1,368,675 - 21,837,024 338,211 22,175,235
Net Income - - - - - - 664,341 664,341 5,450 669,791
Total comprehensive income - - - - - - 664,341 664,341 5,450 669,791

Realization - deemed cost, net of taxes

Interest on equity (JSCP)

-

-

(11,136)

-

-

-

-

-

-

-

-

-

11,136

-

-

-

-

(3,889)

-

(3,889)

Balance as of March 31, 2022 10,800,000 622,653 (207,619) 1,457,087 7,785,092 1,368,675 675,477 22,501,365 339,772 22,841,137

Notes are an integral part of this interim financial information

7

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Consolidated Statements of Cash Flows

Statements of Cash Flows

for the three-month periods ended March 31, 2023, and 2022

All amounts expressed in thousands of Brazilian reais

Note

03.31.2023

03.31.2022

CASH FLOWS FROM OPERATIONAL ACTIVITIES

Net income 635,490 669,791
Adjustments to reconcile net income for the period with cash generation from
operating activities:
Unrealized monetary and exchange variation and debt charges - net 426,041 305,700
Interest - bonus from the grant of concession agreements under the quota system 9.2 (36,944) (41,919)
Remuneration of transmission concession contracts 10.3 (238,365) (267,530)
Income tax and social contribution 12.3 161,823 273,849
Deferred income tax and social contribution 12.3 83,788 13,613
Equity in earnings of investees 15.1 (104,088) (112,781)
Appropriation of post-employment benefits obligations 22.4 68,482 66,524
Creation for research and development and energy efficiency programs 24.1 40,203 41,434
Recognition of fair value of assets from the indemnity for the concession 30 (25,734) (42,549)
Sectorial financial assets and liabilities result 30 (269,120) (357,229)
Depreciation and amortization 31 352,650 320,378
Net operating estimated losses, provisions and reversals 31.4 (10,723) 115,948
Realization of added value in business combinations 10.3 (181) (180)
Fair value in energy purchase and sale operations 30.1 and 31.1 (50,291) 21,834
Derivatives fair value - 2,907
Loss on disposal of accounts receivable related to concession 9.1 30 16
Loss on disposal of contract assets 10.1 2,834 3,636
Loss on disposal of property, plant and equipment 16.2 811 405
Loss on disposal of intangible assets 17 18,252 12,943
Result of write-offs of use rights of assets and liabilities of leases - net 26.1 and 26.2 (4) (23)
1,054,954 1,026,767
Decrease (increase) in assets
Trade accounts receivable 107,912 85,124
Dividends and interest on own capital received 5,860 4,127
Judicial deposits 11,565 9,931
Sectorial financial assets 8 13,796 224,089
Other receivables (44,699) 129,138
Inventories (24,064) (14,218)
Income tax and social contribution recoverable (8,596) (23,502)
Other taxes recoverable 91,942 49,080
Prepaid expenses (9,712) (9,324)
Related parties (295) -
143,709 454,445
Increase (decrease) in liabilities
Payroll, social charges and accruals 40,770 42,191
Suppliers (209,165) (478,058)
Other taxes 208,575 196,852
Post-employment benefits 22.4 (57,261) (50,141)
Sectorial chargesdue (4,150) 422,789
Research and development and energy efficiency 24.1 (29,894) (55,326)
Payable related to the concession 25.1 (29,049) (26,846)
Other accounts payable 20,647 40,232
Provisions for legal claims 28.1 (73,755) (65,962)
(133,282) 25,731
CASH GENERATED BY OPERATING ACTIVITIES 1,065,381 1,506,943
Income tax and social contribution paid (210,839) (125,556)
Loans and financing - interest due and paid 20.3 (166,072) (77,479)
Debentures - interest due and paid 21.2 (142,569) (115,772)
Charges for lease liabilities paid 26.2 (5,711) (4,653)
NET CASH GENERATED FROM OPERATING ACTIVITIES 540,190 1,183,483

(continued)

8

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Consolidated Statements of Cash Flows

Statements of Cash Flows

for the three-month periods ended March 31, 2023, and 2022 (continuation)

All amounts expressed in thousands of Brazilian reais

Note

03.31.2023

03.31.2022

CASH FLOWS FROM INVESTMENT ACTIVITIES

Financial investments (45,745) 116,514
Additions to contract assets (507,193) (534,968)
Acquisitions of subsidiaries - effect on cash 1.2 (912,139) -
Additions in investments 15.1 (10,780) (4,830)
Capital reduction of investees - 61,536
Additions to property, plant and equipment (35,814) (170,806)
Additions to intangible assets 17.4 (2,044) (1,567)
NET CASH USED FROM INVESTING ACTIVITIES (1,513,715) (534,121)

CASH FLOWS FROM FINANCING ACTIVITIES

Loans and financing obtained from third parties - 55,788
Issue of debentures 21.2 1,300,000 -
Transaction costs in the issuing of debentures 21.2 (11,325) -
Payments of principal - loans and financing 20.3 (59,216) (189,291)
Payments of principal - debentures 21.2 (5,688) (5,492)
Amortization of principal of lease liabilities 26.2 (17,384) (12,232)
Dividends and interest on own capital paid (45) (6)
NET CASH GENERATED (USED) FROM FINANCING ACTIVITIES 1,206,342 (151,233)
TOTAL EFFECTS ON CASH AND CASH EQUIVALENTS 232,817 498,129

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

5

5

2,678,457

2,911,274

3,472,845

3,970,974

CHANGE IN CASH AND CASH EQUIVALENTS 232,817 498,129

Notes are an integral part of this interim financial information

9

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

NOTES TO THE INTERIM FINANCIAL INFORMATION

As of March 31, 2023

All amounts expressed in thousands of Brazilian reais

1. Operations

Companhia Paranaense de Energia (Copel, Company), with its head office located at Rua José Izidoro Biazetto, 158, bloco A, Curitiba - State of Paraná, is a publicly-held mixed capital company controlled by the State of Paraná and its shares are traded at Corporate Governance Level 2 of the Special Listing Segments of B3 S.A. - Brasil, Bolsa Balcão Stock Exchange and on the New York Stock Exchange (NYSE) and on the Madrid Stock Exchange, in the Latin American segment (Latibex).

The core activities of Copel and its subsidiaries, which are regulated by the Brazilian Electricity Regulatory Agency (Aneel), linked to the Brazilian Ministry of Mines and Energy (MME), are to carry out research, study, plan, build and explore the production, transformation, transport, distribution and trading of energy, in any of its forms, mainly electricity. Furthermore, Copel participates in consortiums, in private sector and mixed- capital companies for the purpose of engaging in activities, mainly in areas of energy and natural gas.

On November 24, 2022, Law 21,272 of the State of Paraná authorized the transformation of Copel into a company with dispersed capital and no controlling shareholder ("Corporation") through a secondary public offering of shares and/or Units issued by the Company and owned by Controller. On December 21, 2022, with legal authorization, the Board of Directors of Copel approved studies to enable the full renewal of the Concessions of Hydroelectric Power Plants Governador Bento Munhoz da Rocha Netto, Governador Ney Braga and Governador José Richa and to analyze fundraising alternatives for the payment of the respective granting bonuses, estimated at R$3,719,428 as per Interministerial Ordinance of the Brazilian Ministry of Mines and Energy and Ministry of Finance - MME/MF No. 01, dated March 30, 2023. The transformation of Copel into a "Corporation" will allow, under the terms of Law 9074/95, to maintain 100% of the Company's interest in the plants. On January 31, 2023, the Board of Directors of Copel approved hiring specialized consultants and technical advisors to assist in the studies and structuring of an eventual offering. The implementation of this transaction is still subject to risks and uncertainties, which include the need for governmental approvals at the state and federal levels, lawsuits seeking to suspend, delay or impede the proposed transaction or its financial model, among others.

1.1 Copel's equity interests

Copel has direct and indirect interests in subsidiaries (1.1.1), joint ventures (1.1.2), associates (1.1.3) and joint operations (1.1.4). Until March 31, 2023, there were no changes, acquisitions and disposals in relation to the equity interests as of December 31, 2022, except for the business combination described in Note 1.2.

10

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

1.1.1 Subsidiaries

Subsidiaries

Headquarters Main activity Interest
% Investor
Copel Geração e Transmissão S.A. (CopelGeT) Curitiba/PR Production and transmission of electricity 100.0 Copel
Copel Distribuição S.A. (CopelDIS) Curitiba/PR Distribution of electricity 100.0 Copel
Copel Serviços S.A. (CopelSER) Curitiba/PR Production of electricity 100.0 Copel
Copel Comercialização S.A. (CopelCOM) Curitiba/PR Commercialization of electricity 100.0 Copel
Companhia Paranaense de Gás - Compagás Curitiba/PR Distribution of pipelinegas 51.0 Copel
Elejor - Centrais Elétricas do Rio JordãoS.A. Curitiba/PR Production of electricity 70.0 Copel
UEG Araucária S.A. (UEGA) Curitiba/PR Production of electricity from naturalgas 20.3 Copel
60.9 CopelGeT
São Bento Energia, Investimentose
Participações S.A. (São Bento) Curitiba/PR Control and management of interests 100.0 CopelGeT
Nova Asa Branca I Energias RenováveisS.A. S. Miguel do Gostoso/RN Production of electricity from wind sources 100.0 CopelGeT
Nova Asa Branca II Energias RenováveisS.A. Parazinho/RN Production of electricity from wind sources 100.0 CopelGeT
Nova Asa Branca III Energias RenováveisS.A. Parazinho/RN Production of electricity from wind sources 100.0 CopelGeT
Nova Eurus IV Energias RenováveisS.A. Touros/RN Production of electricity from wind sources 100.0 CopelGeT
Santa Maria Energias RenováveisS.A. Maracanaú/CE Production of electricity from wind sources 100.0 CopelGeT
Santa Helena Energias RenováveisS.A. Maracanaú/CE Production of electricity from wind sources 100.0 CopelGeT
Ventos de Santo UrielS.A. João Câmara/RN Production of electricity from wind sources 100.0 CopelGeT
Cutia Empreendimentos Eólicos S.A. (Cutia) Curitiba/PR Control and management of interests 100.0 CopelGeT
Brownfield Investment Holding Ltda. (Brownfield) Curitiba/PR Control and management of interests 100.0 CopelGeT
Ventos de Serra do Mel B S.A. (Serra do Mel) Serra do Mel/RN Control and management of interests 68.84 CopelGeT
31.16 Brownfield
Aventura Holding S.A. (Aventura) Curitiba/PR Control and management of interests 100.0 CopelGeT
SRMN Holding S.A. (SRMN) Curitiba/PR Control and management of interests 100.0 CopelGeT
Costa Oeste Transmissora de EnergiaS.A. Curitiba/PR Transmission of electricity 100.0 CopelGeT
Marumbi Transmissora de EnergiaS.A. Curitiba/PR Transmission of electricity 100.0 CopelGeT
Uirapuru Transmissora de EnergiaS.A Curitiba/PR Transmission of electricity 100.0 CopelGeT
Bela Vista Geração de EnergiaS.A. Curitiba/PR Production of electricity 100.0 CopelGeT
F.D.A. Geração de Energia Elétrica S.A. (FDA) Curitiba/PR Production of electricity 100.0 CopelGeT
Jandaíra I Energias RenováveisS.A. Curitiba/PR Production of electricity from wind sources 100.0 CopelGeT
Jandaíra II Energias RenováveisS.A. Curitiba/PR Production of electricity from wind sources 100.0 CopelGeT
Jandaíra III Energias RenováveisS.A. Curitiba/PR Production of electricity from wind sources 100.0 CopelGeT
Jandaíra IV Energias RenováveisS.A. Curitiba/PR Production of electricity from wind sources 100.0 CopelGeT
Eol Potiguar B61 SPE S.A. (a) Serra do Mel/RN Production of electricity from wind sources 100.0 CopelGeT
GE Olho D'Água S.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 São Bento
GE Boa Vista S.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 São Bento
GE Farol S.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 São Bento
GE São Bento do Norte S.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 São Bento
Central Geradora Eólica São Bento do Norte IS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Central Geradora Eólica São Bento do Norte IIS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Central Geradora Eólica São Bento do Norte IIIS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Central Geradora Eólica São Miguel IS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Central Geradora Eólica São Miguel IIS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Central Geradora Eólica São Miguel IIIS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Usina de Energia Eólica GuajiruS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Usina de Energia Eólica JangadaS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Usina de Energia Eólica PotiguarS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Usina de Energia Eólica CutiaS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Usina de Energia Eólica Maria HelenaS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Usina de Energia Eólica Esperança do NordesteS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Usina de Energia Eólica Paraíso dos Ventos do NordesteS.A. São Bento do Norte/RN Production of electricity from wind sources 100.0 Cutia
Eol Potiguar B141 SPE S.A. Serra do Mel/RN Production of electricity from wind sources 100.0 Serra do Mel
Eol Potiguar B142 SPE S.A. Serra do Mel/RN Production of electricity from wind sources 100.0 Serra do Mel
Eol Potiguar B143 SPE S.A. Serra do Mel/RN Production of electricity from wind sources 100.0 Serra do Mel
Eol Ventos de Vila Paraíba IV SPE S.A. Serra do Mel/RN Production of electricity from wind sources 100.0 Serra do Mel
Central Eólica Aventura IIS.A. Curitiba/PR Production of electricity from wind sources 100.0 Aventura
Central Eólica Aventura IIIS.A. Curitiba/PR Production of electricity from wind sources 100.0 Aventura
Central Eólica Aventura IVS.A. Curitiba/PR Production of electricity from wind sources 100.0 Aventura
Central Eólica Aventura VS.A. Curitiba/PR Production of electricity from wind sources 100.0 Aventura
Central Eólica SRMN IS.A. Curitiba/PR Production of electricity from wind sources 100.0 SRMN
Central Eólica SRMN IIS.A. Curitiba/PR Production of electricity from wind sources 100.0 SRMN
Central Eólica SRMN IIIS.A. Curitiba/PR Production of electricity from wind sources 100.0 SRMN
Central Eólica SRMN IVS.A. Curitiba/PR Production of electricity from wind sources 100.0 SRMN
Central Eólica SRMN VS.A. Curitiba/PR Production of electricity from wind sources 100.0 SRMN

(a) Wind farm with 99.99992% interest in Copel Get and 0.00008% in Brownfield.

11

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

1.1.2 Joint Ventures

Joint ventures

Headquarters Main activity Interest
% Investor
Voltalia São Miguel do Gostoso I ParticipaçõesS.A. São Paulo/SP Interests in companies 49.0 Copel
Solar Paraná GD Participações S.A.(a) Curitiba/PR Interests in companies 49.0 Copel
Caiuá Transmissora de EnergiaS.A. Rio de Janeiro/RJ Transmission of electricity 49.0 CopelGeT
Integração Maranhense Transmissora de EnergiaS.A. Rio de Janeiro/RJ Transmission of electricity 49.0 CopelGeT
Matrinchã Transmissora de Energia (TP NORTE)S.A. Rio de Janeiro/RJ Transmission of electricity 49.0 CopelGeT
Guaraciaba Transmissora de Energia (TP SUL)S.A. Rio de Janeiro/RJ Transmission of electricity 49.0 CopelGeT
Paranaíba Transmissora de EnergiaS.A. Rio de Janeiro/RJ Transmission of electricity 24.5 CopelGeT
Mata de Santa Genebra TransmissãoS.A. Jundiaí/SP Transmission of electricity 50.1 CopelGeT
Cantareira Transmissora de EnergiaS.A. Rio de Janeiro/RJ Transmission of electricity 49.0 CopelGeT

(a) Holding of 6 Special Purpose Entities (SPEs) operating in the distributed generation sector (photovoltaic plants): Pharma Solar II, Pharma Solar III, Pharma Solar IV, in commercial operation, and Bandeirantes Solar I, Bandeirantes Solar II and Bandeirantes Solar III, in pre-operating stage.

1.1.3 Associates

Associated companies

Headquarters Main activity Interest
% Investor
Dona Francisca EnergéticaS.A. Agudo/RS Production of electricity 23.03 Copel
Foz do Chopim Energética Ltda. Curitiba/PR Production of electricity 35.77 Copel GeT
CarbocampelS.A. Figueira/PR Coal exploration 49.0 Copel
1.1.4 Joint operations (consortiums)

The Company has interests in some joint operations. The two relevant consortiums, with amounts recorded in the Company's property, plant and equipment, are presented in Note 16.3.

1.2 Acquisition of Aventura and Santa Rosa & Mundo Novo wind complexes

On January 30, 2023, Copel GeT completed the acquisition of 100% of the shares of companies belonging to the Aventura and Santa Rosa & Mundo Novo Wind Complexes shown in the table below, with payment of R$1,005,173 to the seller, EDP Renováveis Brasil S.A. At the transaction closing date, the shares were transferred to Copel GeT, and the appointment and investiture of new managers of the Companies were approved.

Santa Rosa & Mundo Novo Wind Complex Aventura Wind Complex

SRMN Holding S.A.

Central Eólica SRMN I S.A.

Central Eólica SRMN II S.A.

Central Eólica SRMN III S.A.

Central Eólica SRMN IV S.A.

Central Eólica SRMN V S.A.

Aventura HoldingS.A.

Central Eólica Aventura II S.A.

Central Eólica Aventura III S.A.

Central Eólica Aventura IV S.A.

Central Eólica Aventura V S.A.

The acquisition is in line with the sustainable growth strategy in renewable energy, expanding the generation matrix diversification in line with the Company's Strategic Planning and Investment Policy. The transaction includes the Locked box mechanism, in which all cash generated from January 1, 2022 to the closing date will remain in the cash of the acquired Companies.

12

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Transaction closing was subject to the satisfaction of certain conditions precedent, which were fully complied with by January 30, 2023, including: obtaining approval from the Brazilian Antitrust Enforcement Agency (CADE), declarations and guarantees, compliance with covenants and obligations, third-party consent, absence of material adverse effect.

It is also important to highlight the need for unconditional and unrestricted consent from counterparties to change the control of the acquired Companies, including regarding credit limits for maintenance of financing agreements by the Companies, in accordance with National Monetary Council (CMN) Resolution No. 4995, of March 24, 2022, a condition that was only fulfilled in January 2023.

The complexes are located in the state of Rio Grande do Norte, the largest wind energy hub in the country, and have a 260.4 MW installed capacity, with 157.8 MWm of assured energy. The companies have long- term financing (maturities up to 2043) taken out from Banco do Nordeste - BNB, at IPCA rates + 2.19% p.a. (Aventura Complex) and IPCA + 1.98% p.a. (Santa Rosa & Mundo Novo Complex).

The seller is developing projects in the vicinity of the Aventura Complex wind farms which, during construction and/or operation, may potentially affect the volume of electricity generated by the wind farms (wake effect) in the future. The seller estimates that these undertakings may start up operations as of January 2027. If the wake effect materializes so that the acquired wind farms generate energy below what was agreed between the parties, the seller will have the obligation to indemnify Copel. Otherwise, if the energy generation is greater, Copel must indemnify the seller. The amount of this indemnification is limited to R$4,167 for both situations, monetarily restated.

The tables below show the book value and fair value of the net assets acquired measured on a preliminary basis:

Aventura Wind Complex

Book value

Fair value

adjustment

Fair value at the

acquisition date

Assets identified 518,158 254,788 772,946
Cash and cash equivalents 42,671 - 42,671
Trade accounts receivable 7,150 - 7,150
Recoverable taxes 3,823 - 3,823
Collaterals and escrow accounts 9,118 - 9,118
Other receivables 2,917 - 2,917
Property, plant and equipment 452,475 - 452,475
Intangible assets 4 254,788 254,792
Liabilities assumed 330,102 92,570 422,672
Suppliers 6,950 - 6,950
Loans and financing 317,928 - 317,928
Tax obligations 2,879 - 2,879
Other accounts payable 2,345 - 2,345
Contingent liabilities - 9,003 9,003
Deferred income tax and social contribution - 83,567 83,567
Net assets acquired 188,056 162,218 350,274
13

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Santa Rosa & Mundo Novo Wind Complex

Book value

Fair value

adjustment

Fair value at the

acquisition date

Assets identified 840,938 360,860 1,201,798
Cash and cash equivalents 50,363 - 50,363
Trade accounts receivable 23,961 - 23,961
Recoverable taxes 5,747 - 5,747
Collaterals and escrow accounts 17,077 - 17,077
Other receivables 9,157 - 9,157
Property, plant and equipment 734,633 - 734,633
Intangible assets - 360,860 360,860
Liabilities assumed 625,811 125,764 751,575
Suppliers 56,611 - 56,611
Loans and financing 557,810 - 557,810
Tax obligations 7,579 7,579
Other accounts payable 3,811 - 3,811
Contingent liabilities - 4,654 4,654
Deferred income tax and social contribution - 121,110 121,110
Net assets acquired 215,127 235,096 450,223

Contingent liabilities mainly refer to tax risks for which management believes that providing information regarding the timing of any cash outflows is impracticable, in view of the unpredictability and dynamics of the Brazilian legal, tax and regulatory systems. A final outcome depends on the conclusions of legal proceedings.

The authorization right and the deferred tax liability generated in the business combination were recorded in Copel GeT's investment. In the consolidated balance sheet these amounts will compose the balances of intangible assets and deferred income and social contribution taxes.

The table below shows the consideration transferred for assets acquired and technical goodwill calculated as a result of the recognized deferred tax liability in the business combination:

Total of net assets acquired 403,183 397,314 800,497
Technical goodwill 204,676
Consideration amount 1,005,173

The amount paid is supported by the discounted cash flow projections of the operations of the acquired wind complexes. Considering the cash acquired in the amount of R$93,034, the net effect on the Company's cash was R$912,139 as presented in the Statements of Cash Flows.

If this business combination had been effective on January 1, 2023, the consolidated net operating revenue would increase by R$13,143, totaling R$5,543,809, and the consolidated net income would decrease by R$1,824, totaling R$633,666.

14

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

2. Concessions and Authorizations
2.1 Concession contracts or authorizations obtained by Copel
Concession agreement / authorization of the equity

Interest %

Maturity

Copel DIS Contract 046/1999, extended by 5th addendum to the contract 100 07.07.2045
Elejor Contract 125/2001 - HPP Fundão 70 06.11.2040
Contract 125/2001 - HPP Santa Clara 05.10.2040
Authorization - SHP Fundão I and SHP Santa Clara I - 753/2002 and 757/2002 12.19.2032
Dona Francisca Energética Contract 188/1998 - HPP Dona Francisca 23 09.21.2037
UEG Araucária Authorization 351/1999 - TPP Araucária (60.9% Copel GET) 20.3 12.23.2029
Compagás (2.1.1) Concession gas distribution contract 51 07.06.2054
Usina de Energia Eólica São João S.A. (a) MME Ordinance 173 /2012 - WPP São João 49 03.26.2047
Usina de Energia Eólica Carnaúba S.A. (a) MME Ordinance 204 /2012 - WPP Carnaúbas 49 04.09.2047
Usina de Energia Eólica Reduto S.A. (a) MME Ordinance 230 /2012 - WPP Reduto 49 04.16.2047
Usina de Energia Eólica Santo Cristo S.A. (a) MME Ordinance 233/2012 - WPP Santo Cristo 49 04.18.2047

(a) Subsidiaries of Voltalia São Miguel do Gostoso I Participações S.A. Hydroelectric Power Plant - HPP

Small Hydroelectric Plant - SHP Thermal Power Plant - TPP Wind Power Plant - WPP

2.1.1 Compagas

Compagas has a service concession arrangement signed with the Granting Authority, the State of Paraná, effective for 30 years as of July 6, 1994, extended for the same period as of the ending date of the original term, based on article 16 of the State Supplementary Law No. 205/2017. Therefore, the final term of the arrangement was extended to July 6, 2054.

The main requirements for concession renewal, among others, are: adoption of the price-cap regulation model; remuneration based on the weighted average cost of capital (WACC), initially at 9.125% p.a.; definition of the initial Net Regulatory Remuneration Base (BRRL) contemplating the assets not amortized in the current concession, the granting bonus, offset against regulatory liabilities; total estimated Capex of R$2.5 billion to be realized over 30 years; tariff adjustment based on Brazil's Extended Consumer Price Index (IPCA) variations. The new arrangement was signed on December 26, 2022 and the service concession was extended upon payment of a R$508,000 grant bonus through offsetting of concessionaire credits referring to the previous service concession arrangement in the amount of R$98,000 and financial disbursement of R$410,000 in December 2022.

As a result of this process, the accounts receivable related to concessions were transferred to intangible assets, where the consideration for the granting bonus was also recorded.

15

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

2.2 Concession contracts or authorizations obtained by Copel Get and its investees
Generation concessions Interest % Maturity
ONEROUS CONCESSION BY THE USE OF PUBLIC PROPERTY - UBP
Concession Contract 001/2007 - HPP Gov. Jayme Canet Júnior (Mauá) 51 05.27.2047
Concession Contract 001/2011 - HPP Colíder 100 01.30.2046
Authorization - Ordinance 133/2011 - SHP Cavernoso II 100 12.06.2050
Concession Contract 002/2012 - HPP Baixo Iguaçu 30 12.03.2049
Concession Contract 007/2013
HPP Apucaraninha 100 01.27.2027
HPP Chaminé 100 08.02.2028
HPP Derivação do Rio Jordão 100 06.21.2032
HPP Cavernoso 100 06.23.2033
PUBLIC SERVICE CONCESSIONS
Concession Contract 045/1999
TPP Figueira (Note 34.2.6) 100 03.27.2019
HPP São Jorge (Note 34.2.6) 100 07.24.2026
HPP Gov. Ney Aminthas de Barros Braga (Segredo) 100 09.25.2032
HPP Gov. José Richa (Salto Caxias) 100 03.20.2033
Concession Contract 001/2020
UHE Guaricana 100 07.21.2028
Authorization - Resolution 278/1999 - WPP Palmas 100 09.29.2029
Dispatch 182/2002 - Hydroeletric Generating Plant - HGP Melissa, HGP Pitangui and
HGP Salto do Vau (only register with ANEEL) 100 -
Concession Contract 003/2016 - HPP Gov. Pedro Viriato Parigot de Souza (GPS) 100 01.03.2053
HPP Marumbi - Power generating plant registration: CGH. PH. PR. 001501-6.02 100 -
Authorization Aneel 5,373/2015 - HGP Chopim I (only register with ANEEL) 100 -
Concession agreement / authorization of the equity
UEG Araucária Authorization 351/1999 - TPP Araucária (20,3% - Copel) 60.9 12.23.2029
Nova Asa Branca I MME Ordinance 267/2011 - WPP Asa Branca I 100 04.25.2046
Nova Asa Branca II MME Ordinance 333/2011 - WPP Asa Branca II 100 05.31.2046
Nova Asa Branca III MME Ordinance 334/2011 - WPP Asa Branca III 100 05.31.2046
Nova Eurus IV MME Ordinance 273/2011 -WPP Eurus IV 100 04.27.2046
Santa Maria MME Ordinance 274/2012 - WPP SM 100 05.08.2047
Santa Helena MME Ordinance 207/2012 - WPP Santa Helena 100 04.09.2047
Ventos de Santo Uriel MME Ordinance 201/2012 - WPP Santo Uriel 100 04.09.2047
GE Boa Vista MME Ordinance 276 /2011 - WPP Dreen Boa Vista 100 04.28.2046
GE Farol MME Ordinance 263 /2011 - WPP Farol 100 04.20.2046
GE Olho D'Água MME Ordinance 343 /2011 - WPP Dreen Olho D'Água 100 06.01.2046
GE São Bento do Norte MME Ordinance 310 /2011 - WPP Dreen São Bento do Norte 100 05.19.2046
Esperança do Nordeste MME Ordinance 183/2015 - WPP Esperança do Nordeste 100 05.11.2050
Paraíso dos Ventos do Nordeste MME Ordinance 182/2015 - WPP Paraíso dos Ventos do Nordeste 100 05.11.2050
Usina de Energia Eólica Jangada Resolution 3,257/2011 - WPP GE Jangada 100 01.05.2042
Maria Helena Resolution 3,259/2011 - WPP GE Maria Helena 100 01.05.2042
Usina de Energia Eólica Potiguar MME Ordinance 179/2015 - WPP Potiguar 100 05.11.2050
Usina de Energia Eólica Guajiru Resolution 3,256/2011 - WPP Dreen Guajiru 100 01.05.2042
Usina de Energia Eólica Cutia Resolution 3,258/2011 - WPP Dreen Cutia 100 01.05.2042
São Bento do Norte I Ordinance 349/2015 - WPP São Bento do Norte I 100 08.04.2050
São Bento do Norte II Ordinance 348/2015 - WPP São Bento do Norte II 100 08.04.2050
São Bento do Norte III Ordinance 347/2015 - WPP São Bento do Norte III 100 08.04.2050
São Miguel I Ordinance 352/2015 - WPP São Miguel I 100 08.04.2050
São MigueI lI Ordinance 351/2015 - WPP São Miguel II 100 08.04.2050
São Miguel III Ordinance 350/2015 - WPP São Miguel III 100 08.04.2050
Foz do Chopim Authorization 114/2000 - SHP Arturo Andreoli 35.77 08.15.2032
SHP Bela Vista (Note 16.5.1) Resolution 913/2017 - transfer of title under
Resolution 7,802/2019 100 01.02.2041
F.D.A. Electricity Generation (Note 34.2.6) Generation Concession Contract 002/2020 100 12.21.2024
Jandaíra I Energias Renováveis Ordinance 140/2020 - WPP Jandaíra I 100 04.02.2055
Jandaíra II Energias Renováveis Ordinance 141/2020 - WPP Jandaíra II 100 04.02.2055
Jandaíra III Energias Renováveis Ordinance 142/2020 - WPP Jandaíra III 100 04.02.2055
Jandaíra IV Energias Renováveis Ordinance 139/2020 - WPP Jandaíra IV 100 04.02.2055
EOL Potiguar B 141 SPE S.A. Ordinance 02/2019 - WPP Vila Maranhão I 100 01.11.2054
EOL Potiguar B 142 SPE S.A. Ordinance 12/2019 - WPP Vila Maranhão II 100 01.14.2054
EOL Potiguar B 143 SPE S.A. Ordinance 13/2019 - WPP Vila Maranhão III 100 01.14.2054
EOL Potiguar B 61 SPE S.A. Ordinance 453/2019 - WPP Ventos de Vila Mato Grosso I 100 12.06.2054
Ventos de Vila Paraíba IV SPE S.A Ordinance 10/2019 - WPP Vila Ceará I 100 01.14.2054
EOL Aventura II Ordinance 209/2018 - Aventura II 100 06.05.2053
EOL Aventura III Ordinance 220/2018 - Aventura III - REA n° 7.820/2019 100 06.11.2053
EOL Aventura IV Ordinance 215/2018 - Aventura IV 100 06.05.2053
EOL Aventura V Ordinance 213/2018 - Aventura V 100 06.05.2053
EOL SRMN I S.A. Ordinance 196/2018 - Santa Rosa e Novo Mundo I 100 06.04.2053
EOL SRMN II S.A. Ordinance 194/2018 - Santa Rosa e Novo Mundo II 100 06.04.2053
EOL SRMN III S.A. Ordinance 197/2018 - Santa Rosa e Novo Mundo III 100 06.04.2053
EOL SRMN IV S.A. Ordinance 188/2018 - Santa Rosa e Novo Mundo IV 100 06.01.2053
EOL SRMN V S.A. Ordinance 189/2018 - Santa Rosa e Novo Mundo V - Resolution 7.783/2019 100 06.01.2053

(a) On May 2, 2023 it was granted, through Resolution 14,435, the request to recompose the term of the concession for exploration of the plant in 469 days (process of exclusion of responsibility). The Company awaits the recalculation of the concession term by the CCEE.

16

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Next tariff
Transmission concessions Interest % Maturity review
Transmission lines and substations concession agreements
Contract 060/2001 - Transmission facilities (sundry Transmission lines and Substations) - extended by the 3rd additive term 100 01.01.2043 2023
Contract 075/2001 - Transmission line 230 kV Bateias - Jaguariaíva 100 08.17.2031 (a)
Contract 006/2008 - Transmission line 230 kV Bateias - Pilarzinho 100 03.17.2038 2023
Contract 027/2009 - Transmission line 525 kV Foz do Iguaçu - Cascavel Oeste 100 11.19.2039 2025
Contract 010/2010 - Transmission line 500 kV Araraquara II - Taubaté 100 10.06.2040 2026
Contract 015/2010 - Substation Cerquilho III 230/138 kV 100 10.06.2040 2026
Contract 022/2012 - Transmission line 230 kV Londrina - Figueira and Transmission line 230 kV Foz do Chopim - Salto Osório 100 08.27.2042 2023
Contract 002/2013 - Transmission line 230 kV Assis - Paraguaçu Paulista II e Substation Paraguaçu Paulista II 230 kV 100 02.25.2043 2023
Contract 005/2014 - Transmission line 230 kV Bateias - Curitiba Norte e Substation Curitiba Norte 230/138 kV 100 01.29.2044 2024
Contract 021/2014 - Transmission line 230 kV Foz do Chopim - Realeza e Substation Realeza 230/138 kV 100 09.05.2044 2025
Contract 022/2014 - Transmission line 500 kV Assis - Londrina 100 09.05.2044 2025
Contract 006/2016 - Transmission line 525 kV Curitiba Leste - Blumenau 100 04.07.2046 2026
Transmission line 230 kV Baixo Iguaçu - Realeza
Transmission line 230 kV Curitiba Centro - Uberaba
Substation Medianeira 230/138 kV
Substation Curitiba Centro 230/138 kV
Substation Andirá Leste 230/138 kV
Concession agreement / authorization of the equity
Costa Oeste Transmissora Contract 001/2012: 100 01.12.2042 2027
Transmission line 230 kV Cascavel Oeste - Umuarama
Substation Umuarama 230/138 kV
Caiuá Transmissora Contract 007/2012: 49 05.10.2042 2027
Transmission line 230 kV Umuarama - Guaíra
Transmission line 230 kV Cascavel Oeste - Cascavel Norte
Substation Santa Quitéria 230/138/13,8 kV
Substation Cascavel Norte 230/138/13,8 kV
Marumbi Transmissora Contract 008/2012: 100 05.10.2042 2027
Transmission line 525 kV Curitiba - Curitiba Leste
Substation Curitiba Leste 525/230 kV
Integração Maranhense Contract 011/2012: Transmission line 500 Kv Açailândia - Miranda II 49 05.10.2042 2027
Matrinchã Transmissora Contract 012/2012: 49 05.10.2042 2027
Transmission line 500 kV Paranaíta - Cláudia
Transmission line 500 kV Cláudia - Paranatinga
Transmission line 500 kV Paranatinga - Ribeirãozinho
Substation Paranaíta 500 kV
Substation Cláudia 500 kV
Substation Paranatinga 500 kV
Guaraciaba Transmissora Contract 013/2012: 49 05.10.2042 2027
Transmission line 500 kV Ribeirãozinho - Rio Verde Norte
Transmission line 500 kV Rio Verde Norte - Marimbondo II
Substation Marimbondo II 500 kV
Paranaíba Transmissora Contract 007/2013: 24.5 05.02.2043 2023
Transmission line 500 kV Barreiras II - Rio das Éguas
Transmission line 500 kV Rio das Éguas - Luziânia
Transmission line 500 kV Luziânia - Pirapora 2
Mata de Santa Genebra Contract 001/2014: 50.1 05.14.2044 2024
Transmission line 500 kV Itatiba - Bateias
Transmission line 500 kV Araraquara 2 - Itatiba
Transmission line 500 kV Araraquara 2 - Fernão Dias
Substation Santa Bárbara D ́Oeste 440 kV
Substation Itatiba 500 kV
Substation Fernão Dias 500/440 kV
Cantareira Transmissora Contract 019/2014: Transmission line Estreito - Fernão Dias 49 09.05.2044 2025
Uirapuru Transmissora Contract 002/2005: Transmission line 525 kV Ivaiporã - Londrina 100 03.04.2035 (a)
(a) Do not undergo tariff review and RAP reduces to 50% in the 16thyear.
3. Basis of Preparation

The consolidated interim financial information has been prepared in accordance with IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB.

Management declares that all relevant information from the consolidated interim financial information, and only them, is being evidenced and corresponds to that used in management.

The issuance of this consolidated interim financial statements was authorized by the Board of Directors on June 7, 2023.

17

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

3.1 Functional and presentation currency

The consolidated interim financial information is presented in Brazilian Reais, which is the functional and presentation currency of the Company. Balances herein have been rounded to the nearest thousand, unless otherwise indicated.

3.2 Basis of measurement

The consolidated interim financial information was prepared based on the historical cost, except for certain financial instruments and investments measured at fair value, as described in the respective accounting policies and notes.

3.3 Use of estimates and judgments

In the preparation of this consolidated interim financial information, Management used judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses of the Company. Actual results may differ from those estimates, which are revised on an ongoing basis. Revisions to estimates are recognized prospectively.

The information about the use of estimates and judgments regarding the application of accounting policies adopted that have effect on the amounts recognized in these interim financial statements is the same as that disclosed in Note 3.3 to the financial statements as of December 31, 2022.

3.4 Management's judgment ongoing concern

Management has concluded that there are no material uncertainties that cast doubt on the Company's ability to continue as a going concern. No events or conditions were identified that, individually or collectively, may raise significant doubts on its ability to continue as a going concern.

The main bases of judgment used for such conclusion are: (i) main activities resulting from long-term concessions; (ii) robust equity; (iii) strong operating cash generation, including financial capacity to settle commitments entered into with financial institutions; (iv) historical profitability; and (v) fulfillment of the objectives and targets outlined in the Company's Strategic Planning, which is approved by Management, monitored and reviewed periodically, seeking the continuity of its activities.

4. Significant Accounting Policies

The Company's accounting policies are consistent with those presented in the financial statements as of December 31, 2022.

4.1 Standards applicable to the Company effective January 1, 2023

The following changes, with no significant impact on the Company's financial statements, are effective as of January 1, 2023:

18

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

(i) IAS 1 and IFRS practical expedient 2: classification of liabilities as current or non-current and change in accounting policy disclosures;
(ii) IFRS 17: new standards for insurance contracts, replacing IFRS 4;
(iii) IAS 8: updating of accounting estimates definitions;
(iv) IAS 12: amendment to the treatment of deferred tax related to assets and liabilities arising from a single transaction.
5. Cash and Cash Equivalents

03.31.2023

12.31.2022

Cash and bank accounts 284,594 222,641
Financial investments with immediate liquidity 2,626,680 2,455,816
2,911,274 2,678,457

These comprise cash on hand, deposits with banks and short-term highly liquid investments, which can be redeemed in cash within 90 days from the investment date. These short-term investments are recorded at cost, plus earnings net of income tax accrued until the closing date of the period and with insignificant risk of change in value.

Financial investments of the Company refer to Bank Deposit Certificates - CDBs and Repurchase Agreements, which are the sale of a security with the commitment of the seller (Bank) to repurchase it, and of the purchaser to resell it in the future. Investments, depending on the incidence of IOF and the liquidity period negotiated at the time of contracting, have post-fixed interest rates between 92.0% and 101% of Interbank Deposit Certificate ("CDI").

6. Bonds and Securities

The Company holds securities that yield variable interest rates. The term of these securities ranges from 2 to 54 months from the end of the period, however, most of the balance is recorded in noncurrent assets as they refer to funds tied to the financial guarantee of long-term contracts.

Category Index 03.31.2023 12.31.2022
Units in Funds (a) CDI 436,158 353,454
Bank Deposit Certificates - CDB 96% to 101% of CDI 65,634 77,602
501,792 431,056
Current 92 93
Noncurrent 501,700 430,963
Interbank Deposit Certificate - CDI
(a) These are mostly reserve accounts intended for the fulfillment of contracts with the BNDES.
19

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

7. Trade Accounts Receivable

Balances

falling due

Overdue

up to 90 days

Overdue for more

than 90 days

Total

03.31.2023

Total

12.31.2022

Customers
Residential 365,417 199,157 20,753 585,327 513,096
Industrial 147,342 15,538 43,644 206,524 178,856
Commercial 235,838 47,286 23,506 306,630 260,260
Rural 93,743 23,091 2,703 119,537 101,645
Public Entities 41,307 1,783 243 43,333 39,107
Public lighting 31,212 - - 31,212 28,328
Public service 41,317 305 702 42,324 39,293
Unbilled - captive costumers 434,490 - - 434,490 462,426
Energy installments plan - captive customers (7.1) 287,141 40,755 69,697 397,593 403,518
Low income subsidy 31,077 - - 31,077 28,342
Free consumers 237,116 2,406 3,783 243,305 208,631
Other receivables 67,097 24,815 24,489 116,401 111,436
2,013,097 355,136 189,520 2,557,753 2,374,938
Concessionaires, permission holder and trading companies
Bilateral contracts 218,688 1,670 724 221,082 278,148
Regulated contracts 195,107 1,484 7,482 204,073 205,070
CCEE (7.2) 71,308 - 119,665 190,973 196,627
Energy supply 485,103 3,154 127,871 616,128 679,845
Charges from using transmission grid 510,796 3,400 14,878 529,074 530,259
Gas distribution 113,668 2,091 12,252 128,011 138,770
(-) Expected credit losses (7.3) (15,831) (17,041) (220,100) (252,972) (271,943)
3,106,833 346,740 124,421 3,577,994 3,451,869
Current 3,460,364 3,342,050
Noncurrent 117,630 109,819
7.1 Energy installments plan - captive customers

The trade accounts receivable renegotiated are discounted to present value as of March 31, 2023, taking into consideration the future value, the maturity dates, the dates of settlement and the discount rate of 1.09%

p.m. (1,10% p.m. as of December 31, 2022).

7.2 Electricity Trading Chamber - CCEE

Balance receivable deriving from the positive position in the monthly settlement of the spot market centralized by CCEE. Amounts are received in the second month following the recognition of revenue or offset against future settlements when the result is negative for the subsidiary.

Of the total presented, R$119,665 refer to the controversial portion resulting from the effects of the injunction for exclusion of responsibility of HPP Colíder. As a result of unforeseeable circumstances and force majeure, the power plant had its commercial start-up delayed, which was initially scheduled for January 2015. The Company is contesting in court, filing a request for exclusion of liability so that the mandatory supply of energy contracted by the plant, in the period in delay, could be postponed. Expected credit losses were recorded in the same amount as the receivable balance, as presented in Note 7.3.

20

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Copel GeT filed an administrative request for the exclusion of liability at Aneel, which was denied, and subsequently, on December 18, 2017, it filed an ordinary lawsuit with a request for advance protection with the Court, requesting the reversal of the agency's decision. On April 6, 2018, the Federal Court of the 1st Region fully granted the preliminary injunction applied for in the interlocutory appeal to suspend the enforcement of any burden or penalty to Copel as a result of noncompliance with the deadlines originally provided for in the Concession Agreement until a final unappealable ruling is rendered. Aneel filed an internal appeal against this decision and is awaiting judgment by the Federal Regional Court. The main action awaits its judgment on the merits since February 25, 2019.

The contracted energy of the plant is 125 MW average. For overdue periods the contract was fulfilled and, due to the fact it is awaiting a decision on the merits of the lawsuit, the Company recognized the revenue limited to the financial covenants of the agreement and the regulatory rules, as well as the cost of energy to cover the contractual guarantee.

7.3 Expected credit losses

Balance asof

January 1, 2023

Additions/

(Reversals)

Write

offs(a)

Balance asof

March 31, 2023

Customers
Residential 62,526 (16,382) 4,016 50,160
Industrial 32,836 (450) (3,519) 28,867
Commercial 32,040 4,887 (5,849) 31,078
Rural 3,827 (1,773) 898 2,952
PublicEntities 536 (556) 308 288
Publiclighting 18 1 - 19
Publicservice 1,950 (142) (183) 1,625
Unbilled - captives customers 987 (716) - 271
Adjustment to present value (2,650) 365 - (2,285)
132,070 (14,766) (4,329) 112,975
Concessionaires, permission holder and trading companies
CCEE(7.2) 119,665 - - 119,665
Concessionaries and permission holder 9,827 (167) (19) 9,641
129,492 (167) (19) 129,306
Gasdistribution 10,381 350 (40) 10,691
271,943 (14,583) (4,388) 252,972

(a) Net losses from recovered invoice balances.

8. Net Sectorial Financial Assets and Liabilities

The Sectorial Financial Assets and Liabilities comprise the differences calculated between the balances considered in the tariff coverage to cover energy costs, charges and other financial components, and the actual costs incurred, resulting in a balance to be received by the distributor or to be refunded to consumers. The current balance consists of amounts approved by Aneel in the 2022 tariff adjustment and amounts that will be ratified in the next tariff events.

21

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Balance as of January 1, 2023

Operating revenues

Financial

results

Tariff flags

Balance as of March 31, 2023

Constitution Amortization Updating
Portion A
Electricity purchased for resale - Itaipu 819,649 (41,652) (284,861) 26,882 - 520,018
Electricity purchased for resale - CVA Energ (582,059) (106,508) 145,005 (23,140) - (566,702)
Transport of energy using the transmission system - basic grid 253,766 132,318 2,350 8,596 - 397,030
Transport of energy purchased from Itaipu 10,706 8,071 2,116 390 - 21,283
ESS 227,329 84,937 (144,083) 5,567 (13,499) 160,251
CDE 200,493 (23,299) (78,713) 4,530 - 103,011
Proinfa 42,078 (14,329) (20,376) 543 - 7,916
Other financial components
Refunds of Pis and Cofins (765,573) - 398,275 - - (367,298)
Neutrality 98,598 16,434 (22,951) 2,154 - 94,235
Offset of bilateral contracts under CCEAR (186) - 97 - - (89)
Hydrological risk (524,806) (88,649) 160,705 (8,947) - (461,697)
Tariff refunds (175,460) (28,973) 22,412 (4,302) - (186,323)
Overcontracting 436,324 52,233 48,025 16,757 (297) 553,042
Itaipu Bonus 4,943 - (3,003) (27) - 1,913
Water shortage account (71,188) - 37,034 - - (34,154)
CDE Eletrobras (184,100) 79,515 - (5,115) - (109,700)
Other 107,629 (3,359) (59,651) (298) - 44,321
(101,857) 66,739 202,381 23,590 (13,796) 177,057
Current assets 190,699 327,135
Noncurrent assets 190,699 109,045
Current liabilities (433,914) (208,178)
Noncurrent liabilities (49,341) (50,945)
9. Accounts Receivables - Concessions

03.31.2023

12.31.2022

Power distribution service concession (9.1)

Bonus from the grant of concession agreements under the quota system (9.2)

Generation concession agreements (9.3)

1,560,022

782,005

70,001

1,442,819

766,832

68,642

2,412,028 2,278,293
Current 8,563 8,603
Noncurrent 2,403,465 2,269,690
9.1 Power distribution service concession
Balance as of January 1, 2023 1,442,819
Transfers from contract assets (Note 10.1) 91,503
Transfers to other receivables (assets held for disposal) (4)
Fair value recognition 25,734
Loss on disposal (30)
Balance as of March 31, 2023 1,560,022

Balance corresponding to the estimated portion of investments made in the public service infrastructure whose useful life exceeds the concession period and which, according to the contractual provision, will be indemnified by the Granting Authority at the end of the concession.

22

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

9.2 Bonus from the grant of concession contracts under the quota system
Balance as of January 1,2023 766,832
Transfers to electricity grid use charges - customers (21,771)
Interest (Note 30.1) 36,944
Balance as of March 31, 2023 782,005

On January 5, 2016, Copel GeT entered into a 30-year concession agreement of HPP GPS, in accordance with Law No. 12,783/2013, with payment of the Bonus from the Grant - BO to the Granting Authority, amounting to R$574,827, as per Aneel Invitation to Bid 12/2015.

The amount of the bonus for the grant was recognized as a financial asset due to the unconditional right of Copel GeT to receive the amount paid with inflation adjustment based on IPCA and interest during the concession period.

9.3 Power generation concession contracts

Balance as of January 1, 2023 68,642
Fair value adjustment 1,359
Balance as of March 31, 2023 70,001

Residual balance of the electricity generation assets of HPP GPS and HPP Mourão I. Copel GeT depreciated the plants until 2015, the expiration date of the concessions, and the remaining balance was reclassified to accounts receivable related to the concession and subsequently measured at the best estimate of fair value.

In 2015, Copel GeT expressed to Aneel its interest in receiving the indemnifiable amount, with proof of the realization of the respective investments, and in 2022, it filed the updated indemnifiable amount evaluation report (Note nº 34.2.1 - e).

10. Contract assets

03.31.2023

12.31.2022

Power distribution service concession (10.1) 2,330,452 2,332,171
Piped gas distribution service concession (10.2) 30,750 30,032
Power transmission concession (10.3) 5,417,369 5,310,476
7,778,571 7,672,679
Current 242,259 220,660
Noncurrent 7,536,312 7,452,019
23

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

10.1 Power distribution service concession contract

Assets

Special

liabilities

Total

Balance as of January 1, 2023 2,405,124 (72,953) 2,332,171
Acquisitions 534,600 - 534,600
Customers contributions - (57,503) (57,503)
Transfers to intangible assets (Note17.1) (426,493) 42,014 (384,479)
Transfers to accounts receivable - concessions (Note 9.1) (99,150) 7,647 (91,503)
Loss on disposal (2,834) - (2,834)
Balance as of March 31, 2023 2,411,247 (80,795) 2,330,452

Balance composed of works in progress mainly related to the construction and expansion of substations, distribution lines and networks and measuring equipment, measured at historical cost, net of special liabilities. As these works are concluded, the amounts are transferred to Accounts receivable related to the concessions and Intangible assets, according to the form of remuneration. During the construction phase, loans, financing and debentures costs are capitalized. In the first 3 months of 2023 these costs totaled R$4,169, at an average rate of 0.09% p.a. (R$3,788, at an average rate of 0.12% p.a., in the same period of 2022).

10.2 Piped gas distribution service concession contract
Balance as of January 1,2023 30,032
Acquisitions 2,810
Transfers to intangible assets (Note17.3) (2,092)
Balance as of March 31, 2023 30,750
10.3 Transmission service concession contract

Concession

assets

RBSE assets

Total

Balance as of January 1, 2023 3,894,276 1,416,200 5,310,476
Realization of gains/losses in business combinations 181 - 181
Transfers to electricity grid use charges - customers (107,031) (59,541) (166,572)
Transfers to property, plant and equipment (1,339) - (1,339)
Transfers from litigations 245 - 245
Remuneration 173,462 62,524 235,986
Construction revenue 36,013 - 36,013
Construction income 589 - 589
Gain from efficiency (10.3.1) 1,790 - 1,790
Balance as of March 31, 2023 3,998,186 1,419,183 5,417,369
24

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

In June 2022, Technical Note No. 85/2022-SGT/Aneel was issued, which dealt with the analysis of the requests for reconsideration on the payment of the financial component and reprofiling of the RBSE Assets, with a monocratic decision (Order No. 1,762/2022) deliberated by a director of Aneel on the subject. This decision was suspended by the collegiate, according to Order No. 1,844/2022, and the terms of that Technical Note are under discussion by the advisors of the Aneel Board of Directors, together with the Superintendence of Tariff Management and Economic Regulation, about the assumptions, methodologies and calculations considered for the formation of this tariff component. More recently, on April 27, 2023, Technical Note No. 85/2023-SGT/Aneel was issued, which presented a technical analysis of the statements about the calculations presented in Technical Note No. 085/2022-SGT/Aneel. Considering that this matter has not yet been deliberated by Aneel Board of Directors, the values approved by Aneel Resolution No. 2,847 of April 22, 2021 are still in effect and appropriate.

10.3.1 Gain (loss) due to efficiency or inefficiency in the implementation and operation of transmission infrastructure

In the construction and operation of the transmission infrastructure, possible positive or negative impacts are expected due to delays and additional costs due to environmental issues, variation in costs, mainly with cables and structures when indexed to foreign currency, additional easement costs and land negotiations, potential earthworks for unforeseen events, early maturity of commercial transactions and RAP revision/readjustment according to the regulatory standards and contractual provisions. Changes in the original project that affect its profitability are recognized directly in the statement of income when incurred, except for the part of RAP related to the operation and maintenance performance of the assets that is recognized as the services are performed.

10.3.2 Assumptions adopted for the calculation of contract assets
03.31.2023 12.31.2022

Concession

assets

RBSE assets

Concession

assets

RBSE assets
Financial Economic Financial Economic
Construction margin 1.65% N/A N/A 1.65% N/A N/A
Operating and maintenance margin 1.65% N/A N/A 1.65% N/A N/A
Remuneration rate (a) 9.59% p.a. 8.11% p.a. 11.10% p.a. 9.58% p.a. 8.11% p.a. 11.10% p.a.
Contract correction index IPCA (b) IPCA IPCA IPCA (b) IPCA IPCA
Annual RAP, according to Ratifying Resolution 524,968 91,276 151,560 523,713 91,276 151,560
(a) Average rate of contracts

(b)Contract 075/2001 - LT 230 kV Bateias - Jaguariaíva, from Copel GET, and contract 002/2005 - LT 525 kV Ivaiporã - Londrina, from Uirapuru, are adjusted by the IGPM.

25

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

11. Other Receivables

03.31.2023

12.31.2022

Fair value in the purchase and sale of power (Note 34.2.12) 1,572,356 1,081,758
Services in progress (a) 394,261 369,916
CDE Transfer (11.2) 85,280 83,649
Reimbursement of coal consumption values by CDE 61,828 58,367
Credits on purchases of gas (11.1) 51,019 45,673
Disposals and decommissioning in progress 41,820 39,768
Advance payments to employees 30,623 20,768
Credits - gas concession (11.3) 25,965 32,825
Contractual advances to suppliers 20,885 12,709
Bonus for voluntary consumption reduction 2,917 2,917
Employees transferred compensation to be recovered 1,330 1,261
Other receivables 82,362 79,221
2,370,646 1,828,832
Current 998,199 897,380
Noncurrent 1,372,447 931,452

(a) Refers, most of which, to the Research and Development and Energy Efficiency programs, which upon conclusion are offset against the respective liability recorded for this purpose.

11.1 Credits on purchases of gas - Compagas

It refers to the acquisition of contracted and guaranteed gas volumes, higher than those effectively withdrawn and used, for which the contract provides for future compensation. Compagas has the right to use and offset this gas within one year after the expiration of the contract. According to the contractual provisions and consumption perspectives, Compagas estimates to fully compensate the contracted volumes up to 2023. The contracts with Petrobras foresee the right to assign this asset.

11.2 CDE Transfer

Values of the Energy Development Account - CDE to cover tariff discounts on tariffs, defined in Law No. 10,438/2002 and Decree No. 7,891/2013. The values are stipulated in the Annual Tariff Adjustment/Revision and, monthly, the Company estimates the differences to be compensated in the next tariff adjustment.

11.3 Credits - gas concession

Compagas credits recorded to neutralize the economic impacts on the Company's results due to gas price differences and/or difference in margin between the prices contained in the supply tariffs applied to consumers and those billed by suppliers to the concessionaire. The recovery of these values is determined by the Regulatory Agency of Paraná - Agepar, in the process of revising and updating the tariff.

26

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

12. Taxes
12.1 Deferred income tax and social contribution
Business combination effects (Note 1.2) Recognized
Balance as of Recognized comprehensive Balance as of
January 1, 2023 in income income March 31, 2023
Noncurrent assets
Provision for allocation of PIS and Cofins credits 629,427 8,730 - - 638,157
Provisions for legal claims 635,048 (8,847) 4,643 - 630,844
Post-employment benefits 363,297 3,778 - - 367,075
Impairment of assets 295,789 (15,582) - - 280,207
Tax losses and negative tax basis 195,062 (18,797) - - 176,265
Research and development and energy efficiency programs 127,083 6,362 - - 133,445
Social security contributions - injunction on judicial deposit 82,181 2,088 - - 84,269
Expected credit losses 90,294 (6,306) - - 83,988
Lease liability 74,783 (867) - - 73,916
Amortization - concession 57,649 1,306 - - 58,955
Provisions for performance andprofit sharing 14,914 16,389 - - 31,303
Concession contracts 18,702 (267) - - 18,435
Voluntary retirement program 479 (70) - - 409
Others 173,304 (10,971) - - 162,333
2,758,012 (23,054) 4,643 - 2,739,601
(-) Noncurrent liabilities
Concession contracts 1,848,548 32,804 209,320 - 2,090,672
Deemed cost of property, plant and equipment 307,687 (4,223) - - 303,464
Accelerated depreciation 128,156 6,458 - - 134,614
Derivative financial instruments 116,638 17,100 - - 133,738
Escrow deposits monetary variation 72,827 3,266 - - 76,093
Right-of-use asset 71,877 (1,233) - - 70,644
Transaction cost on loans and financing and debentures 30,316 1,603 - - 31,919
Others 55,346 4,959 - (96) 60,209
2,631,395 60,734 209,320 (96) 2,901,353
Net 126,617 (83,788) (204,677) 96 (161,752)
Assets presented in the Statement of Financial Position 1,644,299 1,637,997
Liabilities presented in the Statement of Financial Position (1,517,682) (1,799,749)
12.1.1 Projection for realization of deferred income tax and social contribution:

Assets

Liabilities

2023 374,733 (223,391)
2024 619,796 (308,072)
2025 483,237 (244,797)
2026 119,940 (238,283)
2027 92,798 (182,666)
2028 to 2030 208,891 (470,442)
after 2030 840,206 (1,233,702)
2,739,601 (2,901,353)
12.1.2 Unrecognized tax credits

As of March 31, 2023, Company did not recognize income tax and social contribution credits on income tax and social contribution tax losses in the amount of R$212,564 (R$197,540, as of December 31, 2022) for not having a reasonable assurance of generation of future taxable profits sufficient to allow the utilization of these tax credits.

27

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

12.2 Other taxes recoverable and other tax obligations

03.31.2023

12.31.2022

Currentassets
Recoverable ICMS (VAT) 145,217 128,288
Recoverable PIS/Pasep and Cofins taxes(a) 1,062,257 1,110,659
Other recoverable taxes 722 747
1,208,196 1,239,694
Noncurrentassets
Recoverable ICMS (VAT) 176,452 171,374
Recoverable PIS/Pasep and Cofins taxes(a) 2,271,021 2,421,176
Other recoverable taxes 34,429 34,743
2,481,902 2,627,293
Currentliabilities
ICMS (VAT) payable (Note 12.2.3) 256,214 149,506
ICMS installment payment (Note 12.2.4) 10,671 10,437
PIS/Pasep and Cofins payable 37,951 70,423
IRRF on interest on capital - 11,372
Special Tax Regularization Program - Pert 58,400 57,046
Othertaxes 4,304 4,822
367,540 303,606
Noncurrentliabilities
Social security contributions - injunction on judicial deposit 248,397 242,248
ICMS installment payment (Note 12.2.4) 36,073 37,883
Special Tax Regularization Program - Pert 340,668 347,029
Othertaxes 6,478 6,331
631,616 633,491

(a) The balance contains amounts referring Pis and Cofins credit on ICMS (Notes 12.2.1 and 12.2.2)

12.2.1 Pis and Cofins credit on ICMS - Copel Distribuição

On August 12, 2009, Copel DIS filed for a writ of mandamus No. 5032406-35.2013.404.7000 with the 3rd Federal Court of Curitiba applying for the granting of an order to stop including ICMS in the PIS and Cofins tax base on June 16, 2020, a final unappealable ruling was handed down by the 2nd Panel of the Federal Regional Court of the 4th Region recognizing the right of Copel DIS to exclude from the PIS and Cofins tax base the full amount of ICMS included in the energy supply and distribution invoices. The ruling also recognized that the limitation period, in this case, is of five years and that, therefore, Copel has the right to recover the amounts that have been paid during the five years preceding the filing of the writ of mandamus until the date of the final unappealable decision.

Based on this favorable decision, Copel DIS recognized the tax credit updated in assets, which has been recovered through offsetting with taxes payable since June 2021, from the qualification of the credit originating from Cofins with the Brazilian Federal Revenue Service. The credit originating from PIS was qualified by the Brazilian Federal Revenue Service on August 25, 2022 and is ready to be used through offsetting.

On May 13, 2021, the Federal Supreme Court concluded the judgment of the motions for clarification filed by the Federal Government in Extraordinary Appeal 574.706/PR, partially granting the following terms: (i)

28

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

relating to ICMS excluded from the PIS and Cofins calculation basis, the understanding that it is the highlighted ICMS prevailed; and (ii) modulate the effects of the judgment whose production will take place after March 15, 2017, except for the judicial and administrative actions filed up to the date of the session in which the judgment was delivered. Therefore, the final decision on this matter did not impact the final and unappealable decision in favor of Copel DIS, maintaining the treatment and amounts recorded.

The following table shows the movement of the asset:
Balance as of January 1, 2023 3,484,616
Monetary variation 70,299
Offsetting with taxes payable (241,805)
Balance as of March 31, 2023 3,313,110
Current 1,125,587
Noncurrent 2,187,523

The asset balance will continue to be offset against future federal tax debts.

a) Liabilities to be refunded to consumers

The Company recorded a liability to be refunded to consumers related to the recovery of tax credits for the last 10 years, counting from the date of the final and unappealable decision, considering the current legislation, the statute of limitations period defined in the civil code and the jurisprudence of the courts.

On February 09, 2021, Aneel opened Public Consultation No. 05/2021 aimed at discussing how to return tax credits to consumers, proposing that the amounts to be returned for each tariff cycle (credits with the Brazilian Federal Revenue Office, added to any judicial deposits already received by the concessionaire/permissionaire) are deducted from the electricity bill, through apportionment by the set of consumers.

Additionally, Aneel Order No. 361/2021 established that in exceptional situations, in which there is a possibility of a significant tariff increase, part of the PIS and Cofins credits may be used in advance of the conclusion of the public consultation, limited to 20% of the total involved in lawsuits filed by distributors.

The following table shows the movement of the liabilities:
Balance as of January 1, 2023 1,995,158
Monetary variation 51,454
Balance as of March 31, 2023 2,046,612
Current 815,321
Noncurrent 1,231,291

The balance of the liability will be refunded to the consumer as the tax credits in the asset are offset.

b) Provision for allocation of PIS and Cofins credits

On June 27, 2022, Federal Law No. 14,385 was enacted, which defines the allocation of mandatory tax amounts collected in excess by the providers of the public electricity distribution service, due to the recognition by the judiciary that ICMS should be excluded from the PIS and Cofins calculation basis.

29

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

As detailed earlier in this note, Copel DIS has recognized the right to exclude the full amount of ICMS from the PIS and Cofins calculation basis and has already transferred part of these amounts to consumers, through reductions in the tariff adjustments approved by Aneel.

In this context, despite the lack of regulation of this Law, based on the review of the risk assessment carried out by Management, Copel DIS decided to recognize an additional provision, with no immediate cash effect, referring to the period between the 11th and the 16th year from the date of the final and unappealable decision of the lawsuit.

The Management of Copel DIS understands that the refund to consumers is limited to the tax credit amounts of the last 10 years from the date of the final and unappealable decision and, therefore, is evaluating the appropriate measures to be taken, including legal measures, considering the shelter given to unappealable decisions and applicable limitation periods.

On December 12, 2022, the Brazilian Association of Electric Energy Distributors - Abradee filed a Direct Action of Unconstitutionality - ADI with the Federal Supreme Court - STF, questioning Law No. 14,385/2022, which has not yet been judged. The Company awaits the unfolding of the ADI.

The table below shows the changes in the provision:
Balance as of January 1, 2023 1,851,257
Monetary variation 25,676
Balance as of March 31, 2023 1,876,933

Any allocation of this provision will occur only after the asset's tax credits are offset.

12.2.2PIS and Cofins credit on ICMS - Compagas

Balance arising from the final and unappealable decision of the lawsuit in which Compagas discussed the exclusion of ICMS from the PIS and Cofins calculation basis. Given the favorable decision, Compagas recorded assets of R$107,453 in September 2019 and the entire credit was recovered by March 2023.

12.2.3 ICMS on electricity operations

Supplementary Law No. 194/2022 was published on June 23, 2022, prohibiting that ICMS rates be set on electricity transactions at a level higher than on general transactions, considering the essentiality of related goods and services. Furthermore, it set forth that ICMS is not levied on transmission and distribution services and sector charges related to electric energy transactions. In compliance with the law, and after issue of state tax authorities' opinions, the Company implemented the necessary changes in September 2022 to comply with the legislation. However, on February 9, 2023, the Brazilian Supreme Court - STF granted to the States in a preliminary decision, in the records of Direct Action of Unconstitutionality - ADI 7195, the suspension of the article that excluded such items from the taxed portion of the electricity bill. Considering this decision, the Company resumed ICMS taxation on said services and sector charges. On March 3, 2023, the preliminary injunction was approved by the Plenary of the STF.

30

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

12.2.4 Incentive installment payment program for ICMS tax credits in the State of Paraná

On September 27, 2022, the Company adhered to the installment payment program for previously recognized ICMS, established by the State of Paraná through State Law No. 20946/2021, regulated by State Decree No. 10766/2022, wherein R$92,249 debts were entered in its report of tax position, updated until September 2022 with fine, interest and monetary restatement. By adhering to said program, the Company reduced R$41,696 in charges, with a consolidated balance of R$50,553 at the adhesion date, to be paid in

60 monthly installments until September 2027, according to the mentioned program regulation. The Company has been paying the monthly installments on a regular basis, restated by the Selic rate.

12.3 Reconciliation of provision for income tax (IRPJ) and social contribution (CSLL)

03.31.2023

03.31.2022

Income before IRPJ and CSLL 881,101 957,253
(-) Equity in income (104,087) (112,782)
777,014 844,471
IRPJ and CSLL(34%) (264,185) (287,120)
Tax effectson:
Interest on equity (JSCP) - 1,323
Dividends - 60
Non deductible expenses (3,923) (5,573)
Tax incentives 767 3,662
Unrecognized tax loss and negative basis of CSLL (15,012) (10,727)
Difference between tax bases of deemed profit and taxable profit 14,955 10,060
Effect of non taxable monetary variation (Selic) on unduetax
payments 23,902 -
Others (2,115) 853
Current IRPJ and CSLL (161,823) (273,849)
Deferred IRPJ and CSLL (83,788) (13,613)
Effective rate -% 31.6% 34.0%
13. Prepaid Expenses
03.31.2023 12.31.2022
Program for incentive to alternative energy sources - Proinfa 30,641 30,538
Insurance premiums 27,269 20,919
Others 12,112 8,629
70,022 60,086
Current 69,775 60,076
Noncurrent 247 10
31

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

14. Judicial Deposits

03.31.2023

12.31.2022

Taxes claims (14.1) 452,719 444,134
Labor claims 114,804 125,862
Civil claims
Civil claims 39,789 39,597
Easements 16,369 14,726
Customers 4,739 4,862
60,897 59,185
Others 3,417 3,277
631,837 632,458
14.1 Tax judicial deposits

Of the balance on March 31, 2023, R$249,024 (R$241,681 on December 31, 2022) refers to the challenge in court of the levy of social security contribution (INSS payable) on certain salary amounts. The liability is recorded under Other Tax Obligations (Note 12.2).

15. Investments
15.1 Changes in investments

Balance as of
January 1, 2023

Equity

Investment/

AFAC

Amortization

Dividends and JSCP

Balance as of
March 31, 2023

Joint Ventures (15.3)
Voltalia São Miguel do Gostoso I 115,976 (1,241) - - - 114,735
Voltalia São Miguel do Gostoso - authorization rights 8,937 - - (92) - 8,845
Caiuá 125,297 4,056 - - - 129,353
Integração Maranhense 192,502 9,450 10,780 - - 212,732
Matrinchã 931,528 26,949 - - - 958,477
Guaraciaba 467,099 12,092 - - - 479,191
Paranaíba 263,979 9,352 - - 134 273,465
Mata de Santa Genebra 692,260 22,308 - - - 714,568
Cantareira 473,369 15,816 - - - 489,185
Solar Paraná 7,156 113 - - 48 7,317
3,278,103 98,895 10,780 (92) 182 3,387,868
Associates
Dona Francisca Energética (15.4) 28,043 1,032 - - - 29,075
Foz do Chopim Energética (15.4) 17,116 4,162 - - (5,008) 16,270
Other 1,934 (1) - - - 1,933
47,093 5,193 - - (5,008) 47,278
Investment property 535 - - (1) - 534
3,325,731 104,088 10,780 (93) (4,826) 3,435,680

AFAC - Advance for future capital increase

JSCP - Interest on equity

32

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

15.2 Subsidiaries with non-controlling interests
15.2.1 Summarized financial information
Balance as of March 31, 2023 Compagás Elejor UEG Araucária
ASSETS 1,082,586 847,010 314,906
Current assets 281,751 231,441 82,545
Noncurrent assets 800,835 615,569 232,361
LIABILITIES 1,082,586 847,010 314,906
Current liabilities 395,791 112,442 46,340
Noncurrent liabilities 103,742 769,004 16,747
Equity 583,053 (34,436) 251,819
STATEMENT OF INCOME
Net operating revenue 263,251 41,034 -
Operating costs and expenses (219,345) (22,273) (21,760)
Financial results (4,503) (19,283) 598
Income tax and social contribution (13,480) 1,114 -
Net income (loss) 25,923 592 (21,162)
Other comprehensive income - (186) -
Total comprehensive income 25,923 406 (21,162)
STATEMENTS OF CASH FLOWS
Cash flows from operating activities 53,927 (2,517) (15,812)
Cash flows from investing activities (2,809) (32) (907)
Cash flows from financing activities (847) - -
TOTAL EFFECTS ON CASH AND CASH EQUIVALENTS 50,271 (2,549) (16,719)
Cash and cash equivalents at the beginning of the year 61,059 185,916 64,991
Cash and cash equivalents at the end of the year 111,330 183,367 48,272
CHANGE IN CASH AND CASH EQUIVALENTS 50,271 (2,549) (16,719)

To balance Compagas short-term financial capacity, which has negative net working capital, Management is monitoring and adopting measures to lengthen the debt. The loss recorded at UEG Araucária is due to the absence of revenue, given that the plant was not dispatched in the period, because of the positive hydrological scenario.

15.2.2 Changes in equity attributable to non-controlling shareholders

Participation in capitalstock

Compagás

49%

Elejor 30%

UEG Araucária

18.8%

Consolidated

Balance as of January 1,2023 272,995 (10,451) 51,317 313,861
Net income (loss) 12,701 177 (3,978) 8,900
Other comprehensive income - (56) - (56)
Balance as of March 31,2023 285,696 (10,330) 47,339 322,705
33

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

15.3 Summarized information on the main joint ventures

Balance as of March 31, 2023

Voltalia

Caiuá

Integração Maranhense

Matrinchã

Guaraciaba

Paranaíba

Mata de Santa

Genebra

Cantareira

ASSETS 236,407 339,171 616,345 3,012,430 1,607,296 1,988,157 3,726,706 1,856,198
Current assets 11,058 46,965 101,353 468,649 224,029 233,163 687,430 247,730
Cash and cash equivalents 10,957 17,476 33,877 162,610 61,948 63,732 1,002 87,864
Other current assets 101 29,489 67,476 306,039 162,081 169,431 686,428 159,866
Noncurrent assets 225,349 292,206 514,992 2,543,781 1,383,267 1,754,994 3,039,276 1,608,468

LIABILITIES

236,407

339,171

616,345

3,012,430

1,607,296

1,988,157

3,726,706

1,856,198

Current liabilities 2,253 23,499 32,713 227,693 159,349 128,297 142,379 84,730
Financial liabilities - 6,850 11,489 132,482 45,793 61,981 100,398 60,685
Other current liabilities 2,253 16,649 21,224 95,211 113,556 66,316 41,981 24,045
Noncurrent liabilities - 51,688 149,483 828,658 470,006 743,672 2,158,043 773,131
Financial liabilities - 27,404 38,584 576,412 393,432 457,803 1,708,185 412,677
Other noncurrent liabilities - 24,284 110,899 252,246 76,574 285,869 449,858 360,454
Equity 234,154 263,984 434,149 1,956,079 977,941 1,116,188 1,426,284 998,337

STATEMENT OF INCOME

Net operating revenue - 11,912 20,078 102,392 53,922 72,662 133,026 60,070
Operating costs and expenses (13) (1,491) 7,266 (7,742) (4,303) (5,657) (11,575) (1,388)
Financial results 192 (147) (201) (15,950) (10,620) (12,108) (53,917) (9,784)
Equity in earnings of investees (2,675) - - - - - - -
Income tax and social contribution (39) (1,995) (7,857) (23,703) (14,320) (16,722) (23,008) (16,620)
Net income (loss) (2,535) 8,279 19,286 54,997 24,679 38,175 44,526 32,278
Other comprehensive income - - - - - - - -
Total comprehensive income (2,535) 8,279 19,286 54,997 24,679 38,175 44,526 32,278
Investment interest - % 49.0 49.0 49.0 49.0 49.0 24.5 50.1 49.0
Investment book value 114,735 129,353 212,732 958,477 479,191 273,465 714,568 489,185

On March 31, 2023, the interest of Copel in the contingent liabilities classified as a possible loss is equivalent to R$307,680 (R$413,034 as of December 31, 2022).

15.4 Summarized information of the main associates
Balance as of March 31, 2023 Dona Francisca Foz do Chopim
ASSETS 171,937 47,832
Current assets 10,544 8,277
Noncurrent assets 161,393 39,555
LIABILITIES 171,937 47,832
Current liabilities 17,955 2,344
Noncurrent liabilities 27,727 -
Equity 126,255 45,488
STATEMENT OF INCOME
Net operating revenue 16,468 15,050
Operating costs and expenses (10,223) (2,990)
Financial results (1,191) 50
Income tax and social contribution (575) (475)
Net income 4,479 11,635
Other comprehensive income - -
Total comprehensive income 4,479 11,635
Investment interest - % 23.03 35.77
Investment book value 29,075 16,270
34

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

On March 31, 2023, the interest of Copel in the contingent liabilities of its associates is equivalent to R$2,924 (R$2,581 as of December 31, 2022).

16. Property, Plant and Equipment
16.1 Property, plant and equipment by asset class

Cost

Accumulated

depreciation

03.31.2023

Cost

Accumulated

depreciation

12.31.2022

In service
Reservoirs, dams and aqueducts 8,200,713 (4,961,888) 3,238,825 8,200,744 (4,925,970) 3,274,774
Machinery and equipment 10,358,881 (3,180,603) 7,178,278 8,951,061 (3,060,695) 5,890,366
Buildings 2,015,245 (1,168,417) 846,828 2,001,801 (1,160,549) 841,252
Land 512,531 (61,637) 450,894 510,681 (59,157) 451,524
Vehicles and aircraft 33,159 (30,942) 2,217 35,457 (33,115) 2,342
Furniture and fixtures 17,135 (11,007) 6,128 17,007 (10,871) 6,136
(-) Impairment (16.4) (921,141) - (921,141) (785,205) - (785,205)
(-) Special Obligations (748) 359 (389) (748) 330 (418)
20,215,775 (9,414,135) 10,801,640 18,930,798 (9,250,027) 9,680,771
In progress
Cost 402,257 - 402,257 575,080 - 575,080
(-) Impairment (16.4) (14,879) - (14,879) (186,383) - (186,383)
387,378 - 387,378 388,697 - 388,697
20,603,153 (9,414,135) 11,189,018 19,319,495 (9,250,027) 10,069,468

On March 25, 2023, the scheduled stoppage for inspection of the generating unit 3 of HPP GBM, a plant belonging to FDA, subsidiary of Copel GET, was concluded. An isolated fault was identified in the upper wear ring of the turbine rotor, so that this generating unit will remain unavailable to carryng out a diagnosis on the cause of the incident and the respective actions for its repair, when the return forecast for this generating unit will be updated. Eventual financial impacts related to non-generation or any reduction in the plant's assured energy can only be estimated after the completion of this work.

16.2 Changes in property, plant and equipment
Additions /
Impairment
Effects of business
Balance as of Loss on combination Balance as of
January 1, 2023 Depreciation disposal Transfers (Note 1.2) March 31, 2023
In service
Reservoirs, dams and aqueducts 3,274,774 - (35,935) (14) - - 3,238,825
Machinery and equipment 5,890,366 - (95,542) (91) 244,117 1,139,428 7,178,278
Buildings 841,252 - (9,135) (501) 15,212 - 846,828
Land 451,524 - (2,555) (202) 2,127 - 450,894
Vehicles and aircraft 2,342 - (125) - - - 2,217
Furniture and fixtures 6,136 - (148) (1) 136 5 6,128
(-) Impairment (16.4) (785,205) 35,568 - - (171,504) - (921,141)
(-) Special Obligations (418) - 29 - - - (389)
9,680,771 35,568 (143,411) (809) 90,088 1,139,433 10,801,640
In progress
Cost 575,080 39,758 - (2) (260,254) 47,675 402,257
(-) Impairment (16.4) (186,383) - - - 171,504 - (14,879)
388,697 39,758 - (2) (88,750) 47,675 387,378
10,069,468 75,326 (143,411) (811) 1,338 1,187,108 11,189,018
35

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

During the construction phase, loans, financing and debentures costs are capitalized. In the first 3 months of 2023 these costs totaled R$362, at an average rate of 0.007% p.a. (R$3,491, at an average rate of 0.09% p.a., in the same period of 2022).

16.3 Joint operations - consortiums

The amounts recorded under property, plant and equipment referring to the share of interest of Copel GeT in consortiums are shown below:

Joint operations

Share

Copel GeT (%)

Annualaverage

depreciation rate(%)

03.31.2023

12.31.2022

HPP Gov. Jayme Canet Júnior (Mauá) - Consórcio
Energético Cruzeiro doSul 51.0
In service 859,882 859,882
(-) Accumulated depreciation 2.90 (294,973) (288,728)
In progress 19,919 19,899
584,828 591,053
HPP Baixo Iguaçu 30.0
In service 695,624 693,487
(-) Accumulated depreciation 3.28 (92,976) (87,278)
In progress 5,711 55,863
608,359 662,072
1,193,187 1,253,125
16.4 Impairment of generation segment assets

The assets with impairment balances recorded as of March 31, 2023 are the following:

Property, Plant and Equipment

Value in use

Cost Depreciation Impairment
HPP Colíder 2,568,864 (336,496) (603,988) 1,628,380
UEGA 687,240 (390,191) (108,132) 188,917
Consórcio Tapajós(a) 14,879 - (14,879) -
Power plants in Paraná 1,034,055 (113,612) (209,021) 711,422
4,305,038 (840,299) (936,020) 2,528,719

(a) Project under development

The table below shows the changes in the impairment:

Balance as of

January 1, 2023

Impairment / Reversal

Transfer

Balance as of

March 31, 2023

In service
HPP Colíder (632,559) 28,571 - (603,988)
UEGA (108,132) - - (108,132)
Power plants in Paraná (44,514) 6,997 (171,504) (209,021)
(785,205) 35,568 (171,504) (921,141)
In progress
Consórcio Tapajós (14,879) - - (14,879)
Power plants in Paraná (171,504) - 171,504 -
(186,383) - 171,504 (14,879)
(971,588) 35,568 - (936,020)
36

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

In March 2023, the value in use calculation considered assumptions and budgets of the Company, and the discount rate after taxes that was maintained at 5.71% p.a., which derives from the WACC methodology for the electric energy generation segment. The review of the expected revenue from the sale of energy, which offset increases in operating costs and regulatory charges, and the change in book value allowed the partial reversal of the impairment.

The transfer refers to the accumulated impairment balance of TPP Figueira.

16.5 New plants under construction
16.5.1 SHP Bela Vista

With estimated investment of R$224,673, this small hydroelectric power plant (SHP), with installed capacity of 29.81 MW and assured energy of 18.61 MW average, was built on the Chopim River, in the municipalities of São João and Verê, located in the southwest region of the State of Paraná.

The participation in the A-6 auction held on August 31, 2018, led to sale of 14.7 MW average in regulated contracts at the original price of R$195.70/MWh. The energy sale contracts provide for beginning of energy supply on January 1, 2024, with a 30-year term and annual adjustment by reference to IPCA variation.

The works started in August 2019 and the entry into commercial operation of three generating units took place in 2021. The generating center (Stream Diver) has been cleared for commercial operation as of June 7, 2023.

17. Intangible assets
03.31.2023 12.31.2022
Concession agreement - distribution of electricity (17.1) 7,510,408 7,257,827
Generation concession agreements/ authorization (17.2) 3,009,784 2,252,615
Concession agreement - piped gas distribution (17.3) 713,270 726,107
Other (17.4) 41,255 41,178
11,274,717 10,277,727

Management did not identify evidence that would justify the need to recognize impairment of intangible assets.

37

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

17.1 Power distribution service concession

Intangible asset

in service

Special liabilities

in service

Total

Balance as of January 1, 2023 10,033,251 (2,775,424) 7,257,827
Transfers from contract assets (Note 10.1) 426,493 (42,014) 384,479
Amortization quotas - concession (a) (150,826) 39,795 (111,031)
Amortization quotas - PIS/Pasep and Cofins credits (2,620) - (2,620)
Loss on disposal (18,247) - (18,247)
Balance as of March 31, 2023 10,288,051 (2,777,643) 7,510,408

(a) Amortization during the concession period after the transfer to intangible assets in service of useful life of the assets, whichever the lower.

The balance refers to the portion of infrastructure that will be used during concession, net of special liabilities. The special liabilities represent the resources related to the financial participation of consumers, the Federal, State and Municipal Governments, destined for investments in projects related to the concession, and are not onerous liabilities or shareholder credits.

17.2 Generation concession agreements

Concession

contract

(a)

Concession and authorization

rights/ goodwill

Total

Balance as of January 1, 2023 1,530,777 721,838 2,252,615
Effect of acquisition of control (Note 1.2) - 615,648 615,648
Technical goodwill arising from the business combination (Note 1.2) - 204,676 204,676
Amortization quotas - concession and authorization (b) (57,125) (6,030) (63,155)
Balance as of March 31, 2023 1,473,652 1,536,132 3,009,784
(a) Includes the balances of use of public asset and hydrological risk renegotiation
(b) Amortization during the concession/authorization as of the start of commercial operations of the enterprises.
17.3 Piped gas distribution service concession
Balance as of January 1,2023 726,107
Transfers from contract assets (Note 10.2) 2,092
Amortization quotas - concession(a) (14,929)
Balance as of March 31, 2023 713,270

(a) Amortization by the expected useful life of the asset (30 years for gas distribution operation assets and 10 years for other assets) limited to the final term of the concession.

17.4 Other intangible assets

Assets consisting of software purchased from third parties or generated internally, measured at total acquisition cost minus amortization expenses.

38

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

in service in progress Total
Balance as of January 1, 2023 12,848 28,330 41,178
Business combination effects (Note 1.2) 4 - 4
Acquisitions - 2,044 2,044
Capitalizations for intangible in service 6,161 (6,161) -
Amortization quotas (a) (1,966) - (1,966)
Loss on disposal - (5) (5)
Balance as of March 31, 2023 17,047 24,208 41,255

(a) Annual amortization rate: 20%.

18. Payroll, Social Charges and Accruals

03.31.2023

12.31.2022

Social security liabilities
Taxes and social contribution 33,043 42,829
Social security charges on paid vacation and 13th salary 17,381 15,547
50,424 58,376
Labor liabilities
Payroll, net(a) 35 47,462
Vacation and 13thsalary 93,745 95,930
Provisions for performance and profit sharing 102,664 47,726
Voluntary dismissal program 497 2,895
Other liabilities 466 400
197,407 194,413
247,831 252,789

(a) The balance as of December 31, 2022 refers to the provision for the salary adjustment referring to the Collective Labour Agreement approved in January 2023, with retroactive effects to October 2022 (base date of the agreement).

19. Accounts Payable to Suppliers
03.31.2023 12.31.2022
Energy power 1,039,114 1,208,733
Materials and supplies 677,003 626,710
Natural gas for resale 82,569 93,696
Charges for use of grid system 289,033 286,331
2,087,719 2,215,470
Current 1,962,380 2,090,022
Noncurrent 125,339 125,448
39

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

20. Loans and Financing

Contracts

Company

Allocation

Guarantees

IssueDate

Number of installment

Final maturity

Payment of charges

Contractual financial

charges p.a.

Effective interest

rate p.a.

Contract amount

03.31.2023

12.31.2022

LOCAL CURRENCY

Banco do Brasil

CCB 265.901.903

Copel DIS

Working capital.

Credit assignment

06.29.2022

2

06.24.2025

Quarterly

DI + spread 1,25%

DI + spread 2,14%

750,000

752,092

752,092

751,673

751,673

Caixa Econômica Federal

Commercial paper (a)

Copel GET

Partial amortization of the 3rd, 4th and 5th debenture issues and meeting various short-term obligations, including energy purchases, regulatory obligations and dividends.

Personal guarantee

09.10.2022

2

09.10.2025

Half-yearly

DI + spread 1,22%

DI + spread 1,31%

1,000,000

1,008,373

1,008,373

1,037,946

1,037,946

Caixa Econômica Federal

415.855-22/14

Copel DIS

Rural Electricity Program - Luz para Todos.

Own revenue; issue of promissory notes and commercial duplicates.

03.31.2015

120

12.08.2026

Monthly

6.0%

6.0%

16,984

7,185

7,185

7,664

7,664

Banco do Nordeste do Brasil

Implementation of Jandaíra Wind Complex.

Bank guarantee

05.31.2021

192

06.15.2038

Monthly

2.7086% + IPCA (1)

3.0107% + IPCA

21,687

17,720

17,969

35202166127989 JandaíraI
35202164527986 JandaíraII 05.31.2021 192 06.15.2038 Monthly

2.2161% + IPCA (1)and

2.7086% + IPCA (1)

3.0107% + IPCA

56,421

46,001

46,644

35202162927987 JandaíraIII 05.31.2021 192 06.15.2038 Monthly 2.7086% + IPCA (1) 3.0107% + IPCA

65,158

53,098

53,843

35202160027984 JandaíraIV 05.31.2021 192 06.15.2038 Monthly

2.2161% + IPCA (1)and

2.7086% + IPCA (1)

3.0107% + IPCA

65,421

53,312

54,053

35201915725525 Potiguar B141

Implementation of Vilas Wind Complex.

Fiduciary assignment of credit rights; fiduciary assignment of rights under the O&M contract; fiduciary assignment of rights arising from the authorization; pledge of shares; fiduciary alienation of project machinery and equipment; 100% bank guarantee; fiduciary assignment of the Debt Service Reserve Accounts; fiduciary assignment of the operating reserve account (O&M); Shareholder support agreement

04.04.2019 216 04.15.2039 Monthly IPCA + 2.3323% IPCA + 2.3323%

92,138

88,969

89,685
35201922425522 Potiguar B142 04.04.2019 216 04.15.2039 Monthly IPCA + 2.3323% IPCA + 2.3323%

92,213

88,993

89,709
35201926525533 Potiguar B143 04.11.2019 216 04.15.2039 Monthly IPCA + 2.3323% IPCA + 2.3323%

92,138

88,662

89,376
35201910625534 Ventos de Vila Paraíba IV 04.18.2019 216 05.15.2039 Monthly IPCA + 2.3323% IPCA + 2.3323%

92,138

90,162

91,004
352020148727169 Potiguar B61 08.11.2020 216 08.15.2040 Monthly IPCA + 1.4865% IPCA + 1.4865%

163,886

185,400

186,552
18120185433499 Aventura II

Implementation of Aventura Wind Complex

Bank guarantee

12.28.2018 204 01.15.2039 Monthly IPCA + 2.5707% IPCA + 2.5707%

69,338

63,285

-
18120185473500 Aventura III 12.28.2018 204 01.15.2039 Monthly IPCA + 2.5707% IPCA + 2.5707%

82,490

75,557

-
18120185483501 Aventura IV 12.28.2018 204 01.15.2039 Monthly IPCA + 2.5707% IPCA + 2.5707%

97,887

89,030

-
18120185493502 Aventura V 12.28.2018 204 01.15.2039 Monthly IPCA + 2.5707% IPCA + 2.5707%

98,684

90,414

-
18720193955241 SRMN I

Implementation of Santa Rosa & Mundo Novo Wind Complex (SRMN)

04.30.2019 252 05.15.2043 Monthly IPCA + 2.3323% IPCA + 2.3323%

110,922

119,797

-
18720193965240 SRMN II 04.30.2019 252 05.15.2043 Monthly IPCA + 2.3323% IPCA + 2.3323%

97,057

104,159

-
18720193875242 SRMN III 04.30.2019 252 05.15.2043 Monthly IPCA + 2.3323% IPCA + 2.3323%

110,922

120,905

-
18720193985243 SRMN IV 04.30.2019 252 05.15.2043 Monthly IPCA + 2.3323% IPCA + 2.3323%

110,922

121,889

-
18720193995244 SRMN V 04.30.2019 252 05.15.2043 Monthly IPCA + 2.3323% IPCA + 2.3323%

83,192

90,300

1,587,653

-

718,835

Banco do Brasil - BNDES Transfer

Implementation of Mauá HPP.

Revenue from energy sales from the plant.

04.16.2009

179

01.15.2028

Monthly

2.13% above TJLP

2.13% above TJLP

169,500

57,919

57,919

60,720

60,720

21/02000-0 Copel GeT

(a) Commercial paper, single series, for public distribution with restricted efforts. Guarantor: Copel. Trustee: Pentágono S.A. DTVM.

(1) - IPCA used in the calculation of interest and not in the update of the principal. (continued)

40

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Contracts

Company

Allocation

Guarantees

IssueDate

Number of installment

Final maturity

Payment of charges

Contractual

financial charges p.a.

Effective

interest ratep.a.

Contract amount

03.31.2023

12.31.2022

BNDES

820989.1

CopelGeT

Implementation of MauáHPP.

Revenue from energy sales from the plant.

03.17.2009

179

01.15.2028

Monthly

1.63% aboveTJLP

1.63% aboveTJLP

169,500

57,919

60,719

1120952.1

Implementation of transmission line between Foz do Iguaçu and Cascavel Oeste substations. Assignment of receivables; revenue from energy transmission services.

12.16.2011

168

04.15.2026

Monthly

1.82% and 1.42% above TJLP 1.82% and 1.42% above TJLP

44,723

10,381

11,186

1220768.1 Implementation of Cavernoso IISHP. Revenue from energy sales from the plant. 09.28.2012 192 07.15.2029 Monthly 1.36% aboveTJLP 1.36% aboveTJLP 73,122 30,896 32,012
13211061 Implementation of ColíderHPP.

Assignment of receivables

12.04.2013 192 10.15.2031 Monthly 0% and 1.49% aboveTJLP 6.43% and 7.68% 1,041,155 600,461 615,968
13210331 Implementation of Cerquilho III substation. 12.03.2013 168 08.15.2028 Monthly

1.49% and 1.89% above

TJLP

1.49% and 1.89% above

TJLP

17,644 7,194 7,502
15206041 Implementation of transmission line Assis - Paraguaçu PaulistaII. 12.28.2015 168 06.15.2030 Monthly 2.42% aboveTJLP 9.04% 34,265 15,651 16,139
15205921 Implementation of transmission lines Londrina - Figueira and Salto Osório - Foz do Chopim. 12.28.2015 168 12.15.2029 Monthly 2.32% aboveTJLP 8.93% 21,584 9,231 9,542
18205101 Implementation of Baixo IguaçuHPP. 11.22.2018 192 06.15.2035 Monthly 1.94% aboveTJLP 8.50% 194,000 157,247 159,948

19207901- A+B+E+F+G+H

Implementation of transmission facilities for the line: substation Medianeira; substation Curitiba Centro and Curitiba Uberaba and substation Andirá Leste.

06.03.2020

279

12.15.2043

Monthly

IPCA + 4.8165%

IPCA + 4.8570%

206,882

202,709

200,932

19207901- C+D+I+J

Implementation of transmission facilities for the line: transmission line Curitiba Leste

- Blumenau and Baixo Iguaçu - Realeza.

06.03.2020

267

12.15.2043

Monthly

IPCA + 4.8165%

IPCA + 4.8570%

225,230

190,535

188,869

14205611-C

CopelDIS

Preservation of business, improvements, operating support and general investments in the expansion and consolidation of projects and social investment programs of companies (ISE).

Surety of Copel; assignment of revenues and indemnity rights under the concession.

12.15.2014

113

06.15.2024

Monthly

6.0%

6.0%

78,921

9,798

11,757

14.2.1271.1 SantaMaria

Construction and implementation of wind generating plants.

Surety of Copel; pledge of shares; assignment of receivables and revenues. 06.01.2015 192 08.15.2031 Monthly 1.66% aboveTJLP 8.26% 71,676 33,247 34,125
14.2.1272.1 Santa Helena 06.01.2015 192 08.15.2031 Monthly 1.66% aboveTJLP 8.26% 82,973 36,074 37,027
11211521 GE Farol

Pledge of shares; assignment of receivables from energy sales from the project; assignment of machinery and equipment.

03.19.2012 192 06.15.2030 Monthly 2.34% aboveTJLP 2.34% aboveTJLP 54,100 28,996 29,888
11211531 GE Boa Vista 03.19.2012 192 06.15.2030 Monthly 2.34% aboveTJLP 2.34% aboveTJLP 40,050 21,436 22,096
11211541 GE S.B. do Norte 03.19.2012 192 06.15.2030 Monthly 2.34% aboveTJLP 2.34% aboveTJLP 90,900 48,616 50,112
11211551 GE Olho D'Água 03.19.2012 192 06.15.2030 Monthly 2.34% aboveTJLP 2.34% aboveTJLP 97,000 51,922 53,519
18204611 Cutia Pledge of shares; assignment of receivables. 10.10.2018 192 07.15.2035 Monthly 2.04% aboveTJLP 8.37% 619,405 538,621 543,337
13212221 -A

Costa Oeste

Implementation of transmission line between Cascavel Oeste and Umuarama Sul substations and implementation of Umuarama Sul substation.

Assignment of receivables; 100% of pledged shares.

12.03.2013 168 11.30.2028 Monthly 1.95% + TJLP 1.95% + TJLP 27,634 12,339 12,842
13212221 -B 12.03.2013 106 09.30.2023 Monthly 3.5% 3.5% 9,086 399 598
14205851 -A

Marumbi

Implementation of transmission line between Curitiba and Curitiba Leste and implementation of Curitiba Leste substation.

07.08.2014 168 06.30.2029 Monthly 2.00% + TJLP 2.00% + TJLP 33,460 16,380 16,981
14205851 -B 07.08.2014 106 04.30.2024 Monthly 6.0% 6.0% 21,577 2,454 3,020
2,082,506 2,118,119
Total local currency 5,495,728 4,694,957

Gross debt

(-) Transaction cost

Net debt

5,495,728

(45,686)

5,450,042

4,694,957

(44,594)

4,650,363

Current

Noncurrent

336,274

5,113,768

278,838

4,371,525

DI - Interbank Deposit Rate IPCA - Inflation Index

TJLP - Long term interestrate

41

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

20.1 Breakdown of loans and financing by currency and index

03.31.2023

%

12.31.2022

%

indexes at period end
Localcurrency (%)
TJLP 7.37 1,716,820 31.51 1,755,556 37.75
CDI 13.65 1,745,205 32.02 1,772,718 38.12
IPCA 4.65 1,968,181 36.11 1,099,050 23.63
Without indexer (annual fixed rate) - 19,836 0.36 23,039 0.50
5,450,042 100.00 4,650,363 100.00
5,450,042 100.00 4,650,363 100.00
20.2 Maturity of noncurrent installments

03.31.2023

Gross debt

(-) Transaction

cost

Net debt

2024 568,385 (6,829) 561,556
2025 1,633,968 (5,845) 1,628,123
2026 262,278 (2,350) 259,928
2027 266,033 (2,351) 263,682
2028 251,782 (2,364) 249,418
After 2028 2,167,938 (16,877) 2,151,061
5,150,384 (36,616) 5,113,768
20.3 Changes in loans and financing
Balance as of January 1,2023 4,650,363
Business combination effects (Note1.2) 875,738
Charges 136,563
Monetary and exchange variations 12,666
Amortization - principal (59,216)
Payment - charges (166,072)
Balance as of March 31,2023 5,450,042
20.4 Covenants

Loans and financing agreements contain clauses that require economic and financial ratios to be maintained within pre-determined parameters, requiring annual fulfillment and other conditions to be complied with, such as not changing the Company's interest in the capital stock of subsidiaries that would represent change of control without prior consent. The non-compliance with the contracted conditions may result in fines or in the declaration of the early maturity of debts.

On December 31, 2022, all financial indicators measured annually were fully met. On March 31, 2023, all other agreed indicators and conditions were fully met.

42

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

The financial covenants contained in the agreements are presented below:

Company ContractualInstrument Annual financial ratios Limit

Copel GeT

BNDES Finem No. 820989.1 - Mauá

Banco do Brasil No. 21/02000-0 - Mauá

EBITDA / Net financial results ≥ 1.3

Commercialpaper

Debt service coverage ratio

Consolidated net debt / Consolidated EBITDA

≥ 1.5

≤ 3.5

Copel DIS BNDES Finem No. 14205611 Financial indebtedness / EBITDA ≤ 4.0
Santa Maria BNDES Finem No. 14212711 Debt service coverage ratio ≥ 1.3
SantaHelena BNDES Finem No. 14212721

São Bento Energia, Investimento e Participações GE Boa Vista S.A.

GE Farol S.A.

GE Olho D´Água S.A.

GE São Bento do Norte S.A.

BNDES Assignment Agreement BNDES Finem No. 11211531 BNDES Finem No. 11211521 BNDES Finem No. 11211551

BNDES Finem No. 11211541

Debt service coverage ratio

≥ 1.3

Cutia BNDES Finem No. 18204611 Debt service coverage ratio(a) ≥ 1.2
Costa Oeste BNDES Finem No. 13212221 Debt service coverage ratio ≥ 1.3
Marumbi BNDES Finem No. 14205851 Debt service coverage ratio ≥ 1.3

Financing for businesses - Finem

(a) financial ratio calculated based on the amounts of the consolidated financial statements of Cutia Empreendimentos Eólicos S.A. The contract establishes that, should the index be in the range between 1.10 and 1.20, the value of the funds invested in the Reserve Account must be complemented so that the total reaches the index of 1.20, within 2 days of the release of the financial statements.

43

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

21. Debentures

Company

Issue

Characteristics

Allocation

Guarantees

IssueDate

Number of installment

Final maturity

Payment of charges

Contractual financial

charges p.a.

Effective interest

rate p.a.

Contract amount

03.31.2023

12.31.2022

Copel 8th (a) Payment of the 6th issue of debentures and working capital increase Personal guarantee 06.14.2019 1 06.14.2022 Half-yearly 106.0% of DI 110.93% of DI 500,000 - -

CopelGeT

3rd

4th

(a)

Working capital or used to make investments in the issuer.

Personal guarantee

10.20.2017 3 10.20.2022 Half-yearly 126.0% of DI 131.21% of DI 1,000,000 - -
Full early redemption of the 4th issue of the Company's trade promissory notes and partial payment of the 1st amortization installment of the 2nd issue of debentures.

07.23.2018

3

07.23.2023

Half-yearly

126.0% of DI

133.77% of DI

1,000,000

343,509

357,573

5th

(b)

Reimbursement of expenses related to the construction of the Transmission Lines Araraquara II - Taubaté, Assis - Londrina and Foz do Chopim.

09.25.2018

5

09.15.2025

Half-yearly

IPCA + 7.6475%

IPCA+ 8.3295%

290,000

226,542

225,643

6th (1st serie)6th (2ndserie)

(c)

Full early redemption of the 5th issue of the Company's trade promissory notes and partial payment of the 2nd amortization installment of the 2nd issue of debentures.

07.15.2019

2

07.15.2024

Half-yearly

109.0% of DI

111.25% of DI

800,000

823,357

852,816

Reimbursement of expenses related to the Colíder HPP and Baixo Iguaçu HPP projects 07.15.2019 1 07.15.2025 Half-yearly IPCA + 3.90% IPCA+ 4.46% 200,000 254,423 251,363

7th (1stserie)

7th (2ndserie)

Reinforcement of the Issuer's working capital; amortization and/or reimbursement of cash of the principal portion

of the 3rd and 4th issue of debentures.

10.15.2021

2

10.15.2026

Half-yearly

DI + spread 1.38%

DI + spread 1.45%

1,133,363

1,209,050

1,166,982

Investments for expansion, renovation or improvement and/or reimbursement of expenses within the scope of the Projects: Improvements of Gov. Bento Munhoz da Rocha Netto HPP; Implementation of the Assets of Lot "E", from Aneel Auction No. 05/2015; Investments in Mata de Santa Genebra Transmissão S.A. and Bela Vista Geração de Energia S.A.

10.15.2021

3

10.15.2031

Half-yearly

IPCA + 5.7138%

IPCA + 6.1033%

366,637

412,287

397,825

8th (1stserie)

8th (2ndserie)

Acquisition of Santa Rosa & Mundo Novo Wind Complex (SRMN) and Aventura Wind Complexes.

01.15.2023

2

01.15.2030

Half-yearly

DI + spread 1.40%

DI + spread 1.41%

1,100,000

1,126,951

-

Reimbursement of investment expenses and/or contributions in the scope of the Jandaíras I, II, III and IV Wind Power Generating Plants Projects.

01.15.2023

3

01.15.2035

Half-yearly

IPCA +6.8226%

IPCA +7.5817%

200,000

205,449

-

CopelDIS

3rd

4th

(a)

Working capital or used to make investments in the issuer.

Personal guarantee

10.20.2017 2 10.20.2022 Half-yearly 126.0% of DI 130.85% of DI 500,000 - -
Working capital and payment of the 1st installment of amortization of the 2nd issue of debentures. 09.27.2018 3 09.27.2023 Half-yearly DI + spread 2.70% CDI + 3.96% 1,000,000 334,153 346,895

5th (1stserie)

5th (2ndserie)

(c)

Investment for expansion, renovation or improvement and reimbursement of expenses of the Issuer's electricity distribution network linked to concession contract No. 46/1999 of ANEEL.

11.15.2019

3

11.15.2027

Half-yearly

IPCA + 4.20%

IPCA+ 4.61%

500,000

638,376

618,209

Reinforcement of working capital and recomposition of cash by the final amortization of the 2nd issue of debentures.

11.15.2019

2

11.15.2022

Half-yearly

DI + spread 1.45%

CDI + 1.65%

350,000

-

-

6th (1stserie)

6th (2ndserie)

Reinforcement of working capital and amortization of the first installment of the principal of the debentures of each of the Issuer's following issues: 3rd, 4th and 5th Issue.

06.16.2021

2

06.15.2026

Half-yearly

CDI + spread 1.95%

CDI + 2.02%

1,000,000

1,044,193

1,006,449

Investment for expansion, renovation or improvement and reimbursement of expenses of the Issuer's electricity distribution network linked to concession contract No. 46/1999 of ANEEL.

06.16.2021

3

06.15.2031

Half-yearly

IPCA + 4.7742%

IPCA + 5.1564%

500,000

578,954

559,894

7th (1st serie) 7th (2ndserie)

7th (3rdserie)

(e)

Reinforcement of working capital; redemption of 3rd issue debentures; amortization of the 2nd installment of the principal of the 4th and 5th issuance.

05.15.2022

2

05.15.2025

Half-yearly

CDI + 1.21%

CDI + 1.28%

300,000

316,256

305,380

05.15.2022

2

05.15.2027

Half-yearly

CDI + 1.36%

CDI + 1.42%

901,450

950,828

917,789

Investments for expansion, renovation or improvement and/or reimbursement of expenses of the issuer's electricity distribution network, linked to Aneel's Concession Agreement No. 46/1999.

05.15.2022

3

05.15.2032

Half-yearly

IPCA + 6.1732%

IPCA + 6.6587%

298,550

312,520

301,830

Brisa Potiguar

2nd (1stserie)

2nd (2ndserie)

(d)

Implementation of wind generating plants.

Real and personal guarantee and pledge of Copel GeT shares. 03.24.2016 192 07.15.2032 Monthly TJLP + 2.02% TJLP + 2.02% 147,575 89,368 91,468
03.24.2016 192 07.15.2032 Monthly IPCA + 9.87% IPCA+ 10.92% 153,258 125,508 126,067
Cutia 1st (b) Construction and implementation of wind generating plants. Personal guarantee 03.20.2019 26 12.15.2031 Half-yearly IPCA + 5.8813% IPCA+ 6.83% 360,000 374,161 360,894

Gross debt

(-) Transactioncost

Net debt

9,365,885

(89,224)

9,276,661

7,887,077

(83,222)

7,803,855

Current

Noncurrent

1,468,414

7,808,247

1,346,347

6,457,508

(a) Simple debentures, single series, not convertible into shares, unsecured, for public distribution with restricted placement efforts, according to CVM No. 476. Guarantor: Copel. Trustee: Pentágono S.A. DTVM.
(b) Simple debentures, single series, not convertible into shares, with security interest and additional personal guarantee, for public distribution with restricted efforts, pursuant to CVM Instruction No. 476. Guarantor: Copel. Trustee: Pentágono S.A. DTVM.
(c) Simple debentures, two series, not convertible into shares, unsecured, for public distribution with restricted placement efforts, according to CVM No. 476. Guarantor: Copel. Trustee: Pentágono S.A. DTVM.
(d) Simple debentures, two series, not convertible into shares, issued privately. Companies: Nova Asa Branca I, Nova Asa Branca II, Nova Asa Branca III, Nova Eurus and Ventos de Santo Uriel. Guarantor: Copel. They have no trustee.
(e) Simple debentures, three series, not convertible into shares, unsecured, with additional personal guarantee, for public distribution with restricted placement efforts, pursuant to CVM Instruction No. 476. Guarantor: Copel. Trustee: Pentágono S.A. DTVM.
44

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

21.1 Maturity of noncurrent installments

03.31.2023

Grossdebt

(-) Transaction

cost

Net debt

2024 667,583 (10,715) 656,868
2025 1,811,077 (12,551) 1,798,526
2026 1,795,557 (10,286) 1,785,271
2027 724,305 (8,704) 715,601
2028 64,063 (7,123) 56,940
After2028 2,817,003 (21,962) 2,795,041
7,879,588 (71,341) 7,808,247
21.2 Changes in debentures
Balance as of January 1, 2023 7,803,855
Funding 1,300,000
(-) Transaction costs (11,325)
Charges and monetary variations 332,388
Amortization - principal (5,688)
Payment - charges (142,569)
Balance as of March 31, 2023 9,276,661
21.3 Covenants

The issued debentures contain clauses that require the maintenance of certain economic and financial ratios within pre-determined parameters, requiring annual fulfillment and other conditions to be complied with, such as not changing the Company's interest in the capital stock that would represent change of control without prior consent from the debenture holders; not paying out dividends or interest on capital if it is in arrears in relation to honoring any of its financial obligations or not maintaining the financial ratios as determined without prior written consent of the debenture holders. The non-compliance with the contracted conditions may imply the need to request consent from the debenture holders or the declaration of early maturity of the debts.

On December 31, 2022, all financial indicators measured annually were fully met, except for the subsidiaries Ventos de Santo Uriel and Nova Asa Branca III which did not meet the Debt Service Coverage Ratio (ICSD) of 1.3. However, the Company preventively requested and received, on December 30, 2022, according to letter from BNDES AE/DEENE2 No. 061/2022, the commitment of the development banking institution not to declare the early maturity of the debenture deeds, based on the performance of this index in fiscal year 2022. On March 31, 2023, all other agreed indicators and conditions were fully met.

45

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

The financial covenants contained in the debenture agreements are presented as follows:

Company Contractual Instrument Annual financial ratio Limit
4th issue of Debentures
5th issue of Debentures
Copel GeT 6th issue of Debentures

7th issue of Debentures

8th issue of Debentures

Consolidated net debt / Consolidated EBITDA

Debt service coverage ratio

≤ 3.5

≥ 1.5

4th issue of Debentures
Copel DIS

5th issue of Debentures

6th issue of Debentures

7th issue of Debentures

Nova Asa Branca I

Nova Asa Branca II

Nova Asa Branca III

Nova Eurus IV

Ventos de Santo Uriel

2nd issue of Debentures

Debt service coverage ratio

≥ 1.3

Cutia 1st issue of Debentures Debt service coverage ratio (a) ≥ 1.2
22. Post-employment Benefits

The Company sponsors private retirement and pension plans (Unified Plan and Plan III) and Healthcare Plan for medical and dental care ("ProSaúde II" and "ProSaúde III" Plans) for their active employees and their legal dependents. The lifetime sponsorship of the Healthcare Plan for retirees, pensioners and legal dependents is only applied to "Prosaúde II" plan participants. Fundação Copel de Previdência e Assistência is the entity that manages these plans.

22.1 Pension plan

The Unified Plan is a Defined Benefit plan - BD in which the income is predetermined, according to each individual's salary. This plan is closed for new participants since 1998.

The Plan III, the only plan available for new participants, is a Variable Contribution - CV plan in the contributory phase and, after retirement, it becomes a Defined Benefit - BD plan.

22.2 Healthcare Plan

The Company allocates resources for the coverage of healthcare expenses incurred by their employees and their dependents, within rules, limits and conditions set in "ProSaúde II" and "ProSaúde III" Plans' regulations. Coverage includes periodic medical exams in both plans and is extended to all retirees and pensioners for life only in the "ProSaúde II" plan.

46

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

22.3 Statement of financial position and statement of income

Amounts recognized in liabilities, under Post-employment benefits, are summarized below:

03.31.2023

12.31.2022

Pension plans 685 949
Healthcare plans 1,080,573 1,069,088
1,081,258 1,070,037
Current 86,404 73,814
Noncurrent 994,854 996,223

Amounts recognized in the statement of income are shown below:

03.31.2023

03.31.2022

Employees
Pension plans 14,245 14,509
Healthcare plan - post employment 32,532 35,074
Healthcare plan - active employees 18,893 18,170
65,670 67,753
Management
Pension plans 283 295
Healthcare plan 45 37
328 332
65,998 68,085
22.4 Changes in post-employment benefits
Balance as of January 1, 2023 1,070,037
Appropriation of actuarial calculation 32,532
Appropriation of pension and healthcare contributions 35,950
Amortizations (57,261)
Balance as of March 31, 2023 1,081,258
23. Sectorial Charges Payable
03.31.2023 12.31.2022
Energy Development Account - CDE 37,815 41,122
Global Reversal Reserve - RGR 4,523 5,366
42,338 46,488
24. Research and Development and Energy Efficiency

In accordance with Law No. 9,991/2000 and supplementary regulations, concession operators and licensees of electric power generation and transmission are required to allocate annually the percentage of 1% of their net operating regulatory revenue to research and development of the electricity sector activities, and the electric power distribution concession operators must segregate this same percentage into the research and development and energy efficiency programs of the electricity sector.

47

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

The registered balances of Research and Development - R&D and Energy Efficiency Program - EEP are shown in the table below:

Disbursed and not completed

Balance tobe

collected

Balance to disburse

Balance asof

03.31.2023

Balance asof

12.31.2022

Research and Development -R&D
FNDCT - 8,424 - 8,424 6,588
MME - 4,213 - 4,213 3,314
R&D 232,225 3,348 28,559 264,132 260,243
232,225 15,985 28,559 276,769 270,145
Energy efficiency program -EEP
Procel - 13,419 - 13,419 11,960
EEP 151,809 743 189,633 342,185 332,653
151,809 14,162 189,633 355,604 344,613
384,034 30,147 218,192 632,373 614,758
Current 376,147 370,244
Noncurrent 256,226 244,514

National Fund for Scientific and Technological Development - FNDCT National Program of Electricity Conservation - Procel

24.1 Changes in R&D and EEP balances
FNDCT MME R&D Procel EEP Total
Balance as of January 1, 2023 6,588 3,314 260,243 11,960 332,653 614,758
Additions 12,685 6,342 12,688 1,444 5,776 38,935
Performance agreement - - - - 1,268 1,268
Interest rate (Note32) - - 1,249 15 6,042 7,306
Payments (10,849) (5,443) (2,332) - (2,895) (21,519)
Concluded projects - - (7,716) - (659) (8,375)
Balance as of March 31, 2023 8,424 4,213 264,132 13,419 342,185 632,373
25. Accounts Payable Related to Concessions

Company

Grant

Signature

Closing

Discount

rate

Annual

Adjustment

03.31.2023

12.31.2022

HPP Mauá Copel GeT 06.29.2007 07.03.2007 05.2047 5.65% p.y. IPCA 21,959 21,587
HPP Colider Copel GeT 12.29.2010 01.17.2011 01.2046 7.74% p.y. IPCA 31,180 30,518
HPP Baixo Iguaçu Copel GeT 07.19.2012 08.20.2012 01.2047 7.74% p.y. IPCA 9,222 9,050
HPP Guaricana Copel GeT 03.03.2020 03.03.2020 03.2025 7.74% p.y. IPCA 2,021 2,200
HPP Fundão and HPP Santa Clara Elejor 10.23.2001 10.25.2001 05.2037 11.00% p.y. IGPM 871,561 874,187
935,943 937,542
Current 105,228 105,003
Noncurrent 830,715 832,539

Discount rate applied to calculate present value

Real and net discount rate, compatible with the estimated long-term rate, not being linked to the expectation of return from the project.

Payment to the federal government

Monthly installments equivalent to 1/12 of the annual payment restated, as defined in the concession agreement.

48

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

25.1 Changes in accounts payable related to concessions
Balance as of January 1,2023 937,542
Adjustment to presentvalue (3,034)
Monetary variations 30,484
Payments (29,049)
Balance as of March 31, 2023 935,943
26. Right-of-use Asset and Lease Liability
26.1 Right-of-use asset
Balance as of Additions Remeasurement adjustment Amorti- Loss on Balance as of
January 1, 2023 zation disposal March 31, 2023
Real estate 136,489 854 (1,361) (2,580) (89) 133,313
Vehicles 113,018 8,301 4,606 (13,633) - 112,292
Equipment 11,873 112 - (2,556) - 9,429
261,380 9,267 3,245 (18,769) (89) 255,034
26.2 Lease liability
26.2.1 Changes in lease liability
Balance as of January 1, 2023 273,756
Additions 9,267
Remeasurement adjustment 3,245
Charges 5,717
Amortization - principal (17,384)
Payment - charges (5,711)
Loss on disposal (93)
Balance as of March 31, 2023 268,797
Current 66,254
Noncurrent 202,543

The Company defines the discount rate based on the nominal interest rate applied to the last fundraising, disregarding subsidized or incentivized funding. The interest rates applied range from 3.58% to 15.05% p.a.

26.2.2 Maturity of noncurrent installments
2024 38,646
2025 35,606
2026 36,666
2027 10,417
2028 9,864
After 2028 169,194
Undiscounted amounts 300,393
Imputed interest (97,850)
Lease liabilities balance 202,543
49

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

26.2.3 Potential PIS/Cofins recoverable rights

The following table shows the potential PIS/Cofins recoverable rights embedded in the leasing consideration, according to the expected payment periods.

Cash Flows Nominal value Present value
Lease consideration 431,449 268,797
Potential Pis/Cofins 32,812 21,339
26.3 Impact of forecast inflation on discounted cash flows

In accordance with IFRS 16, in measuring and remeasuring lease liabilities and right-of-use assets, the Company used the discounted cash flow method without considering forecast future inflation, according to the prohibition imposed by the standard.

However, given the current reality of long-term interest rates in the Brazilian economic environment, the table below shows the comparative balances between the information recorded in accordance with IFRS 16 and the amount that would be recorded considering forecast inflation:

Balance in accordance with

IFRS 16

Inflation projected balance

%

Lease liabilities 268,797 321,470 19.60%
Right to use assets 255,034 291,612 14.34%
Financial expense 5,717 6,849 19.80%
Amortization expense 18,769 20,161 7.42%
26.4 Commitments from leases and rentals

For leases of low value assets, such as computers, printers and furniture, short-term leases, as well as for leases of land for development of wind power generation projects, whose payment is made based on variable remuneration, the amounts are recognized in the statement of income as operating costs and/or expenses (Note 31.6). The balance of commitments from leases and rentals is shown below:

Less than Over
1 year 1 to 5 years 5 years 03.31.2023
Commitments from leases and rentals 12,328 57,898 297,243 367,469
26.5 Receivables from leases
Less than Over Total
1 year 1 to 5 years 5 years 03.31.2023
Facilities sharing 1,393 5,572 18,132 25,097
50

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

27. Other Accounts Payable
03.31.2023 12.31.2022
Fair value in the purchase and sale of power (Note 34.2.12) 1,179,010 738,703
Generation deviation - wind projects (Note 34.2.11) 185,368 184,813
Public lighting rate collected 61,488 52,520
Payments/returns to consumers 56,467 50,652
Aneel Order No. 084/2017 provision 39,442 38,145
Obligations to customers in gas sales operations(a) 34,783 33,223
Pledges in guarantee 28,197 29,924
Financial offset for the use of water resources 25,679 28,511
Other liabilities 103,529 90,362
1,713,963 1,246,853
Current 713,962 601,619
Noncurrent 1,000,001 645,234

(a) Refers to amounts paid for the purchase of contracted gas volumes not yet taken by customers.

28. Provisions for Legal Claims and Contingent Liabilities

The Company and is responsible for several legal and administrative proceedings before different courts. Based on assessments made by the Company's legal counsel, Management makes provisions for legal claims in which the losses are rated probable, when the criteria for recognition of provisioning described in Note 4.11 of the financial statements as of December 31, 2022 are met.

The Company's management believes it is impracticable to provide information regarding the timing of any cash outflows related to the lawsuits for which the Company is responsible on the date of preparation of the financial statements, in view of the unpredictability and dynamics of the Brazilian judicial, tax and regulatory systems, and that the final resolution depends on the conclusions of the lawsuits. For this reason, this information is not provided.

28.1 Change in provision for legal claims
Income
Provision Construction
Balances as of for litigations cost Additions Transfers/ Balances as of
January 1, 2023 Additions Reversals Additions/(Rev.) to assets Settlements Others March 31, 2023
Tax
Cofins 123,564 319 - - - - - 123,883
Others 78,186 8,313 (5,731) - - (7,731) 13,657 86,694
201,750 8,632 (5,731) - - (7,731) 13,657 210,577
Labors 536,464 21,875 - - - (32,233) - 526,106
Employee benefits 30,126 1,701 (516) - - (93) - 31,218
Civil
Civil and administrative claims 958,111 22,345 (4,106) - - (33,695) - 942,655
Easements 138,724 77 - (15,744) 2,245 18 - 125,320
Expropriations and property 154,912 269 (41) 161 8,401 (3) - 163,699
Customers 3,750 43 (1,675) - - - - 2,118
Environmental 5,269 771 (811) - - - - 5,229
1,260,766 23,505 (6,633) (15,583) 10,646 (33,680) - 1,239,021
Regulatory 8,493 88 (2,311) - - (18) - 6,252
2,037,599 55,801 (15,191) (15,583) 10,646 (73,755) 13,657 2,013,174
51

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

28.2 Details of provisions for legal claims and contingent liabilities

The following table shows the details of the provisions for legal claims recorded and, in addition, the amounts of contingent liabilities, which are present obligations arising from past events, but without provisions recognized because it is not probable an outflow of resources that incorporate economic benefits to settle the obligation.

52

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Description

Consolidated
Provisions Contingent liabilities
03.31.2023 12.31.2022 03.31.2023 12.31.2022

Tax

Cofins

Requirement of the Federal Revenue Service for the period from August 1995 to December 1996, due to the termination of a judicial decision that has recognized the Company's exemption from Cofins.

123.883

123.564

8.596

9.550

INSS Tax requirements related to the social security contribution. 31.239 30.899 111.167 56.790
Federal taxes Administrative requirements and questions from Receita Federal do Brasil (Federal Revenue Service). 2.157 2.100 42.094 53.682
ICMS (VAT) Administrative requirements and questions from the State regarding the payment of ICMS (VAT) on the Company's invoices. 6.877 4.035 25.583 24.930
IPTU Tax Requirement on Urban Territorial Property (IPTU) on properties affected by the public electricity service. 8.357 9.332 163.821 152.113
ISS City halls tax requirement as ISS on construction services provided by third parties. 215 181 58.789 56.731
Other Taxes, fees and other federal, state and municipal taxes in which the Company discusses the levy or not, as well as its bases and amounts for payment 37.849 31.639 116.442 149.518
210.577 201.750 526.492 503.314

Labor

Charging of overtime, hazardous work, transfer surcharge, equalization / salary adjustment, among others, by employees and former employees of Copel; collection of indemnity installments and others, by ex-employees of contractors and outsourced companies (subsidiary responsibility).

526.106

536.374

376.477

378.737

Employee benefits

Labor claims filed by former retired employees against Fundação Copel, which will consequently cause repercussions for the Company and its wholly-owned subsidiaries, to the extent that additional contributions are required.

31.218

30.126

10.835

12.716

Regulatory

ESBR

ESBR filed Ordinary Lawsuit No. 10426-71.2013.4.01.4100 against ANEEL in the Federal Court of Rondônia, whose ruling: (i) acknowledged the exclusion of liability for the 535-day schedule overrun in the construction of the Jirau Hydropower Station;

(ii) declares any obligations, penalties and costs imposed on ESBR as a result of the schedule overrun to be unenforceable, and (iii) annuls ANEEL Resolution 1,732/2013, which had recognized a schedule overrun of only 52 days. An appeal has been brought by ANEEL, pending judgment by the Federal Court of the 1st Region. The practical consequence of the ruling was, at the time it exempted ESBR, to expose the distributors with whom it entered into power trading contracts (CCEARs) to the Short-Term Market and to the high value of the Settlement Price of the Differences (Preço de Liquidação das Diferenças - PLD, in Portuguese) in the period, including Copel DIS. This occurred because the rules for the sale of electricity require that all energy consumed should have a corresponding contractual coverage. If the lawsuits are judged unfavorably against Copel,

the amount will be classified as Sectorial Financial Asset to be recovered through tariff rates.

-

-

1.138.777

1.130.845

Colíder exclusion of liability

Discussion on the value of the Tariff for use of the transmission system - TUST and monetary adjustment on energy values referring to the exclusion of liability period.

As a result of the court injunction that excluded the delay period for the Colíder HPP from being responsible for the delivery of energy contracted in the Regulated Contracting Environment - ACR, CCEE proceeded to credit, valued to PLD, the energy previously backed to comply with ACR. However, in the event of failure in the lawsuit, the Company must return the amounts credited, updated by the IGPM.

-

-

343.033

320.044

Other Aneel's notifications about possible breaches of regulatory standards 6.252 8.493 48.663 45.718
6.252 8.493 1.530.473 1.496.607

(continued)

53

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Description

Consolidated
Provisions Contingent liabilities
03.31.2023 12.31.2022 03.31.2023 12.31.2022

Civil

Tobacco growers

Actions whose main cause is the lack of electricity causing loss of production.

60.620

73.366

61.305

71.237

Arbitration Arbitration protected by secrecy and confidentiality, in the early stage of award settlement. 631.551 629.056 340.166(a) 338.779
Civil and administrativelaw Other actions involving billing, supposed irregular procedures, administrative contracts and contractual fines, indemnity for accidents with the electric power network and accident with vehicles. 147.509 154.550 532.237 549.115

Indemnification to third parties (civil)

Actions for indemnity for resulting from damages caused during the construction of power plants. The execution of the sentence began without the previously determined accounting expertise. In the 1st degree, Copel challenged the execution and presented an insurance policy as a guarantee until a decision on the performance of an expert examination and excess of

the value. As there was still no favorable position on the merits, the risk was reassessed with a change in the provisioned

balance.

102.908

101.076

100.566

98.940

Easements

Discussion between the amount determined by Copel for payment and the amount claimed by the property owner and/or when

the owner's documentation supporting title to the property may not be registered (when probate proceedings are still in progress, properties have no registry number with the land registry, etc.), intervention in third-party adverse possession, either as a confronter, or in case of a property where there are areas of easement of passage, in order to preserve the limits and boundaries of expropriated areas.

125.385

138.841

32.203

31.063

Expropriations and property

Discussion between the amount assessed by Copel for payment and the amount claimed by the owner, and / or when the owner's documentation does not present conditions for registration (inventories in progress, properties without registration, among others); actions for repossession of real estate owned by the concessionaire; intervention in the adverse possession of third parties, as a confrontant, in order to preserve the limits and confrontations of the expropriated areas.

163.701

154.943

39.191

38.030

Consumers

Lawsuits seeking compensation for damages caused in household appliances, industrial and commercial machines, lawsuits claiming damages for pain and suffering caused by service interruption and lawsuits filed by industrial consumers, challenging the lawfulness of the increase in electricity prices while Plano Cruzado (anti-inflation economic plan) was in effect and claiming reimbursement for the amounts paid by the Company.

2.118

3.758

1.979

1.911

Environmental

Public civil and class actions whose purpose is to obstruct the progress of environmental licensing for new projects or to

recover permanent preservation areas located around the hydroelectric power plant dams unlawfully used by private individuals. If the outcome of the lawsuits is unfavorable to the Company, Management estimates only the cost to prepare new environmental studies and to recover the areas owned by Copel GeT. They also include the Commitment Agreements (Termos de Ajuste de Conduta - TAC, in Portuguese), which refer to the commitments agreed-upon and approved between the Company and the relevant bodies, for noncompliance with any condition provided for by the Installation and Operating

Licenses.

5.229

5.266

227.361

216.380

1.239.021 1.260.856 1.335.008 1.345.455
2.013.174 2.037.599 3.779.285 3.736.829

(a) refers to the estimate of possible loss of a total, monetarily restated, of R$2,978,999 of the plaintiff's claim.

54

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

29. Equity
29.1 Capital

On March 31, 2023, paid in capital is R$10,800,000 (R$10,800,000 as of December 31, 2022). Its composition by shares (without par value) and the main shareholders are shown below, already considering the number of shares updated after the split and the conversion period of the UNITs Program ratified and approved by Management in 2021:

03.31.2023 Number of shares in units
Common Class "A" Preferred Class "B" preferred Total
number of shares % number of shares % number of shares % number of shares %
State of Paraná 734,298,319 69.66 - - 115,945,012 6.90 850,243,331 31.07
BNDESPAR 131,161,562 12.44 - - 524,646,248 31.24 655,807,810 23.96
Free float:
B3 138,212,290 13.11 681,680 21.79 909,513,430 54.16 1,048,407,400 38.31
NYSE 31,594,714 3.00 - - 126,378,856 7.53 157,973,570 5.77
Latibex 221,967 0.02 - - 1,851,143 0.11 2,073,110 0.08
Other shareholders 18,601,608 1.77 2,446,320 78.21 1,000,601 0.06 22,048,529 0.81
1,054,090,460 100.00 3,128,000 100.00 1,679,335,290 100.00 2,736,553,750 100.00
29.2 Equity valuation adjustments

Balance as of January 1, 2023

Realization of equity evaluation adjustment

593,382
Deemed cost of fixed assets (12,422)
Taxes on adjustments 4,223
Other adjustments
Adjustments on financial assets - subsidiaries (282)
Taxes on other adjustments 96
Attributed to non-controlling interest 56
Balance as of March 31, 2023 585,053
55

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

29.3 Earnings per share - basic and diluted
03.31.2023 03.31.2022
Basic and diluted numerator
Basic and diluted earnings allocated by classes of shares, allocated to controlling shareholders
Common shares 227,376 241,075
Class "A" preferred shares 742 787
Class "B" preferred shares 398,472 422,479
626,590 664,341
Basic and diluted denominator
Weighted average of shares (in thousands)
Common shares 1,054,090,460 1,054,090,460
Class "A" preferred shares 3,128,000 3,128,000
Class "B" preferred shares 1,679,335,290 1,679,335,290
2,736,553,750 2,736,553,750
Basic and diluted earnings per share attributable to controlling shareholders
Common shares 0.21571 0.22870
Class "A" preferred shares 0.23728 0.25158
Class "B" preferred shares 0.23728 0.25158
30. Net Operating Revenue

Gross revenues

PIS/Pasep and Cofins

ICMS (VAT)

Sectorial charges

Service

tax(ISSQN)

Net revenue

03.31.2023

03.31.2022

Electricity sales to final customers 2,459,196 (200,343) (293,703) (60,991) - 1,904,159 2,134,153
Electricity sales to distributors 1,053,029 (140,014) (3,796) (16,555) - 892,664 1,001,675
Use of the main distribution and transmission grid 2,530,819 (219,798) (183,919) (630,884) - 1,496,218 1,262,904
Construction income 531,360 - - - - 531,360 487,063
Fair value of assets from the indemnity for the concession 25,734 - - - - 25,734 42,549
Distribution of piped gas 349,069 (25,613) (63,335) - (3) 260,118 233,089
Result of sectorial financial assets and liabilities 269,120 (24,894) - - - 244,226 324,185
Other operating revenue 192,611 (15,325) - - (1,099) 176,187 102,131
7,410,938 (625,987) (544,753) (708,430) (1,102) 5,530,666 5,587,749
56

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

30.1 Revenue by type and/or class of customers

03.31.2023

03.31.2022

Electricity sales to final customers 2,459,196 3,948,480
Residential 699,253 1,337,295
Industrial 162,574 332,698
Trade, services and other activities 384,085 765,115
Rural 169,952 318,936
Public entities 52,975 100,067
Public lighting 42,388 105,404
Public service 67,632 129,657
Free consumers 689,505 665,612
Donations and grants 190,832 193,696
Electricity sales to distributors 1,053,029 1,189,609
Bilateral contracts 598,384 727,779
Regulated contracts 296,339 253,423
Electric Energy Trade Chamber -CCEE 121,362 166,488
Effective interest - grant bonus (Note9.3) 36,944 41,919
Use of the main distribution and transmission grid 2,530,819 2,801,864
Residential 742,262 847,873
Industrial 167,110 373,638
Trade, services and other activities 414,726 530,741
Rural 194,530 191,036
Public entities 60,578 63,597
Public lighting 47,375 52,190
Public service 54,299 59,390
Free consumers 580,225 384,746
Concessionaires and generators 22,761 21,369
Operating and maintenance income - O&M and interest income 246,953 277,284
Construction income 531,360 487,063
Power distribution service concession 489,977 439,969
Power gas distribution service concession 2,991 3,413
Power transmission concession(a) 38,392 43,681
Fair value of assets from the indemnity for the concession 25,734 42,549
Distribution of pipedgas 349,069 310,061
Result of sectorial financial assets and liabilities 269,120 357,229
Other operating revenue 192,611 117,843
Leasing and rent (30.2) 114,576 82,691
Fair value in the purchase and sale of power 50,291 -
Income from rendering of services 10,019 22,486
Other income 17,725 12,666
GROSS OPERATING REVENUE 7,410,938 9,254,698
(-) Pis/Pasep and Cofins (625,987) (720,425)
(-) ICMS (VAT) (544,753) (1,549,414)
(-) Service tax (ISSQN) (1,102) (2,410)
(-) Sectorial charges (30.3) (708,430) (1,394,700)
NET OPERATING REVENUE 5,530,666 5,587,749

(a) The balance contains the amount of construction revenue, the construction margin and the efficiency gain or loss as detailed in Note10.3

57

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

30.2 Leases and rentals
30.2.1 Revenue from leases and rentals

03.31.2023

03.31.2022

Equipment and structures 114,098 82,304
Facilities sharing 415 333
Real estate 63 54
114,576 82,691
30.3 Regulatory charges

03.31.2023

03.31.2022

Energy Development Account - "CDE " - Power distribution service concession (30.3.1) 639,590 681,471
Other charges - rate flags (30.3.2) 330 638,575
Research and development and energy efficiency - R&D and EEP 38,935 40,779
Global Reversion Reserve - RGR quota 12,431 12,035
Energy Development Account - "CDE " - Power transmission concession 13,399 18,620
Inspection fee 3,745 3,220
708,430 1,394,700
30.3.1 Energy Development Account - CDE - power distribution concession

CDE, created by Law no. 10438/2002, amended by Law No. 12783/2013, which aims to promote energy development in the national territory, has as one of its fund sources the tariff charge attributed to end consumers in the tariff processes and periodically paid by the distributor. Annual charge amounts are defined by Aneel through approval resolutions and managed by CCEE.

As of June 2021, the Company began paying CDE Covid Account amounts provided for in Decision No. 939/2021, in the monthly amount of R$29,032, to repay the loan transaction taken out by CCEE, which intended to cover deficits or anticipate distributor revenues. The repayment will be made over 54 months, from June 2021 to December 2025.

On February 24, 2023, Aneel published Decision No. 510, which confirmed the specific amounts of CDE water shortage (Note 8.1) for payment of the financial transaction contracted to cover the additional costs demanded in the water crisis period, according to Regulatory Resolution No. 1008/2022. The monthly amount determined for Copel DIS is R$6,454, to be paid to CCEE as of June 2023.

58

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

The balance is as follows:

Resolutions Period 03.31.2023 03.31.2022

"CDE USO"

Quotas (a)

Covid Account (b)

552,493

45,861

594,374

45,861

598,354 640,235
"CDE ENERGIA" Covid Account (b) 41,236 41,236
639,590 681,471

(a)"CDE Uso": Resolution No. 3,165/2022 (as of jan/23); Resolution No. 3,034/2022 (may-dec/22), Resolution No. 3,004/2021 (jan- apr/22).

(b) "CDE Uso" and "CDE Energia" - Covid Account: Order No. 939/2021.
30.3.2 Tariff flag

The tariff flag system was created by Aneel Regulatory Resolution No. 547/2013, effective from 2015, to indicate whether an increase in the electric energy value to be passed on to end consumers would apply depending on the conditions for electricity generation. As of May 2022, after the improvement of hydric conditions, the green flag is prevailing, with no increase in energy bills.

30.4 Copel DIS annual tariff adjustment

Aneel ratified the result of the 2022 Annual Tariff Adjustment of Copel Distribuição through Approval Resolution No. 3,049/2022, authorizing an average readjustment of 4.90% perceived by consumers (9.89% in the readjustment of June 2021), and which was fully applied to tariffs as of June 24, 2022, with the average readjustment for high voltage consumers being 9.32% and 2.68% for low voltage consumers (respectively, 9.57 % and 10.04% in 2021).

31. Operating Costs and Expenses
General and Other
Operational Selling administrative operational
costs expenses expenses expenses, net 03.31.2023 03.31.2022
Non-manageable costs and expenses
Electricity purchased for resale (31.1) (1,820,975) - - - (1,820,975) (1,939,498)
Charge of the main distribution and transmission grid (687,571) - - - (687,571) (774,975)
Materials and supplies for power electricity (6,750) - - - (6,750) (85,431)
Natural gas and supplies for gas business (181,782) - - - (181,782) (187,412)
(2,697,078) - - - (2,697,078) (2,987,316)
Manageable costs and expenses
Personnel and management (31.2) (292,099) (1,808) (131,263) - (425,170) (282,325)
Pension and healthcare plans (Note 22.3) (44,081) (183) (21,734) - (65,998) (68,085)
Materials (18,356) (7) (2,560) - (20,923) (18,236)
Third-party services (31.3) (171,172) (594) (65,791) - (237,557) (167,930)
Credit losses, provisions and reversals (31.4) 36,926 13,841 - (40,044) 10,723 (115,948)
Other operational costs and expenses, net (31.6) (57,835) (12,030) (18,126) (14,889) (102,880) (93,115)
(546,617) (781) (239,474) (54,933) (841,805) (745,639)
Other
Depreciation and amortization (329,926) - (16,605) (6,119) (352,650) (320,378)
Construction cost (31.5) (528,981) - - - (528,981) (476,717)
(858,907) - (16,605) (6,119) (881,631) (797,095)
(4,102,602) (781) (256,079) (61,052) (4,420,514) (4,530,050)
59

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

31.1 Electricity purchased for resale

03.31.2023

03.31.2022

Purchase of Energy in the Regulated Environment - CCEAR 925,465 870,197
Itaipu Binacional 212,917 350,166
Electric Energy Trade Chamber - CCEE 99,546 69,949
Bilateral contracts 451,943 573,826
Program for incentive to alternative energy sources - Proinfa 91,413 110,487
Micro and mini generators 249,169 179,481
Fair value in the purchase and sale of power - 21,834
(-) PIS/Pasep/Cofins taxes on electricity purchased for resale (209,478) (236,442)
1,820,975 1,939,498
31.2 Personnel and management

03.31.2023

03.31.2022

Personnel
Salaries and management fees(a) 277,699 150,102
Social charges on payroll 59,254 54,562
Meal and education allowance 29,056 25,723
Voluntary retirement program 2 (7,880)
366,011 222,507
Management
Salaries and management fees 4,542 4,509
Social charges on payroll 945 936
Otherexpenses 72 68
5,559 5,513
Provisions for performance and profit sharing
of employees and administrators 53,600 54,305
425,170 282,325

(a) In 2023, R$138,173 were recorded referring to vacation benefit indemnity approved by the Collective Bargaining Agreement on January 19, 2023.

31.3 Third party services

03.31.2023

03.31.2022

Maintenance of electrical system 91,014 64,287
Maintenance of facilities 32,641 20,186
Communication, processing and transmission of data 29,152 24,118
Consumer service / call center 25,234 17,557
Consulting and audit 16,716 9,042
Meter reading and bill delivery 14,514 12,955
Other services 28,286 19,785
237,557 167,930
60

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

31.4 Credit losses, provisions and reversals

03.31.2023

03.31.2022

Provision for legal claims (Note 28) 40,291 64,167
Impairment (reversal of impairment) of assets
Power generation concession contract (Note 9.3) (1,358) -
Gas operations - 1,629
Property, plant and equipment - generation segment (Note 16.4) (35,568) -
Expected credit losses (reversal of losses) - Trade accounts and Other receivables (13,841) 51,437
Tax credits estimated losses (247) (1,285)
(10,723) 115,948
31.5 Construction costs

03.31.2023

03.31.2022

Materials 311,887 270,208
Third party services 158,870 150,964
Personnel 51,356 43,256
Other 6,868 12,289
528,981 476,717
31.6 Other operating costs and expenses, net

03.31.2023

03.31.2022

Financial offset for the use of water resources 38,499 20,820
Collection charge 11,935 11,912
Net losses (gains) in the decommissioning and disposal of assets 10,784 18,309
Leasing and rent 9,772 8,172
Insurance 9,329 9,737
Taxes 5,535 12,733
Aneel inspection fee 4,427 4,433
Compensation 4,083 2,865
Donations, contributions, grants, tax incentives (a) 784 234
Advertising and publicity
Associação das Emissoras de Radiodifusão do Paraná - AERP 3,194 2,853
Publicity 559 613
Sponsorship 497 525
Talento Olímpico Paranaense - TOP - 122
Other net income, costs and expenses 3,482 (213)
102,880 93,115

(a) The balance includes the Company's social investments in education, culture, health, sports, among others, including incentive donations used as a tax benefit.

61

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

32. Financial Results

03.31.2023

03.31.2023

Financial income
Arrears charges on bills 55,569 76,417
Return on financial investments 97,604 87,944
Remuneration of net sectorial assets and liabilities (Note 8) 25,195 32,129
Income and monetary restatement of judicial deposits 16,142 10,378
Interest on taxes to be offset 17,691 15,007
Monetary variation and adjustment to present value of accounts
payable related to the concession (Note 25.1) 7,375 1,286
Monetary variation over the Itaipu power purchase 3,338 29,507
Other financial income 26,303 17,434
(-) Pis/Pasep and Cofins taxes on financial income (8,578) (10,227)
240,639 259,875
( - ) Financial expenses
Monetary and exchange variation and debt charges 466,949 347,730
Monetary variation and adjustment to present value of accounts
payable related to the concession (Note 25.1) 34,825 71,475
Interest on tax installments 10,561 7,749
Interest on R&D and EEP (Note 24.1) 7,306 8,045
Interest on lease liabilitie (Note 26.2) 5,717 3,865
Remuneration of net sectorial assets and liabilities (Note 8) 1,605 3,791
Monetary variation over the Itaipu power purchase 813 4,600
Other financial expenses 46,002 25,847
573,778 473,102
Net (333,139) (213,227)
33. Operating Segments

Operating segments are business activities that generate revenues and incur expenses, whose operating results are regularly reviewed by the executive boards of the Company and by key strategic decision-makers responsible for allocating funds and assessing performance.

33.1 Products and services from which the reportable segments have their revenues generated

The Company operates in reportable segments identified by Management, through the chief officers of each business area, taking into consideration the regulatory environments, the strategic business units and the different products and services. These segments are managed separately, since each business and each company require different technologies and strategies.

Until March 31, 2023, all sales have been to customers within the Brazilian territory, in addition, all noncurrent assets are also located in the national territory. The Company did not identify any customer who individually accounts for more than 10% of their total net revenue until March 31, 2023.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

The Company evaluates the performance of each segment, based on information derived from the accounting records. The accounting policies of the operating segments are the same as those described in Note 4 of the financial statements as of December 31, 2022.

33.2 Company's reportable segments

Power generation and transmission (GET) - its attribution is to produce electricity from hydraulic, wind, and thermal projects (GER) and to provide services of transmission and transformation of electric power, being responsible for the construction, operation and maintenance of substations, as well for the energy transmission lines (TRA); for managers, the assets and liabilities of the generation and transmission segments are shown on an aggregate basis while their result is presented separately;

Power distribution (DIS) - its attribution is to provide public electricity distribution services, being responsible for the operation and maintenance of the distribution infrastructure, as well as providing related services;

GAS - its attribution is to provide public service of piped natural gas distribution;

Power sale (COM) - its attribution is to trade energy and related services;

Holding and Services - its attribution is the provision of services and participation in other companies.

33.3 Assets by reportable segment

ASSETS

03.31.2023

ElectricEnergy

GAS

Holding and Services Intersegmentoperations

Consolidated

GET DIS COM
TOTALASSETS 26,656,292 20,881,942 2,265,570 1,082,586 2,241,268 (63,195) 53,064,463
CURRENTASSETS 3,647,697 5,139,426 1,024,669 281,751 1,250,492 (1,381,513) 9,962,522
NONCURRENTASSETS 23,008,595 15,742,516 1,240,901 800,835 990,776 1,318,318 43,101,941
Long term assets 6,974,213 8,093,276 1,232,525 74,405 790,887 (217,814) 16,947,492
Investments 3,273,244 532 - - 161,904 - 3,435,680
Property, plant and equipment 11,174,627 - 568 - 13,823 - 11,189,018
Intangibleassets 1,502,555 7,510,408 5,974 713,270 6,378 1,536,132 11,274,717
Right-of-use asset 83,956 138,300 1,834 13,160 17,784 - 255,034

ASSETS

12.31.2022

ElectricEnergy

GAS

Holding and Services Intersegmentoperations

Consolidated

GET DIS COM
TOTALASSETS 24,917,856 20,538,815 1,808,971 1,083,713 2,244,405 (890,060) 49,703,700
CURRENTASSETS 3,237,725 4,937,240 990,867 282,714 1,311,618 (1,432,915) 9,327,249
NONCURRENTASSETS 21,680,131 15,601,575 818,104 800,999 932,787 542,855 40,376,451
Long term assets 6,819,202 8,200,557 809,498 59,505 732,365 (178,982) 16,442,145
Investments 3,163,152 534 - - 162,045 - 3,325,731
Property, plant and equipment 10,054,763 - 541 - 14,164 - 10,069,468
Intangibleassets 1,559,776 7,257,827 6,193 726,107 5,987 721,837 10,277,727
Right-of-use asset 83,238 142,657 1,872 15,387 18,226 - 261,380
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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

33.4 Statement of income by reportable segment

STATEMENT OF INCOME

03.31.2023

Electric Energy

GAS

Holding and Services

Inter- segment operations

Consolidated

GET

DIS

COM

GER TRA
CONTINUING OPERATIONS
NET OPERATING REVENUE 1,057,632 339,034 3,531,641 1,116,652 263,251 - (777,544) 5,530,666
Net operating revenue - third-parties 381,030 247,392 3,522,483 1,116,652 263,109 - - 5,530,666
Net operating revenue - between segments 676,602 91,642 9,158 - 142 - (777,544) -
OPERATING COSTS AND EXPENSES (565,888) (122,653) (3,238,770) (1,018,224) (219,345) (33,178) 777,544 (4,420,514)
Energy purchased for resale (25,864) - (1,464,757) (1,008,782) - - 678,428 (1,820,975)
Charges for use of the main transmission grid (159,441) - (625,128) - - - 96,998 (687,571)
Personnel and management (79,813) (52,976) (260,812) (5,471) (10,863) (15,235) - (425,170)
Pension and healthcare plans (12,291) (8,208) (41,545) (510) (1,500) (1,944) - (65,998)
Materials and supplies (3,050) (1,370) (15,960) (9) (213) (321) - (20,923)
Raw materials and supplies for generation (6,878) - - - - - 128 (6,750)
Natural gas and supplies for gas business - - - - (181,782) - - (181,782)
Third party services (53,468) (14,910) (155,176) (501) (3,073) (11,282) 853 (237,557)
Depreciation and amortization (206,664) (3,888) (124,363) (714) (15,775) (1,246) - (352,650)
Provision for litigations (4,028) (2,569) (33,051) (9) (15) (619) - (40,291)
Reversal of impairment of assets 36,926 - - - - - - 36,926
Other estimated losses, provisions and reversals (819) 270 15,441 (456) (350) 2 - 14,088
Construction cost - (36,013) (489,977) - (2,991) - - (528,981)
Other operating costs and expenses, net (50,498) (2,989) (43,442) (1,772) (2,783) (2,533) 1,137 (102,880)
EQUITY IN EARNINGS OF INVESTEES 4,162 100,023 - - - (97) - 104,088
PROFIT (LOSS) BEFORE FINANCIAL
INCOME AND TAX 495,906 316,404 292,871 98,428 43,906 (33,275) - 1,214,240
Financial income 73,980 16,239 115,620 8,631 6,153 23,590 (3,574) 240,639
Financial expenses (194,812) (116,539) (228,155) (84) (10,656) (27,106) 3,574 (573,778)
OPERATING PROFIT (LOSS) 375,074 216,104 180,336 106,975 39,403 (36,791) - 881,101
Income tax and social contribution (127,468) (32,803) (40,646) (36,471) (13,480) 5,257 - (245,611)
NET INCOME (LOSS) 247,606 183,301 139,690 70,504 25,923 (31,534) - 635,490

STATEMENT OF INCOME

03.31.2022

Electric Energy

GAS

Holding and Services

Inter- segment operations

Consolidated

GET

DIS

COM

GER TRA
CONTINUING OPERATIONS
NET OPERATING REVENUES 1,092,719 367,586 3,521,968 1,184,042 253,647 8,014 (840,227) 5,587,749
Net operating revenue - third-parties 380,437 279,595 3,512,572 1,156,511 250,620 8,014 - 5,587,749
Net operating revenue - between segments 712,282 87,991 9,396 27,531 3,027 - (840,227) -
OPERATING COSTS AND EXPENSES (642,667) (95,396) (3,195,367) (1,183,305) (219,506) (48,778) 854,969 (4,530,050)
Energy purchased for resale (60,646) - (1,442,253) (1,176,409) - - 739,810 (1,939,498)
Charges for use of the main transmission grid (141,715) - (729,815) - - - 96,555 (774,975)
Personnel and management (55,382) (34,092) (165,461) (3,445) (9,766) (14,179) - (282,325)
Pension and healthcare plans (12,275) (7,968) (42,945) (463) (1,392) (3,042) - (68,085)
Materials and supplies (2,535) (1,105) (14,068) (12) (241) (275) - (18,236)
Raw materials and supplies for generation (88,177) - - - - - 2,746 (85,431)
Natural gas and supplies for gas business - - - - (187,412) - - (187,412)
Third party services (39,512) (9,535) (108,720) (960) (3,417) (7,811) 2,025 (167,930)
Depreciation and amortization (197,143) (3,008) (108,525) (77) (10,550) (1,075) - (320,378)
Provision (reversal) for litigations (3,542) (2,003) (50,338) (25) 33 (8,292) - (64,167)
Impairment of assets - - - - (1,629) - - (1,629)
Other estimated losses, provisions and reversals (1,025) 324 (48,572) (720) (159) (14,742) 14,742 (50,152)
Construction cost - (33,335) (439,969) - (3,413) - - (476,717)
Other operating costs and expenses,net (40,715) (4,674) (44,701) (1,194) (1,560) 638 (909) (93,115)
EQUITY IN EARNINGS OF INVESTEES 4,596 109,093 - - - (908) - 112,781
PROFIT (LOSS) BEFORE FINANCIAL
INCOME AND TAX 454,648 381,283 326,601 737 34,141 (41,672) 14,742 1,170,480
Financial income 57,432 14,806 162,138 6,355 10,769 23,348 (14,973) 259,875
Financial expenses (205,873) (69,942) (140,087) (86) (7,701) (64,386) 14,973 (473,102)
OPERATING PROFIT (LOSS) 306,207 326,147 348,652 7,006 37,209 (82,710) 14,742 957,253
Income tax and social contribution (102,555) (64,747) (120,615) (2,364) (9,960) 12,779 - (287,462)
NET INCOME (LOSS) 203,652 261,400 228,037 4,642 27,249 (69,931) 14,742 669,791
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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

33.5 Additions to noncurrent assets by reportable segment

03.31.2023

Electric Energy GAS

Holdingand

Services

Consolidated
GET DIS COM
Contract assets - 477,097 - 2,810 - 479,907
Property, plant and equipment 75,252 - 45 - 29 75,326
Intangible assets 1,052 - 435 - 557 2,044
Right-of-use asset 234 9,033 - - - 9,267
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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

34. Financial Instruments
34.1 Categories and determination of fair value of financial instruments
03.31.2023 12.31.2022
Note Level Book value Fair value Book value Fair value
Financial assets
Fair value through profit or loss
Cash and cash equivalents (a) 5 1 2,911,274 2,911,274 2,678,457 2,678,457
Bonds and securities (b) 6 2 501,792 501,792 431,056 431,056
Accounts receivable - distribution concession (c) 9.1 3 1,560,022 1,560,022 1,442,819 1,442,819
Accounts receivable - generation concession (c) 9.3 3 70,001 70,001 68,642 68,642
Fair value in the purchase and sale of power (d) 11 3 1,572,356 1,572,356 1,081,758 1,081,758
Other temporary investments (e) 1 13,422 13,422 15,372 15,372
Other temporary investments (e) 2 13,380 13,380 10,247 10,247
6,642,247 6,642,247 5,728,351 5,728,351
Amortized cost
Collaterals and escrow accounts (a) 178 178 157 157
Trade accounts receivable (a) 7 3,577,994 3,577,994 3,451,869 3,451,869
Sectorial financial assets (a) 8 436,180 436,180 381,398 381,398
Accounts receivable - concessions - bonus from
the grant (g) 9.2 782,005 883,199 766,832 866,653
4,796,357 4,897,551 4,600,256 4,700,077
Fair value through other comprehensive income
Certified Emission Reductions - CERs (j) 10,399 10,399 10,295 10,295
10,399 10,399 10,295 10,295
Total financial assets 11,449,003 11,550,197 10,338,902 10,438,723
Financial liabilities
Fair value through profit or loss
Fair value in the purchase and sale of power (d) 27 3 1,179,010 1,179,010 738,703 738,703
1,179,010 1,179,010 738,703 738,703
Amortized cost
Sectorial financial liabilities (a) 8 259,123 259,123 483,255 483,255
ICMS installment payment (f) 12.2.4 46,744 42,265 48,320 43,419
Special Tax Regularization Program - Pert (f) 12.2 399,068 338,001 404,075 340,025
PIS and Cofins to be refunded to consumers (a) 12.2.1 2,046,612 2,046,612 1,995,158 1,995,158
Accounts payable to suppliers (a) 19 2,087,719 2,087,719 2,215,470 2,215,470
Loans and financing (f) 20 5,495,728 5,239,038 4,694,957 4,171,789
Debentures (h) 21 9,365,885 9,092,840 7,887,077 7,688,396
Accounts payable related to concession (i) 25 935,943 1,051,992 937,542 1,051,710
20,636,822 20,157,590 18,665,854 17,989,222
Total financial liabilities 21,815,832 21,336,600 19,404,557 18,727,925

Different levels are defined as follows:

Level 1: Obtained from quoted prices (not adjusted) in active markets for identical assets and liabilities;

Level 2: obtained through other variables in addition to quoted prices included in Level 1, which are observable for the assets or liabilities;

Level 3: obtained through assessment techniques which include variables for the assets or liabilities, which however are not based on observable market data.

Determining fair values

a) Equivalent to their respective book values due to their nature and terms of realization.
b) Fair value is calculated based on information made available by the financial agents and the market values of the bonds issued by the Brazilian government
c) Financial assets with fair values similar to book values (Note 4.4 of the financial statements as of December 31, 2022).
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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

d) The fair values of assets and liabilities are equivalent to their book values (Note 4.15 of the financial statements as of December 31, 2022).
e) Investments in other companies, stated at fair value, which is calculated according to the price quotations published in an active market, for assets classified as level 1 and determined in view of the comparative assessment model for assets classified as level 2.
f) The cost of the highest value of the last funding carried out by the Company, CDI + spread of 1.40%, was used as a basic assumption for the discount of the expected payment flows, except for contracts with Banco do Nordeste do Brasil - BNB that have the fair value similar to the book value, in view of the contractual characteristics for the construction of specific infrastructure.
g) Receivables related to the concession agreement for providing electricity generation services under quota arrangements, having their fair value calculated by expected cash inflows, discounted at the rate established by Aneel auction notice 12/2015 (9.04%).
h) Calculated according to the quotation of the last trade in the secondary market through the average price of the Unit Price - PU on March 31, 2023, obtained from the Brazilian Association of Financial and Capital Market Entities - Anbima.
i) The actual pre-tax discount rate of 8.65% p.a. was used, compatible with the rate estimated by the Company for long-term projects.
j) Financial assets with fair values similar to book values (Note 4.2 of the financial statements as of December 31, 2022).
34.2 Financial risk management

The Company's business activities are exposed to the following risks arising from financial instruments:

34.2.1 Credit risk

Credit risk is the risk of the Company incurring losses due to a customer or counterparty in a financial instrument, resulting from failure in complying with their contractual obligations.

Exposure to credit risk

03.31.2023

12.31.2022

Cash and cash equivalents (a) 2,911,274 2,678,457
Bonds and securities (a) 501,792 431,056
Pledges and restricted deposits linked (a) 178 157
Trade accounts receivable (b) 3,577,994 3,451,869
Sectorial financial assets (c) 436,180 381,398
Accounts receivable - distribution concession (c) 1,560,022 1,442,819
Accounts receivable - concessions - bonus from the grant (d) 782,005 766,832
Accounts receivable - generation concessions (e) 70,001 68,642
Other temporary investments (f) 26,802 25,619
9,866,248 9,246,849
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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

a) The Company manages the credit risk of its assets in accordance with the Management's policy of investing virtually all its funds in federal banking institutions. As a result of legal and/or regulatory requirements, in exceptional circumstances the Company may invest funds in prime private banks.
b) Risk of losses resulting from difficulties to receive amounts billed to customers related to internal and external factors. To mitigate this type of risk, the Company manages its accounts receivable, detecting customers most likely to default, implementing specific collection policies and suspending the supply and/or recording of energy and the provision of service, as established in contract and regulatory standards.
c) Management considers the risk of this credit to be reduced, since the agreements signed guarantee the unconditional right to receive cash at the end of the concession to be paid by the Granting Authority, corresponding to the costs and investments not recovered through the tariff.
d) Management considers the risk of such credit to be low, as the contract for the sale of energy by quotas guarantees the receipt of an Annual Generation Revenue - RAG, which includes the annual amortization of this amount during the concession term.
e) For the generation concession assets, Aneel published Normative Resolution 596/2013, which deals with the definition of criteria for calculating the New replacement value (VNR), for the purposes of indemnification. In July 2021, Normative Resolution No. 942/2021 was published, later covered by Normative Resolution No. 1027/2022, which regulated the calculation of these values through the presentation of appraisal reports to be prepared by accredited companies. In August 2022, Copel filed with Aneel the assessment reports related to the residual values, with a base date of July 2015, for the HPP Governador Parigot de Souza - GPS and HPP Mourão - MOU, which, since January 2023, are being inspected by the regulatory agency. Management's expectation of indemnification for these assets supports recoverability of the balances recorded.
f) Risk arising from the possibility of the Company incurring losses due to stock market volatility. This type of risk involves external factors and is being managed through periodic assessments of the variations in the market.
34.2.2 Liquidity risk

The liquidity risk of the Company consists of the possibility of having insufficient funds, cash or other financial assets, to settle obligations on their scheduled maturity dates.

The Company manages liquidity risk by relying on a set of methodologies, procedures and instruments applied to secure ongoing control over financial processes to ensure proper management of risks.

Investments are financed by incurring medium and long-term debt with financial institutions and capital markets.

Short, medium and long-term business projections are made and submitted to Management bodies for evaluation. The budget for the next fiscal year is annually approved.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Medium and long-term business projections cover monthly periods over the next five years. Short-term projections consider daily periods covering only the next 90 days.

The Company permanently monitors the volume of funds to be settled by controlling cash flows to reduce funding costs, the risk involved in the renewal of loan agreements and compliance with the financial investment policy, while concurrently keeping minimum cash levels.

The following table shows the expected undiscounted settlement amounts in each time range. Projections were based on financial indicators linked to the related financial instruments and forecast according to average market expectations as disclosed in the Central Bank of Brazil Focus Report, which provides the average expectations of market analysts for these indicators for the current year and for the next 3 years. From 2027 on, the 2026 indicators are repeated throughout the forecast period.

Interest(a)

Less than

1 month

1 to 3

months

3 months

to 1 year

1 to 5

years

Over

5 years

Total

03.31.2023
Loans and financing Note 20 52,825 121,861 610,528 3,830,773 3,543,526 8,159,513
Debentures Note 21 97,845 246,457 1,822,359 7,221,381 4,045,759 13,433,801
Accounts payable related Rate of return +
to concession IGP-M and IPCA 9,690 19,381 87,925 505,839 2,201,398 2,824,233
Accounts payable to suppliers - 1,793,309 205,504 22,703 66,203 - 2,087,719
PIS and Cofins to be refunded
to consumers Note 12.2.1 - - 825,000 1,237,005 - 2,062,005
Special Tax Regularization Program - Pert Selic 4,909 9,928 46,477 287,122 149,387 497,823
ICMS installment payment Selic 896 1,812 8,464 43,942 - 55,114
Sectorial financial liabilities Selic 17,529 35,598 169,377 60,733 - 283,237
Lease liability Note 26 2,524 5,074 21,502 64,255 261,794 355,149
1,979,527 645,615 3,614,335 13,317,253 10,201,864 29,758,594

(a) Effective interest rate - weighted average.

As disclosed in Notes 20.4 and 21.3, the Company has loans and financing agreements and debentures with covenants that if breached may have their payment accelerated.

34.2.3 Market risk

Market risk is the risk that the fair value or the future cash flows of a financial instrument shall oscillate due to changes in market prices, such as currency rates, interest rates and stock price. The purpose of managing this risk is to control exposures within acceptable limits, while optimizing return.

a) Foreign currency risk (US Dollar)

This risk comprises the possibility of losses due to fluctuations in foreign exchange rates, which may reduce assets or increase liabilities denominated in foreign currencies.

The effect of the exchange rate variation resulting from the power purchase agreement with Itaipu is transferred to customers in Copel DIS's next tariff adjustment. The exchange rate risk in the purchase of gas by Compagas is mitigated by the monitoring and transfer of the price variation to customers through tariff, when possible. The Company maintains permanent monitoring of these fluctuations.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Sensitivity analysis of foreign currency risk

The Company has developed a sensitivity analysis to measure the impact of the devaluation of the US dollar on its financial liabilities subject to currency risk.

The valuation of the financial instruments considers the possible effects on profit and loss and equity of the risks evaluated by the Company's Management on the reporting date for the financial instruments, as recommended by IFRS 7 - Financial Instruments: Disclosure. Based on the equity position and the notional value of the financial instruments outstanding at the date of these interim financial information, it is estimated that these effects will approximate the amounts stated in the above table in the column for the forecast probable scenario, since the assumptions used by the Company are similar to those previously described.

For the baseline scenario, the accounting balances recorded on the date of these interim financial information were considered and for the probable scenario, the Company considers the balance updated with the exchange rate variation - prevailing at the end of the period (R$/US$5.20) based on the median market expectation for 2023 according to the Central Bank of Brazil Focus Report. Additionally, the Company continues to monitor scenarios 1 and 2, which consider a deterioration of 25% and 50%, respectively, in the main risk factor of the financial instrument in relation to the level used in the probable scenario, because of extraordinary events that may affect the economic scenario.

Foreign exchange risk

Risk

Baseline Projected scenarios
03.31.2023 Probable Scenario 1 Scenario 2
Financial liabilities
Suppliers
Itaipu USD appreciation (143,285) (3,373) (40,038) (76,702)
Acquisition of gas USD appreciation (82,569) (1,944) (23,072) (44,200)
(225,854) (5,317) (63,110) (120,902)
b) Interest rate and monetary variation risk

This risk comprises the possibility of losses due to fluctuations in interest rates or other indicators, which may reduce financial income or increase financial expenses related to the assets and liabilities raised in the market.

The Company has not entered derivative contracts to cover this risk but has been continuously monitoring interest rates and market indexes to observe any need for contracting.

Sensitivity analysis of interest rate and monetary variation risk

The Company has developed a sensitivity analysis to measure the impact of variable interest rates and monetary variations on its financial assets and liabilities subject to these risks.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

The valuation of the financial instruments considers the possible effects on profit and loss and equity of the risks evaluated by the Company's Management on the reporting date for the financial instruments, as recommended by IFRS 7 - Financial Instruments: Disclosure. Based on the equity position and the notional value of the financial instruments outstanding at the date of these interim financial information, it is estimated that these effects will approximate the amounts stated in the above table in the column for the forecast probable scenario, since the assumptions used by the Company are similar to those previously described.

For the baseline scenario, the accounting balances recorded on the date of these interim financial information were considered and for the probable scenario, the Company considers the balances updated with the variation of the indicators (CDI/Selic - 12.50%, IPCA - 6.04%, IGP-M - 3.03% and TJLP - 7.12%) estimated as market average projections for 2023 according to the Central Bank of Brazil Focus Report, except TJLP that considers the Company's internal projection. Additionally, the Company continues to monitor scenarios 1 and 2, which consider a deterioration of 25% and 50%, respectively, in the main risk factor of the financial instrument in relation to the level used in the probable scenario, because of extraordinary events that may affect the economic scenario.

Interest rate risk and monetary variation

Risk

Baseline

03.31.2023

Projectedscenarios
Probable Scenario1 Scenario2
Financial assets
Bonds and securities Low CDI/Selic 501,792 47,258 35,565 23,825
Collaterals and escrow accounts Low CDI/Selic 178 16 12 8
Sectorial financial assets LowSelic 436,180 40,284 30,323 20,290
Accounts receivable - concessions LowIPCA 2,342,027 105,312 79,128 52,849
Accounts receivable - generation concessions Undefined(a) 70,001 - - -
3,350,178 192,870 145,028 96,972
Financial liabilities
Loans and financing
Banco do Brasil HighCDI (752,092) (69,461) (86,518) (103,460)
BancoItaú HighCDI (1,008,373) (93,130) (115,999) (138,714)
BNDES HighTJLP (1,676,611) (88,787) (110,750) (132,623)
BNDES HighIPCA (393,244) (17,683) (22,064) (26,429)
Banco do Nordeste HighIPCA (1,587,653) (71,391) (89,078) (106,703)
Banco do Brasil - BNDES Transfer HighTJLP (57,919) (3,067) (3,826) (4,582)
Other No risk (19,836) - - -
Debentures High CDI/Selic (6,148,297) (567,835) (707,274) (845,774)
Debentures HighIPCA (3,128,220) (140,665) (175,514) (210,242)
Debentures HighTJLP (89,368) (4,733) (5,903) (7,069)
Sectorial financial liabilities High Selic (259,123) (23,932) (29,808) (35,646)
ICMS installment payment High Selic (46,744) (4,317) (5,377) (6,430)
Special Tax Regularization Program -Pert High Selic (399,068) (36,857) (45,907) (54,897)
Accounts payable related to concession High IGP-M (871,561) (19,732) (24,642) (29,544)
Accounts payable related to concession HighIPCA (64,382) (2,895) (3,612) (4,327)
(16,502,491) (1,144,485) (1,426,272) (1,706,440)

(a) Risk assessment still requires ruling by the Concession grantor.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

34.2.4 Electricity shortage risk

Most of the installed capacity in Brazil currently comes from hydroelectric generation, which makes Brazil and the geographic region in which we operate subject to unpredictable hydrological conditions, due to non- cyclical deviations of mean precipitation. Unsatisfactory hydrological conditions may cause, among other things, the implementation of comprehensive programs of electricity savings, such as rationalization or even a mandatory reduction of consumption, which is the case of rationing.

Considering the strong wind generation in the Northeast, biomass generation in the Southeast and the rainy season with affluent natural energies that raised the reservoirs to comfortable values during 2022, it is estimated that the risk of energy shortages in 2023 and 2024 is minimized.

The energy supply guarantee criteria are currently established by the National Energy Policy Council - CNPE through Resolution 29/2019. With reason, the responsible bodies keep the energy deficit risk indicators within the safety margin in all subsystems.

34.2.5 Risk of Generation Scaling Factor - GSF impacts

The Energy Reallocation Mechanism - MRE is a system of redistribution of electric power generated, characteristic of the Brazilian electric sector, which has its existence by the understanding, at the time, that there is a need for a centralized operation associated with a centrally calculated optimal price known as PLD. Since generators have no control over their production, each plant receives a certain amount of virtual energy which can be compromised through contracts. This value, which enables the registration of bilateral contracts, is known as assured energy (GF) and is calculated centrally. Unlike the Settlement price for differences (PLD), which is calculated on a weekly basis, GF, as required by Law, is recalculated every five years, with a limit of increase or decrease, restricted to 5% by revision or 10% in the concession period.

The contracts need to have guarantee. This is done, especially, through the allocation of power generated received from the MRE or purchase. The GSF is the ratio of the entire hydroelectric generation of the MRE participants to the GF sum of all the MRE plants. Basically, the GSF is used to calculate how much each plant will receive from generation to back up its GF. Thus, knowing the GSF of a given month the company will be able to know if it will need to back up its contracts through purchases.

Whenever GSF multiplied by GF is less than the sum of contracts, the company will need to buy the difference in the spot market. However, whenever GSF multiplied by GF is greater than the total contracts, the company will receive the difference to the PLD.

For plants with contracts in the Free Contracting Environment - ACL, the main way to manage the low GSF risk is not to compromise the entire GF with contracts, as well as the timely repurchase of intra-annual energy approaches currently adopted by the Company.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

For the contracts in the Regulated Contracting Environment - ACR, Law 13,203/2015 allowed the generators to contract insurance for electricity demand (load), by means of payment of a risk premium. Copel adopted this approach to protect contracts related to energy generated by the HPP Mauá, HPP Baixo Iguaçu, HPP Colíder and SHP Cavernoso II.

For the distribution segment, the effects of the GSF are perceived in the costs associated with quotas of Itaipu, of Angra, of the plants whose concessions were renewed in accordance with Law 12,783/2013 and the plants that renegotiated the hydrological risk in the ACR, in accordance with Law 13,203/2015. This is a financial risk since there is guarantee of neutrality of expenses with energy purchases through a tariff transfer.

The GSF risks are greatly reduced due to the improvement in the hydrological scenario in 2022 concomitant with the low load growth.

34.2.6 Risk of non-renewal of concessions - generation and transmission

The extension of energy generation and transmission concessions, achieved by Law No. 9,074/1995, is regulated by Law No. 12,783/2013, amended by Law No. 14,052/2020, regarding to the deadline for requesting the extension of concessions under the physical guarantee quota system.

According to the mentioned law, the concession operator should request extension of concession at least 36 months before the end date of the contract or act of granting for hydroelectric power plants and electric power transmission enterprises, and 24 months before the end date of the contract or act of granting for thermoelectric plants. The Granting Authority may advance effects of extension by up to 60 months counted as of contract or grant date and may also define initial tariff or revenue, which includes the definition of the tariff or initial revenues for the generation ventures (RAG - Annual Generation Revenue) and transmission ventures (RAP - Permitted Annual Revenue).

Concessions for hydroelectric power generation and electric power transmission may be extended, at the discretion of the Granting Authority, only once, for a period of up to 30 years. Thermoelectric power generation concessions have an extension term limited to 20 years.

In 2018, Decree No. 9.271/2018 was published, amended by Decrees No. 10.135/2019, No. 10.893/2021 and No. 11.307/2022, which regulated the granting of concession contracts in the electricity sector associated with privatization through sale of control by holder of a public service concession for electricity generation, having as one of the conditionings factors the alteration of the exploration regime to Independent Power Producer (IPP). According to the Decree, the manifestation of sale of the concession must take place within up to 42 months from the date of the related formal agreement, and any sale must take place within up to 12 months from the concession end date. If sale of control of the venture does not occur within the specified period, the plant must be subject to auction by the Granting Authority and the same concessionaire can participate in the auction if it meets the qualification conditions.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Some of the generation projects of Copel had their concession period extended due to the effects of the GSF renegotiation, which established the compensation through an extension of the concession period of the plants contemplated by Law No. 13,203/2015, resulting in the approval of the extension period of the concession of these plants through of Ratifying Resolutions No. 2,919/2021 and No. 2,932/2021.

For HPP Governador Bento Munhoz da Rocha Netto - GBM (1,676 MW), whose concession will end in 2024, the Company has not expressed any interest in extending the concession, as internal studies have shown that the extension through early change of the exploration regime would be economically and financially disadvantageous in relation to exploration of the plant under the current regime until concession end. On March 3, 2020, Copel GeT transferred the concession of HPP GBM to the subsidiary F.D.A. Geração de Energia Elétrica S.A. with the purpose of divesting the control of this concessionaire and, thus, allow a new concession grant for 30 years, as provided for in Decree No. 9.271/2018. However, the process of transforming Copel into a "Corporation" is underway, as described in Note 1, which will allow the Company to maintain 100% interest in the HPP GBM. If this corporate transformation of Copel takes place, the concessions of HPP Governador Ney Aminthas de Barros Braga (Segredo) and HPP Governador José Richa (Salto Caxias) will also be renewed.

On November 25, 2022, Copel expressed to the Granting Authority its interest in obtaining a thirty-year concession for these three plants. The analysis of the assumptions used to define the value of the granting bonuses for these three plants, presented in Note 1, is in progress in order to assess the advantage of the operation.

With respect to HPP São Jorge, whose concession ends in 2026, Copel did not express interest in the renewal and intends, at the end of the concession, to request Aneel to convert the granting of concession into granting of registration.

Regarding TPP Figueira concession, which expired in March 2019, the Company awaits the conclusion of the process, which is in progress at Aneel and MME. The plant went through a modernization process that provided direct benefits such as improved energy efficiency and reduced emissions of pollutants in the atmosphere, compared to the old plant. The plant was released for commercial operation on December 7, 2022, through Order No. 3,502/2022.

According to the Law No. 14,052/2020, the Company may express its intention to extend the concession of the HPP Apucaraninha until January 2024, and the HPP Guaricana and HPP Chaminé until July and August 2025, respectively. If the Company does not express an interest in the extension of the current regime at its final term, be granted to the Company in the condition of registration, and the other concessions, at their final term, must be returned to the Granting Authority.

Regarding the transmission segment, the only Copel GeT concession to expire in the next ten years is the Concession Contract No. 75/2001, referring to Transmission Line Bateias-Jaguariaíva 230 kV, which will expire on August 17, 2031.

74

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Additionally, regarding the extension of transmission concession contracts, on December 29, 2022 Decree No. 11,314 was published, determining that the extension of transmission concessions may be carried out only when the bidding process is unfeasible or results in damage to the public interest and will be carried out without the advance indemnity of the assets linked to the provision of the service, conditioned to the acceptance by the concessionaire in relation to the revenue and other conditions of the amendment to be prepared by Aneel.

34.2.7 Risk on non-renewal of concessions - distribution of electricity

The fifth amendment to Copel DIS concession contract No. 46/1999 imposes economic and financial efficiency covenants and quality indicators that, if not complied with, may result in termination of the concession, in accordance with the provisions of the contract, particularly the right to full defense and adversary system.

On November 17, 2020, Aneel approved Normative Resolution No. 896, consolidated by Normative Resolution No. 948/2021, which establishes the indicators and procedures for monitoring efficiency in relation to the continuity of supply and the economic-financial management of public electricity distribution service concessions from the year 2021.

Indicators and penalties

Year Indicator Criteria Penalties

From 2021

Economic - financialefficiency

in the base year

Capital Increase (a)

Limitation on distribution of dividends and interest on capitalRestrictive regime for contracts with related parties

2 consecutive years Concession termination

Quality Indicators

in the base year Results plan

2 consecutive years or 3 of

the previous 5 calendar years

Limitation on distribution of dividends and interest on capital
3 consecutive years Concession termination

(a) Within 180 days from the end of each fiscal year, in the totality of the insufficiency that occurs to reach the Minimum Economic and Financial Sustainability Parameter.

Targets set for Copel Distribuição

Quality - limits Quality - performed
Year Economic and Financial Management Realized DECi FECi DECi FECi
2022 {Net Debt / [EBITDA (-) QRR ≥ 0]} ≤ 1 / (1,11 * Selic) Achieved 9.19 6.80 7.98 5.29
2023 {Net Debt / [EBITDA (-) QRR ≥ 0]} ≤ 1 / (1,11 * Selic) - 8.69 6.39 - -

Net Debt: Gross debt deducted from financial assets, with the exception of financial assets and financial liabilities in administrative or judicial discussion. The accounts that make up the gross debt and financial assets are defined in the attachment VIII to Aneel Resolution No 948/2021.

QRR: Regulatory Reinstatement Share or Regulatory Depreciation Expense. This value will be the one defined in the last Periodic Tariff Review, updated by the variation of the Regulatory Portion B and calculated on a pro rata basis.

Recurring EBITDA: Earnings Before Interest (Financial Result), Taxes (Income Taxes), Depreciation and Amortization.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

34.2.8 Risk of non-extension of the gas distribution concession

Upon termination of the concession by the end of the contractual term, the assets linked to the gas distribution services will revert to the Granting Authority, the State of Paraná, and the Company will be compensated for the assets related to the concession that have not yet been amortized, evaluated at their book value monetarily restated up to that date.

34.2.9 Risk of overcontracting and undercontracting of electricity

Under the current regulatory model, the agreement for purchase of electric power by distributors is regulated by Law 10,484/2014 and Decree 5,163/2004, which determine that the purchase of energy must be in the volume necessary to serve 100% of the distributor market.

The difference between the costs remunerated by the tariff and those effectively incurred in the power purchases are fully passed on to captive consumers, as long as the distributor presents a contracting level between 100% and 105% of its market, plus the amounts of involuntary overcontracting recognized by the regulator.

Copel DIS estimates ending the year with a contracting level of 117.5%, but considers that it has sufficient amounts of "involuntary over-contracting" to accommodate the estimated contracting for the year. Thus, there is no risk of penalization for overcontracting.

34.2.10 Gas shortage risk

The natural gas market in Paraná, made up of Compagas consumers (non-thermoelectric market) and the Araucária Thermoelectric Power Plant (UEG Araucária), is supplied by contracts with Petrobras that use the transport infrastructure of the Brazil-Bolivia gas pipeline (Gasbol). Compagas signed a contract with Petrobras for the supply of natural gas, effective from 2022 to 2025, which will make it possible to meet the demand that was not contracted for 2022, as well as part of the estimated demand between 2023 and 2025. UEG Araucária, meanwhile, negotiates and signs short-term natural gas contracts because of its merchant operation regime.

In the current situation of the natural gas sector in Brazil, the Novo Mercado de Gás program, coordinated by the Ministry of Mines and Energy, aims to open the natural gas market to make it dynamic, competitive, integrated with the electrical and industrial sectors. The supply of natural gas is growing and coming from diverse sources, and the great challenge for the sector still focuses on enabling new producers and traders to access infrastructure and the consumer market, currently served mostly by Petrobras. Finally, the new gas law, Law No. 14.134/2021, represents another important step in opening the Brazilian gas market, in order to make it more competitive and with greater potential for expansion.

76

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

A possible shortage in the supply of gas could result in losses for Copel due to a reduction in revenue from the natural gas distribution service by Compagas or penalties for non-compliance with the obligations contained in the concession contract. Furthermore, in this scenario, UEG Araucária would probably be kept out of operation. However, the Company considers this risk to be low in view of the situation of the Novo Mercado de Gás and the enactment of Law No. 14,134/2021.

34.2.11 Risk of non-performance of wind farms

The power generation purchase and sale contracts for wind power are subject to performance clauses, which provide for a minimum annual and four-year generation of the assured energy committed in the auction. Ventures are subject to climatic factors associated with wind velocity uncertainties. Non-compliance with what is stated in the agreement may jeopardize future revenues of the Company. The balance recorded in liabilities referring to the non-performance is demonstrated in note 27.

34.2.12 Risk related to price of power purchase and sale transactions

The Company operates in the electricity purchase and sale market to achieve results with variations in the price of electricity, respecting the risk limits pre-established by Management. This activity, therefore, exposes the Company to the risk by the volatility of future electricity prices.

Future electricity purchase and sale transactions are recognized at fair value through profit or loss, based on the difference between the contracted price and the market price of operations on the balance sheet date.

The table below shows the notional values of the electricity commercialization contracts on the date of these interim financial information, which have an average maturity of 125 months for purchase contracts and 24 months for sales contracts:

Purchase Sale
2023 485,210 491,274
2024 709,159 826,362
2025 698,514 810,863
2026 694,343 748,766
2027 628,018 633,293
2028 to 2040 3,621,647 4,669,632
6,836,891 8,180,190

The fair value was estimated using the prices defined internally by the Company, which represented the best estimate of the future market price. The discount rate used is based on the NTN-B rate of return disclosed by Anbima on March 31, 2023, without inflation, adjusted for credit risk and additional project risk.

The balances referring to these outstanding transactions at the date of these interim financial information are stated below.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

Assets Liabilities Net
Current 356,361 (322,821) 33,540
Noncurrent 1,215,995 (856,189) 359,806
1,572,356 (1,179,010) 393,346

Sensitivity analysis of energy purchase and sale operations

The Company developed a sensitivity analysis to measure the impact of changes in future prices. For the base scenario, the accounting balances recorded on the date of these interim financial information were considered and for the probable scenario, the Company considers the balances updated with the market price curve and NTN-B rate on March 31, 2023. Additionally, the Company continues to monitor scenarios 1 and 2, which consider the 25% and 50% rise or fall applied to future prices considered in the probable scenario, because of extraordinary events that may affect the economic scenario.

Price Baseline Projected scenarios
variation 03.31.2023 Probable Scenario 1 Scenario 2
Unrealized gains (losses) on energy purchase and sale operations Increase 393,346 393,346 324,471 255,597
Decrease 393,346 393,346 462,219 531,093
34.2.13 Counterparty risk in the energy market

Since free energy market still does not have a counterparty acting as guarantor of all agreements (clearing house), there is a bilateral risk of default. Thus, the Company is exposed to the risk of failure in the supply of energy contracted by the buyer/seller. In the event of such failure, the Company is obliged to sell/acquire energy at the spot market price, being further subject to regulatory penalties and loss of amounts paid.

The Company follows a policy that establishes limits for possible operations with each counterparty, after analyzing its credit worthiness, maturity and history.

In addition, even if our policy is more restrictive and the counterparties present good financial condition, the Company is exposed to systemic events in which the default of one agent ends up affecting other energy trading companies in a "domino effect" until reaching the Company's counterparties.

34.3 Capital management

The Company seeks to keep a strong capital base to maintain the trust of investors, creditors and market and ensure the future development of the business. Management also strives to maintain a balance between the highest possible returns with more adequate levels of borrowings and the advantages and the assurance afforded by a healthy capital position. Thus, it maximizes the return for all stakeholders in its operations, optimizing the balance of debts and equity.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

The Company monitors capital by using an index represented by adjusted consolidated net debt divided by adjusted consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization), for the last twelve months. The corporate limit established in the debt deeds provides for the annual maintenance of the index below 3.5, and the eventual expectation of non-compliance of that indicator gives rise to actions by the Management to correct the course of the calculations until the end of each year.

34.3.1 Debt to equity ratio:

Indebtedness

03.31.2023

12.31.2022

Loans and financing 5,495,728 3,738,269
Debentures 9,365,885 8,240,769
(-) Cash and cash equivalents (2,911,274) (2,678,457)
(-) Bonds and securities (501,792) (431,056)
Net debt 11,448,547 8,869,525
Equity 21,766,529 21,131,225
Debt to equity ratio 0.53 0.42
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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

35. Related Party Transactions

Related parties / Nature of operation

Assets Liabilities Revenue Cost / Expense
03.31.2023 12.31.2022 03.31.2023 12.31.2022 03.31.2023 03.31.2022 03.31.2023 03.31.2022
Controlling shareholder
State of Paraná - dividends payable - - 109,777 109,777 - - - -
Energia Solidária Program (a) - 9,735 - - - - - -
Tarifa Rural Noturna Program (a) 2,547 8,353 - - - - - -
Employees transferred (b) 429 305 - - - - - -
Meteorological System of Paraná - Simepar (c) - - 1,140 298 - - (2,480) (1,901)
Entities with significant influence (d)
BNDES and BNDESPAR - dividends payable - - 76,684 76,684 - - - -
Financing (Note 20) - - 2,062,421 2,097,606 - - (49,570) (47,612)
Debentures - Compagás - - - - - - - -
Debentures - wind farms (Note 21) - - 214,173 216,811 - - (7,726) (8,423)
State of Paraná investee
Sanepar (e) - - 147 448 - - (545) (1,903)
Use of water taken from plants' reservoirs - - - - 485 234 - -
Joint ventures
Voltalia São Miguel do Gostoso (f) - - - - 29 27 - -
Dividends 1,032 1,032 - - - - - -
Caiuá Transmissora de Energia (g) (h) (i) 313 313 1,968 1,400 939 837 (7,122) (4,538)
Dividends 5,486 5,486 - - - - - -
Integração Maranhense Transmissora (h) (i) - - 239 120 - - (720) (605)
Dividends 6,885 6,885 - - - - - -
Matrinchã Transmissora de Energia (h) (i) - - 1,337 1,355 - - (5,488) (3,722)
Dividends 41,577 41,577 - - - - - -
Guaraciaba Transmissora de Energia (h) (i) - - 671 671 - - (2,748) (1,618)
Dividends 49,966 50,137 - - - - - -
Paranaíba Transmissora de Energia (h) (i) - - 855 869 - - (3,531) (2,402)
Dividends 9,644 5,400 - - - - - -
Cantareira Transmissora de Energia (h) (i) - - 654 660 - - (2,694) (1,913)
Dividends 9,254 9,254 - - - - - -
Mata de Santa Genebra Transmissão (h) (i) (j) 2,138 3,236 1,436 1,401 3,770 4,715 (5,893) (4,121)
Dividends 13,333 13,333 - - - - - -
Associates
Dona Francisca Energética S.A. (k) 14 15 1,356 1,356 45 14 (4,062) (3,936)
Dividends 56 852 - - - - - -
Foz do Chopim Energética Ltda. (l) 302 302 - - 906 810 - -
Key management staff
Fees and social security charges (Note 31.2) - - - - - - (5,559) (5,513)
Pension and healthcare plans (Note 22.3) - - - - - - (328) (332)
Other related parties
Fundação Copel - - - - - - - -
Administrative property rental - - 100,982 102,410 - - (2,894) (2,908)
Pension and healthcare plans (Note 22.3) - - 1,081,258 1,070,037 - - - -
Lactec (m) 3 3 1,633 1,131 116 152 (784) (562)
Tecpar (n) - - - - 513 323 - -
Celepar (n) - - - - 278 - - -
Assembleia Legislativa do Paraná (n) - - - - 80 78 - -
Portos do Paraná (n) - - - - 1,041 368 - -
a) Energia Solidária Program, created by state law No. 20.943/2021, replacing the Luz Fraterna Program, establishes the payment of electricity consumption to benefit low-income families, residing in the State of Paraná, whose properties - consumer units - are used exclusively for residential purposes, whether in urban or rural areas, and fulfill the requirements established in articles 2 and 3 of this law.

In March 2018, the amount of R$159,274 was settled. The principal interest, fine and monetary restatement totaled R$158,849. For these charges on electricity bills for the period of September 2010

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

to June 2015, a lawsuit was filed against the State of Paraná on November 5, 2018, relating to the payment of invoices under the State Law No. 14,087/2003. We highlight that despite the negotiations maintained by Management, seeking to settle this debt, uncertainties still exist regarding the realization of this asset and, therefore, this asset was not recognized, in compliance with the current accounting standards. For the tax treatment, as determined by the Brazilian Federal Revenue Office in the Normative Instruction No. 1,753/2017, the Company has taxed this revenue. Copel and the State of Paraná appealed the decision. The case is expected to be processed and sent to the Court of Justice of Paraná, for judgment at the appeal level. Management reinforces that it is making all necessary efforts and taking all appropriate measures to preserve the Company's interests.

Tarifa Rural Noturna Program, regulated by Decree No. 1,288/2019, provides for the payment to Copel Distribuição, by the State Government, of the amount corresponding to 60% of the active electricity tariff and of the charges resulting from this service, including the additional tariff flag, owned by the beneficiary consumers, included in the denominated night period consumption, as specified in the decree.

b) Reimbursement of wages and social charges for employees transferred to the Paraná State Government. Balances presented are net of expected credit loss.
c) The Sistema Meteorológico do Paraná - Simepar is a supplementary unit of the Independent Social Service Paraná Technology, linked to the State Department of Science, Technology and Higher Education. Simepar has contracts with Copel for services of weather forecast, meteorological reports, ampacity analysis, mapping and analyses of winds and atmospheric discharges.
d) BNDES is the parent company of BNDES Participações S.A. - BNDESPAR, which owns Copel shares (Note 29.1). On December 22, 2018, the shareholder agreement between the State of Paraná and BNDESPAR, signed on December 22, 1998, was ended. BNDES and BNDESPAR acquired all the debentures issued by the subsidiaries Nova Asa Branca I, Nova Asa Branca II, Nova Asa Branca III, Nova Eurus IV and Ventos de Santo Uriel.
e) Basic sanitation provided by Sanepar.
f) Contracts for connection to the transmission system signed by Copel GeT, Costa Oeste, Marumbi and Uirapuru, with maturities between 2031 and 2048.
g) Operation and maintenance services agreement provided by Copel GeT, maturing on May 10, 2026. Transmission System Connection Agreement - CCT executed by Copel DIS, expiring by the end of the concession agreement of the distribution or transmission company, whichever takes place first.
h) Charges for use of the transmission system due by Copel GeT, FDA, UEG Araucária and wind farms.
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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

i) Copel DIS maintains a Contract for the Use of Transmission System (Cust) with ONS and power transmission concession operators whose subject matter is the contracting of Transmission System Use Amount (Must). Contracting is permanent and is regulated by Aneel Normative Resolution 666/2015. Amounts are defined for four subsequent years, with annual reviews.
j) Agreements entered by Copel GeT: for operation and maintenance services, maturing on February 1, 2028, and facility sharing, maturing on January 1, 2043.
k) Connection to the transmission system contracts entered by Copel GeT, Costa Oeste, Marumbi and Uirapuru, maturing on between the years 2031 and 2048. Power purchase and sale agreement made by Copel GeT, maturing on March 31, 2025.
l) Contracts entered into by Copel GeT: for operation and maintenance, maturing on May 23, 2025, and connection to the transmission system, maturing on January 1, 2043.
m) The Institute of Technology for Development (Lactec) is a Public Interest Civil Society Organization (OSCIP), of which Copel is an associate. Lactec has service and R&D contracts with Copel GeT, FDA. UEG Araucária and Copel DIS, which are subjected to prior or later control and approval by Aneel. Copel COM provides services and sells energy to the institute.
n) Energy sale agreement signed between Copel COM and: Institute of Technology of Paraná - Tecpar (public company of the State Government that supports innovation and economic and social development in Paraná and Brazil), Information Technology Company of Paraná - Celepar (mixed capital company that is part of the indirect administration of the Paraná State Government), Portos do Paraná (port complex that operates as a public company of the State Government, subordinated to the Infrastructure and Logistics Secretary of State) and Assembleia Legislativa do Paraná (legislative assembly of the State).

The relevant transactions with related parties are shown above. Transactions arising from operations in a regulated environment are billed according to the criteria and definitions established by the regulatory agents and other transactions are recorded according to the market prices practiced by the Company.

Copel's direct and indirect subsidiaries have short and long-term energy purchase and sale agreements entered with each other, carried out in accordance with the criteria and definitions of the regulated environment. Both the balances of existing transactions and the balances of commitments are eliminated from each other when preparing the Company's consolidated financial statements.

In addition, Copel GeT has energy purchase commitments with Dona Francisca in the amount of R$43,999 (R$47,935 on December 31, 2022), and Copel COM has energy sale commitments signed with agencies and / or entities related to the Paraná State Government, totaling R$23,307 (R$25,050 on December 31, 2022).

Regarding the compensation of key management personnel, the Company does not have additional obligations beyond the short-term benefits disclosed in the table above and in the notes referenced.

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COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

35.1 Guarantees awarded to related parties

Sureties and guarantees granted by Copel to its subsidiaries for financing and debentures are informed in Notes 20 and 21.

Copel provided financial guarantees, in the form of corporate guarantee letter, for power purchase and transport agreements made by Copel GeT and its subsidiaries, in the total amount of R$4,449 (R$4,449 on December 31, 2022) and made by Copel COM (Copel Mercado Livre), in the amount of R$550,565 (R$329,725 on December 31, 2022).

Sureties and guarantees granted by Copel and Copel GeT for financing, and debentures of joint ventures are reported below:

Company

Operation

Final

maturity

Amount

approved

Balance (a)

Interest

%

Amount

guarantees

(1)Caiuá Transmissora Financing BNDES 02.15.2029 84,600 25,012 49.0 (b)

(2) Cantareira Transmissora

(3)

Debentures

Financing

08.15.2032

09.15.2032

100,000

426,834

87,056

362,867

49.0

(b)

(b)

(4) Guaraciaba Transmissora

(5)

Financing BNDES

Debentures

01.15.2031

12.15.2030

440,000

118,000

285,179

123,654

49.0

(b)

(b)

(6) Financing BNDES 06.15.2029 691,440 285,517 (b)
(7)Matrinchã Transmissora Debentures (2nd) 06.15.2029 180,000 214,431 49.0 (b)
(8) Debentures (3rd) 12.15.2038 135,000 155,966 (c)
(9)IMTE Transmissora Financing 02.12.2029 142,150 45,298 49.0 (b)
(10) Mata de Santa Genebra (11)

Debentures (2nd)

Debentures (3rd)

11.15.2030

11.15.2041

210,000

1,500,000

1,716,857

0

50.1 860,145

(12) Paranaíba Transmissora

(13)

Financing

Debentures

10.15.2030

03.15.2028

606,241

120,000

401,985

90,096

24.5

(b)

(b)

860,145
(a) Gross debt balance, discounted from restricted cash that is already guaranteed by the companies themselves.
(b) For these contracts, the corporate guarantee and/or the letter of guarantee were exonerated, leaving only the pledge of Copel GeT shares.
(c) The guarantees to be provided in the 3rd issue will only be presented after the maturity of the Debentures of the 2nd issue and the Financing with BNDES.

Corporate guarantee provided by Copel: (10) (11)

Operation guarantee: pledge of shares held by Copel Get in the ventures.

36. Commitments

The main commitments related to long-term contracts not yet incurred, and therefore not recognized in these interim financial information, are as follows:

03.31.2023 12.31.2022
Energy purchase and transportation contracts 116,914,978 108,768,267
Acquisition of assets for electricity distribution 1,474,426 1,187,336
Gas purchase contracts 3,659,906 3,875,135
83

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

37. Insurance

The specification by risk modality and effective date of the main insurance policies can be seen below:

Policy

End

of term

Insured

amount

Operational risks - Cutia and Bento Miguel 03.29.2024 2,209,803
Named perils 08.24.2023 2,130,270
Operational risks - HPP Baixo Iguaçu 05.31.2023 2,042,375
Operational risks - HPP Colíder 12.01.2023 1,892,320
Operational risks - HPP Governador Jayme Canet Junior 01.21.2024 1,594,472
Operational risks - Ventos de Serra do Mel II e IV 11.28.2023 1,075,284
Fire - owned and rented facilities 08.24.2023 854,464
Operational risks - Brisa Potiguar 06.27.2023 766,454
Operational risks - UEG Araucária (a) 05.31.2024 744,222
Operational risks - Elejor 09.07.2023 728,426

(a) The insured amount of operational risks - UEG Araucária has been translated from USD into BRL, with the current rate R$5.0804 as of March 31, 2023.

In addition to the insurance policies listed above, the Company takes out other insurance policies with lower values, such as: Directors and Officers liability (D&O), general civil liability, court award payment guarantee, sundry perils, national and international transportation, life, aircraft and vehicles. Additionally, the Company has an indemnity contract, in addition to the D&O insurance. The guarantee insurances taken out by the subsidiaries, joint ventures and associates have Copel and/or Copel GeT as a guarantor, within the limits of their share of interest in each project.

38. Additional information to the Statement of Cash Flows
38.1 Transactions not involving cash

Of the total additions of contract assets (shown in Notes 10.1 and 10.2) and acquisitions of property, plant and equipment (shown in Note 16.2), R$146,540 (R$194,224 as of March 31, 2022) and R$3,555 (R$31,321 as of March 31, 2022), respectively, represent the amount of purchases made in installments and not settled through the end of the reporting period.

According to Note 26, the additions and remeasurement adjustment occurred in right-of-use assets totaled R$12,512 (R$35,819 as of March 31, 2022), with a corresponding entry in lease liabilities.

The mentioned transactions did not involve cash and, for this reason, are not being presented in the statement of cash flows.

84

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

39. Condensed individual financial information of Companhia Paranaense de Energia - Copel

In order to attend Rule 12-04 of Regulation S-X of the Securities and Exchange Commission (the "SEC"), Management has incorporated the condensed individual financial information of Companhia Paranaense de Energia - Copel in these financial statements.

This information was prepared considering the same accounting policies as described in Notes 3 and 4 to the Company's consolidated financial statements as of December 31, 2022. Investments in subsidiaries are recognized in the individual financial statements based on the equity method. Initially recorded at cost, their carrying amount is increased or decreased by the recognition of the investor's interest in profit, loss and other comprehensive income generated by subsidiaries after acquisition. When required, for the calculation of equity in earnings of investees, the subsidiaries financial statements are adjusted to align their policies with the Parent Company's accounting policies.

39.1 Condensed statements of financial position
ASSETS 03.31.2023 12.31.2022

Current assets

Cash and cash equivalents 23,675 199,877
Bonds and securities 92 93
Dividends receivables (41.5.3) 715,833 824,143
Other current receivables 1,284 977
Income tax and social contribution 112,339 107,523
Prepaid expenses 2,143 855
Receivable from related parties (41.5.1) 270,215 47,404
1,125,581 1,180,872
Noncurrent assets
Other temporary investments 26,802 25,619
Judicial deposits 141,062 138,747
Other current receivables 19 18
Deferred tax assets 340,691 333,877
Other noncurrent recoverable taxes 40,131 39,810
Prepaid expenses 195 -
548,900 538,071
Investments (41.5.2) 20,991,553 20,339,344
Property, Plant and Equipment, net 7,709 7,948
Intangible Assets 5,242 4,724
Right-of-use asset 4,466 4,586
21,557,870 20,894,673
Total assets 22,683,451 22,075,545
85

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

LIABILITIES 03.31.2023 12.31.2022

Current liabilities

Payroll, social charges and accruals 6,578 6,605
Related parties (41.5.1) 2,349 1,838
Suppliers (41.5.6) 8,351 5,373
Other taxes payable 1,289 28,690
Dividends payable 344,206 344,251
Post employment benefits 3,827 2,957
Lease liability 456 436
Other accounts payable 2,320 558
369,376 390,708
Noncurrent liabilities
Related parties (41.5.1) 5,851 5,851
Other taxes due 3,792 3,676
Post employment benefits 22,929 23,890
Lease liability 4,265 4,373
Other accounts payable 25,249 25,241
Provisions for legal claims (41.5.4) 808,165 804,442
870,251 867,473
Equity
Share capital 10,800,000 10,800,000
Equity valuation adjustments 585,053 593,382
Legal reserves 1,512,687 1,512,687
Retained earnings 7,911,295 7,911,295
Accumulated profit 634,789 -
21,443,824 20,817,364
Total liabilities and equity 22,683,451 22,075,545
86

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

39.2 Condensed statements of income
03.31.2023 03.31.2022

Operating revenues (expenses)

General and administrative expenses (31,993) (23,595)
Other revenues (expenses), net (2,186) (18,244)
Result of equity in investees 639,572 711,739
605,393 669,900
Operating income before financial results 605,393 669,900
Financial income (expenses)
Financial revenues 14,924 17,082
Financial expenses (541) (37,100)
14,383 (20,018)
Operating income 619,776 649,882
Income tax and social contribution
Deferred income tax and social contribution 6,814 14,459
6,814 14,459
Net income 626,590 664,341
Basic and diluted net earning per share attributed to controlling shareholders - expressed in
Brazilian Reais
Common shares 0.21571 0.22870
Class A preferred shares 0.23728 0.25158
Class B preferred shares 0.23728 0.25158
39.3 Condensed statement of comprehensive income
03.31.2023 03.31.2022
NET INCOME 626,590 664,341
Other comprehensive income
Items that may be reclassified to profit or loss
Adjustments related to financial assets - equity (130) -
Total comprehensive income, net of taxes (130) -
TOTAL COMPREHENSIVE INCOME 626,460 664,341
87

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

39.4 Condensed statements of cash flows
03.31.2023 03.31.2022

Net cash generated from operating activities

52,744

61,759

Cash flow from investing activities
Financial investments (1,182) (4,750)
Loans and financing granted to related parties (214,024) (100,000)
Additions in investments (13,000) (4,830)
Additions to property, plant and equipment (29) (789)
Additions to intangible (557) (509)
Net cash used from investing activities (228,792) (110,878)
Cash flow from financing activities
Amortization of principal - loans and financing - (134,894)
Amortization of principal - Lease liabilities (109) (76)
Dividends and interest on capitalpaid (45) (6)
Net cash used in financing activities (154) (134,976)
Total effects on cash and cash equivalents (176,202) (184,095)
Cash and cash equivalents at the beginning of the period 199,877 626,052
Cash and cash equivalents at the end of the period 23,675 441,957
Change in cash and cash equivalents (176,202) (184,095)
39.5 Additional individual information related to Companhia Paranaense de Energia - Copel
39.5.1 Related Parties
03.31.2023 12.31.2022
Assets
Structure sharing (a) 4,751 -
Copel Distribuição - loan agreement (b) 213,331 -
Jandaíra Wind Complex - loan agreement (c) 52,133 47,404
270,215 47,404
Liabilities
Structure sharing (a) 2,349 1,838
Elejor advance 5,851 5,851
8,200 7,689
a) Structure sharing

Balances mainly refer to contracts for sharing personnel and management expenses entered between Copel and its direct and indirect subsidiaries.

b) Copel Distribuição - loan agreement

On February 27, 2023, a loan agreement was signed between Copel and Copel DIS, with the approval of limits plus IOF and interest of CDI + 1.40% p.a., to provide resources for financing the company activities and business. The contract is valid until February 27, 2025. Of the overall approved amount of R$400,000, the amount of R$211,000 was transferred and the financial income for the period ended as of March 31, 2023 is R$1,741.

88

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

c) Jandaíra Wind Complex - loan agreement -

On May 17, 2022, a loan agreement was signed between Copel and the companies of the Jandaíra Wind Complex, with the approval of limits plus IOF and interest of CDI + 1.38% p.a., to provide resources for financing the company activities and business. The contracts are valid until May 17, 2024. Of the overall approved amount of R$49,400, the amount of R$49,087 was transferred and the financial income for the period ended as of March 31, 2023 is R$1,833.

39.5.2 Investments
03.31.2023 12.31.2022
Copel Geração e Transmissão 13,211,307 12,790,070
Copel Distribuição 6,762,964 6,610,274
Copel Serviços 7,818 8,635
Copel Comercialização 489,284 418,780
UEG Araucária 51,118 55,414
Compagas 297,356 284,135
Elejor 9,801 9,990
Other investments (a) 161,905 162,046
20,991,553 20,339,344

(a) The information regarding joint ventures, associates and other investments are presented in Note 15.

39.5.3 Dividends receivable
03.31.2023 12.31.2022
Subsidiaries
Copel Geração e Transmissão 262,899 372,899
Copel Distribuição 265,574 265,574
Copel Comercialização 39,626 39,626
Compagas 138,584 136,246
UEG Araucária 7,998 7,746
Joint ventures and Associates
Voltália 1,032 1,032
Dona Francisca 57 909
Solar Paraná - 48
Other investments 63 63
715,833 824,143
39.5.4 Provisions for legal claims
03.31.2023 12.31.2022
Tax Claim 160,049 159,235
Labor 4,057 3,514
Employee benefits 229 745
Civil 643,830 640,948
808,165 804,442
89

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

39.5.5 Restriction of transfer of funds from subsidiaries

The subsidiaries described below qualify as either concessionaires of public services or independent power producers. As such, any transfer of funds to the respective Parent Company, in the form of loans or advances, requires approval by the regulator. This regulatory restriction does not apply to cash dividends determined in accordance with the Brazilian Corporate Law. Total restricted subsidiaries net assets are composed as follows:

03.31.2023 12.31.2022
Copel Geração e Transmissão 13,211,307 12,662,224
CopelDistribuição 6,762,964 7,558,556
Compagas 583,053 507,901
UEGAraucária 251,819 540,577
20,809,143 21,269,258
39.5.6 Liquidity

The following table shows the expected undiscounted settlement values of the Copel liabilities, in each time range:

Less than 1 month

1 to 3 months

3 months to

1 year

1 to 5 years

Over 5 years

Total

03.31.2023

Suppliers

8,336

8,336

3

3

12

12

-

-

-

-

8,351

8,351

40. Subsequent events
40.1 Public consultation 016/2023 - Aneel

On May 24, 2023, the notice of opening of public consultation 016/2023 was published by Aneel, for contributions until June 15, 2023, to obtain subsidies for the improvement of the draft of the concession contract that will regulate, under Decree No. 9.271/2018 and after the potential transformation of Copel into a "Corporation", as described in Note 1, the new concession for the exploration of UHE Governador Ney Aminthas de Barros Braga (Segredo) and UHE Governador José Richa (Salto Caxias), as well as to approve the changes in the draft of the concession contract that will regulate the granting of the UHE Governador Bento Munhoz (Foz do Areia), approved by Dispatch No. 600/2022, in order to reflect the provisions of the MME/ME Interministerial Ordinance No. 01/2023 and MME Ordinance No. 726/2023.

40.2 Law 14,592/2023

On May 30, 2023, Law 14,592 was published, regulating the exclusion of the value of ICMS (VAT) from the calculation basis of PIS and Cofins on the acquisition of goods, with prospective effectiveness. However, the Company informs that it adopted the rule as of May 1, 2023, due to the effectiveness of Provisory Measure No. 159/2023, which regulated the same matter.

90

COMPANHIA PARANAENSE DE ENERGIA - COPEL

Notes to the Consolidated Interim Financial Information

The impact generated by this change is the reduction in the value of PIS and Cofins credit taking on the acquisition of goods eligible by the tax rule. It was evaluated that the greatest impact is reflected in Copel DIS, but its effect is annulled by the adjustment of the effective rate in the tariff reasonableness.

40.3 Public distribution offer of debentures

On June 6, 2023, Copel DIS informed that a public distribution offer of 1,600,000 simple debentures, not convertible into shares, unsecured, with additional personal guarantee, in 3 series, of the 8th issue of the Issuer, with a unit face value of R$ 1, totaling on the date of issue of the Debentures, that is June 15, 2023, the total amount of R$ 1,600,000. Financial settlement is scheduled for June 20, 2023.

Curitiba, June 7, 2023

91

SIGNATURE

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 June 2, 2023

COMPANHIA PARANAENSE DE ENERGIA - COPEL
By:

/S/ Daniel Pimentel Slaviero

Daniel Pimentel Slaviero
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.

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COPEL - Companhia Paranaense de Energia published this content on 08 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 June 2023 10:07:06 UTC.