Itaipu is a company that does not get profit and that follows the accounting practices adopted in Brazil and Paraguay. Its financial bases are defined in Annex C of the Treaty. The document also provides that Eletrobras and Ande should contract the installed capacity available, which ensures a large predictability of revenues and reduces risks of hydrological crises, as receipts are related to the generation capacity, and not the amount of energy produced.

Three business goals defined for 2015 were achieved: risk classification, economic-financial balance index and total liability index over EBITDA.

Its business strength was attested by the main international credit rating agencies – Standard & Poor’s, Moody’s and Fitch. The assessment made in 2015 remained the highest score on the national scale, AAA company, thus fulfilling one of Itaipu’s business goals. For next year, the target is to achieve again de national AAA rating.

The Economic and Financial Balance Index shows that revenues have supplied 101% of the cost of electricity services (the target ranged between 90% and 102%), including the previous year’s result. There was an improvement compared to the previous years’ rate (98.0%), due to the reduction in operating expenses, mainly due to the devaluation of the real (BRL) and the guarani (PYG) against the dollar (USD), since the vast majority of these expenses are made in those currencies and accounted for in dollars, the reference currency of Itaipu. By 2016 the variation between 98% and 102% was maintained as a goal.

But the Total Liabilities on EBITDA Index obtained was 5.7, within the target set for 2015 to be less than or equal 8. The index has declined compared to previous years due to the reduction of debt and the exercise of liabilities arising from actuarial liabilities. This indicator also includes the effect of exchange variation in the period. With the reduction projection of Total Liabilities and maintenance and robustness of EBTIDA, the indicator tends to improve (reduce) each year. By 2016, the target was set for the index to be less than or equal to 7.

Revenues arising from the provision of electricity services to Eletrobras, Brazil, and Ande, Paraguay, totaled US$ 3,680.8 million in 2015, including the energy imparted by Paraguay to Brazil. Accumulated revenues since 1985 (the beginning of the invoiced supply of electricity produced by the plant) totaled US$ 75,337.3 million.

Throughout the year the US currency had great appreciation both in Brazil and Paraguay, but regardless of fluctuations, Itaipu has complied with the main commitments for the year. Among them, the full payment of all debt service installments (contracted for the construction of the plant) due in 2015. These totaled US$ 2,057.1 million (US$ 1,251.2 million principal amortization and US$ 805.9 million financial charges). The balance to be amortized until the year 2023 is US$ 11,435.9 million.

Annex C provides that the rate (defined in Itaipu as the unit cost of electricity service) charged must be sufficient to cover all service costs (see below). The rate applied throughout the year 2015 was US$ 22.60 per kW of contracted monthly power since 2009, with 63% of this rate used for the payment of plant construction debt. From the moment power is out of Itaipu, there are costs of transmission and distribution that are aggregated until the arrival to the final consumer.

• Royalties:
  Financial compensation due to the Brazilian and Paraguayan governments for the use of the hydraulic potential of the Paraná River for the production of energy.
• Capital investment income:
  Remuneration payable to Ande and Eletrobras in the amount of 12% per year of participation in the paid-up capital, adjusted for inflation.
• Operating expenses:
  Current expenses on personnel, materials, goods and services.
• Financial charges and amortization of loans and financing:
  Amounts paid to financial charges and debt amortization.
• Reimbursement of management and supervision charges:
  Remuneration payable to Ande and Eletrobras to financially compensate the management and supervision efforts.
• Operating account income for the year:
  Annual balance between revenue and the cost of electricity service.