COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG

LISTED COMPANY - CNPJ 17.155.730/0001-64 - NIRE 33300266003

MARKET ANNOUNCEMENT Reply to BM&FBovespa inquiry GAE 837/14, of April 1, 2014

Question asked by BM&F BOVESPA

"We request you to provide, by April 2, 2014, an explanatory reply about the news report in the April 1, 2014 edition of Valor Econômico newspaper, under the headline "Cemig expects Aneel to support an increase of 29.7%", and any other information that is considered important."

Reply by CEMIG

Dear Sirs,
In reply to the request by BM&FBovespa, through its Official Letter GAE 837/14, of April 1,
2014, we inform you that the article published in Valor Econômico newspaper, edition of April 1,
2014, refers to the process of annual tariff adjustment specified in the public distribution service contract of Cemig Distribuição S.A. ("Cemig D").
The objective of this process, currently in progress, is to achieve an annual rebalancing, to reflect the costs of the distribution companies, seeking to adjust for variations, and also effects of inflation.
At the present moment the preliminary calculations made by Cemig D are in the process of analysis by the National Electricity Agency (Agência Nacional de Energia Elétrica - Aneel), and are available at this web address:
http://www.aneel.gov.br/visualizar_texto.cfm?idtxt=2253
As further information: The date established in the concession contract for the annual tariff adjustment of Cemig D is April 8, 2014.
Belo Horizonte, April 1, 2014.
Luiz Fernando Rolla
Chief Finance and Investor Relations Officer

Av. Barbacena 1200 Santo Agostinho 30190-131 Belo Horizonte, MG Brazil Tel.: +55 31 3506-5024 Fax +55 31 3506-5025

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This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.

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