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This excerpt taken from the EDN 6-K filed Nov 10, 2009.

(Not covered by the Independent Auditors’ Report)


During the first nine months of 2009, the Argentine economy recorded a significant decrease in growth rates as compared to those recorded during 2008.


This slowdown in economic indicators is due to the international financial crisis and the high volatility of the financial markets.


Nevertheless, tax collection continued increasing, as it occurred during 2008, though at a much lower growth rate.


With the aim of protecting shareholder interests, the Company has repurchased notes, redeemed its own shares, and carried out transactions with derivative financial instruments, in order to mitigate the effects of the above-mentioned crisis.


With regard to the Revision of the Company Tariff Structure (RTI), Resolution No. 434/2007 of the National Energy Secretariat, that was published in the Official Gazette on April 30, 2007, established that the new electricity rate schedule would go into effect on February 1, 2008.


On July 30, 2008, the National Energy Secretariat issued Resolution No. 865/2008 which modifies Resolution No. 434/2007 and establishes that the electricity rate schedule resulting from the Revision of the Company Tariff Structure (RTI) will go into effect on February 1, 2009.


As of the date of issuance of these financial statements, no resolution has been issued concerning the application of the electricity rate schedule resulting from the RTI which was expected to be in effect since February 1, 2009.


In January 2009, the National Ombudsman made a presentation against the resolutions by which the new electricity rate schedule had gone into effect as from October 1, 2008.


On January 27, 2009, the ENRE notified the Company of a preliminary injunction issued by the Court hearing the case as a consequence of the Ombudsman’s presentation, according to which the Company is prohibited from cutting power due to the nonpayment of bills issued with the rate hike resulting from the application of the resolutions questioned by the Ombudsman, until a final ruling is issued on the case. The injunction has been appealed by the Company and the Argentine Federal Government and is still to be decided. On July 1, 2009, notice of the proceedings in the matter of “National Ombudsman vs. Federal Government – Resolution No. 1169 and Others, proceeding to decide a legal issue” was served upon the Company. As of the date of issuance of these financial statements, the complaint has been answered in due time and manner.


On April 13, 2009, the Company’s Board of Directors approved the issuance and public offering, within the framework of the Program and under the terms of Law No. 23,576, as amended, of floating rate Corporate Notes for a nominal value of up to 150,000 with maximum maturity in 2013.


On May 7, 2009, the Company issued and carried out the public offering of Class 8 Corporate Notes for 75,700. The four-year term corporate notes were issued at an issue price of 100% of the principal amount and accrue interest as from the date of issuance at a floating private BADLAR rate plus a spread of 6.75%.

The Company will use the net proceeds from the sale of the Corporate Notes to finance the capital expenditures plan.


Autonomous City of Buenos Aires, November 4, 2009.












“Free translation from the original in Spanish for publication in Argentina”


This excerpt taken from the EDN 6-K filed May 11, 2007.

(Not covered by the Independent Auditors’ Report)


During the first quarter of 2007, the Argentine economy continued increasing at a high rate.


Both tax collection and the international reserves of the Argentine Central Bank continued increasing, as it occurred during 2006.


As regards inflation, the government continues monitoring the evolution of prices of some basic products and services, and has signed price agreements with several major companies.


Due to the restructuring process of the financial debt carried out through an exchange of debt during the year ended December 31, 2006, the Company’s Board of Directors firmly believes that this process will lead to the normalization of the Company’s access to credit lines, with the related benefits thereof for the development of future operating activities.


With regard to the Adjustment Agreement, it was ratified by the Federal Government through Decree No. 1957/06 which was published in the Official Gazette on January 8, 2007. Additionally, on February 5, 2007 the Official Gazette published Resolution N° 51/2007 of the ENRE which approves the Company’s new electricity rate schedule, to be applied for consumption recorded as from February 1, 2007. This will allow for an increase in revenues, which will improve the Company’s operating indicators.


The Company’s Board of Directors has decided to initiate a public offering of part of the Company’s capital stock in local and international markets in order to increase financing resources aimed at improving the development of its activities and the rendering of services.



Buenos Aires, May 9, 2007

















Nov 10, 2009
May 11, 2007
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