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Material Fact 2nd Ordinary Tariff Revision

SÃO PAULO, Feb. 28, 2019 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo – Sabesp ("Company" or "Sabesp"), pursuant to the provisions of Article 157, Paragraph 4 of Law 6.404/76 and the provisions of CVM Instruction 358/02, hereby informs its shareholders and the market in general that, in continuity to the Material Fact disclosed on May 24, 2018, on this date was published in the Official Gazette of the State of São Paulo (DOE - Diário Oficial do Estado de São Paulo), the Summary of the Minutes of the 480th Board of Executive Officers' Meeting of the Regulatory Agency for Sanitation and Energy of the State of São Paulo (ARSESP - Agência Reguladora de Saneamento e Energia do Estado de São Paulo), held on February 6, 2019, that:

(i) Regarding the reconsideration request (administrative appeal) on the 2nd Ordinary Tariff Revision (OTR), through which Sabesp requested the revision of the regulatory decision substantiated by ARSESP Resolution nº 794/2018, resolved not to accept the reconsideration request (administrative appeal).

(ii) Regarding the clarification and revision request, through which Sabesp requested: (a) explanation of the reasons that led to a significant reduction in the final forecast of OPEX for the 2017-2020 period;  and (b) a revision of the calculation of X Factor, of the compensatory adjustment for the delay in the application of the 2nd Ordinary Tariff Revision and the calculation of the financial component related to municipal funds, ARSESP approved the Technical Note NTF-0010-2018 (not disclosed) related to the request for clarification and revision, in which "corrections of errors and inaccuracies presented should be made when applying the annual tariff adjustment (May/19), with an index of 0.8408%, which already contemplates compensation for the period elapsed."

A copy of the publication made by ARSESP today is available on the Sabesp website, in the Investor Relations area.


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