Company Overview

Companhia Energética de Minas Gerais (CEMIG) is a Brazilian electric utility company operating primarily in the electric power generation, transmission, and distribution industries. It is one of the largest integrated power companies in Brazil and a key participant in the country’s regulated electricity market. CEMIG’s core activities involve supplying electricity to residential, commercial, industrial, and public-sector customers, with revenue primarily driven by regulated distribution tariffs and long-term power purchase and concession contracts.

Founded in 1952 by the government of the State of Minas Gerais, CEMIG was established to support industrialization and infrastructure development in the state. Over time, the company expanded vertically and geographically, becoming a major national player with operations across multiple Brazilian states. A defining strategic feature of CEMIG is its strong presence in hydroelectric generation, which historically provided cost advantages and scale, complemented by thermal, wind, and solar assets.

Business Operations

CEMIG operates through three primary business segments: Electricity Distribution, Electricity Generation, and Electricity Transmission. The Electricity Distribution segment is the company’s largest revenue contributor, serving millions of customers under a long-term concession primarily in Minas Gerais. The Electricity Generation segment includes a diversified portfolio of hydroelectric, thermal, wind, and solar plants, while the Electricity Transmission segment operates high-voltage transmission lines under regulated concession agreements.

The company conducts most of its operations domestically within Brazil, with limited international exposure through minority stakes and historical investments. CEMIG controls and operates critical energy infrastructure assets and relies on centralized dispatch coordination through Brazil’s national power system. Its corporate structure includes several controlled subsidiaries, most notably CEMIG Distribuição S.A., CEMIG Geração e Transmissão S.A., and CEMIG GT, which house the core regulated businesses.

Strategic Position & Investments

CEMIG’s strategic direction has focused on balance sheet discipline, asset optimization, and a renewed emphasis on core regulated activities. In recent years, the company has pursued divestments of non-core assets while selectively reinvesting in generation and transmission projects with predictable returns. Capital allocation has prioritized concession renewals, grid modernization, and efficiency improvements in distribution operations.

The company has also invested in renewable energy expansion, particularly in wind and solar generation, aligning with Brazil’s broader energy transition. While historically active in mergers, acquisitions, and joint ventures, CEMIG’s more recent strategy emphasizes organic growth and regulatory stability. Data on certain legacy international investments and minority holdings is mixed across public disclosures; where reported, the financial materiality of these assets has generally declined.

Geographic Footprint

CEMIG’s operations are concentrated in Brazil, with its strongest presence in the State of Minas Gerais, one of the country’s largest electricity markets by consumption. The company also owns and operates generation and transmission assets in several other Brazilian states, giving it a multi-regional footprint within the national interconnected system.

Headquartered in Belo Horizonte, Minas Gerais, CEMIG’s influence extends across Southeastern Brazil and into parts of the Northeast, Midwest, and South regions through its generation and transmission concessions. International operations are limited and not a central component of the company’s current strategic focus, based on available public disclosures.

Leadership & Governance

CEMIG operates as a publicly traded company with shares listed in Brazil and the United States, while the State of Minas Gerais remains its controlling shareholder. Corporate governance is structured around a board of directors and executive management team, with leadership accountable to both public and minority shareholders. Strategic vision has emphasized operational efficiency, regulatory compliance, and financial sustainability within Brazil’s complex power sector.

Key members of the executive leadership include:

• Reynaldo Passanezi Filho – Chief Executive Officer
• Leonardo de Carvalho Magalhães – Chief Financial Officer and Investor Relations Officer
• Adriano Nascimento de Oliveira – Vice President of Distribution
• Dimas Costa – Vice President of Generation and Transmission
• Sérgio de Oliveira Santos – Vice President of Legal and Compliance

Leadership philosophy, as reflected in public statements and filings, centers on strengthening core operations, improving service quality, and maintaining disciplined capital management under Brazil’s regulatory framework.