Cemig urges deadline extension for concession renewal

Brazilian power company Cemig (NYSE: CIG) has urged the government to extend its deadline for utilities to decide on whether to renew their operating concessions. Speaking during an investor teleconference, Cemig president Djalma Bastos said he was hopeful the deadline would be extended from December 4 to March next year. Last week the author of the government's controversial power reform bill, Renan Calheiros (PMDB-AL), ruled out a possible extension, saying the legislation had already been enshrined in law. Cemig has already stated its intention to renew 18 hydroelectric generation concessions. But the Minas Gerais state utility says it will not seek a contract extension for the São Simão, Jaguará and Miranda hydroelectric facilities in São Paulo state. A final decision on the assets will be made after a shareholders meeting on December 3. Meanwhile, Bastos revealed the company will look to expand its asset portfolio in the coming months through possible mergers and acquisitions.