Aiming to be the Market's Best Energy Solutions Provider Companhia Energetica de Minas Gerais (CEMIG) began its activities in the state of Minas Gerais, Brazil, on May 22, 1952, as one of the main supports to the economic policy of Juscelino Kubitscheck's government, which sought to accelerate the industrial and economic development of the state. During the first 10 years, CEMIG essentially focused in the generation of electric energy to meet the demand of the mining industry.
CEMIG then shifted its focus to building a modern transmission system to interconnect all generated energy, allowing distribution to nearly the whole state. This enabled CEMIG to extend its services to the main cities of Minas. Next, CEMIG began an ambitious program of research into the hydroelectric potential of the state's main rivers and basins. Another important role CEMIG played was in rural electrification, which modernized a significant part of the agriculture in Minas Gerais.
During the 1960s, the economic development of the state intensified, and in May 1968, CEMIG created, together with the Bank of the Development of the State of Minas Gerais, the Institute of Industrial Development of Minas Gerais (INDI). CEMIG became an energy company in 1984 with the establishment of the subsidiary Gasmig (The Gas Company of Minas Gerais), which is responsible for distributing natural gas in the state.
CEMIG's Deregulation The state government decided in 1997 to partially privatize CEMIG and enter into a strategic, limited partnership with minority voting partners. CEMIG now is a mixed capital company controlled by the government of Minas Gerais, which holds 51% of the voting common shares or 24% of the total shares. The other significant shareholder is a private consortium, Southern Electric Brasil Participacoes Ltda., which represents the American electric utilities Southern Energy and AES, and the Brazilian investment group Opportunity.
CEMIG Today CEMIG is a vertically integrated electric power utility located in Minas Gerais, the second most important Brazilian state in terms of contribution to gross domestic product. The main activities of the company are the generation, transmission and distribution of electric power. CEMIG's concession area covers approximately 560,000 sq km (216,00 sq miles) and comprises 96% of Minas Gerais. CEMIG has the largest distribution network in Latin America, reaching more than 5 million customers, and accounts for the second largest distribution market in Brazil. Strategically located, CEMIG's transmission system is connected to the National Grid, which means ability to access any energy market in the country. The business-focused management team has led the company to a constant increase in efficiency over the years.
Vision for the Future CEMIG is actively expanding capacity to meet market growth and gaining extensive experience in dealing with energy-intensive consumers. New concession agreements assuring stable conditions and an organizational redesign to meet the competition in the sector are just some reasons that lead the company to believe the prospects for the future are positive. With strategic actions now being taken, the company can improve its operational performance, enhance efficiency and increase profitability.
CEMIG intends to be the best energy solutions provider and, as a consequence, gain worldwide recognition as the electricity market's primary choice.