Human Capital Management

Staff Profile
(GRI 2.8; LA1; LA13)

CTEEP had 1,503 employees at the close of 2013, vs. 1,593 at the close of 2012.

Employees by full-time or part-time work scheme
Full-time or part-time	Permanent or Indefinite-Term Employment	Temporary or Fixed-Term Employment	Subtotal
Full time	1,428	24	1,452
Part time	0	51	51
Subtotal	1,428	75	1,503
Employees by gender
Gender	Permanent or Indefinite-Term Employment	Temporary or Fixed-Term Employment	Subtotal
Male	1,299	52	1,351
Female	129	23	152
Subtotal	1,428	75	1,503
Employees by age group
Age Group	Permanent or Indefinite-Term Employment	Temporary or Fixed-Term Employment	Subtotal
> 50	248	19	267
30 a 50	993	5	998
< 30	187	51	238
Subtotal	1,428	75	1,503

 

Employees by category
Category	Subtotal	Age Group			Gender		People with disabilities
		> 50	30 to 50	< 30	Male	Female
Directors	20	16	4	0	17	3	0
CEO	1	0	1	0	1	0	0
Officers	3	3	0	0	3	0	0
Managers	25	11	13	1	20	5	0
Coordinators	73	23	50	0	65	8	0
Administrative	247	38	162	47	142	105	59
Operational Tech.	1.083	176	768	139	1.072	11	5
Interns	41	0	0	41	27	14	0
Apprentices	10	0	0	10	4	6	0
Subtotais	1.503	267	998	238	1.351	152	64
CTEEP does not consider ethnic groups when compiling information about staff.

The turnover rate rose from 4.29 in 2012 to 8.68 in 2013 due to a comprehensive diagnostic assessment conducted internally to promote the optimal use of resources. As a result, some employees (mainly from the administrative area) were dismissed, which did not affect the Company's efficiency and quality. (GRI LA2)

Dismissals and turnover rate	Overall	Gender		Age Group
		Male	Female	< 30	30 to 50	> 50
# of Dismissals	124	92	32	17	53	54
Turnover Ratio	8,68	7,08	24,81	9,09	5,34	21,77
(total dismissals divided by total employees at 2013-close)

The number of outsourced workers (total of workers providing services for CTEEP during the year) fell from 2,541 in 2012 to 2,391 in 2013. They are in different areas, as seen below.

(GRI EU17)
Contracting area	Service	Number of outsourced workers	Days Worked in 2013 per Worker
			(approximations based on service category)
Headquarters	Security	3	180
	Lobby	5	240
	Administrative	80	242
Operation and Maintenance	Security	144	250
	Cleaning	202	250
	Lobby	53	250
	Drivers and Machine Operators	26	250
	Hoeing	107	250
	Construction Services (substations)	11	53
	Lightning-Related Services	4	43
	Equipment Installation	26	125
	Line Refurbishment	82	125
	Other maintenance activities	190	250
Engineering and Construction Management	Projects, Inspections, Construction and Commissioning	1,458	9,750 (In this case, total days worked per worker)

Remuneration

CTEEP uses the best market practices to outline its strategies to attract and retain people. The Compensation Policy reinforces the Company's commitment to its employees, who are recognized for performance.

The Company has a professional development plan which allows employees to participate in projects, activities and processes that help them develop professionally. The tasks are more and more complex as the employee meets or surpasses the targets set. The Annual Meritocracy and Bonus Program awards employees with outstanding performances.

In this regard, it is worth noting that Executive Officers and other executives receive an annual bonus calculated according to their achievement of the performance targets set by CTEEP and Grupo ISA. In turn, Directors' compensation is not connected with performance. Instead, Directors receive variable compensation based on the Balanced ScoreCard (BSC) to ensure a strategic alignment with the Company's management since the BSC methodology is used to assess strategic performance, including economic, social and environmental metrics. Some of the indicators considered in determining variable compensation are: EVA, EBITDA, Non-Supplied Energy and Accident Rate. The targets are reviewed annually in relation to the previous year, and this is how improvement plans are outlined. (GRI 4,5)

Benefits
(GRI LA3)

All employees under the CLT (the Consolidation of the Brazilian Labor Laws) system for an indefinite term and officers required under the Bylaws, receive the following benefits: medical and dental assistance (extended to their dependants), meal vouchers or food allowances; monthly staples baskets (for wages up to R$ 5,151.00), transit passes; discounts on drugstore items through the health plan, vacation pay above the rate established by CLT, and participation in training programs. In addition, mothers receive day care or child care allowances and employees who have children with special needs requiring full-time attention receive a special day care allowance.

The pension plan, with contributions from both employees and the Company, is called the Pension Supplementation Plan (PSAP/Transmissão Paulista). Managed by CESP Foundation, it is a defined benefit pension plan, in which the amount to receive is set previously. In 2013, CTEEP's contributions to the plan amounted to R$ 3,608 thousand. All employees are eligible and join the plan voluntarily.

The Company expects 207 employees to retire due to age or contribution time as determined in PSAP/ Transmissão Paulista in the next five years: I) 2% in executive positions; II) 24% in positions requiring a college degree; III) 68% positions requiring a technician certificate; IV) 5% positions in the operational area. (GRI EU15)

Temporary employees (young apprentices and interns) receive meal ouchers or food allowances, monthly staples baskets, transit passes, medical assistance and life insurance.

Professional Development
(GRI LA11; EU14)

CTEEP's Human Resource Management Policy follows guidelines that foster our employees' development by creating an environment conducive to innovation, creativity and respect while promoting quality of life and professional growth.

CTEEP held training sessions and educational and professional development events to prepare its employees to cope with the challenges of the Brazilian electricity transmission sector. About R$ 2.9 million was invested in courses for technical teams in regional offices, as well as employees from other areas, in 2013.

There were improvements in the learning process, with a heavier focus on technical and behavioral issues. on-the-job training; e-learning; simulations; standardized methods to decrease operational and human failure rates. There were also job training sessions for internal multipliers of information, who share these skills with new employees in 2014.

Another initiative launched in 2013 was the Self-Development Program to Improve Transversal Skills, which focuses on topics like time management, conflict management and presentation skills and involved 82% of all employees in the year. In turn, 13 employees participated in the 7th edition of the Leadership Development Program, for coordinators. The goal of the program twofold: for professionals to develop their people management skills and practice their leadership skills.

In addition, the Sustainability Education Program, designed to disseminate the Company's sustainability strategies through training sessions, talks and events, involved 205 employees (14% of the Company's own staff) in 410 training hours. Considering the 2012 numbers, the program has reached a total of 825 employees, a considerable number as the Company sees it since participation is voluntary.

Considering all Corporate Education initiatives, there were 518 training groups with 1,439 participants in 2013, with an average of 54 hours of training per employee, exceeding the 50-hour target for the year. However, both the target and the final result were lower than in 2012 (60 hours of training and 68.75 hours per employee on average) due to budget cuts.

The chart below shows total and average hours of training by employee category and gender. (GRI LA10)

Total and average hours of training by employee category and gender.
Category*	Total hours	Average hours	Male	Female
CEO	8	0	1	0
Officers	8	0	1	0
Manager	911	1	18	5
Coordinator	3030	2	57	6
Administrative	4279	3	104	84
Operational Tech.	63870	46	1059	9
Intern	3511	2	69	26
Total	75617	54	1309	130
*Hours of training do not consider the Board of Directors and the Statutory Audit Committee. The Education Incentive and Apprenticeship Program is not included either.

Education Incentive Program

CTEEP has partnerships and agreements with universities, language schools, associations, research centers, institutes and trade unions. The Company invested R$ 850 thousand in education incentive programs in 2013.

Overall, CTEEP offered 134 scholarships for vocational and undergraduate courses, and 53 for language courses; as well as 40 for graduate programs, four of which were full scholarships funded by CTEEP at FUPAI (Foundation for Industry Research and Advisory Services) in specialization courses in Electric Power Systems and Protection of Electric Power Systems); In addition, educational partnerships allowed giving employees other discounts.

Developing New Talents
(GRI EU14)

CTEEP also creates opportunities to integrate young people into the labor market through different programs: Jovem Aprendiz (Young Apprentice), Jovem Profissional (Young Professional), Internship Program and a partnership with SENAI (the National Service for Industrial Training).

It is worth noting the Internship Program, which selected 70 students, 15 from vocational schools and 55 from higher education institutions. The program comprises job and behavioral training, and practical activities in the Company's field of business focusing on participants' professional development.

Over 3,000 hours of training in the following topics: Creativity and Innovation, Team Work and Emotional Intelligence. There were also technical training sessions and two visits to the Henry Borden Power Plant to learn about power generation.

Interns have to present a Company improvement project during the program. The idea is to encourage them to apply the knowledge acquired at university and in the department in which they work.

CTEEP was the first-runner up in CIEE's (Company-School Integration Center) ''Best Company to Intern for'' Award, which involved 68 companies. This is the result of a joint effort to make the Company an environment more and more conducive to learning by integrating academic initiatives with the Company's practices.

Another important job training program was launched in 2012. Intended to supply skilled labor and help develop the community's skills, the agreement with SENAI provide many opportunities for the Company to attract students. At present, 22 students from Electronics courses are participating in the project in the São Paulo Regional Office. In 2013, these interns attended 172 hours of technical and behavioral training, in addition to their Electronics course at SENAI.

Performance Indicators
(GRI LA12)

In 2013, CTEEP conducted the 5th Performance Evaluation Cycle with its employees. The goal is to assess each professional's contribution to the Company's business and focus career development efforts in a strategic manner. By the close of 2013, 74% of the 1,312 employees who had set specific result and personal development goals had received an assessment of and a formal follow-up report about their performances. The performance evaluation cycle was concluded in early 2014.

Climate Survey
(GRI 4.16)

The survey will provide a basis to develop improvement plans to be monitored by Human Resources department on a monthly basis.
The survey will provide a basis to develop improvement plans to be monitored by Human Resources department on a monthly basis.

Occupational Health and Safety
(GRI PR1)

CTEEP follows Grupo ISA's Occupational Health Policy, which sets forth the Group's commitment to protecting and improving occupational health among all its employees and everyone who interacts when executing its processes. As a result, the Company has quality of life and health programs, as well as specific occupational safety training programs and projects for all employees and outsourced workers.

Health and Quality of Life
(GRI LA8)

Adopting a proactive approach, the Company offers its employees a Quality of Life Program, with campaigns to encourage exercising and having a healthy diet.

Some of the main projects carried out in 2013 were:

Health Control Program: provides at no cost for employees diagnostic tests for breast, female reproductive and prostate cancers, as well as kidney and heart diseases.

Programa Viva Melhor (Live Better Program): this support program is designed to offer employees and their family members guidance and assistance in learning, health, financial and legal issues among others through a dedicated hotline. The team caters to each person individually, which ensures confidentiality, and examines each service report to propose solutions. In 2013, the team saw to 1,727 employees and 55 employee dependants, in 3,134 consultations (2,840 active consultations and 294 receptive consultations).

Some of CTEEP's other health initiatives in 2013 were the Eye Health Week, in October, with the participation of 191 employees from the Corporate Headquarters; and the Quality of Life and Healthy Diet Week, during which participants received practical diet tips for a better life. .

Safety in the Facilities
(GRI EU14)

CTEEP monitors health and safety indicators to enhance its performance and prevent accidents, in compliance with Regulatory Standards from the Ministry of Labor and Employment.

Every newly-hired operational employee or third party is required to have technical training in Regulatory Standard 10, which lays down the minimum conditions and requirements to protect the safety and health of workers performing activities in electrical installations and providing services involving electricity. The Company provides ''step by step'' training about the operational procedures followed in those services. These procedures cover safety instructions, resources needed and conditions in which services cannot be performed.

Workers also receive a Specific Instruction dealing with Occupational Safety in Equipment and Installations of CTEEP's Electric Power System. Therefore, job training ensures that workers' health and physical integrity are protected. In this regard, it is worth noting the health and safety training sessions based on NR-35 - Height Work. It should also be noted that the Company already offered this type of training, based on internal rules; however, workers were trained in the recently issued standard, which covers the minimum requirements and protection measures for height work, in 2013.

CTEEP also designed the Mitigation of Human Failure project in 2013. The goal is to minimize human failure and, therefore, prevent accidents involving people, as well as failure in transmission equipment or functions that may lead to load shedding or impacts on the Interconnected National System (SIN).

In 2013, CTEEP also mapped all substations whose handbooks will be revised so that substation operation training can be provided. In 2014, training will be provided by CTEEP's professionals who have been trained as internal multipliers of information.

This project is intended to lead to stricter observance of standard service procedures in CTEEP's facilities and mitigate human failure. (EU14)

Internal Accident Prevention Committee (CIPA)
CTEEP encourages its employees to participate in Occupational Health and Safety Committees and has 17 Internal Accident Prevention Committees (CIPAs), in Regional Departments, the Operations Department and the Corporate Headquarters. CIPAs comprise technical, operational and administrative employees, as well as coordinators.

The main focus of the 2013 Internal Occupational Accident Prevention Week (SIPAT) was the impact of our choices on the quality of our personal and professional lives. There were other presentations about the specific features of the areas in the vicinity of CTEEP's operations. Some of the topics covered were: defensive driving, motivation, eating habits, stress management and first aids.

Occupational Health and Safety Indicators (GRI LA7)
Injuries
Injury/Frequency Rate (IR)	1.72%
# of Injuries	6
Occupational Diseases
Occupational Disease Rate (ODR)	-
# of Occupational Diseases	0
Lost Days
Lost Day/Severity Rate (LDR)	24.06%
# of Lost Days	84
Absenteeism (Jan. to Nov.)
Absentee Rate (AR)	0.91%
Scheduled man-hours	3,383,580
Fatalities
# of Fatalities	0

There was a rise in CTEEP's injury, lost day and absenteeism rates in 2013 in relation to 2012. A major initiative to change this situation was the introduction of regular records and analysis of occupational near-accidents (incidents not leading to injuries). The causes and control measures are described at CIPA meetings.

Safety of Outsourced Workers
(GRI EU16; EU18)

CTEEP has an internal standard to manage outsourced workers, both independent and employed by third parties, in compliance with the Regulatory Standards in effect. Workers responsible for work fronts attend a training program on Internal Health and Safety Instructions before beginning their activities. This training program covers Safety Instructions for dealing with Equipment and Installations of CTEEP's Electric Power System and safety signaling among others. In 2013, 355 leaders of hired teams - or 12.04% of all outsourced workers in CTEEP's facilities - were trained. This is a 10.25% rise in relation to 2012, which led to an improvement in outsourced workers' skills.

Moreover, all outsourced workers must attend an integration meeting, where they trained in the risks to which they will be exposed and the respective control measures. In 2013, there were about 711 integration meetings attended by 2,948 outsourced workers.