AES Tiete : Material Fact - Capital Increase (Capitalization of Goodwill)

AES TIETÊ ENERGIA S.A.

Publicly Held Company

Corporate Taxpayer ID (CNPJ/MF) 04.128.563/0001-10

Company Registry (NIRE): 35.300.183.550

MATERIAL FACT

AES TIETÊ ENERGIA S.A. ("AES TIETÊ" or "Company") (B3: TIET11, TIET3, TIET4), in compliance with Paragraph 4, Article 157 of Federal Law 6.404/76 and in accordance with CVM Instruction 358, of January 3, 2002, and other applicable provisions, informs its shareholders and the market that its Board of Directors, in a meeting held on the date hereof, unanimously approved Management's Proposal to increase the capital stock of the Company by means of the partial capitalization of the Special Goodwill Reserve ("Capital Increase"), through private subscription, in accordance with the following terms: (i) amount of fifty-sevenmillion, nine hundred sixty-onethousand, seven hundred fifty reais and fifty-eightcentavos (R$57,961,750.58) through the issue of 11,090,552 new preferred shares and 17,057,152 new common shares identical to the shares of each existing type; and (ii) issue price of two reais and six centavos (R$2.06) for each preferred and common share, equivalent to ten reais and thirty centavos (R$10.30) per Unit, given that the latter represents one (1) common share and four (4) preferred shares ("Capital Increase"), which was set in accordance with Item III, Paragraph 1, Article 170 of Federal Law 6.404/76, and determined based on a discount of 10% on the average closing quote of the Units (TIET11) in the last 22 trading sessions immediately prior to June 25, 2019.

Without prejudice to the preemptive rights assured to the other shareholder of the Company, the new shares issued in connection with the Capital Increase will be attributed to AES Holdings Brasil Ltda. ("AES Brasil"), in accordance with Article 7, head paragraph, of CVM Instruction 319/1999, on account of the goodwill paid by Companhia Brasiliana de Energia and reflected in Item 22.1 of the notes to the annual financial statements of the Company, for fiscal year 2018, as a result of the implementation of the merger of AES Tietê S.A. and in accordance with the Restructuring Agreement entered into on June 3, 2015, by and between AES Brasil and BNDES Participações S.A. - BNDESPAR.

Other information on the Capital Increase will be made available in a timely manner by the Company in the form required by Article 14 of CVM Instruction 481/2009.

São Paulo, July 5, 2019

AES TIETÊ ENERGIA S.A.

Clarissa Della Nina Sadock Accorsi

Executive Vice-President and Investor Relations Officer