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Court allows Cemig to retain control of 424-MW Jauara hydropower plant

An injunction granted by Brazil's Superior Court of Justice will allow utility company Cemig to maintain control of the 424-MW Jaguara hydroelectric plant.

Cemig said in a statement that its operating concession for Jaguara was revoked by the Brazilian government after the company refused to agree with controversial energy sector reforms enacted by President Dilma Rousseff earlier this year.

In an effort to lower consumer costs, Rousseff's plan would require Cemig to agree to a revised concession with decreased revenue.

The court's ruling will stand, pending a court review of the plant's legal status, according to Cemig.

Two other Cemig-operated plants -- the 1.7-GW Sao Simao and 408-MW Miranda hydropower plants -- also have not yet had their concessions renewed.

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