ESTADO O DE SÃO SÃ PA AULO AR RSESP R RESOLUTION No. 520 The e Executive e Board off the Sanita ation and Energy E Reggulatory Agency A of the State of São S Paulo - ARSES SP, based on the au uthority coonferred th hereto by Supp plementaryy Law no. 1025 of De ecember 7, 7 2007; Con nsidering th he terms o of Articles 11 and 47 7 of Suppllementary Law no. 5/2007, Arrticles 22, 23, 2 29, 30, 38 and 39 9 of Law no o. 11445 oof January 5, 2007, 1025 Decrree no. 524 455 of Dec cember 7, 2007 of su ubsequent and suppllementary laws, as well as rules and regulatiions issued d by ARSE ESP; Con nsidering th he terms o of the Coo operation Agreement A ts signed between b mun nicipalities and the State of São Paulo, which delegatedd to ARSE ESP the regu ulation, inclluding tarifff regulation n of referre ed renderin ng of sanita tation serviices; Con nsidering the t provissions of Program P Contracts C to explorre basic hia de San neamento Básico do o Estado saniitation servvices enterred into byy Companh de S São Paulo – SABESP P and relatted service e providers;; Con nsidering ARSESP A R Resolution no. 484, of o April 10, 2014, whiich, in its articcle 1, item 1, authoriz zed a 5.440 08% tariff readjustme r ent for SAB BESP as a result of its ta ariff revisio on conclus sion and tthat in its item II allo owed the concessio onaire “in view w of the unu usual cond dition of its market, du ue to the water w shorttage and measures m that have been n adopted concerning g water saving in ord der to ensuure water supply” s to applly in the future the repositiioning ind dex, “makiing a new w calculattion and mon netarily resstating the e applicablle amountts, so as to assure its econo omic and finan ncial breakkeven”. Con nsidering Official O Le etter SABE ESP F-02 29, of Novvember 13 3, 2014, rece eived by AR RSESP on n Novembe er 14, 2014 4, in which the conceessionaire requests the A Agency to recalculate e the amou unts for the e applicatio on, in Deceember 201 14, of the alrea ady appro oved tariff increase index to guarantee its econoomic and financial brea akeven; RES SOLVES: Articcle 1. – To o ratify the e authoriza ation of the e applicatioon, by SAB BESP, of the ffive point four, four, zero eigh ht (5.4408% %) tariff inc crease alre ready granted as a resu ult of the conclusion n of the tariff revis sion proce ess, approoved by ARSESP A Reso olution no. 484, of Ap pril 10, 201 14. Page 1 of 8 ESTADO O DE SÃO SÃ PA AULO Articcle 2. – To authorizze the one percent (1.00%) ( inddex, cumu ulative to the iindex resu ulting from the tariff re evision, on n a partial and a provissional basis s, in light of ite em II of article a 1 off ARSESP P Resolutio on 484, pu ursuant too article 39 9 of Law 1144 45, of Janu uary 5, 200 07. Articcle 3. – The T total a uthorized index is six s point foour, nine, five, two perccent (6.495 52%) applic cable to the e current tariffs. Articcle 4 – SABESP P shall submit s to o ARSESP P the ne ecessary supp plementaryy informatio on for the rrecalculatio on and detterminationn of the final index. Articcle 5 – To publish the e values off the follow wing tabless: I – Tariff ta able for th he Metrop politan Ex xecutive B Board, purrsuant to Attachmen nt I hereto.. II – Tariff table for the e Regional Systems Executive E Board, purrsuant to nts II, III an nd IV heretto. Attachmen IIII – Tariff ta able for Wa Water Supplly at Whole esale and S Sewage Treatment Tr for Permitt-holding Municipalitie M es, pursua ant to Attac chment V hhereto. Para ragraph 1 – The am mounts me entioned in n the attacchments represent r ceilin ng tariffs, and any y discountts granted d by SAB BESP are characterrized as forbe earance an nd can neiither burde en other us sers nor ca ause futuree compens sations in favo or of users. Para ragraph 2 – Water supply an nd sewage e tariffs fo for user units with mon nthly consu umption ex xceeding 500m3/mo onth of no on-residenttial use ca ategories shallll have ass maximu um thresho old, the non-reside n ential conssumption amounts exce eeding 50m m3/month, and SABE ESP, by means m of contract, c m may practiice lower price es, as per this t segme ent’s marke et condition ns. Para ragraph 3 – The tarifffs practice ed lower th han definedd ceiling ta ariffs are subjject to the Regulatorry Agencyy’s analysis s, which may m requesst spreads sheets to veriffy the cost of services s. Page 2 of 8 ESTADO O DE SÃO SÃ PA AULO Article 6 – The folllowing Us sers shall be b eligiblee to pay th he social tariff, by means off SABESP P’s comme ercial area as evaluattion based d on the erving the following f crriteria: Companyy’s normatiive instructtions, obse I – family in ncome of u up to 3 min nimum wag ges, sub-n ormal sing gle-family dweller, with w built-up p floor are ea of 60m²² and electtricity conssumer with monthly consumpttion of up to t 170 kWh h; II – user is s unemplo oyed and his h last sa alary was, at most, three t (3) minimum wages; III – reside e in collecttive housin ng units, such s as sluum teneme ents and vertical sllums resultting from th he shantyttown urban nization proocess. S Sole Parag graph – In the assum mption of item II, thhe maximu um social tarifff granting period p will be b of twelvve (12) mo onths. Articcle 7 – The e amountss mentioned in the Atttachmentss hereto sh hall apply as o of 30 days of o the publlication of tthis Resolu ution. A Article 8 – This T Resolu ution shall take effec ct on the daate of its publlication. SAN NITATION AND A ENERGY REG GULATORY Y AGENCY Y OF THE STATE OF F SÃO PAULO O – ARSES SP ON NOVEMBER 27, 2 2014. J José Luiz Lima de Oliveira O Sanitatio on Service Te echnical Reg gulations and d Oversight E Executive Offficer a acting as Ch hief Executive e Officer Publiished in the Official O Gaze ette in Novem mber 2014 Page 3 of 8 , ESTADO O DE SÃO SÃ PA AULO AT TTACHME ENT I Metrop politan Executive Board ‐ GT‐M MC, ML (i nc cludi ng the muni ci c pal i ty of Guararrema), MO, MN (e except for the mun ni ci pal i ti es of Bra agança Paul i s ta, Joanópol i s , Nazaré é Paul i sta, Pedra Bel a, Pi nhal zi nho o, Pi racai a, Socorrro and Vargem) a and MS. RESID DENTIAL COMMERCIAL/INDUSTRIA AL/PUBLIC tari ff Soci al o (m3) Consumpti on ranges Watter 0 to 10 R$/month 11 to 20 R$/m 21 to 30 R$/m 3 3 3 31 to 50 R$/m Over 50 R$/m 3 Commerci al / In ndus trial / Publ i c without contractt Sewage 6,07 0 to 10 R$/month 1 1,05 1,05 11 to 20 R$/m 3 3,71 3,71 21 to 50 R$/m 5 5,29 5,29 5 5,85 5,85 0 to 10 Watter R$/month 11 to 20 R$/m 21 to 30 R$/m 31 to 50 R$/m 3 3 3 R$/m Over 50 Sewage 4 4,63 3 4,63 R$/m 11 to 20 21 to 50 R$/m Over 50 R$/m 3 R$/month 3 1 1,75 1,75 21 to 50 R$/m 5 5,29 5,29 Over 50 R$/m 5 5,85 5,85 7 35,97 35,97 7,00 7,00 0 13,41 13,41 1 13,97 13,97 7 3 3 W Water Sewage 17,98 8 17,98 3,50 3,50 0 6,73 6,73 3 6,99 6,99 9 Publ ic wi th conttract Sewage 17,91 2 2,80 3 Cons umpti on ranges (m3) 0 to 10 R$/m 17 7,91 3 R$/m 11 to 20 Watter R$/month 3 0,53 tari ff 0 to 10 3 0 0,53 Normal Consumpti on ranges o (m3) Over 50 3 W Water Sewage Commerci al : s oc ci al ass i stance en nti ti es tari ff Sl um o (m3) Consumpti on ranges Cons umpti on ranges (m3) 6 6,07 2,80 Cons umpti on ranges (m3) 0 to 10 R$/month 11 to 20 3 R$/m 3 7 7,00 7,00 21 to 50 R$/m 7 7,71 7,71 Over 50 R$/m 3 W Water Sewage 5 26,95 26,95 5,24 5,24 4 10,09 10,09 9 10,48 10,48 8 tari ff OTHER SERVICES Watter 3 Water tanke er: thi rd parti es R$/m Water tanke er: Sabes p R$/m Permi t‐hol ders R$/1000m Sewage 28 8,52 3 70 0,00 3 157 72,6 1013,21 olitan Executive B Board ‐ GT‐MN Metropo MN – on nl y for the muni ci pal i ti es i n the Br agança Paul i sta regi on (Bragança Paul i sta, Joanóp pol i s , Nazaré Pi nhal zi nho, Pira cai a, Socorro and d Vargem). Paul i sta, Pedra Bela, P DENTIAL RESID COMMERCIAL/INDUSTRIA AL/PUBLIC Soci al Commerci al / In ndus trial / Publ i c without contractt tari ff Consumpti on ranges o (m3) Watter 0 to 10 R$/month 11 to 20 R$/m 21 to 30 R$/m 31 to 50 R$/m 3 3 3 3 R$/m Over 50 Sewage 4,86 0 to 10 R$/month 0 0,95 0,76 11 to 20 R$/m 2 2,06 1,63 21 to 50 R$/m 2 2,92 2,35 Over 50 R$/m 3 3,48 2,79 Normal 0 to 10 Watter R$/month 11 to 20 R$/m 21 to 50 R$/m Over 50 R$/m Sewage 17 7,91 3 3 3 14,36 OTHER SERVICES Water tanke er: Sabes p R$/m Permi t‐hol ders R$/1000m 3 3 Cons umpti on ranges (m3) 0 to 10 R$/month 3 11 to 20 R$/m 3 3,84 3,06 21 to 50 R$/m 4 4,59 3,65 Over 50 R$/m Sewage 3 3 Cons umpti on ranges (m3) 28 8,52 0 to 10 R$/month 70 0,00 11 to 20 R$/m 21 to 50 R$/m 157 72,6 35,97 6 28,76 4,26 3,38 8 6,87 5,50 0 8,07 6,44 4 1013,21 W Water Sewage 17,98 8 14,38 2,14 1,69 9 3,47 2,78 8 4,05 3,23 3 Publ ic wi th conttract Over 50 3 1,98 Watter 3 R$/m 3 2 2,50 tari ff Water tanke er: thi rd parti es 3 W Water Sewage ci al ass i stance en nti ti es Commerci al : s oc tari ff o (m3) Consumpti on ranges Cons umpti on ranges (m3) 6 6,07 3 3 3 R$/m W Water Sewage 26,95 21,57 7 3,18 2,55 5 5,18 4,12 2 6,04 4,85 5 Page 4 of 8 ESTADO O DE SÃO SÃ PA AULO ATT TACHMEN NT II Regional System m Executive Boarrd ‐ GT‐RS and RN N Municip palities on the nortthern coat and in th he Baixada Santistta region. RESIDEN NTIAL Social taariff Consumption ranges (m3) Water Sewage 0 to 10 R$/m month 6,07 7 6,07 11 to 20 R$/m m 3 0,95 5 0,95 COMMERCIAL/INDUSTRIAL//PUBLIC Co ommercial / Indu ustrial / Public wi thout contract Sewage Consumption rangges (m3) Water 0 tto 10 R$ $/month 35 5,97 35,97 11 1 to 20 3 4 4,69 4,69 3 10 0,23 10,23 3 11 1,05 11,05 R$ $/m 21 to 30 R$/m m 3 1,76 6 1,76 21 1 to 50 R$ $/m 31 to 50 R$/m m 3 2,52 2 2,52 Ovver 50 R$ $/m Over 50 R$/m m 3 3,40 0 3,40 Normal taariff Consumption ranges (m3) Sewage Water 0 to 10 R$/m month 17,91 1 17,91 Co ommercial: social assistance entitties Consumption rangges (m3) Water Sewage 0 tto 10 R$ $/month 17 7,98 17,98 R$/m m 3 21 to 50 R$/m m 3 3,31 1 3,31 21 1 to 50 R$ $/m Over 50 R$/m m 3 4,48 8 4,48 Ovver 50 R$ $/m 11 to 20 OTH HER SERVICES 2,50 0 Water 2,50 taariff Sewage 11 1 to 20 3 2 2,35 2,35 3 5 5,15 5,15 3 5 5,54 5,54 R$ $/m Pu ublic with contracct Consumption rangges (m3) Water m Water tanker: third partie R$/m 3 28,52 2 0 tto 10 R$ $/month Water tanker: Sabesp 3 70,00 0 11 1 to 20 R$ $/m 21 1 to 50 R$ $/m Ovver 50 R$ $/m R$/m m Ferries and Ships Baixada Santissta –RS R$/m m 3 12,55 5 Northern Coasst R$/m m 3 19,23 3 Sewage 26 6,95 26,95 3 3 3,51 3,51 3 7 7,68 7,68 3 8 8,30 8,30 Regional Syste m Executive Boa ard ‐ GT‐Registro RR (except for the municipalities of Apiaíí, Barra do Chapéu, Itaóca, Itapirapuãã Paulista and Ribeira). NTIAL RESIDEN taariff Social Consumption ranges (m3) Water Sewage 0 to 10 R$/m month 6,07 7 6,07 3 11 to 20 R$/m m 0,95 5 0,95 R$/m m 3 2,06 6 2,06 21 1 to 50 R$ $/m 31 to 50 R$/m m 3 2,92 2 2,92 Ovver 50 R$ $/m Over 50 R$/m m 3 3,48 8 3,48 21 to 30 Normal taariff Sewage Water Consumption ranges (m3) 0 to 10 R$/m month 17,91 1 17,91 3 7 7,18 7,18 3 9 9,11 9,11 Co ommercial: social assistance entitties Consumption rangges (m3) Water Sewage 0 tto 10 R$ $/month 17 7,98 17,98 R$/m m 3 2,50 0 2,50 11 1 to 20 R$ $/m 21 to 50 R$/m m 3 3,84 4 3,84 21 1 to 50 R$ $/m Over 50 R$/m m 3 4,59 9 4,59 Ovver 50 R$ $/m 11 to 20 OTH HER SERVICES Water taariff Sewage 3 2 2,14 2,14 3 3 3,62 3,62 3 4 4,58 4,58 Pu ublic with contracct Consumption rangges (m3) Water m Water tanker: third partie R$/m 3 28,52 2 0 tto 10 R$ $/month Water tanker: Sabesp 3 70,00 0 11 1 to 20 R$ $/m 21 1 to 50 R$ $/m R$/m m Ferries and Ships COMMERCIAL/INDUSTRIAL//PUBLIC Co ommercial / Indu ustrial / Public wi thout contract Consumption rangges (m3) Water Sewage 0 tto 10 R$ $/month 35 5,97 35,97 3 11 1 to 20 R$ $/m 4 4,26 4,26 Baixada Santissta –RS R$/m m 3 Northern Coasst R$/m m 3 12,55 5 19,23 3 Ovver 50 Sewage 26 6,95 26,95 3 3 3,18 3,18 3 5 5,40 5,40 3 6 6,85 6,85 R$ $/m Page 5 of 8 ESTADO O DE SÃO S PA AULO AT TTACHMEN NT III Regional Systtem Executive Bo oard: GT‐Interior RA, RB, RG (exxcept for Itapira), R RJJ, RM (except for Torrinha), RR (for tthe municipalities of: Apiaí, Barra do o Chapéu, Itaóca, Ita apirapuã Paulista a and Ribeira) and R RT (except for the m municipalities of Lin ns, Magda and Gliccério). RESIDE ENTIAL Social t tariff Consumption n ranges (m3) Water Sewage 0 to 10 R$//month 6,0 07 4,86 COMMERC CIAL/INDUSTRIALL/PUBLIC Commercial / Industrial / Public w C without contract C Consumption ran nges (m3) Waterr Sewage 28,76 0 0 to 10 R R$/month 35,97 R$//m 3 0,9 95 0,76 1 11 to 20 R R$/m 21 to 30 R$//m 3 2,0 06 1,63 2 21 to 50 R R$/m 31 to 50 R$//m 3 2,9 92 2,35 O Over 50 R R$/m Over 50 R$//m 3 3,4 48 2,79 11 to 20 Normal t tariff Sewage n ranges (m3) Water Consumption 0 to 10 R$//month 17,9 91 14,36 3 4,26 3 6,87 5,5 3 8,07 6,44 Commercial: socia C al assistance entities C Consumption ran nges (m3) Waterr Sewage 14,38 0 0 to 10 R R$/month 17,98 R$//m 3 2,5 50 1,98 1 11 to 20 R R$/m 21 to 50 R$//m 3 3,8 84 3,06 2 21 to 50 R R$/m Over 50 R$//m 3 4,5 59 3,65 O Over 50 R R$/m 11 to 20 OT THER SERVICES Water ttariff Sewage 3 2,14 1,69 3 3,47 2,78 3 4,05 3,23 Public with contra P act C Consumption ran nges (m3) Waterr Water tankerr: third partie R$//m 3 28,5 52 0 0 to 10 R R$/month Water tankerr: Sabesp 3 70,0 00 1 11 to 20 R R$/m 2 21 to 50 R R$/m O Over 50 R R$/m R$//m 3,38 Sewage 26,95 21,57 3 3,18 2,55 3 5,18 4,12 3 6,04 4,85 Regional System m Executive Board d: Vale Paraíba (R RV) RV (excep pt for the municipa ality of Guararema in which the tariffff applied is the sam me as the one in th he São Paulo M Metropolitan Region n‐ML. RESIDE ENTIAL Social t tariff Consumption n ranges (m3) Water Sewage 0 to 10 R$//month 6,0 07 4,86 R$//m 3 0,9 95 0,76 1 11 to 20 R R$/m 21 to 30 R$//m 3 2,0 06 1,63 2 21 to 50 R R$/m 31 to 50 R$//m 3 2,9 92 2,35 O Over 50 R R$/m Over 50 R$//m 3 3,4 48 2,79 11 to 20 Normal t tariff Consumption Sewage n ranges (m3) Water 0 to 10 R$//month 17,9 91 14,36 3 4,26 3,38 3 7,10 5,68 3 8,99 7,17 Commercial: socia C al assistance entities C Consumption ran nges (m3) Waterr Sewage 14,38 0 0 to 10 R R$/month 17,98 R$//m 3 2,5 50 1,98 1 11 to 20 R R$/m 21 to 50 R$//m 3 3,8 84 3,06 2 21 to 50 R R$/m Over 50 R$//m 3 4,5 59 3,65 O Over 50 R R$/m 11 to 20 OT THER SERVICES COMMERC CIAL/INDUSTRIALL/PUBLIC Commercial / Industrial / Public w C without contract C Consumption ran nges (m3) Waterr Sewage 28,76 0 0 to 10 R R$/month 35,97 Water ttariff Sewage 3 2,14 1,69 3 3,57 2,84 3 4,46 3,60 Public with contra P act C Consumption ran nges (m3) Waterr Water tankerr: third partie R$//m 3 28,5 52 0 0 to 10 R R$/month Water tankerr: Sabesp 3 70,0 00 1 11 to 20 R R$/m 2 21 to 50 R R$/m O Over 50 R R$/m R$//m Sewage 26,95 21,57 3 3,18 2,55 3 5,31 4,28 3 6,75 5,40 Page 6 of 8 ESTADO O DE SÃO S PA AULO ATT TACHMEN NT IV Regional SSystem Execcutive Board d RB: A Adamantina aand Pirapoziinho municipalities Com mmercial ‐ Sp pecial Co onsumption ranges (m3) Water Sewagee 26,98 0 tto 10 R$/m month 2 21,58 11 1 to 20 21 1 to 50 Ovver 50 3 3,19 2,52 3 6,87 5,5 3 8,07 6,44 R$/m m R$/m m R$/m m No ote: the tariffss in Attachmen nt III are appl ied to the oth her categoriess. Regional SSystem Execcutive Board d R RB: President te Prudente e municipalitties Ressidential ‐ Sp pecial Co onsumption ranges (m3) Water Sewagee 15,23 0 tto 10 R$/m month 12,2 11 1 to 20 21 1 to 50 Ovver 50 3 2,13 1,68 3 3,84 3,06 3 4,59 3,65 R$/m m R$/m m R$/m m No ote: the tariffss in Attachmen nt III are appl ied to the oth her categoriess. Speecial Commeercial Co onsumption ranges (m3) Water Sewagee 26,98 0 tto 10 R$/m month 2 21,58 11 1 to 20 21 1 to 50 Ovver 50 3 3,19 2,52 3 6,87 5,50 3 8,07 6,44 R$/m m R$/m m R$/m m No ote: the tariffss in Attachmen nt III are appl ied to the oth her categoriess. Page 7 of 8 ESTADO O DE SÃO S PA AULO AT TTACHMENT V Permit‐h holding Mun nicipalities Wholesale w water supply and sewage treatment for p permit‐holdin ng municipali ties in the São o n Region Paulo Metropolitan Effectivve Tariff in R$/1000m3 Municipali ty Diadema Guarulhos Mauá Mogi das C Cruzes Santo Andrré São Caetan no do Sul Wholessale water 1.572,60 1.572,60 1.572,60 1.572,60 1.572,60 1.572,60 SSewage treatment 1.013,21 1 1.013,21 1 1.013,21 1 1.013,21 1 1.013,21 1 1.013,21 1 Page 8 of 8