QUARTERLY INFORMATION (ITR) At September 30, 2015

(A free translation of the original in Portuguese)

CELESC915MT.DOCX

QUARTERLY INFORMATION (ITR)

At September 30, 2015

(All amounts in thousands of reais unless otherwise stated)

JOSÉ CARLOS ONEDA

Financial and Investor Relations Officer

Deloitte Touche Tohmatsu Auditores Independentes Rua Dona Francisca, 260 15º andar Joinville – SC – 89201-250 Brasil Tel: + 55 (47) 3025-5155 Fax: + 55 (47) 3025-5155 www.deloitte.com.br (A free translation of the original in Portuguese)

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Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. © Deloitte Touche Tohmatsu. All rights reserved. CELESC915MT.DOCX

REPORT ON REVIEW OF QUARTERLY INFORMATION To the Board of Directors and Stockholders Centrais Elétricas de Santa Catarina S.A. Florianópolis - SC Introduction We have reviewed the accompanying parent company and consolidated interim accounting information of Centrais Elétricas de Santa Catarina S.A. ("Company"), included in the Quarterly Information Form (ITR) for the quarter ended September 30, 2015, comprising the balance sheet as at that date and the statements of operations and comprehensive income (loss) for the quarter and nine-month period then ended, and the statements of changes in equity and cash flows for the nine-month period then ended, and the explanatory notes. Management is responsible for the preparation of the parent company and consolidated interim accounting information in accordance with the accounting standard CPC 21 (R1), Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC), and International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as the presentation of this information in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim accounting information based on our review. Scope of review We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Deloitte Touche Tohmatsu

3 CELESC915MT.DOCX

Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company and consolidated interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM. Emphasis of matter Continuity as a going concern As mentioned in Notes 1 and 12 to the interim accounting information, the Company's electricity distribution concession has expired on July 7, 2015, and since then the Company has been operating the concession precariously until the National Electric Energy Agency (ANEEL) renders a decision on the concession extension request filed by the Company that has made certain accounting reclassifications as a result of the revision of its estimates as to when the intangible asset and respective financial asset of the concession would be realized. This situation raises substantial doubts about the ability of the Company to continue as a going concern, considering that the extension of the concession contract depends on the final decision of the Concession Grantor. The interim accounting information was prepared based on the assumption that the Company will continue as a going concern, which considers the realization of assets and payment of liabilities and commitments during the normal course of business. Our conclusion is not modified in respect of this matter. Other matters Statements of value added We have also reviewed the parent company and consolidated statements of value added for the nine-month period ended September 30, 2015. These statements are the responsibility of the Company's management, and are required to be presented in accordance with standards issued by the CVM applicable to the preparation of Quarterly Information (ITR) and are considered supplementary information under IFRS, which do not require the presentation of the statement of value added. These statements have been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that they have not been prepared, in all material respects, in a manner consistent with the interim accounting information taken as a whole. Joinville, November 11, 2015 DELOITTE TOUCHE TOHMATSU Ricardo Schenk Duque Auditores Independentes Accountant CRC n.o. 2 SP-011.609/O-8 F-SC CRC n.o. 1 RS-060.571/O-0

CELESC915MT.DOCX

(A free translation of the original in Portuguese) Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 3 Contents Information

General information 1 Address 2 Securities 3 Auditor 4 Share registrar 5 Investor relations officer or equivalent 6 Stockholders' department 7

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Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 3

1. General information Corporate name CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Date of adoption of the corporate name Type Publicly-held corporation Previous corporate name Date of constitution 12/9/1955 National Corporate Taxpayers' Registry (CNPJ)

83.878.892/0001-55

Brazilian Securities Commission (CVM) code

246-1

CVM registration date 3/26/1973 CVM registration status Active Date of effectiveness of status 3/26/1973 Home country Brazil Country in which the securities Brazil are held in custody Other countries in which the securities can be traded Country Date of constitution United States 9/21/1994 Activity sector Electric Energy Sector Description of activities Holding Company in the Electric Energy Sector Issuer category Category A Date of registration in the current category

1/1/2010

Issuer status Operating Date of effectiveness of status 3/26/1973 Type of ownership control State-owned Holding Company Date of last change in ownership control Date of last change in the fiscal year Month/day of the end of 12/31 the fiscal year Issuer's website on the Internet www.celesc.com.br Newspapers in which the issuer Name of newspapers in which the issuer discloses its information State discloses its information Valor Econômico São Paulo Diário Catarinense Santa Catarina Diário Oficial do Estado (State Official Gazette) Santa Catarina Celesc website Brazil


(A free translation of the original in Portuguese) Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 3 2. Address Mail address Avenida Itamarati, 160, Itacorubi, Florianópolis, SC, Brasil, CEP 88034-900,

Telephone: (5548) 32315100, Fax: (5548) 32316229, E-mail: [email protected] Headquarters' address Avenida Itamarati, 160, Itacorubi, Florianópolis, SC, Brasil, CEP 88034-900,

Telephone: (5548) 32315000, Fax: (5548) 32316039, E-mail: [email protected]


(A free translation of the original in Portuguese) Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 3 3. Securities Shares Trading Listing

Market Managing entity Beginning End Trading segment Beginning End


(A free translation of the original in Portuguese) Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 3 4. Auditor Does the Issuer have an auditor? YES CVM code 385-9 Type of auditor Brazilian firm Name/Corporate name Deloitte Touche Tohmatsu Auditores Independentes Individual Taxpayers' Registration Number (CPF)/ National Corporate Taxpayers' Registry (CNPJ) 49.928.567/0001-11 Period of services 4/3/2014

Partner responsible Period of services CPF

Fernando Souza Leite 4/2/2015 to 9/1/2015 004.400.929-14 Ricardo Schenk Duque 9/2/2015 890.889.130-72


(A free translation of the original in Portuguese) Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 3 5. Share registrar Does the Company have a service provider?

YES

Corporate name Itaú Corretora de Valores S.A. CNPJ 61.194.353/0001-64 Period of services 12/5/2005 Service address Avenida Engo Armando de Arruda Pereira, 707, Jabaquara, São Paulo, SP, Brasil,

CEP 04344-902, Telephone:(5548) 50291925, Fax:(5548) 50291917, E-mail:[email protected]


(A free translation of the original in Portuguese) Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 3 6. Investor relations officer or equivalent Name José Carlos Oneda Investor Relations Officer CPF/CNPJ 084.485.159-00 Mail address Rua Emiliano Ramos no. 576, Apto. 403, Centro, Lages, SC, Brasil,

CEP 88502-215, Telephone (48) 32316011, Fax (48) 32316229, E-mail [email protected]

Date when the person assumed the position

7/1/2013

Date when the person left the position


(A free translation of the original in Portuguese) Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 3

7. Stockholders' department CONTACT Fabiano Moreira de Matos Date when the person assumed the position

10/1/2015

Date when the person left the position

Mail address Avenida Itamarati, 160, Itacorubi, Florianópolis, SC, Brasil,

CEP 88034-900, Telephone (5548) 32315100, Fax (5548) 32316229, E-mail [email protected]

CELESC915MT.DOCX

(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1

Contents Company information Capital composition 1 Parent company financial statements Balance sheet - assets 2 Balance sheet - liabilities and equity 3 Statement of operations 4 Statement of comprehensive income (loss) 5 Statement of cash flows - indirect method 6 Statement of changes in equity 1/1/2015 to 9/30/2015 7 1/1/2014 to 9/30/2014 8 Statement of value added 9 Consolidated financial statements Balance sheet - assets 10 Balance sheet - liabilities and equity 11 Statement of operations 12 Statement of comprehensive income (loss) 13 Statement of cash flows - indirect method 14 Statement of changes in equity 1/1/2015 to 9/30/2015 15 1/1/2014 to 9/30/2014 16 Statement of value added 17 Comments on company performance 18 Notes to the quarterly information 25 Other information considered relevant by the Company 89 Reports Report on review of quarterly information - without exceptions 94 Officers' statement on the financial statements 96 Officers' statement on the report on review of quarterly information 97

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(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Company information / Capital composition Number of shares Current quarter (In thousands) 9/30/2015 Paid-up capital Common shares 15,527 Preferred shares 23,044 Total 38,571

Treasury shares

Common shares 0 Preferred shares 0 Total 0


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Parent company financial statements/balance sheet - assets (R$ thousand)

1 - Code 2 - Description Current quarter

9/30/2015 Prior year

12/31/2014 1 Total assets 2,430,624 2,477,806 1.01 Current assets 104,373 150,488 1.01.01 Cash and cash equivalents 39,480 16,916 1.01.06 Taxes recoverable 2,229 4,102 1.01.06.01 Current taxes recoverable 2,229 4,102 1.01.08 Other current assets 62,664 129,470 1.01.08.03 Other 62,664 129,470 1.01.08.03.01 Dividends receivable 62,616 129,451 1.01.08.03.03 Other receivables 48 19 1.02 Non-current assets 2,326,251 2,327,318 1.02.01 Long-term receivables 158,342 158,380 1.02.01.01 Financial investments measured at fair value 137,478 137,478 1.02.01.01.01 Trading securities 137,261 137,261 1.02.01.01.02 Available-for-sale securities 217 217 1.02.01.08 Receivables from related parties 4,262 4,262 1.02.01.08.03 Receivables from controlling stockholders 4,262 4,262 1.02.01.09 Other non-current assets 16,602 16,640 1.02.01.09.03 Judicial deposits 16,602 16,640 1.02.02 Investments 2,160,274 2,160,922 1.02.02.01 Equity investments 2,160,274 2,160,922 1.02.02.01.01 Investments in associates 18,742 26,689 1.02.02.01.02 Investments in subsidiaries 2,013,556 2,002,698 1.02.02.01.04 Other equity investments 127,976 131,535 1.02.03 Property, plant and equipment 52 56 1.02.03.01 Property, plant and equipment in use 52 56 1.02.04 Intangible assets 7,583 7,960 1.02.04.01 Intangible assets 7,583 7,960 1.02.04.01.01 Concession contract 7,583 7,960


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Parent company financial statements/balance sheet - liabilities and equity (R$ thousand)



12/31/2014 2 Total liabilities 2,430,624 2,477,806 2.01 Current liabilities 75,921 126,458 2.01.01 Social and labor obligations 935 669 2.01.01.01 Social obligations 935 669 2.01.01.01.01 Social charges 935 669 2.01.02 Trade payables 1,191 1,928 2.01.02.01 Domestic trade payables 1,191 1,928 2.01.03 Tax obligations 121 1,426 2.01.03.01 Federal tax obligations 110 1,416 2.01.03.01.02 Other federal tax obligations 89 80 2.01.03.01.03 Social Integration Program (PIS) and Social Contribution

on Revenues (COFINS) 21 1,336 2.01.03.03 Municipal tax obligations 11 10 2.01.05 Other obligations 73,674 122,435 2.01.05.02 Other 73,674 122,435 2.01.05.02.01 Dividends and interest on capital payable 73,467 122,219 2.01.05.02.04 Other current liabilities 207 216 2.02 Non-current liabilities 6,437 7,890 2.02.04 Provisions 6,437 7,890 2.02.04.01 Tax, social security, labor and civil provisions 1,263 1,263 2.02.04.01.01 Tax provisions 1,263 1,263 2.02.04.02 Other provisions 5,174 6,627 2.02.04.02.04 Regulatory provisions 5,174 6,627 2.03 Equity 2,348,266 2,343,458 2.03.01 Paid-up share capital 1,340,000 1,017,700 2.03.02 Capital reserves 316 316 2.03.02.06 Advance for future capital increase 0 316 2.03.04 Revenue reserves 999,375 1,345,927 2.03.04.01 Legal reserve 138,085 138,085 2.03.04.05 Profit retention reserve 861,290 1,183,472 2.03.04.10 Dividends at the Disposal of the General Meeting of Stockholders 0 24,370 2.03.05 Retained earnings 36,973 0 2.03.06 Carrying value adjustments -28,398 -20,485


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Parent company financial statements/statement of operations (R$ thousand)

1 - Code 2 - Description

Current quarter 7/1/2015 to 9/30/2015

Accumulated - current year

1/1/2015 to 9/30/2015

Same quarter of prior year

7/1/2014 to 9/30/2014

Accumulated - prior year

1/1/2014 to 9/30/2014

3.04 Operating income/expenses -58,051 27,292 37,312 27,949 3.04.02 General and administrative expenses -6,422 -23,165 -7,370 -20,703 3.04.04 Other operating income 0 1,453 0 17 3.04.05 Other operating expenses 0 0 -1 0 3.04.06 Equity in the results of investees -51,629 49,004 44,683 48,635 3.05 Profit/loss before finance result and taxes -58,051 27,292 37,312 27,949 3.06 Finance result 810 1,768 234 1,405 3.06.01 Finance income 1,308 3,276 756 2,975 3.06.02 Finance costs -498 -1,508 -522 -1,570 3.07 Profit/loss before taxation -57,241 29,060 37,546 29,354 3.09 Profit/loss from continuing operations -57,241 29,060 37,546 29,354 3.11 Profit/loss for the period -57,241 29,060 37,546 29,354 3.99 Earnings/loss per share (reais/share) 3.99.01 Basic earnings/loss per share 3.99.01.01 Common shares -1.40040 0.71090 0.91850 0.71810 3.99.01.02 Preferred shares -1.54040 0.78200 1.01040 0.78990 3.99.02 Diluted earnings/loss per share 3.99.02.01 Common shares -1.40040 0.71090 0.91850 0.71810 3.99.02.02 Preferred shares -1.54040 0.78200 1.01040 0.78990



Parent company financial statements/statement of comprehensive income (loss) (R$ thousand)




1/1/2015 to 9/30/2015


7/1/2014 to 9/30/2014


1/1/2014 to 9/30/2014

4.01 Profit/loss for the period -57,241 29,060 37,546 29,354 4.03 Comprehensive income/loss for the period -57,241 29,060 37,546 29,354


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Parent company financial statements/statement of cash flows - indirect method (R$ thousand)



1/1/2015 to 9/30/2015


1/1/2014 to 9/30/2014

6.01 Net cash used in operating activities -19,818 -20,091 6.01.01 Cash used in operations -19,915 -18,167 6.01.01.01 Profit before taxation 29,060 29,354 6.01.01.02 Depreciation and amortization 1,482 1,482 6.01.01.03 Equity in the results of investees -49,004 -48,635 6.01.01.05 Interest and monetary restatement expenses 0 -368 6.01.01.07 Contingencies -1,453 0 6.01.02 Changes in assets and liabilities 97 -1,924 6.01.02.02 Other assets -28 1,961 6.01.02.03 Taxes recoverable 1,873 4,672 6.01.02.04 Trade payables -737 401 6.01.02.05 Salaries and social charges 266 159 6.01.02.06 Taxes payable -1,305 -4,623 6.01.02.09 Judicial deposits 38 -4,485 6.01.02.10 Other liabilities -10 -9 6.02 Net cash from investing activities 115,386 56,631 6.02.04 Dividends received 115,386 56,631 6.03 Net cash used in financing activities -73,004 -42,362 6.03.01 Related parties 0 11,297 6.03.02 Dividends paid -73,004 -53,659 6.05 Increase/decrease in cash and cash equivalents 22,564 -5,822 6.05.01 Opening balance of cash and cash equivalents 16,916 30,006 6.05.02 Closing balance of cash and cash equivalents 39,480 24,184


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Parent company financial statements/statement of changes in equity - 1/1/2015 to 9/30/2015 (R$ thousand)

1 - Code 2 - Description Paid-up

share capital

Capital reserves, stock options and

treasury stock Revenue reserves

Retained earnings/

accumulated deficit

Other comprehensive

income/loss Equity 5.01 Opening balances 1,017,700 316 1,345,927 0 -20,485 2,343,458 5.03 Adjusted opening balances 1,017,700 316 1,345,927 0 -20,485 2,343,458 5.04 Capital transactions with stockholders 0 0 -24,252 0 0 -24,252 5.04.06 Dividends 0 0 -24,370 0 0 -24,370 5.04.08 Reversal of prescribed dividends 0 0 118 0 0 118 5.05 Total comprehensive income/loss 0 0 0 36,973 -7,913 29,060 5.05.01 Profit for the period 0 0 0 29,060 0 29,060 5.05.03 Reclassifications to profit or loss 0 0 0 7,913 -7,913 0 5.05.03.02 Realization of deemed cost 0 0 0 7,913 -7,913 0 5.06 Internal changes in equity 322,300 0 -322,300 0 0 0 5.06.04 Share capital increase 322,300 0 -322,300 0 0 0 5.07 Closing balances 1,340,000 316 999,375 36,973 -28,398 2,348,266


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Parent company financial statements/statement of changes in equity - 1/1/2014 to 9/30/2014 (R$ thousand)


share capital



Retained earnings/

accumulated deficit

Other comprehensive

income/loss Equity 5.01 Opening balances 1,017,700 316 929,133 0 190,313 2,137,462 5.03 Adjusted opening balances 1,017,700 316 929,133 0 190,313 2,137,462 5.04 Capital transactions with stockholders 0 0 -6,370 0 0 -6,370 5.04.06 Dividends 0 0 -6,370 0 0 -6,370 5.05 Total comprehensive income/loss 0 0 0 53,321 -23,967 29,354 5.05.01 Loss for the period 0 0 0 29,354 0 29,354 5.05.03 Reclassifications to profit or loss 0 0 0 23,967 -23,967 0 5.05.03.02 Realization of deemed cost 0 0 0 23,967 -23,967 0 5.07 Closing balances 1,017,700 316 922,763 53,321 166,346 2,160,446


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Parent company financial statements/statement of value added (R$ thousand)



1/1/2015 to 9/30/2015


1/1/2014 to 9/30/2014

7.02 Inputs acquired from third parties -1,363 -2,397 7.02.02 Materials, electricity, outsourced services and other -2,816 -2,414 7.02.03 Impairment/recovery of assets 1,453 17 7.03 Gross value added -1,363 -2,397 7.04 Retentions -1,482 -1,482 7.04.01 Depreciation, amortization and depletion -1,482 -1,482 7.05 Net value added generated -2,845 -3,879 7.06 Value added received through transfer 52,280 51,610 7.06.01 Equity in the results of investees 49,004 48,635 7.06.02 Finance income 3,276 2,975 7.07 Total value added to distribute 49,435 47,731 7.08 Distribution of value added 49,435 47,731 7.08.01 Personnel 20,064 17,938 7.08.01.01 Direct remuneration 20,064 17,938 7.08.02 Taxes and contributions 249 313 7.08.02.01 Federal taxes 249 313 7.08.03 Third parties 62 126 7.08.03.01 Interest 30 92 7.08.03.02 Rentals 32 34 7.08.04 Owners 29,060 29,354 7.08.04.03 Profits retained/loss for the period 29,060 29,354


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Consolidated financial statements/balance sheet - assets (R$ thousand)



12/31/2014 1 Total assets 7,407,418 6,171,127 1.01 Current assets 3,409,178 5,197,493 1.01.01 Cash and cash equivalents 829,589 449,789 1.01.03 Accounts receivable 1,324,002 1,016,683 1.01.03.01 Trade receivables 1,195,316 892,317 1.01.03.01.01 Trade receivables 1,524,543 1,252,251 1.01.03.01.02 Provision for impairment of trade receivables -329,227 -359,934 1.01.03.02 Other receivables 128,686 124,366 1.01.04 Inventories 8,194 8,710 1.01.06 Taxes recoverable 156,330 53,876 1.01.06.01 Current taxes recoverable 156,330 53,876 1.01.08 Other current assets 1,091,063 3,668,435 1.01.08.03 Other 1,091,063 3,668,435 1.01.08.03.02 Indemnifiable assets - concession 0 2,890,451 1.01.08.03.03 Dividends receivable 7,950 14,212 1.01.08.03.04 Other receivables 670,882 313,206 1.01.08.03.05 Financial asset - Portion A 412,231 450,566 1.02 Non-current assets 3,998,240 973,634 1.02.01 Long-term receivables 3,277,229 443,626 1.02.01.01 Financial investments measured at fair value 137,478 137,478 1.02.01.01.01 Trading securities 137,261 137,261 1.02.01.01.02 Available-for-sale securities 217 217 1.02.01.03 Accounts receivable 18,957 8,401 1.02.01.03.01 Trade receivables 17,302 6,398 1.02.01.03.02 Other receivables 1,655 2,003 1.02.01.06 Deferred taxes 137,218 130,068 1.02.01.06.01 Deferred income tax and social contribution 137,218 130,068 1.02.01.08 Receivables from related parties 4,750 4,262 1.02.01.08.03 Receivables from controlling stockholders 4,262 4,262 1.02.01.08.04 Receivables from other related parties 488 0 1.02.01.09 Other non-current assets 2,978,826 163,417 1.02.01.09.03 Taxes recoverable 28,005 18,732 1.02.01.09.04 Judicial deposits 153,276 144,685 1.02.01.09.05 Indemnifiable assets - concession 2,797,545 0 1.02.02 Investments 185,935 195,621 1.02.02.01 Equity investments 185,935 195,621 1.02.02.01.01 Investments in associates 57,959 64,086 1.02.02.01.04 Other equity investments 127,976 131,535 1.02.03 Property, plant and equipment 210,131 232,350 1.02.04 Intangible assets 324,945 102,037 1.02.04.01 Intangible assets 324,945 102,037 1.02.04.01.01 Concession contract 309,091 84,273 1.02.04.01.02 Other intangible assets 15,854 17,764


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Consolidated financial statements/balance sheet - liabilities and equity (R$ thousand)



12/31/2014 2 Total liabilities 7,407,418 6,171,127 2.01 Current liabilities 2,880,110 1,763,222 2.01.01 Social and labor obligations 146,832 120,371 2.01.01.01 Social obligations 146,832 120,371 2.01.02 Trade payables 641,561 689,343 2.01.02.01 Domestic trade payables 641,561 689,343 2.01.03 Tax obligations 174,989 169,288 2.01.03.01 Federal tax obligations 20,658 65,570 2.01.03.01.01 Income tax and social contribution payable 13,436 33,374 2.01.03.01.02 PIS/COFINS 502 25,374 2.01.03.01.03 Other 6,720 6,822 2.01.03.02 State tax obligations 154,199 101,718 2.01.03.03 Municipal tax obligations 132 2,000 2.01.04 Borrowings 509,078 326,706 2.01.04.01 Borrowings 198,455 322,586 2.01.04.01.01 In local currency 198,455 322,586 2.01.04.02 Debentures 310,623 4,120 2.01.05 Other obligations 1,231,628 286,661 2.01.05.01 Payables to related parties 10,121 15,106 2.01.05.01.01 Payables to associates 10,121 0 2.01.05.01.04 Payables to other related parties 0 15,106 2.01.05.02 Other 1,221,507 271,555 2.01.05.02.01 Dividends and interest on capital payable 73,467 122,219 2.01.05.02.04 Regulatory charges 1,107,389 113,208 2.01.05.02.05 Other current liabilities 40,651 36,128 2.01.06 Provisions 176,022 170,853 2.01.06.01 Tax, social security, labor and civil provisions 176,022 170,853 2.01.06.01.03 Provisions for employee benefits 176,022 170,853 2.02 Non-current liabilities 2,179,042 2,064,447 2.02.01 Borrowings 667,087 532,647 2.02.01.01 Borrowings 368,046 233,879 2.02.01.01.01 In local currency 368,046 233,879 2.02.01.02 Debentures 299,041 298,768 2.02.02 Other obligations 235,165 187,580 2.02.02.02 Other 235,165 187,580 2.02.02.02.04 Regulatory charges 232,689 185,105 2.02.02.02.05 Other non-current liabilities 2,476 2,475 2.02.03 Deferred taxes 13,648 15,412 2.02.03.01 Deferred income tax and social contribution 13,648 15,412 2.02.04 Provisions 1,263,142 1,328,808 2.02.04.01 Tax, social security, labor and civil provisions 1,187,490 1,258,558 2.02.04.01.01 Tax provisions 26,855 29,392 2.02.04.01.02 Social security and labor provisions 46,211 64,738 2.02.04.01.03 Provisions for employee benefits 964,751 1,032,291 2.02.04.01.04 Civil provisions 149,673 132,137 2.02.04.02 Other provisions 75,652 70,250 2.02.04.02.04 Regulatory provisions 75,652 70,250 2.03 Consolidated equity 2,348,266 2,343,458 2.03.01 Paid-up share capital 1,340,000 1,017,700 2.03.02 Capital reserves 316 316 2.03.02.06 Advance for future capital increase 316 316 2.03.04 Revenue reserves 999,375 1,345,927 2.03.04.01 Legal reserve 138,085 138,085 2.03.04.05 Profit retention reserves 861,290 1,183,472 2.03.04.10 Dividends at the disposal of the General Meeting of Stockholders 0 24,370 2.03.05 Retained earnings 36,973 0 2.03.06 Carrying value adjustments -28,398 -20,485


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Consolidated financial statements/statement of operations (R$ thousand)




1/1/2015 to 9/30/2015


7/1/2014 to 9/30/2014


1/1/2014 to 9/30/2014

3.01 Revenue from sales of goods and/or services 1,595,187 5,058,139 1,425,532 4,090,543 3.02 Cost of goods and/or services sold -1,542,905 -4,768,753 -1,229,056 -3,628,075 3.03 Gross profit 52,282 289,386 196,476 462,468 3.04 Operating expenses -92,040 -322,100 -107,005 -366,161 3.04.01 Selling expenses -46,724 -134,420 -37,026 -111,664 3.04.02 General and administrative expenses -83,377 -264,939 -77,715 -232,159 3.04.04 Other operating income 36,173 63,012 0 0 3.04.05 Other operating expenses 0 0 -2,575 -48,310 3.04.06 Equity in the results of investees 1,888 14,247 10,311 25,972 3.05 Profit/loss before finance result and taxes -39,758 -32,714 89,471 96,307 3.06 Finance result -35,166 65,857 -30,433 11,016 3.06.01 Finance income 56,370 267,501 37,320 163,544 3.06.02 Finance costs -91,536 -201,644 -67,753 -152,528 3.07 Profit before taxation -74,924 33,143 59,038 107,323 3.08 Income tax and social contribution 17,683 -4,083 -21,492 -77,969 3.08.01 Current 132,722 -12,997 -15,001 -45,847 3.08.02 Deferred -115,039 8,914 -6,491 -32,122 3.09 Profit/loss from continuing operations -57,241 29,060 37,546 29,354 3.11 Consolidated profit/loss for the period -57,241 29,060 37,546 29,354 3.11.01 Attributable to the owners of the parent -57,241 29,060 37,546 29,354 3.99 Earnings/loss per share (reais/share) 3.99.01 Basic earnings/loss per share 3.99.01.01 Common shares 1.40040 0.71090 0.91850 0.71810 3.99.01.02 Preferred shares -1.54040 0.78200 1.01040 0.78990 3.99.02 Diluted earnings/loss per share 3.99.02.01 Common shares -1.40040 0.71090 0.91850 0.71810 3.99.02.02 Preferred shares -1.54040 0.78200 1.01040 0.78990


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Consolidated financial statements/statement of comprehensive income (loss) (R$ thousand)




1/1/2015 to 9/30/2015


7/1/2014 to 9/30/2014


1/1/2014 to 9/30/2014

4.01 Consolidated profit/loss for the period -57,241 29,060 37,546 29,354 4.03 Consolidated comprehensive income/loss for the period -57,241 29,060 37,546 29,354 4.03.01 Attributable to the owners of the parent -57,241 29,060 37,546 29,354


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Consolidated financial statements/statement of cash flows - indirect method (R$ thousand)



1/1/2015 to 9/30/2015


1/1/2014 to 9/30/2014

6.01 Net cash provided by/used in operating activities 344,605 -27,446 6.01.01 Cash from operations 108,175 373,079 6.01.01.01 Profit before taxation 33,143 107,323 6.01.01.02 Depreciation and amortization 174,057 164,025 6.01.01.03 Gain or loss on disposal of property, plant and equipment and intangible assets 0 1,803 6.01.01.04 Equity in the results of investees -14,247 -25,972 6.01.01.06 Interest and monetary restatement expenses 89,060 60,035 6.01.01.07 Recognition or reversal of provisions 1,874 0 6.01.01.08 Income tax and social contribution paid -143,958 -25,075 6.01.01.09 Provision for impairment of trade receivables 23,140 734 6.01.01.10 Interest paid -72,793 -48,212 6.01.01.11 Contingencies 0 12,677 6.01.01.13 Disposal of assets 171 0 6.01.01.14 Losses on equity investments -193 -1,112 6.01.01.15 Losses and provision for losses on property, plant and equipment 60 0 6.01.01.16 Reversal of provision for losses on property, plant and equipment 0 -21,130 6.01.01.17 Financial asset adjustment - VNR -84,275 -10,422 6.01.01.18 Realization of provision for losses -9,196 0 6.01.01.19 Actuarial expenses 79,343 56,146 6.01.01.20 Write-off of indemnifiable assets 31,989 102,259 6.01.02 Changes in assets and liabilities 236,891 -400,525 6.01.02.02 Accounts receivable -341,363 -152,078 6.01.02.03 Other assets -357,328 -215,340 6.01.02.04 Judicial deposits -8,591 6,098 6.01.02.05 Trade payables -47,782 44,437 6.01.02.06 Salaries and social charges 26,461 20,523 6.01.02.07 Taxes payable 136,662 -10,521 6.01.02.08 Regulatory charges 1,043,422 18,050 6.01.02.09 Taxes recoverable -111,727 40,396 6.01.02.10 Other changes in assets and liabilities 0 -623 6.01.02.12 Inventories 516 2,635 6.01.02.13 Actuarial liabilities -141,714 -154,102 6.01.02.16 Regulatory assets 38,335 0 6.01.03 Other -461 0 6.02 Net cash used in investing activities -192,346 -174,737 6.02.01 Purchases of property, plant and equipment and additions to intangible assets -221,145 -184,894 6.02.05 Dividends received 31,765 15,398 6.02.06 Payment of related-party capital 0 -5,241 6.02.08 Capital increase -10,766 0 6.02.09 Capital decrease - investees 7,800 0 6.03 Net cash provided by financing activities 227,541 192,514 6.03.02 Related parties 0 11,297 6.03.03 Repayments of borrowings -393,394 -243,757 6.03.04 Proceeds from borrowings 402,940 478,633 6.03.05 Dividends paid -73,004 -53,659 6.03.08 Debentures 290,999 0 6.05 Increase/decrease in cash and cash equivalents 379,800 -9,669 6.05.01 Opening balance of cash and cash equivalents 449,789 664,506 6.05.02 Closing balance of cash and cash equivalents 829,589 654,837


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Consolidated financial statements/statement of changes in equity - 1/1/2015 to 9/30/2015 (R$ thousand)


Paid-up share

capital



Retained earnings/

accumulated deficit

Other comprehensive

income (loss) Equity

Non-controlling

interests Consolidated

equity 5.01 Opening balances 1,017,700 316 1,345,927 0 -20,485 2,343,458 0 2,343,458 5.03 Adjusted opening balances 1,017,700 316 1,345,927 0 -20,485 2,343,458 0 2,343,458 5.04 Capital transactions with stockholders 0 0 -24,252 0 0 -24,252 0 -24,252 5.04.06 Dividends 0 0 -24,370 0 0 -24,370 0 -24,370 5.04.08 Reversal of prescribed dividends 0 0 118 0 0 118 0 118 5.05 Total comprehensive income/loss 0 0 0 36,973 -7,913 29,060 0 29,060 5.05.01 Profit for the period 0 0 0 29,060 0 0 0 0 5.05.03 Reclassification to profit or loss 0 0 0 7,913 -7,913 0 0 0 5.05.03.02 Realization of deemed cost 0 0 0 7,913 -7,913 0 0 0 5.06 Internal changes in equity 322,300 0 -322,300 0 0 0 0 0 5.06.04 Share capital increase 322,300 0 -322,300 0 0 0 0 0 5.07 Closing balances 1,340,000 316 999,375 36,973 -28,398 2,348,266 0 2,348,266


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Consolidated financial statements/statement of changes in equity - 1/1/2014 to 9/30/2014 (R$ thousand)


share capital



Retained earnings/

accumulated deficit

Other comprehensive

income/loss Equity

Non-controlling

interests Consolidated

equity 5.01 Opening balances 1,017,700 316 929,133 0 190,313 2,137,462 0 2,137,462 5.03 Adjusted opening balances 1,017,700 316 929,133 0 190,313 2,137,462 0 2,137,462 5.04 Capital transactions with stockholders 0 0 -6,370 0 0 -6,370 0 -6,370 5.05 Total comprehensive income/loss 0 0 0 53,321 -23,967 29,354 0 29,354 5.05.01 Profit for the period 0 0 0 29,354 0 29,354 0 29,354 5.05.03 Reclassification to profit or loss 0 0 0 23,967 -23,967 0 0 0 5.05.03.01 Adjustments on financial instruments 0 0 0 23,967 -23,967 0 0 0 5.07 Closing balances 1,017,700 316 922,763 53,321 166,346 2,160,446 0 2,160,446


(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 Consolidated financial statements/statement of value added (R$ thousand)



1/1/2015 to 9/30/2015


1/1/2014 to 9/30/2014

7.01 Revenue 8,423,320 5,706,950 7.01.01 Sales of goods, products and services 8,161,489 5,488,341 7.01.03 Revenues related to the construction of own assets 284,972 219,342 7.01.04 Constitution/reversal of provision for impairment of trade receivables -23,141 -733 7.02 Inputs acquired from third parties -4,477,216 -3,459,835 7.02.01 Costs of goods, products and services sold -4,091,304 -3,078,178 7.02.02 Materials, electricity, outsourced services and other -163,983 -162,315 7.02.03 Impairment/recovery of assets 9,196 0 7.02.04 Other -231,125 -219,342 7.02.04.01 Costs related to the construction of fixed assets -284,972 -219,342 7.02.04.02 Customer-related losses 53,847 0 7.03 Gross value added 3,946,104 2,247,115 7.04 Retentions -174,057 -142,895 7.04.01 Depreciation, amortization and depletion -174,057 -164,025 7.04.02 Other 0 21,130 7.04.02.01 Realization of provision for losses 0 21,130 7.05 Net value added generated by the entity 3,772,047 2,104,220 7.06 Value added received through transfer 281,748 189,516 7.06.01 Equity in the results of investees 14,247 25,972 7.06.02 Finance income 267,501 163,544 7.07 Total value added to distribute 4,053,795 2,293,736 7.08 Distribution of value added 4,053,795 2,293,736 7.08.01 Personnel 484,258 397,219 7.08.02 Taxes and contributions 3,396,449 1,704,780 7.08.03 Third parties 144,028 162,383 7.08.03.01 Interest 200,166 151,050 7.08.03.02 Rentals -56,138 11,333 7.08.04 Owners 29,060 29,354 7.08.04.03 Profits retained/loss for the period 29,060 29,354


Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1

Centrais Elétricas de Santa Catarina S.A.

Comments on company performance

Page 18 of 97 CELESC915MT.DOCX

1. Investments The investments made by the Company in property, plant and equipment, intangible assets and interests in Small Hydropower Plants in the third quarter of 2015 amounted to R$ 316.5 million (2014 - R$ 256.1 million), up 23.58% from the same period last year, as presented in the table below:

September 30,

2015 September 30,

2014 Horizontal Investment R$ % R$ % analysis

Electric energy distribution 303,186 95.80 247,606 96.69 22.45%Electric energy generation 13,284 4.20 8,471 3.31 56.82% Total 316,470 100.00 256,077 100.00 23.58%

2. Share market The Bovespa Index (Ibovespa) closed the third quarter of 2015 with a 15.11% loss. The Electric Energy Index (IEE) also showed a 14.80% loss for the same period. The value of Company preferred shares decreased by 19.49% in period July-September 2015 and by 2.91% in the last 12 months. The table below presents the final quotations of the Company's shares at September 30, 2015 and the related percentage variations, as well as of the main market indicators:

Performance * Closing Variation %

September 30,

2015 Q3 2015 In 12 months Celesc PN R$11.65 -19.49% -2.91% Celesc ON R$35.01 -3.39% -3.39% IBOVESPA 45.059 -15.11% -16.73% IEE 25.775 -14.80% -6.60%

Source: DEF/DPRI *Percentage variations with adjustment to yield






3. Market value of the share The market values of Celesc shares at September 30, 2015, as shown above, are as follows: R$ 11.65 for each preferred share (PN) (CLSC4) and R$ 35.01 for each common share (ON) (CLSC3). Celesc's majority stockholder is the State of Santa Catarina, which owns 50.2% of the Company's common shares, corresponding to 20.2% of its total capital. The shareholding and corporate structure of Celesc as at September 30, 2015 is presented below:

* Non-operational/ Project under development

Source: DEF/DPRI

4. Human resources The Celesc Group closed the third quarter of 2015 with 3,288 employees. The total number of employees represents a 0.79% increase compared with the same period of the prior year (3,262 employees), due to the new hirings through the public hiring processes carried out in 2013 and 2014.






5. Economic and financial performance The Company posted profit of R$ 29.0 million for the nine-month period ended September 30, 2015, down 1.00% from the same period in 2014 (profit of R$29.3 million). The table below presents, through the main economic indicators, the Company's consolidated performance for the period ended September 30, 2015, compared with the same period in the prior year:

Economic and financial data

September 30, September 30, Horizontal 2015 2014 analysis

Gross operating revenue (GOR) 8,446,461 5,707,683 47.98%Net operating revenue (NOR) 5,058,139 4,090,543 23.65%Results from activities (32,714) 96,307 -133.97%Adjusted EBITDA 130,729 237,640 -44.99%EBITDA 139,865 258,770 -45.95%Adjusted EBITDA margin (EBITDA/NOR) 2.58% 5.81% -3.23 p.p.EBITDA margin (EBITDA/NOR) 2.77% 6.33% -3.56 p.p.Net Margin (Profit/NOR) 0.57% 0.72% -0.15 p.p.Finance result 65,857 11,016 497.83%Total assets 7,407,418 5,851,856 26.58%Property, plant and equipment 210,131 206,803 1.61%Equity 2,348,266 2,160,446 8.69%Profit 29,060 29,354 -1.00% The Group generated gross operating revenue of R$ 8,446.4 million for the nine-month period ended September 30, 2015, up 47.98% compared to R$ 5,707.6 million in 2014. Net operating revenue grew 23.65% and closed the first nine months of 2015 at R$ 5,058.1 million versus R$ 4,090.5 million in the same period in 2014. The adjusted EBITDA was R$ 130.7 million in the first nine months of 2015, whereas the adjusted EBITDA margin went from 5.81% in the third quarter of 2014 to 2.58% in 2015. Changes in Earnings before Interest, Taxes and Depreciation/Amortization (EBITDA) are as follows:






EBITDA reconciliation September 30, September 30,2015 2014

Profit 29,060 29,354Current and deferred Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) 4,083 77,969Finance result (65,857) (11,016)Depreciation and amortization 172,579 162,463EBITDA 139,865 258,770(-) Non-recurring effects (9,136) (21,130)Provision for impairment test in subsidiary 60 -Reversal of provision for impairment test in subsidiary (9,196) (21,130)(=) EBITDA adjusted by non-recurring effects 130,729 237,640

6. Ownership structure The Company's subscribed and paid-up share capital is R$ 1,340.0 million, represented by 38,571,591 shares with no par value, divided into 15,527,137 registered common shares (40.26%) with voting rights and 23,044,454 registered preferred shares (59.74%) without voting rights. Preferred shares have priority in the payment of non-cumulative dividends of 25%. The Company's ownership structure, in terms of the number of shares held by the stockholders with more than 5% of any share type or class, is as follows: Shareholding base at September 30, 2015

Stockholder Common shares Preferred shares Total Number % Number % Number %

Government of the State of Santa Catarina 7,791,010 50.17 191 0.01 7,791,201 20.20 Angra Partners Volt Fundo de Inv em Ações 5,140,868 33.11 437,807 1.90 5,578,675 14.46 Fundação Celesc de Seguridade Social - Celos 1,340,274 8.63 230,800 1.00 1,571,074 4.07 Geração LPar Fundo de Investimento 257,600 1.66 2,400,000 10.41 2,657,600 6.89 Centrais Elétricas Brasileiras - Eletrobras* 4,233 0.03 4,142,774 17.98 4,147,007 10.75 Neon Liberty Capital Management LLC - - 1,173,300 5.09 1,173,300 3.04 MCAP Poland FIA - - 2,904,200 12.60 2,904,200 7.53 Others 993,152 6.40 11,755,382 51.01 12,748,534 33.06

Total 15,527,137 40.26 23,044,454 59.74 38,571,591 100 Share capital: R$ 1,340,000,000.00 and authorized capital: R$ 1,340,000,000.00 *Listed Company Source: DEF/DPRI






7. Foreign shareholding At the end of the third quarter of 2015, foreign investors held 14.58% of the Company's total share capital, which represents 5,624,427 shares, the majority of which being preferred shares.

Shareholding by domicile Number of shares % Foreign investors 5,624,427 14.58 Local investors 32,947,164 85.42

Total 38,571,591 100 Source: DEF/DPRI

8. Shares held by the controlling stockholder, management and members of the Statutory Audit Board The Company is subject to the arbitration of the Market Arbitration Chamber pursuant to an arbitration clause in its bylaws.


Controlling stockholder 7,889,186 50.81 3,505 0.02 7,892,691 20.46 Board of Directors - - 3 0.00 3 0.00 Other stockholders 7,637,951 49.19 23,040,946 99.98 30,678,897 79.54

Total 15,527,137 100.0 23,044,454 100.0 38,571,591 100.0 Source: DEF/DPRI

9. Outstanding shares

Description Registered common shares - CLSC3 Registered preferred shares - CLSC4 Total Number % Number % Number %

Total capital 15,527,137 100.0 23,044,454 100.0 38,571,591 100.0 Outstanding shares 7,637,951 49.19 23,040,946 99.98 30,678,897 79.54

Source: DEF/DPRI

10. Energy consumption In the third quarter of 2015, the electric energy supplied by Celesc D to the captive market totaled 4,002 GWh, representing a fall of 2.3% compared to 4,095 GWh in the same period in the prior year. The total market (including free consumers) shrank by 3.7% to 5,369 GWh in the third quarter of 2015 compared to 5,576 GWh in the third quarter of 2014.






The graph below shows the consumption of each class in the captive market and the decline of the total market:

Residential Industrial Commercial Rural Other classes1 Free consumers

Captive market

Total market

Source: DCL/DPCM/DVME Note: Other Classes¹ = Government + Public lighting + Public service + Resale. Own consumption is not considered.

11. Electrical energy market

CAPTIVE MARKET Horizontal 2015 2014 Vertical variation variation Q3 9 months Q3 9 months Q3 9 months

Description Q3 9 months Q3 9 months 2015 2015 2014 2014 2015-2014

2015-2014

Sales revenue by consumer class in thousands of reais (R$) Residential 724,716 2,290,318 498,000 1,531,457 31.8% 33.0% 32.9% 34.5% 45.5% 49.6%Industrial 701,441 2,018,045 462,226 1,252,212 30.8% 29.1% 30.5% 28.2% 51.8% 61.2%Commercial 518,252 1,655,523 338,619 1,039,726 22.8% 23.9% 22.4% 23.4% 53.0% 59.2%Rural 122,632 367,914 74,208 225,315 5.4% 5.3% 4.9% 5.1% 65.3% 63.3%Government 61,667 182,839 41,272 114,833 2.7% 2.6% 2.7% 2.6% 49.4% 59.2%Public lighting 60,052 165,019 34,443 95,660 2.6% 2.4% 2.3% 2.2% 74.4% 72.5%Public service 42,982 122,273 26,336 73,507 1.9% 1.8% 1.7% 1.7% 63.2% 66.3%Subtotal 2,231,741 6,801,930 1,475,104 4,332,711 98.1% 98.0% 97.5% 97.7% 51.3% 57.0%Supply 43,928 137,415 37,946 102,586 1.9% 2.0% 2.5% 2.3% 15.8% 34.0%TOTAL 2,275,670 6,939,346 1,513,050 4,435,297 100% 100% 100% 100% 50.4% 56.5%Consumption by consumer class in MWh Residential 1,174,577 3,973,702 1,213,393 4,026,796 29.3% 30.5% 29.7% 30.6% -3.2% -1.3%Industrial 1,065,201 3,247,374 1,141,709 3,415,046 26.6% 24.9% 27.9% 26.0% -6.7% -4.9%Commercial 784,205 2,716,037 790,542 2,693,558 19.6% 20.8% 19.3% 20.5% -0.8% 0.8%Rural 297,080 978,612 289,478 980,823 7.4% 7.5% 7.1% 7.5% 2.6% -0.2%Government 97,613 311,533 96,667 313,707 2.4% 2.4% 2.4% 2.4% 1.0% -0.7%Public lighting 145,667 435,226 142,051 425,831 3.6% 3.3% 3.5% 3.2% 2.5% 2.2%Public service 78,767 243,301 78,220 240,341 2.0% 1.9% 1.9% 1.8% 0.7% 1.2%Subtotal 3,643,111 11,905,786 3,752,060 12,096,102 91.0% 91.3% 91.7% 92.0% -2.9% -1.6%Supply 359,235 1,133,563 339,749 1,058,318 9.0% 8.7% 8.3% 8.0% 5.7% 7.1%TOTAL 4,002,346 13,039,348 4,091,809 13,154,420 100% 100% 100% 100% -2.2% -0.9%






CAPTIVE MARKET Horizontal 2015 2014 Vertical variation variation Q3 9 months Q3 9 months Q3 9 months

Description Q3 9 months Q3 9 months 2015 2015 2014 2014 2015-2014

2015-2014

Average unit price per MWh (in Brazilian reais) Residential 617.00 576.37 410.42 380.32 110.7% 110.5% 113.8% 115.5% 50.3% 51.5%Industrial 658.51 621.44 404.85 366.67 118.1% 119.1% 112.3% 111.3% 62.7% 69.5%Commercial 660.86 609.54 428.34 386.00 118.5% 116.8% 118.8% 117.2% 54.3% 57.9%Rural 412.79 375.95 256.35 229.72 74.0% 72.1% 71.1% 69.7% 61.0% 63.7%Government 631.74 586.90 426.95 366.05 113.3% 112.5% 118.4% 111.1% 48.0% 60.3%Public lighting 412.25 379.16 242.47 224.64 73.9% 72.7% 67.3% 68.2% 70.0% 68.8%Public service 545.69 502.56 336.69 305.84 97.9% 96.3% 93.4% 92.9% 62.1% 64.3%Subtotal 612.59 571.31 393.15 358.19 109.9% 109.5% 109.1% 108.7% 55.8% 59.5%Supply 122.28 121.22 111.69 96.93 21.9% 23.2% 31.0% 29.4% 9.5% 25.1%TOTAL 557.61 521.65 360.50 329.37 100% 100% 100% 100% 54.7% 58.4%

Source: DCL 12. Arbitration clause The Company declares that it is subject to the arbitration of the Market Arbitration Chamber, pursuant to an Arbitration Clause in article 64 of its bylaws, which reads: "The Company, its stockholders, managers and members of the Statutory Audit Board agree to resolve, through arbitration before the Market Arbitration Chamber, any and all disputes or controversies that could arise between them relating to, or resulting from, the application, validity, effectiveness, interpretation, breach and its effects, of the provisions of Brazilian Corporation Law, the Company's bylaws, the standards issued by the National Monetary Council (CMN), the Brazilian Central Bank and the Brazilian Securities Commission (CVM), as well as of the other rules applicable to the operation of the capital markets in general, besides those contained in the Regulations of Corporate Governance Level 2, the Agreement for Participation in Corporate Governance Level 2, and the Penalty and Arbitration Regulations of the Market Arbitration Chamber". 13. Independent auditors In accordance with the provisions of CVM Instruction 381, of January 14, 2003, ratified by Official Letter/CVM/SEP/SNC 02, of March 20, 2003, the Company informs that its independent auditors did not provide any type of service other than those strictly related to external audit activities. Florianópolis, November 13, 2015 The Management

(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Notes to the quarterly information (All amounts in thousands of reais unless otherwise stated)


1. Operations Centrais Elétricas de Santa Catarina S.A. ("Celesc" or "Company") is a public corporation headquartered at Av. Itamarati, 160, in the district of Itacorubi, city of Florianópolis, State of Santa Catarina, Brazil. Celesc was initially listed on the Stock Exchange on March 26, 1973, and its shares are currently traded on the São Paulo Stock Exchange at Level 2 of Corporate Governance of the São Paulo Securities, Commodities and Futures Exchange - BM&FBovespa S.A., in São Paulo. The Company is controlled by the Government of the State of Santa Catarina. The main activity of the Company and its subsidiaries, joint ventures and associates is the generation, transmission and distribution of electric energy. It also operates in the piped natural gas distribution segment. The main consolidated wholly-owned subsidiaries, joint ventures and associates at September 30, 2015 are as follows:

Ownership percentage - %

Description September 30, 2015

December 31, 2014

Subsidiaries Direct Direct Celesc Geração S.A. (Celesc G)

100

100

Celesc Distribuição S.A. (Celesc D) 100 100

Ownership percentage - %

Description

September 30, December 31, 2015 2014

Direct Indirect Direct IndirectJoint ventures Companhia de Gás de Santa Catarina - SCGÁS 17 - 17 -Empresa Catarinense de Transmissão de Energia S.A. - ECTE 30.88 - 30.88 -Campo Belo Energética S.A. - 30 - 30Painel Energética S.A. - 32.5 - 32.5Rondinha Energética S.A. - 32.5 - 32.5Companhia Energética Rio das Flores S.A. - 25 - 25Xavantina Energética S.A. - 40 - 40Garça Branca Energética S.A. - 49 - - Associates Dona Francisca Energética S.A. - DFESA 23.03 - 23.03 -Usina Hidrelétrica de Cubatão S.A. 40 - 40 -



1.1. Regulatory environment The Brazilian electrical energy sector is regulated by the Federal Government through the Ministry of Mines and Energy (MME), which has exclusive authority over the sector. The regulatory policies applicable to this sector are implemented by the National Electric Energy Agency (ANEEL). The de-verticalization process of the electric energy distribution activity complies with the provisions of Federal Law 10,848, of March 15, 2004, was authorized by State Law 13,570, of November 23, 2005 and approved by ANEEL through Resolution 712 of October 3, 2006. 1.1.1. Concessions a) Celesc Distribuição S.A.

On July 22, 1999, Celesc entered into electric energy distribution concession contract No. 56, which regulates the exploration of public electric energy distribution services. With the de-verticalization process in 2006, the distribution activity was transferred to Celesc D. This concession was effective until July 7, 2015. The concession of Celesc D is not onerous and, therefore, there are no fixed commitments or payments to be made. According to the concession contract, at the end of the concession term, the assets and facilities linked to the distribution of electric energy shall be handed over to the Federal Government, through an indemnification for investments made but not yet amortized, provided that these investments have been authorized and audited by the regulatory body ANEEL. Considering that the conditions established by Technical Interpretation ICPC 01 "Concession Arrangements" have been fully met, the management of Celesc D concluded that its concession contract falls within the scope of ICPC01 and, therefore, the assets linked to the concession are divided into intangible asset and indemnifiable asset. The tariff adjustment is on August 7 of each year and the periodic tariff revision is every four years. Celesc D held a concession for electricity distribution services until July 7, 2015 and falls under Provisional Measure 579 of September 11, 2012, which was converted into Federal Law 12,783 in January 2013. In June 2012, the Company requested an extension of this concession contract based on the provisions established under the Concession Contract and, on September 18, 2012, based on the previously issued Provisional Measure 579/12, the Company renewed its request for the extension of the related concession contract, under the conditions established by that legal instrument, and reserves the right to reconsider its request in the event there is any change in prevailing contractual conditions. At October 15, 2012, the Company ratified the request for extension.



Up to June 3, 2015, there was great expectation relating to the standards and conditions for the extension of the distribution concessions, based on the guideline established by Law 2,783/2013, which made 30-year concession extensions possible. Issued on that same date, Decree 8,461 sets forth the conditions for concession extension and empowers ANEEL to carry out the Amendment to the Concession Contract, as well as the affected conditions relating to the quality of service, economic sustainability, reasonable tariffs, and technical, operational and economic rationality. Immediately thereafter, on June 10, 2015, ANEEL held Public Hearing 038/15, for the purpose of debating with the distributing companies and the society about the conditions proposed for the extension, which had expired on July 13, 2015. Celesc D, along with other distributing companies and the Brazilian Association of Distributing Companies (Abradee), presented several contributions that aimed at improving the standards and the compliance level, so as to provide the society of the State of Santa Catarina with electric energy distribution services based on quality and sustainability. On September 9, 2015, the full panel of the Federal Audit Court (TCU) decided to authorize the concession extension process to move forward, establishing new requirements to be met, which include criteria for termination of concession (Quality and Sustainability indicators) effective as from the sixth year of contract until its end. Also, the TCU has raised the impossibility of distributing companies to present a proposal for change in control after the concession termination process is initiated, in view of the lack of a legal provision applicable to matter. Based on the conditions established by the TCU, ANEEL reopened Public Hearing 038/2015 at its second phase to receive new contributions from society, in order to meet the requirements of the TCU, and at the same time it appealed the Federal Audit Court's decision, challenging certain points and proposing some alternatives to the decision rendered, such as: i) A time frame of eighteen (18) months to regulate the conditions relating to governance and other parameters to restrict the distribution of Dividends and Interest on Capital; and ii) Possibility of revising the Quality indicator parameters (DEC/FEC) every five (5) years after the sixth year of contract. After the analysis of the appeals by the Federal Audit Court, a new decision was rendered on October 14, 2015 ruling that: i) The previous regulation of the conditions relating to corporate governance and other related points is a recommendation and not a requirement; and



ii) The revision of the DECi and FECi parameters can occur every cycle of five (5) years according to the regulation previously discussed with the society. Based on this decision, ANEEL included the requirements of the TCU in the Amendment to the Concession Contract and approved it at the executive board's meeting held on October 20, 2015, so that the draft of the Amendment to be submitted to the Ministry of Mines and Energy (MME) was approved by ANEEL Decision 3,540 of October 20, 2015. At present, the distributing companies are awaiting the publication of the MME Rule approving the final version of the Amendment to the Concession Contract and the start of the procedures for its signature. The TCU ruled in Decision 2,253/2015 that ANEEL and the MME must include a provision in the new electricity distribution concession contracts to set and regulate the transition period for the transfer of concessions upon the end of the contract term or declaration of expiry of the concession, so as to mitigate service interruption risks. ANEEL clarifies in Decision 3,592 of October 28, 2015 that, in accordance with article 42, paragraph 2 of Law 8,987 of February 13, 1995, "the concessions will remain valid for the time needed to carry out the analyses and evaluations indispensable to organizing the public biddings that must precede the granting of concessions that will substitute for the previous concessions, this time being not less than twenty-four (24) months". b) Celesc Geração S.A. With a strong participation in the electric energy generation segment, emphasis on the areas of operation and maintenance of power plants and sale of electric energy, subsidiary Celesc G, as provided in the ANEEL concession contract 55, dated July 22, 1999, clause 2, holds the following electricity generation concessions at September 30, 2015:

Generating plant Location Installed capacity

(MW) Concession expiration date

Palmeiras - Rio dos Cedros (ii) Rio dos Cedros/SC 24.60 11/7/2016Bracinho - Rio Bracinho (ii) Schroeder/SC 15.00 11/7/2016Garcia - Rio Garcia (iii) Angelina/SC 8.92 7/7/2015Cedros - Rio dos Cedros (ii) Rio dos Cedros/SC 8.40 11/7/2016Salto - Rio Itajaí-Açu (ii) Blumenau/SC 6.28 11/7/2016Celso Ramos - Rio Chapecozinho (v) Faxinal do Guedes/SC 5.40 3/17/2035Pery - Rio Canoas (vi) Curitibanos/SC 30.00 7/9/2017Caveiras - Rio Caveiras (iv) Lages/SC 3.83 7/10/2018Ivo Silveira - Rio Santa Cruz (vii) Campos Novos/SC 2.60 (i)Piraí - Rio Piraí (viii) Joinville/SC 0.78 (i)São Lourenço - Rio São Lourenço Mafra/SC 0.42 (i)Rio do Peixe - Rio do Peixe Videira/SC 0.52 (i)Total installed capacity 106.75



(i) Hydroelectric plants without a definite concession period. (ii) As required by Provisional Measure (MP) 579/2012, the Company filed on October 15, 2012 a request for extension of the concession for small Hydropower Plants (PCHs) affected by that MP on that date. The Company's management analyzed the conditions established for the extension of the concession term, as well as the potential economic and financial effects and the tax effects on indemnity and tariff amounts, and also conducted various internal studies in order to conclude on the non-acceleration of the expiration date of concession. At the Extraordinary Meeting held on November 22, 2012, the Board of Directors, following the opinion of the Executive Board, decided not to adhere to the terms of early renewal of the concessions for the plants of Celesc G affected by MP 579/12. (iii) Ordinance 255, issued by the MME on June 11, 2015, establishes that Celesc G is responsible for providing the electric energy generation service of Garcia plant, so as to ensure the continuity of the service, as from July 8, 2015 up to the date the concessionaire that won the concession contract for the power plant begins to run the concession. (iv) On July 8, 2013, the Company filed with ANEEL a request for knowing the rules and tariffs applicable to the Caveiras plant, according to the terms of Provisional Measure 579/12. On March 10, 2015, ANEEL accepted the request filed by Celesc G to know the conditions for the extension of the concession for the power plant under the quotas regime. Celesc G is currently analyzing the technical and economic feasibility of adhering to the quotas regime. It is also waiting for a position by ANEEL and submission of the Amendment to the Concession Contract for deliberation of the Executive Board and the Board of Directors and signature. (v) After Provisional Measure 579/12 was enacted into Law 12,783/13, a potential legal interpretation was identified for the power plants that could be affected by the quotas regime but had not yet reached the mark of 60 months to the end of the concession term. According to this potential legal interpretation, it would be possible to extend the concession term for up to 20 years if the expansion project for the plants is approved under this condition.



Afterwards, communications were established with ANEEL, which resulted in the issuance of Report 0353/2013/PGE-ANEEUPGF/AGU, Technical Note 53/2015-SCG/ANEEL and, lastly, Resolution 5,078, issued by ANEEL on March 17, 2015, which authorized the increase of the installed capacity of Celso Ramos plant to 12,815.92 kW and a 20-year concession extension effective as from the date of publication of the Resolution, contingent upon the start of the commercial operations of generating plants 3 and 4, up to the expiration date of the current concession. On April 7, 2015, ANEEL submitted to the Company for review the draft of the second Amendment to the Concession Contract for the Use of Public Assets No. 006/2013. On October 20, 2015, ANEEL sent to the Company the second Amendment to the Concession Contract for the Use of Public Assets No. 006/2013, which is currently going through the review and signature process. The bidding processes for the plant expansion work is currently in progress. (vi) Pery plant was excluded from the decision regarding the adherence to the rules established by Provisional Measure 579/12, through an Ordinary Action with a preliminary injunction at the Federal Court, with the objective of discussing the right to extend the concession for 20 years, as established in article 26, paragraph 7 of Federal Law 9,247 of December 26, 1996, or alternatively, the extension under the hybrid regime, recommended by ANEEL. The request for suspension of the deadline for signing the Amendment to the Concession Contract was accepted. The Federal Government appealed this decision through an interim appeal, but the request for the suspensive effect was rejected by the Federal Regional Court (TRF) of the 4th Region (Porto Alegre/State of Rio Grande do Sul). On February 17, 2014, a favorable decision was granted by the Vice-president of TRF-4 in the records of the Precautionary Action filed by Celesc G, suspending again the case until the final judgment and the closing of the lawsuit. At present, Exceptional Appeals are being judged by the Superior Court of Justice (STJ) and the Supreme Federal Court (STF). (vii) Pursuant to a request filed by Celesc G, ANEEL revoked as from July 7, 2015, through Resolution 5,362 of July 21, 2015, the concession of Ivo Silveira plant, located in the city of Campos Novos, State of Santa Catarina, with an installed capacity of 2.6 MW. According to Law 13,097 of January 19, 2015, after the expiry of the concession for hydroelectric power capacity equal to or lower than 3.0 MW, the plants do not need a concession, permission or authorization, and no definite term of concession is specified. The registration of the plant with ANEEL was made on August 10, 2015 under the code CGH.PH.SC.001202-5.02.



(viii) Following the request filed by Celesc G, ANEEL revoked as from July 7, 2015, through Resolution 5,363 of July 21, 2015, the concession of Piraí plant, located in the city of Joinville, State of Santa Catarina, with an installed capacity of 780 kW. Pursuant to article 7 of Law 12,783/13, after its concession expires, this hydropower plant no longer holds a Concession Contract and must then start to operate under the registration regime, with no definite concession period being set. The registration of the plant with ANEEL was made on September 4, 2015 under the code CGH.PH.SC.002076-1.02. Celesc G also has eight small hydroelectric power plants (PCHs) built in partnership with private investors.

Generating facility (in operation)

Location Installed capacity

(MW) Ownership percentage

% PCH Rondinha Passos Maia/SC 9.6 32.5 PCH Belmonte (Rio das Flores) Belmonte/SC 3.6 25.0 PCH Bandeirante (Rio das Flores) Bandeirante/SC 3.0 25.0 PCH Prata (Rio das Flores) Bandeirante/SC 3.0 25.0 PCH Xavantina (ix) Xanxerê/SC 6.1 40.0 Generating facility (under construction)



% PCH Garça Branca (x) Anchieta/SC 6.5 49.0 Generating facility (prospection/project)



% PCH Campo Belo Campo Belo do Sul/SC 10.0 30.0 PCH Painel São Joaquim/SC 9.2 32.5

(ix) On July 9, 2015, ANEEL authorized, through Decision 2,231, generating facilities 1 and 2 of PCH Xavantina, with an installed capacity of 3,037.5 kW each, to start test operations on July 10, 2015. Under Decision 2,991 of September 3, 2015, ANEEL authorized the start of commercial operations as from September 4, 2015. (x) On March 24, 2015, Celesc G entered into an ownership interest assignment agreement with Casaforte Energia S.A. for the acquisition of 49% of Garça Branca Energética S.A. PCH Garça Branca is a private special purpose entity that started its operations on October 15, 2008 and has an indefinite duration. It is exclusively engaged in the implementation, operation, maintenance, generation and sale of electric energy. This power plant is located in the municipalities of Anchieta and Guaraciaba, in the State of Santa Catarina, with an installed capacity of 6.5 MW.



b.1) Court decision about the Generation Scaling Factor (GSF)

Celesc G filed a lawsuit against ANEEL, requesting that ANEEL direct the Electric Energy Trade Chamber (CCEE) to revise the method of calculating the Energy Reallocation Mechanism (MRE) and ensure that Celesc G is provided with an electric energy amount that is equivalent to the physical guarantee (GSF).

Celesc G filed a preliminary injunction requesting that:

i) ANEEL direct the CCEE to monthly allocate to CELESC G an amount of electric energy equivalent to 100% of the GSF;

ii) if the request in item i is not granted, the CCEE should ensure the allocation to Celesc G of electric energy amounting to 95% of the GSF;

iii) or, secondarily, an amount of electric energy corresponding to what the total MRE amount would be if there were no physical guarantee.

The Company also requested that items (i), (ii) or (iii) above be ensured in advance until a final decision on the lawsuit is made. In short, Celesc G seeks to suspend the recording of the costs incurred by the hydropower generators due to the use of the Generation Scaling Factor (GSF), since the hydropower generation deficit in the current scenario is due to both structural and contextual reasons. GSF corresponds to the ratio between the sum of the total amount of electric energy produced by the hydropower plants that are part of the Energy Reallocation Mechanism (MRE) and the sum of the physical guarantees of the plants. Between 2005 and 2012, the annual GSF of the MRE always exceeded 100%, without additional costs to the hydroelectric generators. As from 2013 onwards, this situation started to change and worsened in 2014 when the GSF remained below 100% throughout the entire year. The average for 2015 was 80.1%. The GSF below 100% required an adjustment to the generators' physical guarantee in the MRE, which is below the amount established in their supply contracts and forces the generators to purchase power at free market prices. On August 5, 2015, the 5th Federal District Court of the Federal Regional Court of the First Region issued a decision partially granting the preliminary injunction sought and ordering that ANEEL and CCEE should refrain from adjusting the MRE if the total amount generated by the MRE is lower than the related physical guarantee, so as to limit the effects of the GSF to a maximum of 5% of the total physical guarantee of the claimants.

The court decision also suspended the accounting and collection by the CCEE of the amount falling due on July 5, 2015 and other amounts, through the Auxiliary Calculation Mechanism, until a further decision is issued by the court, subject to a daily fine of R$ 50.



c) Companhia de Gás de Santa Catarina S.A. - SCGÁS SCGÁS is responsible for the distribution of piped natural gas in Santa Catarina. Its stockholders are Celesc; Gaspetro, a subsidiary of Petrobras, responsible for investments in the gas segment; Mitsui Gás e Energia do Brasil, a private company belonging to the Mitsui Group since April 2006 with the acquisition of Gaspart/Gás Participações; and Infragás - Infraestrutura de Gás para a Região Sul, a company established on December 13, 1990 with the specific objective of providing an infrastructure for natural gas supply in the South region. The concession contract for these services was signed on March 28, 1994 and is effective for 50 years from the date of signing. d) Empresa Catarinense de Transmissão de Energia - ECTE The main objective of ECTE is the rendering of services such as: planning, implementation, construction, operation and maintenance of electric power transmission facilities, including the support and back office services, programming, measurements and other services necessary to transmit electric power. Through the ANEEL Agreement for Concession of Electric Power Transmission Public Service 88/2000, dated November 1, 2000, entered into with the Federal Government, through the National Electric Energy Agency (ANEEL), ECTE was granted the concession of the Electric Power Transmission Service for a 30-year term, which consists in the implementation, maintenance and operation of the transmission line of 525 kV, 252.5 km long, from the Campos Novos substation to the Blumenau substation, in the State of Santa Catarina. Celesc holds 30.88% of the share capital of ECTE. The ECTE system is part of the Basic Network of the Interconnected Electric System (SIN), whose electric power transmission operation, under the supervision and regulation of ANEEL, is coordinated and controlled by the National Electric System Operator (ONS), a private, non-profit company authorized to operate by the Ministry of Mines and Energy (MME). e) Dona Francisca Energética S.A. - DFESA DFESA is a concessionaire that acts as an independent producer of electrical energy and owns Dona Francisca Hydroelectric Plant, built on the Jacuí River in the State of Rio Grande do Sul, with an installed capacity of 125 MW and assured energy of 80 MW. This plant was opened in May 2001. The concession contract of DFESA dates back to August 28, 1998 and is effective for 35 years. Celesc holds 23.03% of the common shares of DFESA.



f) Legislation applicable to concessions i) Ratifying Resolution 1,574 of July 30, 2013 - Grant and transfer of CDE Through Technical Note 252 of July 31, 2014, ANEEL ratified the transfer from Centrais Elétricas Brasileiras S.A. - Eletrobras to Celesc D, referring to the discounts on the tariffs applicable to the users of the electric energy distribution services, in the monthly amount of R$ 35,407, relating to the period from August 2014 to July 2015. On February 27, 2015, through Ratifying Resolution 1,858, ANEEL approved the new monthly amount of R$ 40,102, effective from March to July 2015. On September 30, 2015, through Technical Note 261, ANEEL approved the new monthly amount of R$ 49,857, effective from August 2015 to July 2016. These amounts were recorded within "Other receivables", with an offsetting entry to gross operating revenue within "Grants, contributions and subsidies linked to the service concession". ii) Decree 8,401 of February 4, 2015 - Tariff Flags The Federal Government has created, through Decree 8,401, dated February 4, 2015, the Tariff Flag Fund Centralizing Account. Decree 8,401/2015 establishes that tariff flags will take into consideration the variations in the costs of thermal generation and the exposure to settlement prices in the spot market that affect electric energy distributing companies connected to the National Interconnected System (SIN). ANEEL Technical Note 28, dated February 5, 2015, establishes that the funds obtained with the tariff flags applied by the distribution companies should be transferred to the Tariff Flag Fund Centralizing Account, and that CCEE will then transfer them to the distribution companies, considering the difference between the thermoelectric generation costs and the exposure to the settlement prices in the spot market and the income obtained according to the effective tariff coverage. The tariff flags shall be applied under the following criteria: I - green flag: shall be applied in the months when the Variable Unit Cost (CVU) of the last plant to be used is lower than R$ 200.00 MWh;



II - yellow flag: shall be applied in the months when the CVU of the last plant to be used is equal to or higher than R$ 200.00 MWh and lower than the maximum limit of the Difference Settlement Price (PLD), which is currently at R$ 227.04 MWh; and III - red flag: shall be applied in the months when the CVU of the last plant to be used is equal to or higher than the maximum limit of PLD (R$ 227.04 MWh). The tariff flag system allows passing on extra costs of power generation to consumers via the tariff charged in a dynamic manner. Previously, such costs were passed on to the tariff at the time of the annual tariff adjustment or extraordinary tariff reviews. The Government believes that a correct price signaling may influence positively society and consumers towards the rational use of our finite natural resources and the environmental and social impacts of the inefficient use of energy. Celesc D applied the red tariff flag to its consumers from January to September 2015. iii) Ratifying Resolution 1,858, of February 27, 2015 - Extraordinary Tariff Review (RTE) On February 27, 2015, ANEEL authorized the tariff increase rates related to the RTE for 58 concessionaires throughout Brazil. The new tariffs became effective as from March 2 and vary according to the particular situation of each distribution company. The RTE is provided in the Distribution Concession Contract and in the General Concession Act, being also the mechanism used to promote the economic and financial balance of the concessionaires when facing extra costs when these are not established by common review procedures and, therefore, are not guaranteed for tariff coverage. For the customers of Celesc D, the tariff adjustment rate to be applied averages out to 24.8%, varying from 21.31% for low-voltage residential customers to 29.90% for Group A1 (industrial customers) requiring services at high voltage of 230 kV or above. Celesc D's tariff increase rate by voltage level, considering the green flag, is as follows:

Voltage level Average rate Number of consumers A1 (230kV or above) 29.90% 1A2 (88kV to 138kV) 29.06% 44A3 (69kV) 28.68% 25A3a (30kV to 44kV) 28.68% 8A4 (2.3 kV to 25kV) 24.64% 10,429BT (less than 2.3kV) 21.31% 2,779,792

(i) Information not reviewed



The purpose of the RTE amounts for Celesc D is to cover the increase in the cost of purchase of energy from the Itaipu Plant, which varied by 46.14% last January; the increase of 1.292% in the Energy Development Account (CDE) charges due to the discontinuation of Federal Government subsidies for social programs involving the electric energy universalization and alternative energy incentives; and costs of acquisition of energy at auctions in order to meet increased demand. 2. Basis of preparation 2.1. Statement of compliance 2.1.1. Parent company and consolidated quarterly information The parent company and consolidated quarterly information has been prepared in accordance with accounting practices adopted in Brazil and is being presented in accordance with the accounting standard CPC 21 (R1), Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC) and the International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as according to the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). The issue of this interim accounting information was authorized by the Board of Directors on November 10, 2015. 2.2. Measurement basis 2.2.1. Functional and presentation currency The parent company and consolidated quarterly information is presented in Brazilian reais, which is the Company's functional currency, and also the Group's presentation currency. All amounts are rounded to thousands of Brazilian reais unless otherwise stated. 2.2.2. Critical accounting estimates and judgments Accounting estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.



Based on assumptions, the Company makes estimates concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next periods are addressed below: a) Fair value of other financial instruments The fair value of other financial instruments that are not traded in an active market is determined by using valuation techniques. The Company uses judgment to select the most adequate among a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

b) Pension benefits The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using various assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of pension obligations. The Company determines the appropriate discount rate at the end of each year according to current market conditions. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds, which are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension obligation. Other key assumptions for pension obligations are based in part on current market conditions. c) Income tax and social contribution The Company recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred tax assets and liabilities in the period in which such determination is made.



d) Contingencies The Company is currently involved in a number of tax, labor, civil, regulatory and environmental lawsuits. Provisions are recognized for probable losses. The Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated. The probability of loss is assessed based on the available evidence, including the assessment of external legal counsel. e) Impairment of non-financial assets Assets that are used in the Company's activities are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable based on future cash flows. An asset's carrying amount is written down immediately to the recoverable amount when it is greater than its estimated recoverable amount, and the asset's useful life is adjusted accordingly. f) Use of Public Assets (UBP) These are amounts contracted related to the right of use of public assets for exploration of the hydropower potential, resulting from onerous concession contracts with the Federal Government, stated at the amortized cost and restated at the interest rates or contractual indexes incurred up to the balance sheet dates, adjusted to present value, based on a discount rate approved by the Company's Board of Directors. The obligation is recorded in current and non-current liabilities, segregated from the financial charges, and finance cost and amortization are recognized in the statement of operations. 3. Summary of significant accounting policies The basis of preparation and accounting policies are the same as those adopted in the annual financial statements for the year ended December 31, 2014. Accordingly, as determined in Official Letter CVM/SNC/SEP 03/2011, the Company opted to present the explanatory notes to this Quarterly Information in a summarized manner when there are no changes in relation to the content already presented in its annual financial statements. In these cases, the full explanatory note in the annual financial statements is identified, in order not to prejudice the understanding of the Company's financial position and performance during the interim period. Therefore, the corresponding information should be read in the summary note of significant accounting policies to the aforementioned financial statements.



3.1 New standards and interpretations to standards The following new standards were issued by IASB but are not effective for 2015. The early adoption of standards, even though encouraged by IASB, has not been implemented in Brazil by the Brazilian Accounting Pronouncements Committee (CPC). a) IFRS 15, "Revenue from Contracts with Customers", replaces IAS 11, "Construction Contracts", IAS 18, "Revenue" and related interpretations and introduces the principles to be applied by an entity to determine the measure and recognition of revenue. Effective date is January 1, 2018 but early adoption is permitted for entities that report under IFRS. Management is yet to assess IFRS 15's full impact. b) IFRS 9, "Financial instruments" addresses the classification, measurement and recognition of financial assets and financial liabilities. The complete version of IFRS 9 was issued in July 2014 and is effective as from January 1, 2018. It replaces the orientation included in IAS 39 related to the classification and measurement of financial instruments. IFRS 9 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortized cost, fair value through other comprehensive income and fair value through profit or loss. There is now a new expected credit losses model that replaces the current incurred loss impairment model. IFRS 9 relaxes the requirements for hedge effectiveness. It also requires an economic relationship between the hedged item and hedging instrument and for the "hedged ratio" to be the same as the one management actually use for risk management purposes. Management is yet to assess IFRS 9's full impact. 4. Financial risk management 4.1. Financial risk factors The Company's activities expose it to a variety of financial risks: market risk (including foreign exchange risk and cash flow or fair value interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial performance. 4.2. Market risk 4.2.1. Foreign exchange risk This risk arises from the possibility that its subsidiaries may incur losses and cash restrictions due to fluctuations in the foreign exchange rates, increasing the liability balances denominated in foreign currency.



The subsidiary Celesc D is exposed in its operating activities to foreign exchange variation in the purchase of electric energy from Itaipu. The compensation mechanism (CVA) protects the companies from possible losses. However, this compensation will take place only with the consumption and resulting billing of energy after the subsequent tariff adjustment which has taken into account such losses. 4.2.2. Cash flow and fair value interest rate risk This risk arises from the possibility of the Company incurring losses due to interest rate or other debt indexing unit fluctuations that could increase its interest expenses on borrowings obtained in the market, or that could reduce the interest income on the Company's financial investments. Celesc has no derivative contracts to hedge this risk. 4.3. Credit risk This risk arises from the possibility that the Company may incur losses as a result of difficulties in collecting amounts billed to its customers, concessionaires and permittees. To reduce this type of risk and assist in its management, the Company monitors trade receivables by carrying out several collection efforts, including the interruption of electricity supply if the customer defaults on its payments. In the case of customers, the credit risk is low since there is no significant dependency on few customers. 4.4. Liquidity risk Cash flow forecasting is performed in the operating areas of the Company and consolidated by the Controllership Department. This department monitors rolling forecasts of the Company's liquidity requirements to ensure it has sufficient cash to meet operational needs. Surplus cash held by the operating areas over and above the balance required for working capital management is managed by the Finance and Economic Department/Treasury (DPEF/DVTS). This department invests surplus cash in interest-earning current accounts, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide adequate margin as determined by the above-mentioned forecasts. The table below analyzes the Company's non-derivative financial assets and liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date.



The amounts disclosed in the table are the contractual undiscounted cash flows. Consolidated September 30, 2015

Rates %

Less than one month

Between 1 and 3

months

Between 3 months and

1 year

Between 1 and 5 years

Over 5 years

Total

Trade receivables 1,282,104 27,312 15,986 10,035 5,867 1,341,304Cash and cash equivalents 829,589 - - - - 829,589Subsidy - Decree 7,891/13 512,664 - - - - 512,664Financial assets - Portion A - CVA 14.16% p.a.(i) 34,543 69,467 324,910 - - 428,920Total assets 2,658,900 96,779 340,896 10,035 5,867 3,112,477 Bank borrowings 110% and 121.5% CDI 6,552 10,067 142,576 338,404 - 497,599Eletrobras 5% p.a. 4,021 7,821 27,029 66,338 5,195 110,404Government Agency for Machinery and Equipment Financing (Finame) 2.5% to 8.7% p.a. 502 852 3,962 24,600 7,854 37,769Debentures CDI + 1.3% to 2.5% p.a. - - 291,571 394,994 - 686,565Trade payables 417,081 217,413 7,067 - - 641,561Total liabilities 428,156 236,153 472,205 824,336 13,049 1,973,897(i) Special System for Settlement and Custody (Selic) interest rate projected for the next 12 months.

4.5. Operational risks 4.5.1. Electrical energy shortages The Brazilian Electrical Energy System is predominantly supplied by hydroelectric generation plants. A long period of scarce rains during the wet season reduces the water volume in the reservoirs of these plants, resulting in higher purchase costs for electrical energy in the spot market and an increase in the amounts of System Charges as a result of the delivery from thermoelectric plants. In an extreme situation, an energy rationing program could be adopted, which would imply revenue reduction. 4.5.2. Non-renewal of concession contracts The Company holds concessions for electrical energy generation, transmission and distribution and gas distribution services and is currently in the process of extension of the concession for electricity distribution and expects that it will be renewed by the concession grantor (Federal Government). On September 18, 2012, Celesc D filed a request for extension of concession contract 56/1999, as permitted by Provisional Measure 579/2012, which was enacted into Federal Law 12,783/2013 regulated by Federal Decree 7,891 of January 23, 2013. The request was ratified on October 15, 2012. Later, with the enactment of Decree 8,461/2015 and the start of ANEEL Public Hearing 038/2015, the concession extension process was established, and Celesc D has been taking all necessary actions to sign the Amendment to the Concession Contract for the purpose of extending the concession for another 30 years.



It should be pointed out that, in the first five years, there will be targets for technical quality and economic and financial sustainability indicators to meet, all these being conditions for the extension of the concession contract. Therefore, the Company's management considers that the risk of non-renewal of the electric energy distribution concession is remote. The Company opted not to renew contract 55/1999 for energy generation. 4.5.3. Additional sensitivity analysis required by the Brazilian Securities Commission (CVM) The table below presents the sensitivity analysis of the financial instruments, depicting the risks that could generate material effects to the Company, with the most probable scenario (scenario I) according to management's evaluation, considering a three-month time horizon when the next financial information containing such analysis will be disclosed. Two other scenarios are also presented, as required by CVM Instruction 475, of December 17, 2008, based on a 25% and 50% deterioration in the risk variables considered for scenarios II and III, respectively. The sensitivity analysis presented considers changes in relation to a given risk, with all other risk variables held constant:

Consolidated September 30, 2015Assumptions Effects of the accounts on the result Balance (Scenario I) (Scenario II) (Scenario III) CDI1 (%) 15.00% 18.75% 22.50%

Financial investments 794,697 119,205 149,006 178,807

Borrowings (431,530) (64,730) (80,912) (97,094) Debentures (609,664) (91,450) (114,312) (137,174) SELIC (%) 14.16% 17.69% 21.23% Financial assets - Portion A - CVA 412,231 58,352 72,940 87,528 IGPM2 (%) 8.36% 10.45% 12.54% Indemnifiable asset (concession) in service 2,722,973 227,641 284,551 341,461

4.6. Capital management The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for stockholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

1 Future yield curve – BM&F DI 1 FUT H16 with maturity on 3/1/2016 – (closing 10/1/2015) 2 IGPM – General Market Price Index



In order to maintain or adjust the capital structure, the Company can make adjustments to the amount of dividends paid to stockholders, return capital to stockholders, issue new shares or sell assets to reduce, for example, debt. Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio corresponds to the net debt divided by total capital. Net debt is calculated as total borrowings (including current and non-current borrowings) and debentures less cash and cash equivalents. Total capital is calculated as equity plus net debt.

Consolidated

Description


Total borrowings 566,501 556,465 Debentures 609,664 302,888 Less: cash and cash equivalents (829,589) (449,789) Net debt 346,576 409,564 Total equity 2,348,266 2,343,458

Total capital 2,694,842 2,753,022

Gearing ratio - % 12.86% 14.88%

4.7. Fair value estimation The carrying values of trade receivables and payables, less impairment provision, are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flow at the current market interest rate that is available to the Company for similar financial instruments. The Company adopted CPC 40 (R1) for financial instruments that are measured in the balance sheet at fair value; this requires the disclosure of fair value measurements following the fair value hierarchy:

Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2).

Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).



The following table presents the Group's assets that are measured at fair value at September 30, 2015. The Company had no liabilities measured at fair value at September 30, 2015.

Consolidated September 30, December 31, 2015 2014 Description Level 3 Level 3 Financial assets at fair value through profit or loss Shares 137,261 137,261 Available-for-sale financial assets Indemnifiable asset (concession) 2,797,545 2,890,451 Other 217 217 Total assets 2,935,023 3,027,929

Specific valuation techniques used to value financial instruments include: quoted market prices or dealer quotes for similar instruments; other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments (see Notes 8.1 and 12). 5. Financial instruments by category The table below presents Financial Instruments by Category as at September 30, 2015. Consolidated

Description Assets at fair value through profit or

loss

Loans and receivables

Available for sale

Other financial liabilities

Total

Assets Cash and cash equivalents - 829,589 - - 829,589Shares 137,261 - - - 137,261 Indemnifiable asset (concession) - 2,797,545 - - 2,797,545 Trade receivables - 1,806,659 - - 1,806,659 CCEAR-D (NE 10) - 512,664 - - 512,664 Financial assets - Portion A - CVA - 412,231 - - 412,231 Other - - 217 - 217 137,261 6,358,688 217 - 6,496,166Liabilities Trade payables - - - 641,561 641,561 Borrowings - - - 566,501 566,501 Debentures - - - 609,664 609,664 - - - 1,817,726 1,817,726



The table below presents Financial Instruments by Category as at December 31, 2014.

Consolidated

Description Assets at fair value through profit or

loss

Loans and receivables

Available for sale

Other financial liabilities

Total

Assets Cash and cash equivalents - 449,789 - - 449,789Shares 137,261 - - - 137,261Indemnifiable asset (concession) - 2,890,451 - - 2,890,451Trade receivables - 1,519,143 - - 1,519,143CCEAR-D (NE 10) - 240,635 - - 240,635Financial assets - Portion A - CVA - 450,566 - 450,566Other - - 217 - 217 137,261 5,550,584 217 - 5,688,062Liabilities Trade payables - - - 689,343 689,343Borrowings - - - 556,465 556,465Debentures - - - 302,888 302,888 - - - 1,548,696 1,548,696

6. Credit quality of financial assets The credit quality of financial assets is assessed by reference to internal credit ratings:

Consolidated

Description September 30,

2015 December 31,

2014Trade receivables Group 1 - Customers with no payment delays 1,044,461 791,683Group 2 - Customers with average delays from 1 to 90 days 228,327 174,624Group 3 - Customers with average delays of over 90 days 533,871 552,836 1,806,659 1,519,143

All other financial assets held by the Company, especially current accounts and financial investments, are considered high quality and do not present indications of impairment. 7. Cash and cash equivalents Cash and cash equivalents are held solely for meeting short-term commitments and for no other purpose. The Company considers cash equivalents to be short-term investments that are readily convertible to known amounts of cash.



Parent company Consolidated

Description

September 30,2015

December 31,2014

September 30, 2015

December 31,

2014Cash at bank and on hand 46 167 34,892 54,734 Financial investments 39,434 16,749 794,697 395,055 39,480 16,916 829,589 449,789

Financial investments are highly liquid, readily convertible into a known amount of cash, and are subject to an immaterial risk of change in value. These investments comprise Bank Deposit Certificates (CDBs), with an average yield equivalent to 100% of the CDI rate. 8. Marketable securities Non-current assets at fair value through profit or loss are measured based on the lower of carrying amount and fair value and are not depreciated or amortized. Parent company Consolidated


2015December 31,

2014 September 30,

2015

December 31,2014

Fair value through profit or loss Casan shares3 137,261 137,261 137,261 137,261Available for sale Other investments 217 217 217 217Non-current 137,478 137,478 137,478 137,478

8.1. Companhia Catarinense de Águas e Saneamento - Casan The Company owns 55,364,810 common shares and 55,363,250 preferred shares, representing 15.48% of Casan's share capital. As it does not have significant influence over Casan, the Company measured its equity interest at fair value. Since Casan shares traded in the stock exchanges have no liquidity, Celesc decided to establish, through consistent bases accepted by the market, a new valuation criterion for this investment, therefore adopting the discounted cash flow method. Accordingly, the Company determined Casan's fair value based on the economic and financial information of Casan. The historical acquisition cost of Casan shares is R$ 110,716. In 2014, after a new valuation, the fair value was estimated at R$ 137,261. At December 31, 2014, the investment was valued using the discounted cash flow method at a discount rate of 14.76%.

3 Companhia Catarinense de Águas e Saneamento – Casan



9. Trade receivables a) Consumers, concessionaires and permittees Consolidated

Description Not yet due

Past due

Past due for

September

Decemberup to more than 30, 31,

90 days 90 days 2015 2014Consumers Residential 284,587 109,481 58,513 452,581 358,619 Industrial 337,152 54,545 326,205 717,902 639,863 Commercial, services and other 199,647 35,488 69,217 304,352 264,764 Rural 51,591 8,353 7,652 67,596 53,230 Government 29,648 3,671 32,787 66,106 66,111 Public lighting 28,593 288 16,575 45,456 34,398 Public service 20,482 361 1,160 22,003 15,730 951,700 212,187 512,109 1,675,996 1,432,715 Supply to other concessionaires

Concessionaires and permittees 74,512 7,029 7,321 88,862 54,287 Transactions through CCEE 15,494 - - 15,494 13,190 Other receivables 2,755 9,111 14,441 26,307 18,951 92,761 16,140 21,762 130,663 86,428 1,044,461 228,327 533,871 1,806,659 1,519,143Provision for impairment of trade receivables (b) (465,355) (496,062) 1,341,304 1,023,081 Current 1,324,002 1,016,683 Non-current 17,302 6,398

b) Provision for impairment of trade receivables The breakdown by consumer class is as follows:

Consolidated

Description September 30, December 31, 2015 2014

Consumers Residential 58,504 49,799 Industrial 149,218 191,062 Textile (b.2) 136,128 136,128 Commercial, services and other 64,074 61,337 Rural 4,523 4,612 Government 31,857 32,528 Public lighting 15,399 15,022 Public service 1,069 991 Concessionaires and permittees 1,105 1,105 Other 3,478 3,478 465,355 496,062 Current 329,227 359,934 Non-current 136,128 136,128



b.1) Changes

Consolidated Description Amount Balance at December 31, 2014 496,062 Provision recognized in the period 23,140 Receivables written off (53,847) Balance at September 30, 2015 465,355

b.2) Provision for impairment of trade receivables - Textile sector In 2009, Celesc Distribuição S.A. implemented a debt recovery action plan for certain companies from the textile sector: Buettner S.A., Companhia Industrial Schlösser S.A., Fábrica de Tecidos Carlos Renaux S.A., Têxtil RenauxView S.A. and Tecelagem Kuehnrich -TEKA. In 2011, Buettner S.A. and Companhia Industrial Schlösser S.A. filed for reorganization, and since the chance of recovering the receivables was remote, Celesc D recognized a provision for the total balance receivable from those companies in the amount of R$18,231 in 2011 and R$ 16,888 in 2012. In 2012, Fábrica de Tecidos Carlos Renaux S.A. also went into reorganization, however, it presented a judicial recovery plan. On July 15, 2013, the Judiciary of the State of Santa Catarina, District Court of Brusque, Commercial Court, declared Fábrica de Tecidos Carlos Renaux S.A. bankrupt. Therefore, in the third quarter of 2013, the Company recognized a loss of R$ 42,992. Also in 2012, TEKA filed for reorganization with the District Court of Blumenau, Santa Catarina. Considering that the reorganization plan has not yet been approved and that management believes that the chance of receiving the receivable is remote, Celesc D recognized a provision of R$ 55,794, which is the total amount owed by TEKA. With respect to Têxtil RenauxView S.A., the management of Celesc D, taking into consideration the default of the debt referring to the installment contract and the remote chance of receipt, recognized a provision for the total amount receivable of R$ 45,215 in 2013.



10. Other current assets

Consolidated

Other receivables

September 30, December 31,2015 2014

Dividends 7,950 14,212Subsidy - Decree 7,891/2013 - CCEAR-D 512,664 240,635Personnel available 6,912 6,060Advance - Program for Alternative Sources of Electric Power (Proinfa) 11,103 11,103Sundry advances 1,435 (445)Social Integration Program (PIS)/Social Contribution on Revenues (COFINS)/ Value-added Tax on Sales and Services (ICMS) - taxpayer substitution system 39,571 23,179Shared infrastructure 49,253 9,433Low-income program 18,068 9,917Financial assets - Portion A - CVA (Note 11) 412,231 450,566Indemnifiable asset (Note 12) - 2,890,451Other 31,876 13,324 1,091,063 3,668,435

11. Financial assets- Portion A - CVA

Consolidated

Description

December 31,2014

Addition

Write-off

Adjustment

Amortization

September 30, 2015

Portion A Energy Development Account (CDE) 19,179 147,152 (6,580) 4,792 (13,509) 151,034Electric energy purchased for resale 583,421 704,460 (399,984) 51,761 (494,955) 444,703Use of the basic network 33,602 29,912 (25,663) 3,200 (9,597) 31,454Transportation of electric energy from Itaipu 606 2,012 (465) 42 (314) 1,881CVA - prior years 1,688 12,110 - 330 (3,811) 10,317Proinfa 5,509 (2,335) (918) 83 (4,453) (2,114)System Service Charges (ESS) (165,226) (265,440) 48,050 (12,768) 160,549 (234,835)Balance of Portion A - CVA 478,779 627,871 (385,560) 47,440 (366,090) 402,440

Financial items Regulatory assets - other financial items - 24,683 - - (4,114) 20,569Regulatory liabilities - neutrality - industry charges (28,213) (12,933) - 30,368 (10,778)Balance of financial items (28,213) 11,750 - - 26,254 9,791 Total financial assets, net 450,566 639,621 (385,560) 47,440 (339,836) 412,231



Consolidated


2015

December 31, 2014

CVA 2014 - Period from 8/8/2013 to 8/7/2014 - 192,054

CVA 2015 - Period from 8/8/2014 to 8/7/2015 147,449 286,725

CVA 2016 - Period from 8/8/2015 to 8/7/2016 254,991 -

Total Portion A - CVA 402,440 478,779

The financial asset included in the account Compensation of the Variation of Costs in Portion A (CVA) is intended to account for non-manageable costs as defined by ANEEL that have not yet been passed on to the electric energy tariffs. Such costs form the basis for the tariff adjustment and are allocated to the statement of operations as the related revenue is billed to the customers, according to Ministry Ordinances 25 and 116, of January 24, 2002 and April 4, 2003, respectively, and supplementary provisions of ANEEL. This account is adjusted by reference to the benchmark interest rate (SELIC). As from December 10, 2014, after Celesc D signed the amendment to concession contract, which aimed at eliminating potential uncertainties regarding temporary differences arising from CVA and other financial components, and based on OCPC 08 "Recognition of Certain Assets and Liabilities in General Purpose Accounting Reports of Electric Energy Distributing Companies", and on CVM Resolution 732 of December 9, 2014, which approved Technical Guidance OCPC 08, the regulatory assets and liabilities started to be recognized as rights and obligations prospectively. 12. Indemnifiable assets - Concession

Consolidated


In service 2,722,973 2,676,623 Concession assets - Electric energy distribution (a) 2,722,973 2,676,623 Under construction 74,572 213,828 Concession assets - Electric energy distribution (a) 74,572 213,828 Total 2,797,545 2,890,451

Current - 2,890,451 Non-current 2,797,545 -

The electric energy distribution concession contracts of the Company fall within the scope of Technical Interpretation ICPC 01 (IFRIC12), which deals with concession arrangements.



The Company reclassified the amount of the indemnifiable assets from current assets to non-current assets and transferred to intangible assets the amount of R$ 349,600 relating to the portion of the infrastructure that will be used during the precarious concession in compliance with Decision 3,592/2015 stated in Note 1.1.1., item a. a) Concession assets - Electric energy distribution

Indemnifiable assets

At December 31, 2014 2,890,451 (+) New investments 204,408 (-)Transfer to intangible assets - precarious concession (Note 17) (349,600) (-) Redemption (31,989) (+) Adjustment - NRV 84,275 At September 30, 2015 2,797,545

(i) In the nine-month period ended September 30, 2015, the Company recognized the amount of R$ 84,275 referring to the adjustment of the financial assets of the electric energy distribution concession to the New Replacement Value (NRV), based on the IGP-M. 13. Taxes recoverable Parent company Consolidated

Description

September 30, December 31, September 30, December 31, 2015 2014 2015 2014

ICMS4 - - 36,997 41,763 PIS and COFINS5 - - 415 399 IRPJ and CSLL6 2,128 4,001 143,390 27,562 Other 101 101 3,533 2,884 Total 2,229 4,102 184,335 72,608Current 2,229 4,102 156,330 53,876Non-current - - 28,005 18,732

4 Value-added Tax on Sales and Services (ICMS) 5 Social Integration Program (PIS) and Social Contribution on Revenues (COFINS)

6 Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL)



14. Related-party transactions a) Transactions and balances

Parent company

Description Other receivables

from related parties

At December 31, 2014 Government of the State of Santa Catarina Underground network (i) 4,262 4,262

At September 30, 2015 Government of the State of Santa Catarina Underground network (i) 4,262 4,262

Parent company

Description

Finance income

At September 30, 2014 Government of the State of Santa Catarina SC Parcerias S.A. 368 368 At September 30, 2015 Government of the State of Santa Catarina SC Parcerias S.A. - -

Consolidated

Description Taxes

payable Taxes

recoverable Sales

receivable

Other receivables

from related parties

Other payables to

related parties

At December 31, 2014 Government of the State of Santa Catarina ICMS 101,718 41,763 - - - Accounts receivable - - 7,232 - - Underground network (i) - - - 4,262 -Celos - - - - 15,106 101,718 41,763 7,232 4,262 15,106

At September 30, 2015 Government of the State of Santa Catarina ICMS 153,843 36,997 - - - Accounts receivable - - 7,130 - - Underground network (i) - - - 4,262 -Celos - - - - 10,121Rondinha Energética S.A. - - - 488 - 153,843 36,997 7,130 4,750 10,121



Consolidated

Taxes/ deductions from revenue

Finance income Description Sales

revenue At September 30, 2014 Government of the State of Santa Catarina ICMS

1,006,905 -

-

Sales revenue - 36,621 - SC Parcerias S.A. - - 368 1,006,905 36,621 368

At September 30, 2015 Government of the State of Santa Catarina ICMS 1,553,420 - - Sales revenue - 55,635 - 1,553,420 55,635 -

(i) Underground network In 1995, the Company signed an agreement for technical cooperation with the Government of the State of Santa Catarina and the Municipal Government of Florianópolis to implement an underground electrical energy network in downtown Florianópolis. The outstanding amount refers to the amount to be transferred by the Government of the State of Santa Catarina to Celesc and is currently being renegotiated. The Company is seeking alternatives together with the Government of the State of Santa Catarina (State Finance Secretariat) to receive this amount. b) Key management compensation The compensation paid to management (Board of Directors, Statutory Audit Board and Executive Board) is shown below:


Description

September September September September30, 30, 30, 30,

2015 2014 2015 2014Directors and officers Fees 4,513 3,453 4,513 3,453 Social charges 857 1,062 857 1,062 Other 66 93 66 93 5,436 4,608 5,436 4,608



15. Investments in subsidiaries and associates


Description

September 30, December 31, September 30, December 31,

2015 2014 2015 2014Subsidiaries Celesc D 1,622,727 1,651,364 - -Celesc G 390,829 351,334 - - 2,013,556 2,002,698 - -Joint ventures SCGÁS 78,570 84,717 78,570 84,717 ECTE 49,406 46,818 49,406 46,818 127,976 131,535 127,976 131,535Associates DFESA 18,742 26,689 18,742 26,689 SPEs7 - - 39,217 37,397 Cubatão 3,353 3,353 3,353 3,353 (-) Provision for loss on investments (3,353) (3,353) (3,353) (3,353) 18,742 26,689 57,959 64,086 - 2,160,274 2,160,922 185,935 195,621

a) Information on investments

Parent company Shares held by

Company (in thousands)

Company's interest

Equity

Total assets

Profit (loss) for the period Description

Common shares Share capital

Voting capital

At December 31, 2014 Celesc D 630,000 100% 100% 1,651,364 5,570,591 383,618 Celesc G 43,209 100% 100% 351,334 436,788 101,600 ECTE 13,001 30.88% 30.88% 151,586 422,242 72,525 SCGÁS 45,476 17% 51% 248,259 400,699 40,742 DFESA 153,382 23.03% 23.03% 115,887 320,897 43,756 Cubatão 1,600 40% 40% 1,643 5,707 (2) At September 30, 2015 Celesc D 630,000 100% 100% 1,622,727 6,729,636 (10,415)Celesc G 43,209 100% 100% 390,829 435,295 44,321 ECTE 13,001 30.88% 30.88% 159,969 454,004 30,562 SCGÁS 45,476 17% 51% 216,042 403,284 (474)DFESA 153,382 23.03% 23.03% 81,382 278,307 24,923 Cubatão 1,600 40% 40% 1,643 5,739 (48)

7 Special purpose entity.



Consolidated

Description

Shares held by Company

(in thousands) Company's interest

Equity

Total assets

Profit (loss) for the period

Common shares Share capital

Voting capital

At December 31, 2014 ECTE 13,001 30.88% 30.88% 151,586 422,242 72,525 SCGÁS 45,476 17% 51% 248,259 400,699 40,742 DFESA 153,382 23.03% 23.03% 115,887 320,897 43,756 Cubatão 1,600 40% 40% 1,643 5,707 (2)Rondinha Energética S.A. 21,125 32.5% 32.5% 60,513 86,598 (3,637)Painel Energética S.A. 4,745 32.5% 32.5% 5,498 5,498 (23)Campo Belo Energética S.A. 1,350 30% 30% 6,033 6,446 (52)Cia Energética Rio das Flores S.A. 7,455 25% 25% 31,466 49,132 1,271 Xavantina Energética S.A. 162 40% 40% 15,592 26,690 - At September 30, 2015 ECTE 13,001 30.88% 30.88% 159,969 454,004 30,562

SCGÁS 45,476 17% 51% 216,042 403,284 (474)DFESA 153,382 23.03% 23.03% 81,382 278,307 24,923 Cubatão 1,600 40% 40% 1,643 5,739 (48)Rondinha Energética S.A. 12,838 32.5% 32.5% 33,803 61,524 (1,188)Painel Energética S.A. 4,745 32.5% 32.5% 5,537 5,537 (10)Campo Belo Energética S.A. 1,350 30% 30% 6,042 6,455 (78)Cia Energética Rio das Flores S.A. 7,705 25% 25% 32,592 58,369 (99)Xavantina Energética S.A. 163 40% 40% 19,450 44,166 (703)Garça Branca Energética S.A. 7,053 49% 49% 11,334 11,573 (271)

b) Changes in investments

Parent companyDescription Celesc D Celesc G ECTE SCGÁS DFESA Total

At December 31, 2014 1,651,364 351,334 46,817 84,718 26,689 2,160,922 Dividends and interest on capital credited

(18,222) (4,826) (6,850) (4,966) (13,687) (48,551)

Amortization of goodwill - Concession - - - (1,101) - (1,101)Equity in the results of investees (10,415) 44,321 9,439 (81) 5,740 49,004 At September 30, 2015 1,622,727 390,829 49,406 78,570 18,742 2,160,274

ConsolidatedDescription ECTE SCGÁS DFESA SPEs Total At December 31, 2014 46,817 84,718 26,689 37,397 195,621 Capital payments - - - 10,956 10,956 Dividends credited (6,850) (4,966) (13,687) - (25,503)Amortization of goodwill - Concession - (1,101) - - (1,101)Equity in the results of investees 9,439 (81) 5,740 (851) 14,247 Capital decrease - - - (8,288) (8,288)Other adjustments - - - 3 3At September 30, 2015 49,406 78,570 18,742 39,217 185,935

The goodwill arising on the acquisition of SCGÁS is amortized over the term of the public service concession contract of this company.



16. Property, plant and equipment a) Breakdown Consolidated

Description

Land Reservoirs,

dams and water mains

Buildings and

construction

Machinery and equipment

Other Construction in progress

Total

At December 31, 2014 7,824 47,375 2,082 13,055 712 161,302 232,350

Cost of property, plant and equipment

20,036

185,024 13,081 65,343 1,711

161,302 446,497

Provision for losses (12,212) (42,202) (871) (7,394) (31) - (62,710)Accumulated depreciation - (95,447) (10,128) (44,894) (968) - (151,437) At December 31, 2014 7,824 47,375 2,082 13,055 712 161,302 232,350

Additions - - - - - 9,076 9,076 Disposals - - - - - (171) (171)Depreciation (3,403) (23,700) (1,836) (11,120) (201) - (40,260)(+/-) Transfers - 383 - 421 (190) (614) -Impairment of assets - - - (60) - - (60)Realization of provision for losses 177 2,347 862 5,705 105 - 9,196 At September 30, 2015 4,598 26,405 1,108 8,001 426 169,593 210,131

Cost of property, plant and equipment

20,036 185,407 13,081 65,764 1,522 169,593 455,403

Provision for losses (i) (12,035) (39,855) (9) (1,748) 73 - (53,574)Accumulated depreciation (3,403) (119,147) (11,964) (56,015) (1,169) - (191,698)At September 30, 2015

4,598 26,405 1,108 8,001 426 169,593 210,131

Average depreciation rate 58% 23% 34% 29% 35% 0%

(i) The provision for losses recognized in the amount of R$ 53,574 at September 30, 2015 results mainly from the non-renewal of the concessions of the generating complex of Celesc G (Bracinho, Garcia, Ivo Silveira, Palmeiras, Rio dos Cedros and Salto), in accordance with the decision made at the Extraordinary Meeting of the Board of Directors held on November 22, 2012, as mentioned in Note 1.1. 17. Intangible assets

Parent company Description December 31, Amortization September 30, 2014 2015 Goodwill on acquisition of ECTE

7,960

(377)

7,583



Consolidated

Concession

Use of public

assets (b)

contracts (a)

Description Celesc D Software

purchased Goodwill Celesc G

Items in progress

Total

At December 31, 2014 84,273 1,632 7,960 4,647 3,525 102,037 Total cost 976,820 2,720 14,248 6,279 3,525 1.003.592Accumulated amortization (892,547) (1,088) (6,288) (1,632) - (901.555) At December 31, 2014 84,273 1,632 7,960 4,647 3,525 102,037 Additions 5,472 - - 212 320 6.004Amortization (89,746) (408) (377) (1,657) - (92.188)Amortization - precarious concession (40,508) - - - - (40.508)Transfer of indemnifiable asset - precarious concession (Note 12)

349,600 - - - - 349.600

At September 30, 2015 309,091 1,224 7,583 3,202 3,845 324,945 Total cost 1,331,892 2,720 14,248 6,491 3,845 1.359.196Accumulated amortization (1,022,801) (1,496) (6,665) (3,289) - (1.034.251)At September 30, 2015 309,091 1,224 7,583 3,202 3,845 324,945Average amortization rate % 50% 15% 2% 26% 0%

The goodwill arising on the acquisition of ECTE is amortized over the term of the public service concession contract of this company. a) Concession contracts In conformity with Technical Interpretation ICPC 01 (R1), Accounting for Concessions, the portion of the infrastructure that will be utilized during the concession, comprised of electric energy distribution assets, net of consumer's share (special obligations), was recorded in intangible assets. Under Brazilian regulations, ANEEL is responsible for establishing the economic useful lives of the concession assets in the electric energy sector, and for determining a procedure for the periodic review of these rates. The rates established by ANEEL are utilized in the tariff revision processes, calculation of the indemnity at the end of the concession period and are recognized as a reasonable estimate of the useful lives of the concession assets. Consequently, these rates were used as a basis for the valuation and amortization of intangible assets. b) Use of Public Assets (UBP) On July 11, 2013, concession contract No. 006/2013, which resulted from the change in the exploration regime formalized by the fourth amendment to the concession contract for electric energy generation No. 55/99, entered into between Celesc G and the Federal Government, through ANEEL, has the objective of regulating the exploration of the hydropower potential by means of generating facilities (PCH) and restricted interest transmission facilities. On August 15,



2013, Celesc G started to pay to Eletrobras the monthly quota for the Use of Public Assets (UBP), which is payable for 60 months or by the end of the concession of each PCH. The concession contract signed includes, but is not limited to, the following provisions: the Company will pay to the Federal Government, for 5 years from the signature of the contract, monthly installments equivalent to 1/12 of the annual payment proposed, monetarily restated by reference to the variation of the Amplified Consumer Price Index (IPCA) of the Brazilian Institute of Geography and Statistics (IBGE), based on the index relating to the month prior to the publication of the administrative act that approved the modification of the exploration regime of the concession; if the concession term is not extended, the assets and facilities used in the hydroelectric operation will be returned to the Federal Government upon an indemnity for the investments made but not amortized, provided that such investments have been previously authorized and audited by ANEEL. The First Amendment to the concession contract No. 006/13 was issued on December 30, 2014, altering the public electricity service operating regime of the Caveiras and Palmeiras plants to Independent Electric Energy Producer. The plants are now regulated by said contract. An offsetting entry to this obligation was made to intangible assets, which will be amortized over the period of the obligation. The amortization in July 2015 was R$ 197.3. With the end of the concession of Garcia and Ivo Silveira plants in July, the monthly amount as from August is R$ 164.4 until December 2015. The cash flows estimate for measuring the UBP resulted from applying the 8.37% discount rate established by management.

Generating plants Amount of installments - UBP Concession expiresPCH Garcia 25.9 7/7/2015PCH Ivo Silveira 6.9 7/7/2015PCH Cedros 22.2 11/7/2016PCH Salto 17.3 11/7/2016PCH Bracinho 26.3 11/7/2016UHE Palmeiras 31.7 11/7/2016PCH Pery 51.4 7/9/2017UHE Caveiras 4.7 7/10/2018PCH Celso Ramos 10.9 3/17/2035



18. Income tax and social contribution a) Deferred income tax and social contribution, net Consolidated Deferred tax assets Deferred tax liabilities Net

September December September December September DecemberDescription 30, 31, 30, 31, 30, 31, 2015 2014 2015 2014 2015 2014Temporary differences Provision for contingencies 126,049 124,917 - - 126,049 124,917 Provision for impairment of assets 68,094 70,381 - - 68,094 70,381 Post-employment benefit 215,601 239,968 - - 215,601 239,968 Deemed cost - 33,517 37,593 (33,517) (37,593)Deferred income tax and social contribution on tax loss

28,934

28,934 - - 28,934 28,934 Effects of ICPC 01 - Concession contracts - - 63,044 70,880 (63,044) (70,880)Effects of CPC 38 - Financial instruments - - 77,680 87,334 (77,680) (87,334)Portion A - CVA 3,664 9,593 143,823 162,785 (140,159) (153,192)Other provisions - - 708 545 (708) (545)

442,342 473,793 318,772 359,137 123,570 114,656

Consolidated

Description September 30, December 31,

2015 2014

Assets 137,218 130,068 Liabilities (13,648) (15,412)

Deferred taxes, net 123,570 114,656

b) Realization of deferred tax assets The tax base for income tax and social contribution is not only the profit generated but also non-taxable income, non-deductible expenses, tax incentives and other variables, without immediate correlation between Company's profit and income tax and social contribution expense. Thus, the estimate of utilization of tax credits should not be taken as the only indicative of the Company's future results. The realization is based on the Action Plan to Demonstrate Celesc D's Financial and Economic Sustainability, which was submitted to ANEEL in November 2013. In conformity with CVM Instruction 371 of June 27, 2002, the Company's management considers that the deferred tax assets recognized on temporary differences will be realized to the extent that the related contingencies and events reach a final resolution, when they will be utilized against taxable profits.



The deferred taxes on the actuarial liabilities for employee benefits are being realized as contributions are paid. At September 30, 2015, the estimated realization of the total balance of deferred tax assets is as follows:

Consolidated September 30, December 31, Year 2015 2014 2015 51,467 82,918 2016 40,261 40,261 2017 40,261 40,261 2018 48,522 48,522 2018 onwards 261,831 261,831 Total 442,342 473,793

c) Reconciliation of current and deferred income tax and social contribution The reconciliation of income tax and social contribution expense between statutory and effective rate is as follows:

Parent company Consolidated September 30, September 30, September 30, September 30, 2015 2014 2015 2014Profit before income tax and social contribution 29,060 29,354 33,143 107,323 Combined income tax and social contribution statutory rate

34% 34% 34% 34%

Income tax and social contribution (9,880) (9,980) (11,269) (36,490)

Permanent additions and exclusions Equity in the results of investees 16,661 16,536 4,844 8,830 Tax benefit - - - 256Tax incentive - - (87) (11) Interest on capital (412) - (412) -Non-deductible provisions (9) (432) (9) (1,312)Non-deductible fines - - (2,940) 3,065Income tax and social contribution on tax loss (6,570) (5,934) (16,135) (5,934)Management remuneration (124) (192) (146) (192) Energy used in excess of the contracted amount - - - (44,432)Other additions (exclusions) 334 2 22,071 (1,749) - - (4,083) (77,969)

Current - - (12,997) (45,487)Deferred - - 8,914 (32,122)Effective rate 0.00% 0.00% -12.32% -72.65%

d) Federal Law 12,973 of May 13, 2014 On November 11, 2013, the Federal Government issued Provisional Measure (MP) 627, which amends the federal tax legislation related to the Corporate Income Tax (IRPJ), Social



Contribution on Net Income (CSLL), Social Integration Program (PIS) and Social Contribution on Revenues (COFINS), in addition to other measures, as well as Normative Instruction (IN) 1,397, of September 16, 2013, amended by IN 1,422 of December 19, 2013. MP 627 was enacted into Federal Law 12,973 on May 13, 2014, thus definitely revoking the Transitional Tax Regime (RTT) as from 2015. Early adoption in 2014 is allowed. Management concluded the study of the possible effects that could arise from the early or normal adoption of Law 12,973 and concluded that the effects on the financial statements would be immaterial in either case, and then decided for the early adoption in Celesc within the established time frame. Management, however, did not consider Celesc D and Celesc G for early adoption. The mandatory effective date is January 1, 2015. Celesc D and Celesc G have calculated IRPJ, CSLL, PIS and COFINS pursuant to Federal Law 12,973/14 and Brazilian Revenue Service Normative Instructions 1,515 and 1,556, of November 24, 2014 and March 31, 2015, respectively. 19. Trade payables

Consolidated

Description

September 30, December 31,

2015 2014

Electric energy 517,536 561,962 Charges for the use of the electric energy network 36,237 37,959 Materials and services 64,972 80,651 Electric Energy Trade Chamber (CCEE) 22,816 8,771 641,561 689,343

20. Borrowings The borrowing agreements are collateralized mainly by the receivables of the Companies.



Consolidated

Description Interest rate and September 30, December 31, commissions % 2015 2014

Bank borrowings (a) 110 to 121.5 CDI 431,530 375,932 Bank borrowings (b) 7.55 p.a. - 9,950 Eletrobras (c) 5.00 p.a. 101,132 135,861 Finame (d) 2.5 to 8.7 p.a. 33,839 34,722 Total 566,501 556,465Current 198,455 322,586Non-current 368,046 233,879

a) Bank borrowings On March 11, 2014, the Board of Directors authorized Celesc D to take loans for working capital purposes in the amount of R$ 90 million from Banco do Brasil at a rate of 116% of the CDI and in the amount of R$ 300 million from Caixa Econômica Federal at a rate 121.5% of the CDI. On January 23, 2015, Celesc D obtained a borrowing of R$ 100 million from Banco do Brasil for working capital purposes. Repayment will be made in 24 monthly, consecutive installments, with maturities beginning on February 7, 2016 and ending on January 7, 2018, bearing interest rate of 110% of the CDI average rate, calculated based on business days (a year of 252 business days). On April 27, 2015, the borrowing for working capital purposes was renegotiated with Caixa Econômica Federal and its repayment term was extended to 38 months, with a grace period of eight months and monthly amortization starting after the grace period. The borrowing is guaranteed by trade receivables. b) Bank borrowings On January 17, 2013, the Board of Directors authorized Celesc D to take a loan for working capital purposes in the amount of R$ 89 million, at a rate of 7.55% p.a. This borrowing was settled in the first quarter of 2015. c) Eletrobras The amounts contracted from Eletrobras are destined, among other purposes, for the rural electrification programs, using funds from the Global Reversion Reserve (RGR) and the Eletrobras Financing Fund. In general, these agreements have a grace period of 24 months, are repayable in periods of 60 months, with some periods exceeding 96 months, and are subject to an interest rate of 5% p.a. plus administration fee of 2% p.a. and commission fee of 0.83%. These agreements are collateralized by receivables and have been approved by ANEEL.



d) Finame The loans from the Government Agency for Machinery and Equipment Financing (FINAME) were utilized to provide a portion of the funds required by Celesc D for purchases of machinery and equipment.Each purchase of equipment is part of a contract, which was negotiated at annual interest rates varying from 2.5% p.a. to 8.7% p.a. Investments were initially expected for 2011 and 2012. There were investments, however, in 2013, which may occur until 2017. The amount contracted can reach R$ 50 million, and loans are repayable in 96 monthly installments, starting in August 2011. This agreement is collateralized by receivables and has been approved by ANEEL. 20.1. Long-term maturities The amounts classified in non-current liabilities by year of maturity are as follows:

Consolidated


2016 50,432 153,215

2017 201,292 30,924

2018 85,418 20,883

2019 14,984 14,617

2020 6,908 6,541

2021 onwards 9,012 7,699

368,046 233,879

20.2. Changes in borrowings

Consolidated Description Current Non-current Total

At December 31, 2014 322,586 233,879 556,465

Proceeds from borrowings - 402,940 402.940 Accrued charges 54,256 - 54.256 Transfers 268,773 (268,773) - Repayment of principal (393,394) - (393.394) Payment of charges (53,766) - (53.766)At September 30, 2015 198,455 368,046 566,501



21. Debentures The issue of 30 thousand non-convertible debentures with a face value of R$ 10 each, for legal purposes and effects, was on May 15, 2013. The debentures mature in 72 months from the issue date, that is, on May 15, 2019. The amortization will be in three annual and consecutive installments, the first of which payable as from the 48th month after the issue date, that is, on May 15, 2017, and the interest will be paid in semiannual and consecutive installments, with no grace period, as from the issue date. The proceeds from this issue are solely for working capital and investment purposes.Debentures pay interest at a rate of 100% of the accumulated variation of the daily average rates of Interbank Deposits (DI), "over extra-Group", expressed in percentage per annum, on the basis of 252 business days, calculated and disclosed on a daily basis by the Clearing House for the Custody and Financial Settlement of Securities (CETIP), plus a surcharge or spread of 1.30%. At a meeting held on August 12, 2015, the Board of Directors authorized the second issue of debentures in Celesc D. The contract was signed in the amount of R$ 300,000, and three thousand debentures with a unit face value of R$ 100 were issued. The new non-convertible debentures will mature twelve months from the date of issue, i.e. on September 10, 2016. They pay interest at a rate of 100% of the accumulated variation of the daily average rates of Interbank Deposits (DI), "over extra-Group", expressed in percentage per annum, on the basis of 252 business days, calculated and disclosed on a daily basis by the Clearing House for the Custody and Financial Settlement of Securities (CETIP), plus a surcharge or spread of 2.50% per year. At the end of each year, pursuant to a restrictive covenant related to the debenture issue, the Company cannot present a Net Debt/EBITDA ratio higher than 2.

Consolidated

Description

At December 31, 2014 302,888 Proceeds 290,999 Monetary restatement 34,038 Payments of charges (19,027)Cost of issue of debentures 766 At September 30, 2015 609,664

Current 310,623 Non-current 299,041



22. Taxes and contributions a) Breakdown


Description

September 30, December 31, September 30, December 31,2015 2014 2015 2014

ICMS - - 153,843 101,718 PIS and COFINS 21 1,336 502 25,374IRPJ and CSLL - - 13,436 33,374 Other 100 90 7,208 8,822 Current 121 1,426 174,989 169,288

23. Regulatory charges

Consolidated

Description


Energy Efficiency Program (PEE) 160,346 152,825 Emergency Capacity Charge (ECE) 70,826 65,565 Tariff Flag Account Charge (i) 35,591 - Research & Development (P&D) 64,906 65,164 Energy Development Account (CDE) (ii) 936,915 8,854 Global Reversion Reserve (RGR) - 73 Use of Public Assets 3,224 4,657 Other 68,270 1,175

1,340,078 298,313

Current 1,107,389 113,208 Non-current 232,689 185,105

(i) Through Circular Letter 1,857, of April 7, 2015, ANEEL instructed the electric energy distributing companies to recognize their Tariff Flag Revenue relating to unbilled supply, in "Deductions from gross revenue", with a contra-entry to "Other charges" in liabilities, and simultaneously recognize the same amount in "Accounts receivable" in assets, with a contra-entry to "Gross revenue". (ii) The monthly amounts referring to the discounts calculated on the tariffs applicable to the users of electric energy distribution service are owed by Eletrobras to Celesc D. The non-receipt of these amounts severely impaired the cash flows of Celesc D, which has strived to meet its sector-related obligations up to the limit its cash flows allowed.



Celesc D filed a lawsuit seeking to offset the amounts owed to Eletrobras with the amounts owed by Eletrobras. A favorable preliminary injunction has been granted. In practical terms, the lawsuit has the purpose of ensuring that the Energy Development Account (CDE) quotas owed by Eletrobras to Celesc D are recognized in court as sufficient financial resources to settle the obligations owed by Celesc D to Eletrobras, in the same way as the CDE installments established by the regulatory agency. 24. Provision for contingencies and judicial deposits At the financial statement dates, the Company had the following contingent liabilities and related judicial deposits:

Parent company Description Judicial deposits Provision for contingencies September 30, December 31, September 30, December 31, 2015 2014 2015 2014 Contingencies:

Tax 2,154 2,154 1,263 1,263 Labor 818 717 - - Civil 5,448 5,587 - - Regulatory 8,182 8,182 5,174 6,627

16,602 16,640 6,437 7,890

Consolidated Description Judicial deposits Provision for contingencies September 30, December 31, September 30, December 31, 2015 2014 2015 2014 Contingencies:

Tax 3,782 3,782 26,855 29,392 Labor 41,980 43,254 46,211 64,738 Civil 59,554 49,689 149,673 132,137 Regulatory 47,960 47,960 51,518 46,078

Environmental - - 24,134 24,172 153,276 144,685 298,391 296,517

The changes in provisions and judicial deposits are as follows:


Description Judicial Provision for Judicial Provision for

deposits contingencies deposits contingencies

At December 31, 2014 16,640 7,890 144,685 296,517

Additions 195 - 42,493 52,661 Write-offs (233) (1,453) (33,902) (50,787)

At September 30, 2015 16,602 6,437 153,276 298,391



The Company is a party to labor, civil, tax and regulatory proceedings in progress, and is discussing such matters at the administrative and judicial levels, which, when applicable, are supported by judicial deposits. The provisions for probable losses arising from these matters are estimated and periodically adjusted by management, supported by the opinion of its internal and external legal advisors. The nature of the contingencies may be summarized as follows: a) Tax contingencies

These contingencies relate to federal taxes (COFINS, IRPJ, CSLL and social security) and municipal taxes (ISS). b) Labor contingencies

These refer to claims filed by current and former employees of the Group and of service providers related to severance pay, salaries, classification of functions and other matters. On August 14, 2015, the Superior Labor Court (TST) issued a ruling that the Special Consumer Price Index (IPCA-E) must be used to adjust labor debts in the Labor Court, and this court ruling applies retrospectively as from June 30, 2009. Then an action was filed with the Federal Supreme Court (STF) seeking to suspend the effects of the TST ruling. On October 14, 2015, the STF rendered a decision suspending the effects of the TST ruling and the sole list issued by the Superior Council of the Labor Court (CSJT) and also ordering that the TST provide the necessary clarification. The Company's management considers that the matter needs further consideration by the judiciary and has been tracking the outcome of this matter. Based on the opinion of its legal advisors, management believes that the provisions recorded reflect the best current estimate. c) Civil contingencies

These mainly refer to lawsuits filed by industrial customers claiming the reimbursement of the amounts paid on account of the increase in electric energy tariffs, based on Ordinances 38, of February 27, 1986 and 45, of March 4, 1986 of the National Department of Water and Electricity (DNAEE), during the government's "Cruzado" economic plan. Celesc D recorded a provision considered sufficient to cover probable losses. As regards the effect on subsequent years, referred



to as a "Cascading Effect", it is not currently possible to evaluate possible court decisions or estimate their effects.

Provisions were also recognized for several civil lawsuits filed by individuals and legal entities in which the Company is a defendant. They are related to indemnities due to failure in the electric energy network (pecuniary damages, pain and suffering and loss of profits), expropriation, power cut (pain and suffering and pecuniary damages), accident (pain and suffering, pecuniary damage and pension), improper entry into list of defaulters of SERASA/SPC (Credit Protection Service) (pain and suffering), among others. d) Regulatory contingencies The Group was fined by ANEEL in some administrative proceedings due to alleged non-compliance with quality standards in relation to the services rendered to consumers and other issues. The Company filed an appeal against the penalties imposed at the administrative level. e) Environmental contingencies In July 2014, after the issuance of the decision for the civil action (environmental nature) 5001151-41.2013.404.7200, filed by the Federal Public Prosecution Office, Celesc D provided for the amount of R$ 20,177 as an addition to the amount of R$ 1,314.

f) Possible losses not provided for The Group has the following tax, labor and civil litigation involving risks of loss classified by management as possible, based on the evaluation of the legal advisors, for which no provision for estimated possible losses was recognized:

Possible loss Consolidated


Tax (i) 2,253 2,383

Labor (ii) 11,977 5,443

Civil (iii) 48,408 38,210

Regulatory (iv) 31,746 14,877

Environmental (v) 16,228 16,218

110,612 77,131

i) Tax contingencies

These contingencies are related to federal taxes (PIS, COFINS and CSLL).



ii) Labor contingencies These mainly refer to claims filed by current and former employees of the Group and of service providers related to joint/several liability matters, overtime, indemnities for occupational accidents, contractual guarantees and severance pay, among other matters.

iii) Civil contingencies These refer to sundry civil lawsuits filed by individuals and legal entities claiming indemnities due to pecuniary damages, pain and suffering and loss of profits, accidents, bidding processes, among others. iv) Regulatory contingencies These refer to charges against the Company for non-fulfillment of regulatory obligations, non-adequacy of the metering system relative to read meters for free consumers, non-compliance with legislation and ANEEL regulations. v) Environmental contingencies These contingencies refer to administrative and judicial proceedings filed by individuals and legal entities, mainly involving indemnifications for pecuniary damages, pain and suffering and loss of profits. 25. Actuarial liabilities

Consolidated Recognized obligations September 30, December 31, 2015 2014

Pension plans 710,739 703,923

Mixed/Transitory Plan (a) 710,739 703,923

Other employee benefits 430,034 499,196

Celos health care plan (b) 295,035 316,689 Voluntary Redundancy Program - PDV 2012 (c) 104,104 151,060

Other benefits (d) 30,895 31,472

Total 1,140,773 1,203,144

Current 176,022 170,853 Non-current 964,751 1,032,291



Celesc D sponsors Fundação Celesc de Seguridade Social ("Celos"), a not-for-profit private pension entity whose primary objective is to manage pension plans for the plan participants, who are principally the employees of Celesc D. a) Pension plans In January 1997, a new supplementary pension plan was implemented, of a variable contribution type, called "Mixed Plan", with a view to providing programmed retirement benefits, disability retirement and death pension. The employees participating in the Transitory Plan were offered the opportunity to migrate to the Mixed Plan. This migration occurred in two periods: from May to August 1999 and in February 2000. More than 98% of active employees opted for migration. The Mixed Plan has the characteristics of a defined benefit plan for the portion of the mathematical reserve existing on the migration date and for benefits granted, and of a defined contribution plan for the contributions made after the migration, relating to the programmed retirement benefits to be granted. The previous defined benefit plan, called "Transitory Plan", still exists, covering exclusively retired participants and their beneficiaries. Celesc D signed an agreement on November 30, 2001 for the payment of 277 additional monthly contributions, bearing interest of 6% per year and restatement based on the IGP-M index to cover the actuarial liability of the Mixed and Transitory Plans. In October 2010, an amendment altered the restatement index from the General Market Price Index (IGP-M) to the Amplified Consumer Price Index (IPCA). b) Celos health care plan Celesc D offers to its active and retired employees and pensioners a health care plan (medical, hospital and dental care). c) Voluntary Redundancy Program (PDV) Through Resolution 168, of May 15, 2012, Celesc D approved the Workforce Rightsizing Plan, which comprises the Voluntary Redundancy Plan (PDV).



This program was implemented starting November 2012, initially with acceptance by 734 employees. Up to June 2013, another 19 employees accepted voluntary redundancy. Celesc D terminated the employment contracts of 753 employees. At September 30, 2015, Celesc D had settled termination obligations to 285 beneficiaries. d) Other benefits These refer to disability allowance, funeral grant, natural or accidental death benefit and minimum retirement benefit. 25.1. Results of the actuarial valuation a) Changes in the present value of obligations

ConsolidatedDescription

Mixed Plan

Transitory Plan

Celos Health

Care Plan

PDVI 2002

PDVI 2012

Lump-Sum Plan

Other

Benefits

At December 31, 2013 1,423,843 694,101 232,467 10,803 223,750

8,371 29,041Gross current service cost (with interest) 4,037 - (24,759) - - - -Interest on actuarial obligation 154,168 73,846 23,089 601 20,290 925 3,196Benefits paid in the year (107,378) (72,234) (53,763) (10,929) (85,288) (346) (4,098)Contributions by plan participants - - 29,229 - - - -Obligations - gain (loss) 86,313 11,519 148,526 (475) (7,691) 399 1,927

At December 31, 2014 1,560,983 707,232 354,789 - 151,061 9,349 30,066

b) Changes in the fair value of plan assets

ConsolidatedDescription

Mixed Plan Transitory

Plan Celos Health

Care Plan PDVI 2002

PDVI 2012

Lump-Sum Plan

Other Benefits

At December 31, 2013 1,185,760 333,797 35,600 - - 7,730 -Benefits paid in the year (107,378) (72,234) (53,763) - - (346) -Contributions by plan participants - - 29,229 - - - -Sponsor contributions 31,119 32,495 38,268 - - - -Interest on plan assets 129,622 35,484 4,281 - - 864 -Gain (loss) on plan assets 23,445 (27,819) (15,513) - - (277) -At December 31, 2014 1,262,568 301,723 38,102 - - 7,971 -

c) Reconciliation of assets and liabilities recognized in the balance sheet

Consolidated

Description

Mixed Plan Transitory

Plan Celos Health

Care Plan PDVI 2002

PDVI 2012 Lump-Sum

Plan Other

Benefits Total actuarial liabilities (assets), net, to be provided for at December 31, 2013

238,083 360,304 196,867 10,803 223,750 641 29,041

Present value of funded obligations 1,560,982 707,232 354,791 - 151,060 9,350 30,093Benefits granted 1,299,073 707,232 336,991 - 151,060 1,453 28,036 Benefits to grant 261,909 - 17,800 - - 7,897 2,057Fair value of plan assets (1,262,568) (301,723) (38,102) - - (7,971) -Total actuarial liabilities (assets), net, to be provided for at December 31, 2014

298,414 405,509 316,689 - 151,060 1,379 30,093



d) Costs recognized in the statement of operations

Consolidated


2015September 30,

2014 Transitory Plan 31,935 25,178 Mixed Plan 26,597 17,318 Lump-Sum Plan 2,399 2,443 PDVI 2002 - 451 PDVI 2012 9,704 15,218 Health Care Plan 8,708 (4,462) 79.343 56,146

e) Actuarial and economic assumptions

The actuarial and economic assumptions used were as follows:

Description December 31, 2014

Discount rate 10.93% Expected return on plan assets 10.93% Salary growth rate 5.55% Future inflation rate 4.50% Medical cost increase 10.77% Turnover rate 0.60% Actual growth of plan benefits 0.00% Salary adjustment index IPCA Benefit adjustment index IPCA Factor to determine the actual salary amount 98.00% Factor to determine the actual benefit amount 98.00%

f) Biometric assumptions

Description December 31, 2014

General mortality AT-1983Disabled mortality AT- 1949Disability entry Light Média rated up by 25%

g) Estimated expense for 2015 The estimated expense for FY 2015 is shown below:

Description Expense to be recognized in 2015 Transitory Plan 42,580Mixed Plan 35,463Lump-Sum Plan 132PDV 2012 12,939Health Care Plan 11,609Other benefits 3,067 105,790



h) Changes in actuarial liabilities

Consolidated

Description Mixed /

Transitory Plan

Celos Health Care Plan

PDVI 2012

Other Benefits

Total

At December 31, 2014 703,923 316,689 151,060 31,472 1,203,144Payment (51,716) (30,361) (56,660) (2,977) (141.714)

Provision 58,532 8,707 9,704 2,400 79.343

At September 30, 2015 710,739 295,035 104,104 30,895 1,140,773

26. Equity a) Share capital At the Annual General Meeting held on April 30, 2015, the stockholders ratified the decision of the Board of Director that approved an increase of the Company's share capital up to the limit of the authorized capital established in the Company's bylaws, through conversion into capital of part of the revenue reserve, without issuing new shares. The Company's subscribed and paid-up share capital is R$ 1,340,000, represented by 38,571,591 registered shares with no par value, divided into 15,527,137 common shares with voting rights (40.26%) and 23,044,454 registered preferred shares (59.74%). Preferred shares have priority in the payment of non-cumulative dividends of 25%. The Company's shareholding structure, in terms of the number of shares held by the stockholders with more than 5% of any share type or class, is as follows:


Government of the State of Santa Catarina 7,791,010 50.18 191 - 7,791,201 20.20Angra Partners Volt Fundo de Investimento em Ações 5,140,868 33.11 437,807 1.90 5,578,675 14.46Celos 1,340,274 8.63 230,800 1.00 1,571,074 4.07Geração L Par Fundo de Investimento 257,600 1.65 2,400,000 10.42 2,657,600 6.89Centrais Elétricas Brasileiras - Eletrobras 4,233 0.03 4,142,774 17.98 4,147,007 10.75Poland FIA - - 2,904,200 12.60 2,904,200 7.53Neon Liberty Capital Management LLC - - 1,173,300 5.09 1,173,300 3.04Others 993,152 6.40 12,928,682 51.01 12,748,534 33.06Total 15,527,137 40.26 23,044,454 59.74 38,571,591 100

b) Carrying value adjustments The table below shows the net effect on equity of R$(28,398) at September 30, 2015 and R$(20,485) at December 31, 2014:



Consolidated

Carrying value adjustments September 30,

2015December 31,

2014 Deemed Cost - Celesc G 65,062 72,975 Actuarial liability adjustment - Celesc D (CPC 33) (93,460) (93,460) (28,398) (20,485)

c) Basic and diluted earnings per share

Basic and diluted earnings per share at September 30, 2015 were calculated based on the profit for the period and the weighted average number of common and preferred shares outstanding during the period presented.

At September 30, 2015, the number of Company shares has not changed. There were no transactions involving common shares or potential common shares between December 31, 2014 and the date of completion of this quarterly information.

In the periods ended September 30, 2015 and 2014, the Company did not have instruments convertible into shares with dilutive effects on earnings per share.

d) Breakdown of basic earnings per share

Consolidated

September 30,

2015 September 30,

2014Weighted average number of shares (thousands): Registered common shares (ON) 15,527 15,527Registered preferred shares (PN) 23,044 23,044 Basic earnings per share attributable to stockholders of the Company (R$): Registered common shares (ON) 0,7109 0,7181Registered preferred shares (PN) 0,7820 0,7899 Basic earnings attributable to stockholders of the Company (R$): Registered common shares (ON) 11,039 11,150Registered preferred shares (PN) 18,022 18,204 29,060 29,354

27. Insurance

As at September 30, 2015, the insurance policies contracted indicate the following levels of coverage:

ConsolidatedCompany Line of insurance Insured assets Policy period Coverage amountCelesc D Surety insurance Concessionaire assets and rights 11/8/2011 to 12/31/2015 400,000Celesc D Named perils Substations 5/14/2014 to 5/15/2016 20,000Celesc G Fire/lightning/explosion Plants and substations 6/8/2015 to 6/8/2016 18,768Celesc G Aircraft crash Plants and substations 6/8/2015 to 6/8/2016 9,384Celesc G Windstorm Plants and substations 6/8/2015 to 6/8/2016 9,384Celesc G Electrical damage Plants and substations 6/8/2015 to 6/8/2016 18,768




28. Segment information Management has determined the Company's operating segments based on the reports used for making strategic decisions and reviewed by the Executive Board.

The presentation of the segments is consistent with the internal reports submitted to the Company's Executive Board, which is responsible for allocating funds to and evaluating the performance of the segments.

The segment information reviewed by the Executive Board for the periods ended September 30, 2015 and 2014 was as follows:

September 30, 2015

Description

Parent company Celesc D Celesc G

Consolidation adjustments Total

Net operating revenue - 4,960,962 98,847 (1,670) 5,058,139 Cost of sales - (4,723,986) (46,437) 1,670 (4,768,753) Gross operating profit - 236,976 52,410 - 289,386 Selling expenses - (133,877) (543) - (134,420) General and administrative expenses (23,165) (234,734) (7,040) - (264,939) Other income (expenses), net 1,453 62,794 (1,235) - 63,012 Equity in the results of investees 49,004 - (851) (33,906) 14,247 Results from activities 27,292 (68,841) 42,741 (33,906) (32,714) Finance income 3,276 258,082 13,632 (7,489) 267,501 Finance costs (1,508) (206,806) (819) 7,489 (201,644) Finance result, net 1,768 51,276 12,813 - 65,857 Profit before income tax and social contribution 29,060 (17,565) 55,554 (33,906) 33,143 Income tax and social contribution - 7,150 (11,233) - (4,083) Profit for the period 29,060 (10,415) 44,321 (33,906) 29,060

Supplementary information Total assets 2,430,624 6,729,636 435,295 Total liabilities 82,358 5,106,909 44,466

September 30, 2014

Description Parent company Celesc D Celesc G Consolidation adjustments

Total

Net operating revenue - 3,961,387 130,572 (1,416) 4,090,543 Cost of sales - (3,603,789) (25,702) 1,416 (3,628,075) Gross operating profit - 357,598 104,870 - 462,468 Selling expenses - (111,162) (502) - (111,664) General and administrative expenses (20,703) (206,782) (4,674) - (232,159) Other income (expenses), net 17 (47,348) (979) - (48,310) Equity in the results of investees 48,635 - (659) (22,004) 25,972 Results from activities 27,949 (7,694) 98,056 (22,004) 96,307 Finance income 2,975 151,185 9,384 - 163,537 Finance costs (1,570) (148,524) (2,434) - (152,529) Finance result, net 1,405 2,661 6,950 - 11,016 Profit before income tax and social contribution 29,354 (5,033) 105,006 (22,004) 107,323 Income tax and social contribution - (43,533) (34,436) - (77,969)

Profit for the period 29,354 (48,566) 70,570 22,004 29,354

Supplementary information Total assets 2,171,721 5,113,767 404,469 Total liabilities 11,275 3,624,640 58,260



28.1. Consolidated operating revenue


2015September 30,

2014Gross operating revenue Sale of electric energy (a) 6,853,223 4,367,329Supply of electric energy (a) 193,282 208,783 Availability of the electrical power grid 346,536 170,006 Leases and rentals - 16,914 Revenue from rendering of services 1,006 1,578 Spot energy 321,831 411,909 Revenue from regulatory assets and liabilities 50,898 -Other operating revenue 7,132 6,794 Grants and subsidies (i) 387,581 305,028 Construction revenue 284,972 219,342 8,446,461 5,707,683

Deductions from gross operating revenue Value-added Tax on Sales and Services (ICMS) (1,553,420) (1,006,905)Social Integration Program (PIS) (134,035) (88,174)Social Contribution on Revenues (COFINS) (617,376) (410,747)Global Reversion Reserve (RGR) (591) (1,737)Energy Development Account (CDE) (999,732) (71,652)Research and Development (P&D) (20,950) (18,462) Energy Efficiency Program (PEE) (20,741) (18,462)ANEEL inspection fee (5,885) -Other charges (35,592) (1) (3,388,322) (1,617,140)

Net operating revenue 5,058,139 4,090,543

(i) Amount transferred by Eletrobras, referring to the reimbursement of the discounts on tariffs applicable to the users of the electric energy distribution services, according to article 13, item VII, of Federal Law 10,438, of April 26, 2002, as established by Provisional Measure 605, of January 23, 2013, and in compliance with the provision of article 3 of Decree 7,891, of January 23, 2013. The amount of the revenue recorded as Subsidy and Transfer from CDE in the third quarter of 2015 was R$ 371,037. The remaining amount refers to the Low-Income Program in the amount of R$ 16,544.

a) Sale and supply of electric energy

The gross revenue from sale and supply of electric energy, by consumer class, is as follows:

Number of consumers (i) MWh (i) Gross revenue

Description

September 30,2015

September 30,2014

September 30,2015

September 30,2014

September 30, 2015

September 30,2014

Residential 2,139,780 2,061,805 3,973,702 4,026,796 2,328,017 1,531,456 Industrial 101,910 99,691 3,458,355 3,576,035 2,069,338 1,276,829 Commercial 247,587 238,407 2,716,037 2,760,323 1,655,523 1,049,729 Rural 233,935 232,327 978,612 980,823 330,214 225,315 Government 21,741 21,217 311,533 313,707 182,839 114,833 Public lighting 593 573 435,226 425,831 165,019 95,660 Public service 2,910 2,674 243,301 240,341 122,273 73,507 Total sale 2,748,456 2,656,694 12,116,766 12,323,856 6,853,223 4,367,329

Supply of electric energy 83 86 1,350,410 1,163,972 193,282 208,783 Total 2,748,505 2,633,960 13,467,176 13,487,828 7,046,505 4,576,112




28.2. Consolidated operating costs and expenses Consolidated operating costs and expenses by nature are as follows:

September 30, 2015 Cost of General and Other Description sales and administrative Selling income Total services expenses expenses (expenses), net Electric energy purchased for resale (a) 4,020,228 - - - 4,020,228Personnel (b) 233,962 95,226 39,257 12,184 380,629Directors and officers - 5,436 - - 5,436Actuarial expenses - 79,343 - - 79,343Private pension entity (b) 12,172 4,874 1,804 - 18,850Material 9,501 4,140 1 - 13,642Construction costs 284,972 - - - 284,972Outsourced services 49,896 45,370 42,186 326 137,778Depreciation and amortization 156,329 16,250 - - 172,579Provisions, net (9,196) - (30,706) 1,934 (37,968)ANEEL inspection fee 1,144 - - (69,050) (67,906)Financial compensation for use of water resources - - - 835 835Other costs and expenses 9,745 14,300 81,878 (9,241) 96,682 4,768,753 264,939 134,420 (63,012) 5,105,100

September 30, 2014

Cost of General and Other Description sales and administrative Selling income Total services expenses expenses (expenses), net Electric energy purchased for resale (a) 3,011,458 - - - 3,011,458Personnel (b) 202,186 78,662 27,682 12,575 321,105 Directors and officers - 4,608 - - 4,608 Actuarial expenses - 56,146 - - 56,146 Private pension entity (b) 10,689 3,294 1,377 - 15,360Material 11,462 4,121 3 - 15,586 Construction costs 219,342 - - - 219,342 Outsourced services 48,960 48,489 60,841 301 158,591 Depreciation and amortization 137,763 24,700 - - 162,463 Provisions, net (21,130) - 733 12,677 (7,720)ANEEL inspection fee - - - 4,806 4,806 Financial compensation for use of water resources

- -

- 781 781

Other costs and expenses 7,345 12,139 21,028 17,170 57,682 3,628,075 232,159 111,664 48,310 4,020,208



a) Electric energy purchased for resale

ConsolidatedSeptember September

Description 30, GWh (i) 30, GWh (i) 2015 2014

Açucareiro Zillo Lorenzetti S.A. 10,687 50 - -Aliança Geração de Energia S.A 16,830 207 - -Arembepe Energia S.A - - 110,620 180Brentech Energia S.A. 19,078 37 22,281 37BTG Pactual Comercializadora 44,231 127 - -Candeias Energia S.A. 9,087 24 13,841 24Capitale Energia Comercializadora - - - -Cemig Geração e Transmissão S.A. 115,279 545 117,863 720Centrais Elétricas Brasileiras S.A. - Eletrobras 742,730 3,023 370,884 3,084Centrais Elétricas Cachoeira Dourada S.A. 9,363 77 - -Centrais Elétricas da Paraíba S.A. 11,695 28 13,807 28Centrais Elétricas de Pernambuco S.A. 190,831 207 176,420 207Centrais Elétricas Norte do Brasil 10,621 75 - -Cia de Ger. Term. de E.E. - Eletrobras CGTEE 24,233 285 22,111 285Companhia Energética de Petrolina - CEP 92,386 150 100,414 150Companhia Energética de São Paulo - CESP 94,608 679 91,534 698Companhia Energética Estreito 25,327 147 23,808 146Companhia Energética Potiguar 88,953 100 69,809 100Copel Geração e Transmissão S.A. 94,177 682 89,247 682Eletrobras Termonuclear S.A. 83,311 541 82,597 539Eletrosul Centrais Eletricas S.A. 6,388 38 - -Empresa Energética Porto das Pedras 6,677 38 - -Energest S/A 6,271 41 - -Energética Camacari Muricy S.A. - ECM - - 99,869 180Energética Suape II S.A. 47,995 152 89,118 152Enguia Gen Ba Ltda - Jaguarari 9,886 102 29,873 102Foz do Chapecó Energia S.A. 26,646 149 25,019 148Furnas Centrais Elétricas S.A. 166,671 1,180 158,647 1,183Geradora de Energia do Norte S.A. 10,125 27 12,649 27Lages Bioenergética Ltda. 33,616 144 31,962 144Linhares Geração S.A. 8,572 25 - -Petrobrás S.A. - Ute Governador Leon 384,458 1,362 169,638 995Pie - RP Termoeletrica S.A. 13,276 38 - -Porto do Pecem Geração de Energia 63,452 353 46,880 353Rio PCHI S/A 6,948 39 - -Santa Cruz Power Corp. Usinas Hidro 6,580 37 - -Santo Antônio Energia S.A 91,225 802 53,373 488

Serra do Facão Energia S.A. 12,583 70

11,760 70Tractebel Energia S.A. 322,758 2,049 302,958 2,033Tradner Ltda 14,487 41 - -Usina Termelétrica de Anápolis Ltda. 22,377 25 10,998 25Usina Xavantes S.A - Aruanã 45,300 28 49,209 28UTE Porto do Itaqui Geração de Energia 32,212 181 32,965 181Regulated Contracting Environment Account - - (344,039) -Tariff Flag Account 60,622 - - -Other 136,688 838 156,417 1,192 3,219,240 14,743 2,242,532 14,181 Electric energy purchase for resale -spot energy 349,000 - - -Electric Energy Trade Chamber (CCEE) - - 437,132 790Charges for the use of the electric energy network 361,305 - 239,246 -Program for Alternative Sources of Electric Power (Proinfa) 90,683 308 92,548 192

800,988 308 768,926 982

4,020,228 15,051 3,011,458 15,163




b) Personnel and private pension entity


Description

September 30, September 30, September 30, September 30,

2015 2014 2015 2014Personnel Remuneration 14,169 12,992 200,932 175,612 Social charges 186 59 73,612 63,247 Profit sharing - 19,164 9,491 Fringe benefits - 25,850 20,336 Provisions and indemnities 64 99 60,800 52,198 Other 209 180 - 221 271 Private pension entity - - 18,850 15,360 14,628 13,330 399,479 336,465

28.3. Finance result


Description September September

September

September

30, 30, 30, 30, 2015 2014 2015 2014Finance income Interest income on financial investments 2,374 2,468 34,845 36,101 Interest on electric energy bills paid in arrears - - 53,570 38,237 Monetary variations - - 14,099 4,239 Monetary restatement on regulatory assets - 47,638 - Financial incentive - social fund - - 13,050 11,700 Discounts from suppliers - - 45 - Foreign exchange gain on energy sold - - 7,932 5,521 Dividend income 982 5 982 5 Interest on capital 1,212 - 1,212 - Reversal of interest on capital (1,212) - (1,212) - Finance income from New Replacement Value (NRV) - - 93,523 61,138(-) PIS/COFINS on finance income (176) - (3,077) - Other finance income 96 502 4,894 6,603 3,276 2,975 267,501 163,544

Finance costs Debt charges - - (54,256) (35,139) Tax on Financial Transactions (IOF) on borrowings - - (8,895) (7,580) Interest and charges on debentures - - (34,038) (24,990) Debenture issue costs - - (766) - Monetary variations and late payment charges on energy purchased - - (65,739) (6,227) Monetary variations - - (1,649) (3,712) Amortization of goodwill (1,478) (1,478) (1,478) (1,478) Adjustment of Research &Development and Energy Efficiency - - (19,723) (16,193) Finance costs from New Replacement Value (NRV) - - (9,247) (50,716) Monetary restatement on financial assets - - (198) - Other finance costs (30) (92) (5,655) (13,844) (1,508) (1,570) (201,644) (152,528)

Finance result 1,768 1,405 65,857 11,016



29. Supplementary information of Celesc D

29.1. Balance sheet

Assets

September 30, 2015

December 31,

2014 Current assets 3,302,454 5.007.858 Cash and cash equivalents 755,011 287.715 Trade receivables 1,306,403 1.005.378 Inventories 8,030 8.638 Taxes recoverable 147,985 49.473 Subsidy - Decree 7,891/2013 512,664 240.635 Financial assets - Portion A 412,231 450.566 Indemnifiable assets - Concession - 2.890.451 Other receivables 160,130 75.002 Non-current assets 3,427,182 369.293 Trade receivables 17,302 6.398 Deferred taxes 137,218 130.068 Taxes recoverable 27,803 18.595 Judicial deposits 136,568 127.956 Indemnifiable assets - Concession 2,797,545 - Other receivables 1,655 2.003 Intangible assets 309,091 84.273 Total assets 6.729.636 5,377,151

Liabilities and equity September 30, 2015

December 31,

de 2014 Current liabilities 2,834,241 1,689,738 Trade payables 632,199 687,537 Borrowings 198,455 322,586 Debentures 310,623 4,120 Salaries, labor provisions and social charges 145,916 119,727 Taxes and contributions 160,737 131,987 Dividends declared and interest on capital 54,666 91,109 Regulatory charges 1,105,160 110,852 Pension plan 10,121 15,106 Actuarial liabilities 176,003 170,828 Other liabilities 40,361 35,886 Non-current liabilities 2,272,668 2,036,049 Borrowings 368,046 233,879 Debentures 299,041 298,768 Regulatory charges 231,439 182,537 Loans - associates, subsidiaries or parent companies (i) 117,489 - Actuarial liabilities 964,751 1,032,291 Provision for contingencies 289,426 286,099 Other liabilities 2,476 2,475 Equity 1,622,727 1,651,364 Paid-up capital 1,053,590 1,053,590 Revenue reserves 673,012 691,234 Carrying value adjustments (93,460) (93,460) Retained earnings/accumulated deficit (10,415) - 6,729,636 5,377,151



(i) Through Decision 610 of March 6, 2015, ANEEL approved the draft of the loan agreement entered into between Celesc D and Celesc G, with an effective period of 24 months, in the amount of R$ 110,000. At the annual meeting held on February 26, 2015, the Board of Directors approved the loan agreement and the transfer of funds from Celesc G to Celesc D. The agreement of R$ 110,000 was signed by the parties on March 24, 2015 and is effective for two years from the date of signing. Finance charges on the loan are the Tax on Financial Transactions (IOF) and the variation of the Special System for Settlement and Custody (SELIC) interest rate. 29.2. Statement of operations

September September Description 30, 30, 2015 2014 Net operating revenue 4,960,962 3,961,387 Revenue from electric energy services 4,625,092 3,742,045 Portion A - CVA 50,898 - Construction revenue 284,972 219,342 Operating costs (4,723,986) (3,603,789) Cost of electric energy services (4,439,014) (3,384,447) Construction costs (284,972) (219,342) Gross operating profit 236,976 357,598 Operating expenses (305,817) (365,292) Selling expenses (133,877) (111,162) General and administrative expenses (234,734) (206,782)

Other operating expenses 62,794 (47.348)

Result from activities (68,841) (7,694) Finance result 51,276 2,661

Finance income 258,082 151.178

Finance costs (206,806) (148.524)

Profit before income tax and social contribution (17,565) (5,033) Income tax and social contribution (7,150) (43,533) Deferred - (38,151) Current 7,150 (5,382) Profit (loss) for the period (10,415) (48,566)



29.2.1. Operating revenue

September September Description 30, 30, 2015 2014 Gross operating revenue Sale of electric energy (a) 6,801,930 4,332,710 Supply of electric energy (a) 137,415 102,585 Financial assets and liabilities 50,898 - Availability of the electrical power grid 348,206 171,422 Spot energy 321,831 411,909 Other operating revenue 8,138 25,286 Grants and subsidies 387,581 305,028 Construction revenue 284,972 219,342 8,340,971 5,568,282

Deductions from gross operating revenue Value-added Tax on Sales and Services (ICMS) (1,553,420) (1,006,905) Social Integration Program (PIS) (132,785) (87,657) Social Contribution on Revenues (COFINS) (611,615) (403,756) Services Tax (ISS) - (1) Energy Development Account (CDE) (999,732) (71,652) Research and Development (P&D) (20,741) (18,462) Energy Efficiency Program (PEE) (20,741) (18,462) ANEEL inspection fee (5,383) - Other charges (35,592) - (3,380,009) (1,606,895) Net operating revenue 4,960,962 3,916,387

a) Sale and supply of electric energy The gross revenue from sale and supply of electric energy, by consumer class, is as follows:

Number of consumers (i) MWh (i) Gross revenue


2015

September 30, 2014

September 30, 2015

September 30, 2014

September

30, 2015

September 30, 2014

Residential 2,139,780 2,061,805 3,973,702 4,026,796 2,328,017 1,531,456 Industrial 101,891 99,680 3,247,374 3,415,046 2,018,045 1,252,212 Commercial 247,587 238,406 2,716,037 2,693,558 1,655,523 1,039,727 Rural 233,935 232,327 978,612 980,823 330,214 225,315 Government 21,741 21,217 311,533 313,707 182,839 114,833 Public lighting 593 573 435,226 425,831 165,019 95,660 Public service 2,910 2,674 243,301 240,341 122,273 73,507 Total sale 2,748,437 2,656,682 11,905,785 12,096,102 6,801,930 4,332,710

Supply of electric energy 46 46 1,133,563 950,311 137,415 102,585Total 2,748,483 2,656,728 13,039,348 13,046,413 6,939,345 4,435,295 (i) Information not reviewed



29.2.2. Operating costs and expenses September 30, 2015

Description Cost of sales

and services

General and administrative

expenses

Selling

expenses

Other income (expenses), net

Total

Electric energy purchased for resale 4,013,220 - - - 4,013,220 Personnel 229,653 76,043 39,040 12,184 356,920 Directors and officers - - - - -Actuarial expenses - 79,343 - - 79,343 Private pension entity 12,172 4,874 1,804 - 18,850 Material 9,331 3,798 1 - 13,130 Construction costs 284,972 - - - 284,972 Outsourced services 46,918 41,823 41,903 326 130,970 Depreciation and amortization 114,547 15,707 - - 130,254 Provisions, net - - (30,706) 3,327 (27,379)Other costs and expenses 13,173 13,146 81,835 (78,631) 29,523

4,723,986 234,734 133,877 (62,794) 5,029,803

September 30, 2014

Description

Cost of sales and services

General and administrative

expenses

Selling expenses

Other income (expenses), net

Total

Electric energy purchased for resale 3,011,180 - - - 3,011,180 Personnel 197,215 61,983 27,514 12,575 299,287 Actuarial expenses - 56,146 - - 56,146 Private pension entity 10,689 3,294 1,377 - 15,360 Material 11,304 4,108 3 - 15,415 Construction costs 219,342 - - - 219,342 Outsourced services 47,290 45,919 60,551 301 154,061 Depreciation and amortization 99,422 24,171 - - 123,593 Provisions, net - - 733 13,074 13,807 ANEEL inspection fee - - - 4,331 4,331 Other costs and expenses 7,347 11,161 20,984 17,067 56,559 3,603,789 206,782 111,162 47,348 3,969,081



30. Supplementary information of Celesc G 30.1. Balance sheet

September December Assets 30, 31, 2015 2014 Current assets 59,443 157,067 Cash and cash equivalents 35,098 145,158 Trade receivables 17,809 11,479 Inventories 164 72 Taxes recoverable 6,116 301 Other receivables 256 57 Non-current assets 375,852 279,721 Taxes recoverable 202 137 Judicial deposits 106 89

Related parties

117,977 -

Investments 39,217 37,397

Property, plant and equipment 210,079 232,294

Intangible assets 8,271 9,804 Total assets 435,295 436,788

September December Liabilities and equity 30, 31, 2015 2014 Current liabilities 27,040 64,946 Trade payables 9,474 1,680 Taxes and contributions 14,131 35,875 Regulatory charges 2,229 2,356 Other liabilities 1,206 905 Proposed dividends - 24,130 Non-current liabilities 17.426 20,508 Deferred taxes 13,648 15,412 Provision for contingencies 2,528 2,528

Regulatory charges

1,250 2,568

Equity 390.829 351,334 Paid-up capital 145,532 128,000 Revenue reserves 128,001 150,359 Carrying value adjustments 65,062 72,975 Retained earnings 52,234 -

Total liabilities and equity 435,295 436,788



30.2. Statement of income

September September Description 30, 30, 2015 2014 Net operating revenue Revenue 98,847 130,572 Operating costs Cost of electric energy services (46,437) (25,702) Gross operating profit 52,410 104,870 Operating expenses (9,669) (6,814) Selling expenses (543) (502) General and administrative expenses (7,040) (4,674) Other operating expenses, net (1,235) (979) Equity in the results of investees (851) (659) Result from activities 42,741 98,056 Finance result 12,813 6,950 Finance income 13,632 9,384 Finance costs (819) (2,434) Profit before income tax and social contribution 55,554 105,006 Income tax and social contribution (11,233) (34,436) Current (12,997) (40,465) Deferred 1,764 6,029 Profit for the period 44,321 70,570

30.2.1. Operating revenue

September September Description 30, 30, 2015 2014 Gross operating revenue Sale of electric energy (a) - Industrial customers 51,293 24,617 Sale of electric energy (a) - Commercial customers

- 10,002

Supply of electric energy (a) 15,406 20,432 Spot energy (a) 40,461 85,766 107,160 140,817

Deductions from gross operating revenue Social Integration Program (PIS) (1,250) (1,517) Social Contribution on Revenues (COFINS) (5,761) (6,991) Global Reversion Reserve (RGR) (591) (1,737) ANEEL inspection fee (502) - Research and Development (P&D) (209) - (8,313) (10,245)

Net operating revenue 98,847 130,572



a) Sale and supply of electric energy Number of consumers (i) MWh (i) Gross revenue September September September September September SeptemberDescription 30, 30, 30, 30, 30, 30, 2015 2014 2015 2014 2015 2014 Sale and supply of electric energy Industrial 19 11 210,981 160,989 51,293 24,617 Commercial, services and other - 1 - 66,765 - 10,002 Supply of electric energy 39 40 59,298 83,107 15,406 20,432 Spot energy (CCEE) - - 157,549 130,554 40,461 85,766 Total 58 52 427,828 441,415 107,160 140,817

(i) Information not reviewed.

30.2.2. Operating costs and expenses September 30, 2015

Description Cost of General and

Selling expenses

Other expenses

Total sales and administrative

services expenses Electric energy purchased for resale 7,008 - - - 7,008Personnel 4,309 4,555 217 - 4,526Material 170 342 - - 512Charges for the use of the electric energy network 1,670 - - - 1,670Outsourced services 2,978 1,188 283 - 4,449Depreciation and amortization 41,782 539 - - 42,321Insurance - 103 - - 103Provisions, net (9,196) - - 60 (9,136)Taxes (1,966) 77 43 - (1,846)Rentals - 173 - - 173Financial compensation for use of water resources - - - 835 835Other costs and expenses (318) 63 - 340 85 46,437 7,040 543 1,235 50,700

September 30, 2014

Description Cost of General and

Selling expenses

Other expenses

Total sales and administrative

services expenses Electric energy purchased for resale 1,694 - - - 1,694Personnel 4,971 3,349 168 - 8,488Material 158 13 - - 171Outsourced services 1,670 575 290 - 2,535Depreciation and amortization 38,341 525 - - 38,866Financial compensation for use of water resources - - - 781 781Provisions, net (21,130) - - (397) (21,527)ANEEL inspection fee - - - 475 475Other costs and expenses (2) 212 44 120 374 25,702 4,674 502 979 31,857



31. Events after the reporting period 31.1 Regulation 218 of May 15, 2015 of the Ministry of Mines and Energy (MME) At the extraordinary meeting of the Board of Directors held on October 26, 2015, the Board approved the participation of Celesc G in the auction for concession contracts to operate several hydroelectric power plants. Under Regulation 218 of May 15, 2015, the Ministry of Mines and Energy (MME) directed ANEEL to auction operating concessions for several hydroelectric plants, among which are five small hydropower plants that are wholly owned by Celesc G, for which the Company's governing bodies had decided not to accept the terms of early renewal of concessions. Pursuant to the sector-specific rule prescribed by Law 12,783/2013, after the end of the concession term, the plant will be auctioned on the basis of revenue by tariff, established through the Annual Generation Revenue (RAG). After the issue of Provisional Measure 688/2015, the economic conditions for participating in the auction became considerably more attractive as they now include the Annual Remuneration for Management of Plants (GAG-O&M), the remuneration for improvements (GAG-improvements), as well as the Return on Concession Bonus at a rate of 9.04%. In return, a Concession Bonus in the amount of R$ 228 million was required as a portion of the bid to be placed in the auction, whose winner will the one with the lowest annual cost of management of generating facilities, denominated in R$/year. The Company is currently evaluating the conditions for bidding and competing in auction 12/2015 to be held on November 25, 2015, according to MME Regulation 500 of October 27, 2015 for new concessions under the quotas regime. The plants managed by Celesc Geração that will be auctioned in lot C of auction 12/2015 are as follows:

Generating facilities Location Installed capacity (MW)

Physical

guarantee (MW)

Concession expiry date

PCH Palmeiras Rio dos Cedros/SC 24.60 16.70 11/7/2016PCH Bracinho Schroeder/SC 15.00 8.80 11/7/2016PCH Garcia Angelina/SC 8.92 7.10 7/7/2015PCH Cedros Rio dos Cedros/SC 8.40 6.75 11/7/2016PCH Salto Blumenau/SC 6.28 5.25 11/7/2016Total installed capacity 63.20 44.60



31.2 Call to sign the Fifth Amendment to Concession Contract No. 56/1999-ANEEL The Ministry of Mines and Energy (MME) decision was published on November 11, 2015 in the Official Gazette, whereby the MME granted the request for extension of concession contract No. 56/1999-ANEEL signed between the Federal Government and Celesc D and notified the concessionaire to sign the Fifth Amendment to the Concession Contract within 30 days of the publication of the decision.

* * *

(A free translation of the original in Portuguese) Quarterly information (ITR) - 9/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Version: 1 CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A. Other information considered relevant by the Company


1. Financial indicators 1.1. Equity

1.2. Liquidity

3Q14 4Q14 1Q15 2Q15 3Q153Q14 4Q14 1Q15 2Q15 3Q15

3Q14 4Q14 1Q15 2Q15 3Q15

3Q14 4Q14 1Q15 2Q15 3Q15



1.3. Indebtedness

1.4. Profitability

3Q14 4Q14 1Q15 2Q15 3Q15 3Q14 4Q14 1Q15 2Q15 3Q15

3Q14 4Q14 1Q15 2Q15 3Q15 3Q14 4Q14 1Q15 2Q15 3Q15



1.5. EBITDA

3Q14 4Q14 1Q15 2Q15 3Q15 3Q14 4Q14 1Q15 2Q15 3Q15

3Q14 4Q14 1Q15 2Q15 3Q15 3Q14 4Q14 1Q15 2Q15 3Q15



1.6. Efficiency

3Q14 4Q14 1Q15 2Q15 3Q15 3Q14 4Q14 1Q15 2Q15 3Q15

3Q14 4Q14 1Q15 2Q15 3Q153Q14 4Q14 1Q15 2Q15 3Q15



3Q14 4Q14 1Q15 2Q15 3Q15 3Q14 4Q14 1Q15

2Q15 3Q15

Residential Industrial Commercial Rural Other


Reports/Report on review of quarterly information - without exceptions


REPORT ON REVIEW OF QUARTERLY INFORMATION To the Board of Directors and Stockholders Centrais Elétricas de Santa Catarina S.A. Florianópolis - SC Introduction We have reviewed the accompanying parent company and consolidated interim accounting information of Centrais Elétricas de Santa Catarina S.A. ("Company"), included in the Quarterly Information Form (ITR) for the quarter ended September 30, 2015, comprising the balance sheet as at that date and the statements of operations and comprehensive income (loss) for the quarter and nine-month period then ended, and the statements of changes in equity and cash flows for the nine-month period then ended, and the explanatory notes. Management is responsible for the preparation of the parent company and consolidated interim accounting information in accordance with the accounting standard CPC 21 (R1), Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC), and International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as the presentation of this information in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim accounting information based on our review. Scope of review We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.


Reports/Report on review of quarterly information - without exceptions


Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company and consolidated interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM. Emphasis of matter Continuity as a going concern As mentioned in Notes 1 and 12 to the interim accounting information, the Company's electricity distribution concession has expired on July 7, 2015, and since then the Company has been operating the concession precariously until the National Electric Energy Agency (ANEEL) renders a decision on the concession extension request filed by the Company that has made certain accounting reclassifications as a result of the revision of its estimates as to when the intangible asset and respective financial asset of the concession would be realized. This situation raises substantial doubts about the ability of the Company to continue as a going concern, considering that the extension of the concession contract depends on the final decision of the Concession Grantor. The interim accounting information was prepared based on the assumption that the Company will continue as a going concern, which considers the realization of assets and payment of liabilities and commitments during the normal course of business. Our conclusion is not modified in respect of this matter. Other matters Statements of value added We have also reviewed the parent company and consolidated statements of value added for the nine-month period ended September 30, 2015. These statements are the responsibility of the Company's management, and are required to be presented in accordance with standards issued by the CVM applicable to the preparation of Quarterly Information (ITR) and are considered supplementary information under IFRS, which do not require the presentation of the statement of value added. These statements have been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that they have not been prepared, in all material respects, in a manner consistent with the interim accounting information taken as a whole. Joinville, November 11, 2015 DELOITTE TOUCHE TOHMATSU Ricardo Schenk Duque Auditores Independentes Accountant CRC n.o. 2 SP-011.609/O-8 F-SC CRC n.o. 1 RS-060.571/O-0


Reports/officers' statement on the financial statements


OFFICERS' STATEMENT ON THE FINANCIAL STATEMENTS The officers of Centrais Elétricas de Santa Catarina S.A. do hereby declare that they have examined and reviewed, and agree with, all the information presented in the parent company and consolidated quarterly information. _____________________________ Cleverson Siewert Chief Executive Officer ______________________________ __________________________ Antônio José Linhares Eduardo Cesconeto de Souza Regulation and Legal Matters Officer Commercial Officer ______________________________ _____________________________ Enio Andrade Branco James Alberto Giacomazzi Generation, Transmission and Distribution Officer New Business Officer ____________________________ _____________________________ Nelson Marcelo Santiago Rubens José Della Volpe Corporate Management Officer Planning and Internal Control Officer ____________________________ José Carlos Oneda Financial and Investor Relations Officer ________________________________ José Braulino Stähelin Accountant - CRC/SC 18.996/O-8


Reports/officers' statement on the report on review of quarterly information


OFFICERS' STATEMENT ON THE REPORT ON REVIEW OF QUARTERLY INFORMATION The officers of Centrais Elétricas de Santa Catarina S.A. do hereby declare that they have examined and reviewed, and agree with, the conclusion of the Company's independent auditors, Deloitte Touche Tohmatsu Auditores Independentes, on the Company's parent company and consolidated quarterly information. _____________________________ Cleverson Siewert Chief Executive Officer ______________________________ __________________________ Antônio José Linhares Eduardo Cesconeto de Souza Regulation and Commercial Officer Legal Matters Officer ______________________________ _____________________________ Enio Andrade Branco James Alberto Giacomazzi Generation, Transmission and Distribution Officer New Business Officer ____________________________ _____________________________ Nelson Marcelo Santiago Rubens José Della Volpe Corporate Management Officer Planning and Internal Control Officer ____________________________ José Carlos Oneda Financial and Investor Relations Officer ________________________________ José Braulino Stähelin Accountant - CRC/SC 18.996/O-8

QUARTERLY INFORMATION (ITR) At September 30, 2015

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