Transmissora Alianca de Energia Eletrica SA
BOVESPA:TAEE3
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Transmissora Alianca de Energia Eletrica SA
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Good morning, everyone, and thank you for waiting. Welcome to Taesa's Q3 2024 Video Conference with our earnings release and our public meeting with investors. We have simultaneous translation available for those who may need it. [Operator Instructions].
We would like to inform that this video conference is being recorded and will be made available on the company's IR website where you will also find the earnings release. [Operator Instructions]. Please note that questions can be submitted during the presentation and will be read out live by the IR Officer, Cristiano Grangeiro; and the IR specialist, Juliana Castelli, and then answered by the Board of Directors during our Q&A session. We emphasize that the information contained in this presentation and any statements that may be made during the video conference regarding Taesa business prospects, projections and operational and financial targets are the beliefs and assumptions of the company's management and on information currently available.
Forward-looking statements are not guarantees of performance since they involve risks, uncertainties and assumptions as they refer to future events and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic and market conditions in addition to other operating factors may affect the future performance of Taesa and lead to results that differ materially from those expressed in such forward-looking statements.
Now I'll pass the floor to Cristiano Grangeiro to start the presentation.
Good morning, everyone, and welcome to Taesa's Q3 '24 Earnings Release session. [Operator Instructions]. We hope you enjoy this video conference. On Slide 3, we'll go through our strategic drivers, which are key to Taesa. Our mission is to connect Brazil with safe and reliable energy. Our vision is to be the electricity transmitter of greatest value to society. And our values are based on relevant and fundamental issues. We generally care for people. We act with integrity building relationships of trust. We strive for excellence in everything we do, and we are Taesa.
On Slide 4, we have an update on our sustainability agenda, which is recurring, and we highlight some of our initiatives. We'll start talking about our social and environmental campaigns.
At the beginning of each year, our electricians carry out a thorough inspection of our transmission lines, identifying and documenting issues considered critical. This year, we've mapped out 474 critical points that require our attention, such as agricultural and livestock activities that take place in and near these strips, regions at risk of burning and fires in addition to regions with possible threats of vandalism or savotage. We also monitor sites with pollution records that could compromise installation of transmission lines or accelerate the corrosion process of assets and also to locations close to villages to the limits of the lines -- in relation to the limits of the lines, which require extra care to ensure everyone's safety. These critical points are key for targeting our preventive initiatives and awareness raising efforts, helping to maintain the safety and integrity of the assets and of the surrounding communities.
In 90% of these locations, we carry out various campaigns aimed at raising environmental awareness to engage those involved directly or indirectly with Taesa's assets. The aim is to foster a mindset of environmental responsibility, encouraging the constant search for solutions and improvements.
Some of the topics covered by our technicians are the importance of safety to prevent incidents of vandalism, the correct practice of solid waste disposal, essential precautions for living safely near transmission lines in addition to general guidance on environmental preservation and awareness. These campaigns are key to developing a culture of sustainability and safety in the communities around our operations.
Secondly, we highlight our efforts in capacity building by running courses and trainings designed for these communities. One example was the training on how to combat forest fires held at the Santa Clara farm in the Central Southern region of [indiscernible]. This training and that local residents contributes to protecting crops, APIs and livestock as well as reducing the environmental impact associated with fires and reducing the risk of disconnections on our transmission line.
At the end of this training, we were able to train 20 volunteer firefighters who will be on the front line, protecting and preserving the environment and the local communities. We also shared the success of the Taesa Educa project carried out in Ananai in partnership with [indiscernible]. This initiative resulted in over 1,000 certificates handed out to about 720 people, promoting training and professional growth for the region's residents.
Due to the project success, new courses will be offered in the region around the Tangara transmission line in the state of Maranhão. As for reforestation and nursery maintenance, we currently have about 165 hectares undergoing reforestation in locations belonging to the ATE, ETEO , São Gotardo Mariana and Saira concessions. We have already completed over 10 hectares in ATE and ETEO with plants native to the region within the Atlantic Forest biome.
We have set up several nurseries that directly support our reforestation and environmental preservation efforts. Some are our own like in Assis in the state of Sao Paulo and Maranhão in the state of Tocantin and others are developed in partnerships for example, [indiscernible] in the state of Paranavaà and Santa Maria in the state of Rio Grande do Sul.
With this initiative, we have managed to produce over 6,500 seedlings per cycle in our own nurseries alone. These seedlings include native species from different Brazilian biomes such as the Atlantic Forest, our Cerrado, Caatinga and the Amazon Forest. We even make the seedlings available to the local population, encouraging planting and raising awareness about the importance of preservation. These actions reaffirm our commitment to environmental restoration, preservation, education and recovery, promoting a more balanced ecosystem and strengthening our relationship with local communities.
Now the results for the third quarter of 2024. We have the main highlights on Slide 5. First, looking at recurring basis, the net regulatory income was up 3.4% and the regulatory costs and expenses were down 5.1% year-on-year. Consequently, aside from nonrecurring effects, the adjusted regulatory EBITDA was up 5.3% in the same comparison. As for the 9-month cumulative period, the net regulatory income was up 2.2%, totaling BRL 790.8 million.
It's worth noting that during this quarter, the result was influenced by the REP's repositioning in relation to the RTP that is a periodic tariff revision that was issued last July. Cash flow was also temporarily influenced by an adjustment portions of about BRL 35 million that shall happen in the next 5 cycles. We mentioned that in our last earnings release.
Some highlights of the quarter now, such as Taesa's 60 debenture issuance of BRL 400 million in volume at a CDI cost plus 55 basis points and a maturity of 7 years. We will use the resources as cash replenishment and working capital.
Another great event was that we acquired Lot 3 during ANEEL's transmission bidding in February 2024, acquiring thus great synergies and efficiencies and a high growth potential for the region. We've obtained one more installation license for Tangara for a sectioning. So we'll be able to start working on another stretch. We'll give more details about its early conclusion and also the CapEx efficiency in construction developments.
And to wrap up, another dividend distribution of BRL 230.5 million, which is about 75% of the net regulatory income of the quarter as this is our routine distribution practice. We'll talk about each of these highlights on the next slides.
On Slide 6, we present the main lines of the regulatory income. It should be noted that regulatory income is what most accurately reflects an electric power transmission company's cash generation. On the next slides, I'll delve into this performance.
The regulatory net income was down 1% year-on-year, amounting to BRL 592.5 million at the end of the quarter. In the 9-month cumulative period, was down 3.5%, closing at almost BRL 1.8 billion in the 9 months of 2024. I'll delve into that in the next slides, but I'd like to say in advance here that we had some nonrecurring effects that influence the comparison negatively, and I'll highlight them going forward.
EBITDA was down 1.2% in the quarter, amounting to BRL 486.7 million, and the EBITDA margin went from 82.5% to 82.3%. In the 9-month cumulative period, the performance was down 5.5%, amounting to BRL 1.45 billion, and the margin went from 84.6% to 82.9%. Here, there were also some nonrecurring events. And we'll talk about them further ahead, so you can understand EBITDA's behavior in the period.
But it's worth noting that costs remained under control despite the period's inflationary pressure. The company's operating performance kept a very high level with a 99.5% availability and as for the variable portion, the company closed the 9 months at 1.6% PV over RAP or ROP versus a figure which was near 0 in the 9 months of the previous year.
It is worth noting just like we highlighted in previous quarters that last year, we had some important reversions in the case of Sabotrans and Navotrans as well as the charging suspension of PV in ATE through injunction that totaled about BRL 28 million. And this year, we also had an unusual event in Janaúba concession in the Q1 in '24 that affected this 9-month cumulative results at about BRL 13 million.
When we look specifically at the VP of this year, the number was pretty much in line and the figure was 0.9% of the revult of the period. As for the net regulatory income, it was down 5.9%, amounting to BRL 307.3 million in the quarter. And the 9-month cumulative period was up 2.2% with an accumulated income of BRL 790.8 million. And of course, we'll explain this performance on the next slides.
Now on Slide 7, we talk more about the effects that affected regulatory income in the quarter as well as in the whole year. Our net regulatory income in Q3 2024 was down almost 6% year-on-year, totaling BRL 307.3 million as we mentioned in our previous slide.
The main effects were: one, in the financial result, we were BRL 30 million down basically due to a higher IPC National Extended Consumer Price Index between the periods, whose effect was intensified by the reconciliation between the expected and actual index accounted monthly as monetary variation associated to a lower average cash volume.
In income tax and social contribution, despite a very positive result in income tax and social security in the quarter, we had a very positive result with an actual rate of less than 5%, but this line is up BRL 14 million due to the benefit of a higher deduction on interest on equity last year. These effects were partly offset by the EUR 22.8 million growth using the equity method due to the inflation adjustment of the IPCA in the new '24/'25 RAP cycle to the renovation of the EATE SUDAM tax benefit at TBE with retroactive effects to the date of our request in the beginning of this year.
And the third event was the start of Ibai's operations at the turn of the year. As for the company's EBITDA, it dropped BRL 6 million, mainly due to nonrecurring effects that we'll highlight on the next slide. Before that, however, I would like to highlight the positive performance of 2.2% of regulatory income in the 9-month cumulative view amounting to about BRL 791 million. And the important events were the equity method growth, which is basically due to the same reasons I stated above and an important improvement in income taxes and social contribution of BRL BRL 71.1 million due to the combination and better use of many tax benefits by Taesa besides the positive impact in the 4 mergers of companies carried out between the end of the last year and April of this year.
Here again, as we mentioned before, our EBITDA experienced a series of events that were nonrecurring that explained practically all this negative effect of BRL 83.6 million in the comparison. Let's move on to the next slide, #8, to talk about in more detail.
Observing the main EBITDA lines, we start by the RAP negative variation. Here, the comparison was affected by the nonrecurring recognition of complementary revenue related to the charges for the usage of the transmission system, the USC by the termination of the CUST by ONS that took place in Q3 2023. That is last year. This effect was partly offset by the inflation adjustment of the RAP and the Category 3 contracts for the '24 '25 cycle with an accumulated APC of 3.9% and whose impact was of over BRL 9 million in the period.
Another relevant impact was the line of the variable portion. We had a drop versus last year due to 3 events that had a larger impact on the ETO concessions. ETO [indiscernible] and Santander concessions that occurred in Q3 that totaled BRL 10.2 million.
It is worth stressing that the variable portion of Q3 '24 remained at only 0.9% of the rep, as I mentioned before. It is still worth mentioning the control on OpEx and practic didn't have any variation, though pressured by inflation in the period.
Excluding the nonrecurring events, mainly those associated to the reversions of the variable portion that took place last year, the complementary revenues of the EUST and some one-off expenditures, the adjusted EBITDA was up 5.3% in Q3 and down is a little less 0.5% in the whole 9-month cumulative period, different from the 1.2% and 5.5% drops shown on Slide 6, respectively. We highlight the margins in both views that showed a better performance and represent the EBITDA recurring margin in the quarter and in the whole 9-month period. More details of these adjustments in this quarter's earnings release.
Now moving on to Slide #9. We have our IFRS net income. Our income was up 45% quarter-over-quarter, totaling over BRL 400 million in the Q3 2024 and the 9-month period result was about 34% better than the previous year, amounting to BRL 1.2 billion.
The main effects of this performance in the quarter were: one, increase of BRL 140 million in the monetary receipment revenue due to greater macroeconomic indexes registered this year, mainly the IGPM that rose from minus 2.8% in Q3 '23 to plus 1.7% in Q3 2024.
Construction margin increased due to bigger investments in the developments in construction that was, however, offset by the slowdown in the [indiscernible] timetable due to a delay in the application of an environmental license and an BRL 86.1 million increase in the equity method line also due to IGPM hike that strongly affected the monetary receipment revenue of the participations in Category 2. These positive effects were offset in part by the increase in income revenue due to credit registered in Q3 '23. And among the events of higher net financial expenses and the complementary and nonrecurring revenue of the USD in the Q3 '23 that also affected results.
On Slide 10, we highlight our victory -- we won Lot 3 in the ANEEL's bidding that took place in the end of September. We call the concession Jura Transmitter and the development involves the construction of a substation and sectioning.
Lot 3 is located in mid-state Sao Paulo, near 2 of our concessions, ATE and ETEO. And consequently, we managed to attain very important operational efficiencies. In other words, EBITDA margin of these assets is over 90%.
The lot has great growth potential, and it is able to increase through reinforcement of volume of investments. Though smaller, Taesa sees Lot 3 as a strategic concession located in a high consumption hub with a growth focus in the country's electric power demand.
We expect high CapEx efficiency, 25% higher versus that of CapEx NL due to partnerships with the strategic providers and adoption of technical solution, which reflect our reputation in the EPC and equipment supply markets due to the relevance and success of our portfolio of developments concluded in the last years.
Besides, in the financial schedule, we were able to ensure over 50% of the CapEx to be paid in the last year of the work. As for anticipation, we considered the period in the notice of 6 months as of the regulatory deadline. The lot of acquired present construction aspects that are very similar to those of Tangara and Santana developments, which offers us a differential of expertise planning and value-added in the project. It's also important to point out that Taesa has a competitive cost of capital with an excellent strategy and lower than the average market.
Through our funding conditions and tax efficiency of allocation of capital in the group, we have been able to present an optimized capital structure that is capable of creating value for Lot 3.
Finally, it's worth remembering that the concession runs under the regime of deemed taxable income method. As the project evolves, we'll render more details and information on its development.
Now moving on to Slide 11. Let's update you on our ongoing projects. We obtained one more environment practice of environmental license in the beginning of October for Tangara for a sectioning of a transmission line in Açailândia and Miranda II, which will allow us to start the works in that part of the line.
Pitiguari, Tangara and SaÃra are evolving within expectations, and we expect to conclude them over 2 years before ANEELs final deadline. So we have important data that we are providing to the market as we are over 2 years ahead in these projects.
Ananaà remains a focus as the license for one of the structures has not been issued yet. We've been working to mitigate impacts of this delay. And now we expect to conclude it 11 or 15 months before the regulatory deadline. This anticipation is important as it is a big project. We've been working hard to keep these anticipations that we have been disclosing. As for reinforcements, we also expect to deliver some phases of the Novatrans reinforcement this year already. As we remind you that this is currently our biggest ongoing endeavor in construction.
Looking at these 4 greenfield projects that we talked about, the average CapEx efficiency is of about 15% in relation to Capex ANEEL, CapEx up to this moment in 2024 totaled about BRL 700 million, and we expect to end the year between BRL 900 million and BRL 1 billion. For 2025, the investments in these projects plus the 7 big enforcements investments shall remain between BRL 1.6 billion and BRL 1.8 billion and the remainder amounts to between BRL 300 million and BRL 500 million for 2026. We remind you that the curve doesn't consider the Lot 3 we just mentioned on the previous slide.
Now an important disclaimer on the slide is that this expected CapEx curve that we consider for our 4 greenfield projects and our 7 reinforcements is our best estimation now. But due to external reasons, this information might change going forward. As our projects evolve, we suggest you follow them with us as we aim to keep the market informed on such expectations.
On Slide 12, we present the evolution and the company's indebtedness profile. At the end of this quarter, the company's total net debt amounted to about BRL 11 billion, considering all of our shareholdings leveraging stabilized at the 4x range. The actual average cost of our debt is at 5% and an average period of 4.8 years, a little better than what was announced in the previous quarter due to the extension of the latest issuance of debentures 15th and 16th with longer maturities.
Our cash position remained at BRL 1.6 billion, and the mix of indexes remained at 66% of the debt linked to the IPCA, 31% to the CDI and the IGPM with 3% related to the second series of the 50 issuance of debentures that we carried out in April this year.
The company's corporate rating at a national scale, followed by Moody's and Fitch is of the highest acknowledged level, AAA. Both agencies revisited the prospect from negative to stable this year which is a very positive sign given by credit risk agencies about the evolution and implementation of our financial and capital strategies.
On Slide 13, we highlight the 6 days issuance of debentures of Taesa concluded in September. We raised BRL 400 million in a single series for cash replenishment and working capital. Maturity time is 7 years with yearly amortization in the sixth and 7 years and the rate stood at CDI plus 55 basis points, remaining among the best recent issuances in Brazil. We'd like to stress here our financial strength and exclusive funding strategy confirmed by the best risk credit rating issued by the rating agencies.
Moving on now to Slide 14. Before we wrap up our presentation, we announced one more earnings distribution based on the accumulated regulatory income of 2024. The Board approved the distribution of BRL 230.5 million among dividends and interest on equity. This distribution equals BRL 0.67 per unit of Taesa with a base data on November 11, 2024, and a payout for January 29, 2025. To easily explain the payout on the regulatory basis, we presented on the chart on the right-hand side.
The 9-month net regulatory income has amounted to BRL 790.8 million this year, coming back with the RAP adjustments of BRL 7.3 million that was highlighted in our last release. Due to the tariff review, the adjusted income has remained at BRL 798.2 million.
Considering that our proposal for distribution of earnings for 2024 is of at least 75% of our regulatory net income, we have reached a value of BRL 598.6 million to be distributed on this cumulative result as we have announced BRL 368.2 million on the result of the first quarter.
The distribution proposal approved by the Board remained at BRL 330.5 million for the last quarter, which is equivalent to a payout of 75% of the regulatory income registered in the quarter, a little higher than the limit of the proposal announced this year, especially because of the return of the BRL 7.3 million adjustment.
With this announcement, the total value distributed up to the moment and related to 2024 has totaled about BRL 600 million, about 76% of the cumulative regulatory income of the year. Well, that's all we had to present. Now let's move on to the Q&A session. Thank you all.
Thank you Cristiano. In this moment, we will open the session for questions and answers that will be conducted live and participation of the directors of the company. [Operator Instructions].
And well, good morning, everyone. Thank you for your participation of every interested party. We have 400 people participating in this video conference of the third quarter with us. We have here Juliana, Leonardo Bonorino, our CEO and CFO; Luis Alves, our Technical Director; and our Implementation Director too and also our Business Director, Fabio Fernandes.
Before starting our session, we received some questions, but let me pass the floor to Mr. Pecchio who's going to make some initial considerations.
Thank you, Cristiano. Thank you, everyone, for your interest in participating in this event. Thank you for the Taesa staff that allowed us to communicate these results, and we have good information to pass on to the public. There are a lot of people who worked hard for this. So this is a very important moment for this release, and this is a very important moment in the market.
I'd like to start the comments mentioning a very important point for us, which was this participation in the O2 2024 bidding process when we acquired Lot 3 which is a very important lot, and it can be a possibility of possible -- of future reinforcement is pretty much related to our strategy of maintaining growth and also analyzing opportunities of growth for the company.
This is something that we studied profoundly. Many areas were involved in this analysis, and we established partnerships with suppliers so that we could bring something interesting. It's a small lot, but brings us a lot of sense, and it's pretty much related to the execution of our strategic planning.
As for performance, the quarter result when we analyzed the recurrent that one that we projected the company ahead, it has been very consistent with good deliveries. And I'd like to highlight the topic related to cost to below inflation. And we have been dealing with that in a very serious fashion because this is very important because we want to have a more and more efficient Taesa. This is our commitment, and we have been able to show that by means of this cost control. I'd like to mention the investments in the period that are very relevant, almost BRL 700 million in 2024, reminding you that 2023 was the best year of the company in terms of investment, and we have a perspective of investment -- a prospect of CapEx investment of BRL 1 billion for this year. And we would like to remind you that this is our -- this is something within our planning and it allies, for example, the shareholders' payments and also growth.
We also have new products lined up for the next months. It will also reinforce our -- strengthen our income, and it was mentioned in our earnings release. And I'd like to highlight the payment of dividends of almost BRL 1 billion in a year and BRL 230 million that we have as payment for next January based on this result of Q3 that has been deliberated, representing a payout a little over 75%, as it was mentioned.
I believe that all of these things that is -- that are related to a company that are looking at a very robust cash generation with new revenues incoming. So I believe that our prospects are very good.
Within the Board, I would also like to highlight that we have an implementation director that has been hired. He's going to start working in the beginning of November to run this development program. Luiz is going to be more dedicated to the technical area. He is now the technical director in a formal way, and he will have now the exclusive dedication. I would also like to highlight our release that as we try to bring some information in a lean way to be more objective in the way we pass this information, highlighting some projects and also some expectation on these projects as for when we shall have new revenues.
Another important data is related to the residual value of our assets in the concessions, which is something that we have to get more and more visibility. This is a very important value for the company. It means a lot for the company's cash flow in the future years. That is in a general way, we are very proud to show a Q3 that we are aligning payment of shareholders and also growth. So these were the general comments.
One more time, I'd like to thank you for your participation. Now we are here available to answer questions.
So well, thank you, Pecchio. You mentioned some things that are very interesting. Well, let me answer some questions specifically. So Rafael asked a question. He asks 2 questions from sell side. So how does the company see the capacity of growth and investments for the next years as we are getting near the end of the concessions after 2030? What is the level of leveraging currently? And how can we see the company's actions to deal with these needs as we can be more clear about the future steps of the company. So these are the 2 first questions.
Well, thank you. This is a complex matter. As we have been talking about our strategy for a long time, we've been endeavoring to bring better and better information about it, but this is a topic that deserves a very fair discussion as for growth perspective.
Firstly, what will happen to the company in terms of the maturity of some concessions, the company has already been working with some investments that have already been made to be able to replenish part of our RAP. We have a little less than BRL 3 billion now in execution. This will help us have an increase in future revenue that will surely help us in this compensation for part of these concessions that will reach their maturity date looking forward.
So we have to start. We nurtured the start. We had just won a lot. We acquired a lot at a bidding. And we are, of course, analyzing our level of indebtedness. We made some very important adjustments, which is something very important for us, too. And still, we were able to participate in the bidding because -- and especially in a year where it will enter into operation and leveraging shall drop as we start new projects.
It's very hard to say specifically how much we will be investing in the next years. What we can say is that as we have shown, we are open to possibilities that may make sense within the issues related to the company's indebtedness. We also made some adjustments in the dividends aiming at this future capacity of participating in future growth. But at the moment, we had this 75% adjustment, and we have been saying that for 2025, we're going to have a payout between 90% and 100%, of course, given the fact that the market will keep the same conditions. This is something that we're going to have to discuss further as the year goes by. So -- but these are some of the possibilities.
Looking at the growth matters. I see opportunities. And of course, we're going to have this leveraging matter, too, but we will be participating in biddings. And of course, we're going to use these opportunities to make this compensation, but you're still not able to know how much of this percentage will be used for the compensation in the near future. I believe that's it, Cristiano.
Second question is from Adriano Ramoz. And the topic is dividends and expectations. So Adriano asks he comments. Taesa has already always had a practice of announcing dividends and then paying right afterwards, but the time for payment has become longer. And could you say why? And will this time period keep the same?
Well, what we practiced last year is what we're going to keep this year is what we are going to keep. We've been practicing as payment 2 quarters of the previous year. They are paid in the current years and 2 quarters of the previous year remain for the next year. This is what has been happening.
We have just released the earnings of the third quarter for payment for January. Why? Two all adaptations we have to make for investments. We also have this payment also funding and also emission costs. So we try to adequate all of these assets, but the idea is that what we have been doing be kept looking forward. So this is the pattern that we expect to maintain for the following periods.
The next question, I'll pass the floor to Fabio. So how do you see opportunities in the capacity reserve bidding destined to batteries? Are you also studying this opportunity?
For your question. Well, yes, we see opportunities there. Taesa is always looking for investment opportunities that generate value for our shareholders. So this represents a good opportunity. And this topic, the battery topic and our capacity reserve is now under public hearing -- public consultation through ANEEL, and we have been working on this consultation to work in this discussion so that we can be as clear and transparent as possible so that we can offer investment opportunities in the conditions that are applicable to this product.
This situation of the bidding is an important innovation for the power energy sector in Brazil because it brings our capacity of storing power within the sphere of power transition in order to support that intermittence in terms of renewable energies, such as solar energy, for example. This brings robustness to the area and also resilience and more trust to our Brazilian national systen in a general way.
So we are all looking at it. This public consultation suggests that this bidding occur at the end of the first quarter of 2025. And within the conditions established by the regulator and within the conditions allied to our strategic planning and having adherence, we will participate actively in these opportunities, too.
Thank you, Daniel, for your question, and we are here available for any other questions you may have.
Thank you, Fabio. The next question is about projects. I will direct the question to Luis. Luis, the investor is asking if there is an expectation of delivering projects to be happening soon.
Thank you, Julian, for the question. So we have some -- 2 important projects. Natron is the first of them, which is related to a big reinforcement of replacement of 3 Saira banks and the transmission lines this reinforcement has a very strict deadline established by ANEEL of 30 months, but we are working to energize it already in the month of November of this year. So between November and December, we already have 65% of the project energized will only depend on systemic conditions.
So we're going to have an anticipation of 5 months in reinforcement that is very complex and technical, showing highest commitment in anticipating the efficiency of the projects and -- the Pitiguari project holds ANEEL date is for March 27. We are working to energize it up to the end of this year, maybe the beginning of the January max to start Pitiguari to specialize and will represent 2 years of anticipation in relation to ANEEL's deadline.
Now there is another question here related to climate Assis, he's an investor. Congratulations on your results. I'd like to ask how the climate events have affected the availability of the transmission lines in the company. And how has the company dealt with the situation and to deal with the situation in the future?
This is a very interesting situation because this is what we have been experiencing at the moment in terms of floods and rains we had in the south and also some some forest that burned in the north. So we didn't have any impact related to the rain in our transmission lines, but we have been working hard in our predictive -- in the predictive aspect. We are present in 18 states. So we are subject to many events, especially when it comes to the weather.
We also analyze, for example, wind resistance capacity of our lines. And this way, we can assess whether the capacity of our lines is adequate to the volume of storms and winds that we have. So this is a predictive work that we have been carrying out. And not only Taesa, but also the system as a whole has been suffering a lot when -- it terms of fires. There have been some interferences from burns in our lives, but automatic reconnection, not exactly, it's not the case of permanent interruption. This is proof of our reliability.
We also have been monitoring not only the rain but also the fires in our operations center, which is our own operations center. So we are able to detect weather events that might near our concessions and also fires in the surrounding areas. With this information, and we are able to deploy some local teams to deal with any type of emergency and to prepare our operations center for a possible reconnection. But when it comes to fires, we had some disconnections that were very short.
We have re-established the connection very quickly, and it didn't have any impact for the company. And we have also used models of prediction with ie to direct our resources within our easement strips to minimize impacts over the years.
Thank you, Luiz. The next question is from the investor, Carlos Eduardo. I'm going to direct it to Mr. Pecchio. He's asking if we have any information about the maturity of the concession contracts and any prediction for -- any prospects for renovation in the future.
Thank you for your question, Carlos. The renovation is to be something that the companies are discussing along with the sector government bodies. And there is a lot of attrition in this respect. And one of the issues that has been emerging are the options for the maturity of the concession and also for the renovation of the concessions, and we harped on a specific point.
Whatever the decision is, there has to be a base, a fundament of why one is better than the other. We see possibilities, wins, advantages and disadvantages in both formats. And we are sure that we're going to have a very mature discussion with regards to what we have to do to make these decisions.
Are there some ordinances?
So we have been asking ourselves what the bases are so that we can analyze what the advantages and disadvantages are for the company, not only for the companies, but also for the whole system and also for the consumer. This is a topic that we're going to -- that is going to evolve a lot. I think 2025 is going to be a very important year to delve into this topic even more.
We've been having discussions. We have participated in forums to voice our opinions as for what we understand as advantages if it's worth it, for example, to extend our concessions. But of course, everything within a discussion that will still take place in the next month. And we are paying a lot of attention to these discussions to defend the interest of our company and to make the best decisions, not only for the company, but also for the whole national system.
Another question for you, Mr. Pecchio from analyst from Santander. Thank you for the question. Could you talk about the discussion of the deemed income for the companies and how this will impact the state in the following semesters.
Thank you for your question. Well, the tax matters always require many opinions from different experts, tax experts and also a long-term analysis on which new measure has been placed in the market, what is the legal fundament, legal base.
And I would say that our results reflect exactly what the company understands as the correct thing when it comes to the Brazilian tax legislation, a possible discussion and also from the IRS related to deemed taxable income is something that has to be followed by analysis related to this matter, application, if there should be increases if there is legal base.
From our perspective, we are doing everything that we deem correct in terms of our legislation. If we're going to have achieved a positioning, this has to come, of course, from a specific regulation. And of course, we're going to be paying attention to these changes in regulations. The position of the company, as we understand it is that what is recognized is pretty much compliant with the applicable legislation. If there are any changes, of course, we're going to analyze this in a legal fashion. But we are comfortable with what has been shown in our earnings releases.
Thank you, Mr. Pecchio. The next question is for you. We have 2 questions about leveraging. The first, what are the strategies that you are using to do it besides the dividend policy and how we intend to deleverage by using the payouts that we have been paying over the year.
That's a good question. Well, I'd like to say that based on the investments -- based on the ongoing investments that will bring revenue, I think that we have an unleveraging that is contracted or higher. Given the normal conditions of our business, this unleveraging is contracted or higher as I am going to have new revenues that will help generate cash for the company and will help us also to have an leveraging.
In 2024 and 2025, these are the levels. We are going to have very similar levels. And with the beginning of the operations, we might have a drop. This is compatible with the planning that we have been doing in terms of the company's finances. And as I said in the beginning, bringing together growth and also payment of the shareholders.
So we understand that what we are discussing in terms of dividends or the 75% of net regulatory income for this year and next year is compatible not only with our strategic planning, it is part of our planning, and we shall be able to keep it by showing growth, by growing within this limit established by these leveraging issues. Of course, there might be a drop in leveraging. And with that, we will automatically create the possibility of new investments if we understand that there are options that are of our interest in terms of capital allocation.
Very good, Pecki. I was analyzing some of the questions. Some of them have already been answered. We are now nearing the end of our discussion. The questions were very clear. I'd like to pass the floor just for some -- just to talk about today's event in a summarized way.
Well, let's get back to some important topics. Let's talk about the recognition for the results. We represent almost 900 employees. So this number is not only financial. It's a number that represents a lot of people who are working on those lines, and we try to do that with financial discipline with strategic execution of our plan. I'm very optimistic when it comes to the future of the company, not only when it comes to our bigger and bigger efficiency as we have been trying to bring new innovation to the process and to make it possible for the company to grow. And of course, we're going to have this deleveraging thing in the short term. But as I said, based on this contracted unleveraging, we're still going to be able to provide growth for our shareholders. Thank you for your participation and for everyone's interest in this view.