Dec. 9 (Bloomberg) -- Brazilian power company Cia Energetica de Minas Gerais said it will go to court to maintain contracts on three of its main hydroelectric plants, President Djalma Morais told Estado de S.Paulo.
Cemig, as the Belo Horizonte-based company is known, has said it won’t seek license renewals under new rules that would push rates lower because contracts on plants include a guarantee of automatic renewal that precludes the government’s offer, Morais said in an interview published today.
If the government refuses Cemig’s argument and auctions licenses on the three plants, Cemig will participate in those auctions, Morais said, adding that he’s waiting to see what the final concessions measure approved by Congress and signed by the President will look like before taking further steps.
A press official for Cemig in Belo Horizonte, who asked not to be identified in accordance with internal policy, confirmed the interview.
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