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Centrais Elétricas Brasileiras S.A. – Eletrobras (NYSE:EBR) reported this week that it has placed the Colíder Hydroelectric Power Plant in Mato Grosso, Brazil, under “ALERT” status following a series of drainage system incidents. The company disclosed the information in a press release statement filed with the U.S. Securities and Exchange Commission.
Eletrobras completed the acquisition of the 300-megawatt Colíder plant from Copel on May 30. At the time of the transaction, the plant was classified at the “ATTENTION” level, the second of four dam safety categories ranging from “NORMAL” to “EMERGENCY.”
On June 14, Eletrobras was notified about the rupture of one of the plant’s drainage system components. The company also learned of a previous incident, which occurred on February 13 during maintenance, involving another drain that remains operational. Since the acquisition, four out of the plant’s 70 drainage structures have been damaged. These drains are designed to manage water pressure beneath the dam.
Due to the recurrence of similar incidents and the release of subsurface material in the dam area, a panel of external experts recommended an immediate reduction of the reservoir level to allow for further assessment and the development of an action plan to restore the dam to “NORMAL” safety status.
Acting on this advice, Eletrobras instructed Copel on Wednesday and Thursday to begin lowering the reservoir level. The company also activated its Emergency Action Plan, which includes notifying public and private entities as well as affected communities.
Eletrobras stated that the Colíder plant continues to operate within legally required safety standards and under regulatory supervision. The company emphasized its commitment to the safety of people, the environment, and its facilities.
This information is based on a press release statement filed with the SEC. Despite these operational challenges, Eletrobras has demonstrated robust market performance, with its stock delivering a 45% return year-to-date. Discover more insights about Eletrobras’s financial metrics and growth potential with InvestingPro, which offers exclusive analysis and 7 additional ProTips for informed investment decisions.
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