São Paulo, May 31st, 2017 - EDP - Energias do Brasil S.A. ("EDP" or "Company") ("BM&FBOVESPA: ENBR3") announces to the market that Empresa de Energia São Manoel S.A. ("EESM") obtained by the Electric Energy Trading Chamber ("CCEE") on May 29th, 2017, the confirmation for the permanent reduction of 120 average MW on the energy purchase and sale contract in the Regulated Contract Environment ("CCEAR") through the Compensation Mechanism of Surpluses and Deficits ("MCSD"), in the A4+ category ("MCSD EN A4 +"), occurred on May 8th, 2017.

The amount originally contracted was 409.5 average MW, at the price of R$ 104.50/MWh (base date December, 2016), with annual adjustment by IPCA1, effective from May 1st, 2018 to December 31st, 2047.

From the amount of 120 average MW, 90 average MW were contracted by EESM shareholders in the same proportion of the partnership2 for the period of May 1st, 2018 to December 31st, 2038, and the remaining 30 average MW were allocated to EESM for hedge.

The strategy adopted reinforces the alignment of the Company with its shareholders' interests through the constant search for the optimization of the returns of its investments.

Miguel Nuno Simões Nunes Ferreira Setas

CEO and IR Director

Marilia Barbosa Nogueira Tainah Costa Maria Rodrigues Amanda C. Pecorari Emille Reckia +55 (11) 2185-5907

ri@edpbr.com.br www.edp.com.br/ri

1 IPCA - National Index of Price for Consumers;

2 EESM is a partnership, in the proportion of 1/3 (one third), among EDP, China Three Gorges Brasil Energia Ltda. and Furnas Centrais Elétrica S.A..

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EDP - Energias do Brasil SA published this content on 31 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 June 2017 12:19:12 UTC.