Based on article 16 of State Complementary Law No. 205, of December 17, 2017, the Concession object of the Concession Agreement signed between the Granting Authority and the Concessionaire on December 20, 1996, can be extended for a period of 30 (thirty) years as of the expiration date of the original Concession Agreement, that is, as of July 6, 2024. Therefore, the maturity of the agreement may be extended until July 6, 2054, from which no additional extension shall be permitted, except if authorized under applicable law.

The extension of the Concession referred in the Agreement is carried out upon the payment of a Grant Bonus, in the amount of R$508,000,000.00 (five hundred and eight million reais), to be reverted in favor of investments in the State of Paraná, pursuant to article 17, paragraph 3, of Complementary State Law No. 205, of 2017. The payment of the Grant Bonus shall be used to compensate the credits in the Concessionaire's previous concession agreement, in the amount of R$98,000,000.00 (ninety-eight million reais), resulting in a balance of R$410,000,000 00 (four hundred and ten million reais) payable through financial disbursements by the Concessionaire to the State of Paraná within 30 (thirty) days after the signing of this Agreement, which can be extended, exceptionally and duly justified, for an additional 30 (thirty) days.

The approval of the proposal to renew Compagas' concession for the distribution of piped gas services was favorably recommended by Copel's Board of Directors at its 2,530th Meeting held on November 29, 2022, and from by the Investment and Innovation Committee at its 27th Meeting held on November 29, 2022.

The matter was also appreciated and discussed within the scope of the Statutory Audit Committee at its 267th Meeting, held on November 30, 2022, from the perspective of the transaction being among related parties, in which no reservations were identified for the approval of the proposal presented.

The Board of Directors, at its 220th Extraordinary Meeting held on November 30, 2022, approved the proposal to renew Compagas' concession for the distribution of piped gas services, observing that the effectiveness of the transaction was subject to approval by the Compagas’ General Shareholders’ Meeting and the signing of the agreement with the Granting Authority.

Detailed justification of why the issuer’s management considers that the transaction is conducted on an arm’s length basis or envisages appropriate compensatory payment

Due to its nature, the transaction could not be carried out with third parties in the market.

The opinions prepared by Copel and hired advisors demonstrated strategic and financial advantages and, therefore, supported the rite of governance that approved the proposal to renew the concession for the distribution of piped gas distribution services by Companhia Paranaense de Gás – Compagas.

Opinions regarding legal, risk, regulatory, governance, financial and accounting matters were also prepared, in which no reservations were identified for the transaction.

/S/  Daniel Pimentel Slaviero