TAESA Transmissora Aliança de Energia El& : Notice to the Market - Approval of SUDAM Tax Incentive Renewal to Brasnorte and ATE III Concessions - 01/04/2019

NOTICE TO THE MARKET

Transmissora Aliança de Energia Elétrica S.A. ('Taesa' or 'Company') hereby announces to its shareholders, the market in general and other stakeholders that it has been informed about the approval by the Superintendence of Development for the Amazon ('SUDAM'), through the Acts no. 337 and 366 of December 31, 2018, for the renewal of the tax incentive, with a reduction of 75% in Corporate Income Tax (IRPJ) for a period of 10 years, for ATE III Transmissora de Energia S.A. ('ATE III') and Brasnorte Transmissora de Energia S.A. ('Brasnorte'), in the Modernization modality, which will grant them the right to tax incentives, in compliance with the current legislation and the Tax Incentive Regulations Administered by SUDAM. The Company is awaiting the issuance of the appraisal reports for the fruition of the tax benefit.

ATE III is an operational asset, 100% controlled by Taesa, located in the State of Pará, with an extension of 454 km in transmission lines and R$ 119.8 million of Annual Permitted Revenues (RAP) for 2018-2019 cycle. Brasnorte is an operational asset located in the State of Mato Grosso do Sul, with an extension of 402 km in transmission lines and R$ 10.2 million of RAP, proportional to Taesa's current stake of 38.67%, for the 2018-2019 cycle.

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