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 CVM Instruction 358 of January 3, 2002 and other applicable provisions, hereby announces to its shareholders and the market that:

The Company is currently building the Ouroeste Solar Complex ("Complex" or "Ouroeste"), consisting of two plants: Boa Hora and AGV Solar, in accordance with the Material Fact of September 25, 2017 and December 18, 2017, respectively. The Complex, located in the city of Ouroeste in São Paulo, has a phased startup with the first phase slated for 2018 and the second in mid-2019.

The operational startup of the Complex under said conditions will represent an increase in annual EBITDA of between R$70 million and R$80 million for the Company, an estimate based on the following assumptions: (i) installed capacity of 144 MWac; (ii) assured energy sold at auction of 36 MWavg; (iii) cost structure according to plan; (iv) energy sale agreements in effect, ending in 2037 and 2040, respectively; and (v) operational startup of the project's second phase advanced by eighteen months, enabling the sale of energy in the free market during this period.

Considering the acquisition amount added the expected investment of R$655 million and estimated Ebitda previously mentioned, Ouroeste's EV/Ebitda multiple, the ratio of the Company's Entrerprise Value and its Operational Income (Ebitda), is 8x to 9x.

This guidance will be included in section 11 of the Company's Reference Form and published on the websites of the Securities and Exchange Commission of Brazil (CVM)(http://www.cvm.gov.br/)and the Company(http://ri.aestiete.com.br/)within the legal timeframe.

São Paulo, November 6, 2018

AES TIETÊ ENERGIA S.A. Clarissa Della Nina Sadock Accorsi

CFO and IRO

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AES Tietê Energia SA published this content on 06 November 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 06 November 2018 22:02:08 UTC