CNPJ Nº. 60.933.603/0001-78 NIRE Nº. 35300011996 Notice to the Market CESP – Companhia Energética de São Paulo, by observing the best disclosure practices to the market, come to the public to communicate that, within the legal term, filed on October 11, 2012 with ANEEL – National Agency of Electric Energy a requirement to extend the concessions for Três Irmãos, Ilha Solteira and Eng. Souza Dias (Jupiá) power plants, according to Provisional Measure Nº 579/2012 and Decree Nº 7, 805/2012. The signature of the amendment to the Concession Contract is subject to the definition of the Granting Power of the indemnity of the portions of unamortized assets, of the new energy tariffs and of the criteria for investments in quality maintenance and of the continuity in providing services by the power plants mentioned. According to the Schedule divulged by the Mines and Energy Department reflecting the dates included in the Provisional Measure and Decree, CESP expects the disclosure of the values for next November 1st and will have till December 4, 2012 to sign the amendment to the Concession Contract and ratification the extension of the concession terms. São Paulo, October 11, 2012. Vicente K. Okazaki Chief Financial and Investor Relations Officer