SEC Form 6-K filed by Comp En De Mn Cemig

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2024

Commission File Number: 1-15224

Energy Company of Minas Gerais

(Translation of Registrant’s Name into English)

Avenida Barbacena, 1200

30190-131 Belo Horizonte, Minas Gerais, Brazil

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Index

Forward-Looking Statements

This report contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may cause actual results to differ materially from those discussed herein include those risk factors set forth in our most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. CEMIG undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof, and claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

1- Notice to Shareholders dated April 29, 2024 – Resolutions of the AESM - Dividends and Bonus

COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG

PUBLICLY-HELD COMPANY

Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64

Company Registry (NIRE): 31300040127

NOTICE TO SHAREHOLDERS

Resolutions of the AESM - Dividends and Bonus

We hereby inform our shareholders that the Annual and Extraordinary Shareholders’ Meeting (AESM) held on this date, resolved, among other matters, the following:

1. DIVIDENDS:

✓ To ratify R$2,591,459 thousand as Interest on Equity (“IOE”), already declared according to the table below;

✓ To declare R$533,118 thousand as dividends, corresponding to R$0.24226860196 per common/preferred share, payable to shareholders registered in the Book of Registry of Registered Shares on the date of the holding of the AESM, that is, 04/29/2024. The shares will be traded “ex-rights” from 04/30/2024.

2. SHARE CAPITAL INCREASE AND BONUS:

Shareholders whose shares are not held in custody at CBLC (Companhia Brasileira de Liquidação e Custódia) and whose registration data is outdated are advised to go to a branch of Banco Itaú Unibanco S.A. (The institution administering CEMIG’s Registered Shares System) bearing their personal documents for the due update of their registration data.

Belo Horizonte, April 29, 2024.

Leonardo George de Magalhães

Vice President of Finance and Investor Relations

2 - Notice to the Market dated April 30, 2024 – Filing of Form 20-F

COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG

PUBLICLY HELD COMPANY

Corporate Taxpayer’s ID (CNPJ): 17.155.730/0001-64

Company Registry (NIRE): 31300040127

NOTICE TO THE MARKET

Form 20-F

A COMPANHIA ENERGÉTICA DE MINAS GERAIS – CEMIG (“CEMIG”), a publicly held company with shares traded on the stock exchanges of São Paulo, New York and Madrid, hereby informs the Brazilian Securities and Exchange Commission (CVM), B3 S.A. – Brasil, Bolsa, Balcão (“B3”) and the market in general that it has filed on April 30, 2024, Form 20-F for the 2023 fiscal year (“2023 Form 20-F”) with the U.S. Securities and Exchange Commission (“SEC”).

2023 Form 20-F can be accessed on SEC’s website, at www.sec.gov, or the Company’s

Investor Relations website, at http://ri.cemig.com.br.

Belo Horizonte, April 30, 2024.

Leonardo George de Magalhães

Vice President of Finance and Investor Relations

3 - Earnings Release – 1Q2024

Sources and uses of electricity – MWh

Client base

9.24 million consumers were billed in March 2024 – 1.9% more than in March 2023. Of this total, 3,186 were Free Clients using the distribution network of Cemig D.

Performance by sector

Industrial: Energy distributed to Industrial clients was 2.2% higher in 1Q24 than 1Q23, on higher physical production by industry, and was 46.4% of Cemig D’s total distribution. The greater part was energy transported for industrial Free Clients (44.1%), which was 3.4% higher by volume than in 1Q23. Energy billed to captive clients was 2.3% by volume of the total distributed, and 17.6% less in total than in 1Q23 – mainly due to migration of clients to the Free Market. Highlights of electricity consumption, by industrial sector, were: higher consumption by Mining (up +12.3%), Steel (up 8.5%), Food and beverages (up 5.5%), and Cement (up 5.0%); while consumption was lower in Chemicals (down 6.2%), and Castings (down 11.4%).

Residential: Residential consumption was 27.0% of total energy distributed by Cemig D, and 8.9% higher than in 1Q23. Average monthly consumption per consumer in the quarter, at 139.2 kWh/month, was 5.6% higher than in 1Q23, reflecting higher than historic average temperatures, increased family income – and our actions to recover energy losses. Also contributing to higher consumption was the growth in the number of clients in this category – an increase of 3.1% (237,100 clients).

Commercial and services: Energy distributed to these consumers was 13.8% of the total distributed by Cemig D in 1Q24, and by volume 2.8% more than in 1Q23. This increase is the result of a 3.4% reduction in energy billed to captive clients, and an increase of 16.5% in the volume of energy transported for Free Clients. The increase in consumption is related to expansion of the services sector, growth of retail sales, temperatures above historical averages in the period. It is worth noting that the increase in this user category happened in spite of the migration of consumers to distributed generation, which, along with migration to the Free Market, was reducing captive consumption.

Rural: Consumption by rural clients was 5.1% of the total energy distributed, and 16.4% higher by volume than in 1Q23, mainly due to higher consumption for irrigation, due to lower volume of rainfall.

Public services: consumed 7.0% of the energy distributed in 1Q24, in total 2.9% lower by volume than in 1Q23. Total captive consumption in 1Q24 fell by 45.5 GWh year-on-year, while the Free Market expanded by 20.3 GWh. This figure was mainly due to consumers migrating to the Free Market.

The Tariff Adjustment and the Tariff Review

The tariffs of Cemig D are adjusted in May of each year; and every five years there is the Periodic Tariff Review, also in May. The aim of the Tariff Adjustment is to pass on changes in non-manageable costs in full to the client; while the Tariff Review aims to provide inflation adjustment for the costs specified as manageable. Manageable costs are adjusted by the IPCA inflation index, less a factor known as the ‘X Factor’, to capture productivity, under a system using the price-cap regulatory model.

On May 22, 2023 Aneel ratified the result of Cemig D’s 2023 Annual Tariff Adjustment, effective from May 28, 2023 to May 27, 2024, the result of which was an average increase for consumers of 13.27%. The average effect for low-voltage clients was an increase of 15.55%, and for residential consumers 14.91%. The percentage component corresponding to the Company’s management costs (referred to as ‘Portion B’) was 0.66%. The increase relating to non-manageable costs (‘Portion A’ – comprising purchase of energy, transmission, sector charges and non-recoverable revenues) was 5.09%; and the increase in the financial components of the tariff was 7.52%. The effect in the financial components comes mainly from absence of the R$ 2.81 billion component included in the 2022 adjustment for repayment to consumers of credits of PIS, Pasep and Cofins taxes – while repayment of R$ 1.27 billion was incorporated into the Tariff Review of 2023.

Comparison of the Tariff Reviews of 2023 and the previous cycle:

* CAIMI: (Cobertura Anual de Instalações Móveis e Imóveis) – Annual support for facilities.

** QRR: ‘Regulatory Reintegration Quota’: Gross base x annual depreciation rate.

See more details at this link:

https://www2.aneel.gov.br/aplicacoes/tarifa/arquivo/NT%2012%202023%20RTP%20Cemig.pdf

Quality indicators – DEC and FEC

In 2023 the State of Minas Gerais was impacted by an increase in extreme atmospheric events, which caused a slight increase in electricity outages. Given this challenging scenario, Cemig has implemented several initiatives to reduce the number and duration of outages, and has made major investments in the distribution business to provide a quality service to clients.

These actions are already generating positive results: the DEC indicator (Average Outage Duration per Consumer) returned to a level within the regulatory limit: this limit was 9.64 hours, and Cemig's DEC in the 12-month window to end-March was 9.38 hours.

Combating default

Maintaining a high level of collection actions, the Company kept its Receivables Recovery Index above 99% in March 2024.

New payment channels, and online negotiation, made available in recent quarters (PIX instant payments, automatic bank debits, payments by card and app, etc.) have continued to increase the proportion of collection via digital channels – in 1Q24 it reached 66.39% of the total collected, compared to 59.63% in 1Q23.

A highlight is the use of the PIX instant payment system, which was launched 2 years ago, and in March 2024 already was used for 24.0% of all collection payments.

The change in the collection mix reduced costs by 19% – a saving of R$ 3.4 million compared to 1Q23.

Energy losses

Energy losses were compliant with the regulatory level in the 12 months to end March 2024, at 10.59% (the regulatory level is 10.69%).

Highlights of our combat of energy losses in 1Q24 include: approximately 75,000 inspections; replacement of more than 149,000 obsolete meters; exchange of 30,200 conventional meters for smart meters (bringing the total of smart meters installed since the project began in September 2021 to 343,000); and regularization of 1,300 clandestine connections for families living in ‘invaded’ or low-income areas, through our Energia Legal program, which includes ‘bulletproofed’ networks – with a total of 13,937 regularizations since the project began in February 2023.

Planned for full-year 2024 are: 350,000 inspections; installation of a further 200 thousand smart meters; and regularization of 30,000 families in low-income communities.

Cemig GT and the Cemig Holding Company

Electricity market

The total volume of electricity sold by Cemig GT and by the Cemig holding company (‘Cemig H’), excluding sales on the wholesale power exchange (CCEE) was 4.0% higher than in 1Q23. Cemig GT billed 5,182 GWh (including quota sales) in 1Q24, 18.1% less than in 1Q23. This reduction reflects the transfer to Cemig H of contracts for sales of electricity totaling 1,522 GWh more than in 1Q23.

As a result the holding company reported sales of 4,520 GWh in 1Q24, 50.7% more than in 1Q23. Migration of purchase contracts from Cemig GT to the holding company began in 3Q21, and has been gradually increasing since then. The percentage of GT contracts transferred to Cemig H is now at around 60%.

Sources and uses of electricity

Gasmig

Gasmig is the exclusive distributor of piped natural gas for the whole of the state of Minas Gerais. It supplies industrial, commercial and residential users, compressed natural gas and vehicle natural gas, and gas as fuel for thermoelectric generation plants. Its concession expires in January 2053. Cemig owns 99.57% of Gasmig.

Gasmig’s Tariff Review was completed in April 2022. Highlights:

The volume of gas sold in 1Q24 was 9.7% lower than in 1Q23, and volume distributed to industrial Free Clients was 1.8% higher.

Gasmig’s Ebitda was 15.6% lower in 1Q24 than 1Q23, reflecting (i) lower volume, and (ii) the lower compensatory component in the tariff (for differences between actual costs and cost included in the tariff award calculation).

The number of Gasmig’s clients increased by 15.7% from 1Q23, to a total of 98,021 consumers in 1Q24. This growth reflects expansion of both the commercial and the residential client bases (addition of 13,200 clients)

Financial results

Consolidated operational revenue

Revenue from supply of electricity

Energy sold to final consumers

Gross revenue from energy sold to final consumers in 1Q24 was R$ 7,017.20 million, compared to R$ 6,189.60 million in 1Q24, an increase of 13.4% YoY, in spite of volume being only 3.2% higher. The increase mainly reflects the re-inclusion, in the basis for calculation of ICMS tax, of the Transmission and Distribution charges, as from Decree 45572/2023, of February 2023.

Wholesale supply

Revenue from wholesale supply in 1Q24 was R$ 1,001.9 million, compared to R$ 905.7 million in 1Q23. The increase reflects (i) updating of the amounts of contracts, and (ii) volume sold 5.9% higher.

Transmission

Transmission revenue was 7.6% lower, due to revenue from operation and maintenance being 24.1% lower, and revenue from financial remuneration of transmission contractual assets being 14.6% (R$ 25.9 million) lower, due to the different IPCA inflation rate – the basis for the remuneration of the contract – which was 1.42% positive in 1Q24, compared to 2.09% (positive) in 1Q23. Construction revenue increased by 60.9% (R$ 24.0 million), mainly due to additions made to projects with higher construction margins in the period.

Gas

Gross revenue from supply of gas in 1Q24 was R$ 919.6 million, compared to R$ 1,123.6 million in 1Q23. The lower figure is due to: (i) passthrough to tariffs of downward adjustments made in the price of gas acquired in the prior 12 months (lower average prices); and (ii) the lower volume of sales in the industrial and automotive markets.

Revenue from Use of Distribution Systems – The TUSD charge

In 1T24 revenue from the TUSD – charged to Free Consumers on their distribution of energy – was R$ 188.9 million higher than in 1Q24. This reflects (i) volume of energy transported for Free Clients 5.1% higher; and (ii) re-inclusion in the basis for calculation of ICMS tax of transmission and distribution charges, as from February 2023.

Operational costs and expenses

Operational costs and expenses in 1Q24 totaled R$ 7.47 billion, which compares with R$ 6.94 billion in 1Q23. This mainly reflects higher posting of construction cost (+R$ 217.7 million), higher cost of use of the national grid (+R$ 143.0 million), higher amounts posted for losses on expected receivables (+R$ 67.9 million), and, in counterpart, lower expense on purchase of gas (–R$ 104.6 million). See more details on costs and expenses in the pages below.

Operational costs and expenses

Electricity purchased for resale

The expense on electricity bought for resale in 1Q24 was R$ 3.51 billion, R$ 66.6 million (1.9%) higher than in 1Q23. This reflects, mainly:

Note that for Cemig D, purchased energy is a non-manageable cost: the difference between the amounts used as a reference for calculation of tariffs and the costs actually incurred is compensated for in the next tariff adjustment.

Charges for use of the transmission network and other system charges

Charges for use of the transmission network in 1Q24 totaled R$ 843.2 million, 20.4% higher year-on-year. The difference primarily reflects: (i) a higher need for dispatching of thermoelectric generation plants in 2023, on days and intra-day periods of higher demand, due to higher temperatures; and (ii) entry into operation of the Reserve Energy contracts arising from the Simplified Competitive Procedure (Procedimento Competitivo Simplificado – PCS) of 2021, with a consequent increase in the Reserve Energy charges in the period. This is a non-manageable cost in the distribution business: the difference between the amounts used as a reference for calculation of tariffs and the costs actually incurred is compensated for in the next tariff adjustment.

Gas purchased for resale

The expense on acquisition of gas in 1Q24 was R$ 510.2 million, or 17.0% less than in 1Q23. This is due to a lower price of gas acquired for resale, and also lower quantity – 9.7% less by volume.

Outsourced services

Expenditure on outsourced services was 11.0% (R$ 51.5 million) higher than in 1Q23, the main factors being higher expenses on: maintenance of electrical installations and equipment (R$ 34.1 million, or 19.4%, higher); cleaning of power line pathways (+R$ 8.0 million, or 33.5%, higher); and information technology (R$ 7.2 million, or 13.9%, higher).

Provisions for client default

The expense on provisions for losses due to client default in 1Q24 was R$ 75.8 million, compared to R$ 7.9 million in1Q23, mainly due to the revision, in 3Q22, of the criteria for accounting for overdue client receivables (increase of the threshold for posting 100% loss, from 12 to 24 months, to reflect the actual performance of Cemig clients more faithfully) – which also had a positive effect in 1Q23).

Provisions for contingencies

Contingency provisions totaled R$ 139.6 million in 1Q24, 22.9% more than in 1Q23. This reflected a higher volume of provisions in Cemig Distribution, mainly in provisions for employment-law and third-party liability contingencies, reassessment of chances of loss in lawsuits in progress, and decisions against the Company in cases completed or with final settlement in 1Q24.

Impairments

Provisions for impairment in 1Q24 totaled R$ 23.0 million: R$ 17.7 million for plants classified as held for sale, and R$ 5.3 million for a receivable from a client disputing amounts owed. In 1Q23 an impairment of R$ 46.1 million had been posted for the plants of Cemig GT which were in the process of sale (this was reversed with the success of the sale auction).

Gain on disposal of investment

With the completion of the sale of Small Hydro Plants in 1Q24, a gain of R$ 42.9 million was posted in Other costs and expenses. In 1Q23 a gain of R$ 30.5 million been posted in this line, for part of the sale of the stake in Santo Antônio.

Post-employment liabilities

The impact of the Company’s post-retirement obligations on operational profit in 1Q24 was an expense of R$ 142.3 million, compared to an expense of R$ 103.0 million in 1Q23. The lower figure represents remeasurement, in 1Q23, of the post-employment liability, with a positive impact of R$ 56.9 million, reflecting acceptance of the new health plan by some of the active employees.

People

Expense on personnel in 1Q24 was R$ 324.1 million, 3.3% less than in 1Q23, even after the 4.14% increase in salaries under the Collective Work Agreement of November 2023. The reduction is explained by (i) the lower cost of newly-hired employees than of those that left the Company, and (ii) the average number of employees being 1.2% lower than in 1Q23.

CONSOLIDATED EBITDA (IFRS and Adjusted)

Ebitda is a non-accounting measure prepared by the Company, reconciled with its consolidated financial statements in accordance with the specifications in CVM Circular SNC/SEP 01/2007 and CVM Resolution 156 of June 23, 2022. It comprises: Net profit adjusted for the effects of: (i) Net financial revenue (expenses), (ii) depreciation and amortization, and (iii) income tax and the Social Contribution tax. Ebitda is not a measure recognized by Brazilian GAAP nor by IFRS; it does not have a standard meaning; and it may be non-comparable with measures with similar titles provided by other companies. Cemig publishes Ebitda because it uses it to measure its own performance. Ebitda should not be considered in isolation or as a substitute for net profit or operational profit, nor as an indicator of operational performance or cash flow, nor to measure liquidity nor the capacity for payment of debt. In accordance with CVM Instruction 156/2022, the Company adjusts Ebitda to exclude extraordinary items which, by their nature, do not contribute to information on the potential for gross cash flow generation.

Cemig D posted Ebitda of R$ 746.5 million, 0.7% more than the adjusted Ebitda of 1Q23. Main effects in Ebitda in the quarter:

Cemig GT – Ebitda