Energy Company of Parana was formed in 1954. The Company is engaged in the generation, transmission, distribution and sale of electricity in the Brazilian State of Parana, pursuant to concessions granted by the Brazilian regulatory agency for the electricity sector, ANEEL. It also provides telecommunications and other services. The generation of electrical energy at the Company's hydroelectric plants is supervised and coordinated by its generation operation center in the city of Curitiba. The Company holds concessions to distribute electricity in approximately 394 of the 399 municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina. Electricity is transferred from power plants to customers through transmission and distribution systems. Transmission is the bulk transfer of electricity from generating facilities to the distribution system by means of the Interconnected Transmission System. The Company's construction and operation activities for the generation, transmission and distribution of electric energy, distribution of natural gas and its telecommunications operations are subject to federal, state and municipal environmental regulations.