BRAZIL · ENERGY UTILITIES
Key Facts
- What is happening Mining executive Otto Levy was offered the chief executive job at Cemig, the Minas Gerais state power utility, and reportedly accepted on Tuesday, 27 October. Cemig has not confirmed.
- Why it matters Cemig trades in São Paulo and in New York through ADRs, which are US-listed share receipts, and Levy would be its third chief executive since May.
- The numbers Cemig earned BRL 945 million (about US$177 million) in the second quarter, down 20.4%, and its net debt stood at BRL 19.4 billion (about US$3.6 billion) at the end of June.
- Who is who Levy was planning secretary under Romeu Zema, then Minas Gerais governor; Cleitinho Azevedo, of the conservative Republicanos party, won the governorship on 4 October and takes office on 6 January 2027.
- What to watch Whether Cemig confirms the choice in a market notice, whether its board elects Levy, and whether cheaper power bills touch dividends.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
- What it means for you US holders of Cemig ADRs may face a change at the top, not a sale: Azevedo has ruled out privatisation, and the board must vote.
Cemig, a Brazilian power utility that US investors can buy in New York, is reportedly lining up its next boss. Otto Levy reportedly accepted, but Cemig has not confirmed and its board has not voted.
Cemig (company profile), the state-controlled electricity company of Minas Gerais, may soon have a new chief executive. Otto Levy, an engineer and former state minister, reportedly accepted governor-elect Cleitinho Azevedo’s offer on Tuesday, 27 October.
Cemig has not announced the change, and its board elects the chief executive. The Cemig new CEO question stays open, as one local newspaper alone reports the acceptance.
Who Is Otto Levy
Levy is a metallurgical engineer who finished first in his class at the Federal University of Minas Gerais. Since June 2021 he has been investments director at CSN Mineração, a mining company.
He ran the state planning and management department under governor Romeu Zema from January 2019 to April 2021. In that role he joined talks with the miner Vale on compensation for the Brumadinho dam disaster, signed in February 2021.
Before government he spent ten years at Magnesita, a refractories maker, rising to director-general of operations in 2013. From 1995 to 2008 he was a consultant and partner at Falconi, a Brazilian management consultancy.
He would replace Marco Aurélio Vasconcelos, a lawyer from the legal department of Copasa, the Minas Gerais water utility. Cemig’s board elected Vasconcelos on Friday, 11 September.
A Revolving Door at the Top
Levy would be Cemig’s third chief executive since the board replaced Reynaldo Passanezi on Thursday, 7 May. Alexandre Ramos Peixoto, a career Cemig engineer, was elected that day and moved to chair the board in September.
In late August the state, Cemig’s controlling shareholder, put forward a different name, engineer Marcio Nunes. Local press reported objections from Cemig’s legal, compliance and governance teams over court cases; the board then chose Vasconcelos.
The Business He Would Inherit
Cemig, a power generator and distributor, reported second-quarter net profit of BRL 945 million (about US$177 million) in August. A year earlier it was BRL 1.19 billion (about US$222 million).
Adjusted EBITDA, a measure of core cash earnings, rose 9.3% to BRL 2.47 billion (about US$462 million). Cemig excludes one-off items, such as a BRL 191 million (about US$36 million) provision for an arbitration case, from that figure.
Net debt reached BRL 19.4 billion (about US$3.6 billion), or 2.58 times adjusted EBITDA. That compares with 2.45 times at the end of March.
Cemig raised BRL 4.6 billion (about US$860 million) of new debt and invested BRL 1.8 billion (about US$338 million) in the quarter. In June it also declared BRL 631 million (about US$118 million) in interest on equity, a dividend-like payout.
Conversions use a rate of 5.35 reais per US$1 on 28 October 2026. All US$ figures are rounded.
Politics and Ownership
Cemig is a mixed-capital company: private investors own a large share, but the state keeps control. Cemig’s investor site shows the state with 17.04% of all shares and 50.97% of the voting ones.
Azevedo, a senator, won the governorship in the first round on 4 October with 55.4% of valid votes. On 5 October he ruled out privatising Cemig, saying the company makes a profit.
He also asked why money left over at Cemig should not subsidise power bills. Specialists quoted by local press say this could work through a lower state sales tax or the dividends the state receives.
What It Means for US Readers
Cemig’s shares trade on the New York Stock Exchange as ADRs, so a change of chief executive matters to US holders. If confirmed, the pick signals a manager with a mining and government background, and no sale of state control.
The Rio Times has covered the governors’ map after the first round and the eight parties that now hold state governments. It has also reported on Brazilian power company Axia’s share redemption and the Brazilian stock market’s slide after the runoff.
More company and political coverage sits on the Brazil hub. US readers should treat the news as a governance event until Cemig confirms it in a filing.
What Is Not Known
By the morning of 28 October, The Rio Times found no Cemig market notice on Levy and no statement from him. The acceptance rests on one local newspaper; a second outlet reported only that Azevedo had invited him.
The start date, pay and term are not public. Neither is how Levy would handle Azevedo’s idea of using Cemig’s profit for cheaper power bills, or the effect on dividends.
What Comes Next
Cemig would need a formal nomination, governance checks and a board vote, and no date has been announced. Vasconcelos remains chief executive until then, as far as is known.
Any change will appear as a filing on Cemig’s investor-relations site and with Brazil’s securities regulator, the CVM. Investors will also watch Azevedo’s first moves on power-bill subsidies after he takes office on Wednesday, 6 January 2027.
Frequently Asked Questions
Who is Otto Levy?
He is an engineer, a director at mining company CSN Mineração and a former Minas Gerais planning secretary. One local newspaper reports he accepted the Cemig job.
Is Otto Levy already Cemig’s CEO?
No, Marco Aurélio Vasconcelos, elected on 11 September, holds the job. Cemig’s board must still elect any successor.
Will Cemig be privatised?
Governor-elect Cleitinho Azevedo said on 5 October he will not privatise it. The state remains the controlling shareholder.
How did Cemig do in the second quarter?
Net profit fell 20.4% to BRL 945 million (about US$177 million). Adjusted EBITDA rose 9.3% to BRL 2.47 billion (about US$462 million).
Can US investors buy Cemig?
Yes, through ADRs on the New York Stock Exchange, and through shares in São Paulo. This article gives no investment advice.
Sources: Cemig, second-quarter 2026 results presentation, 14 August; Cemig, material fact on the election of its chief executive, 7 May; Cemig, shareholding structure; Cemig, investor relations; Minas Gerais local press report on the appointment, 27 October; Minas Gerais local press report on the invitation; Cemig board decision of 11 September, as reported by an infrastructure news agency; Azevedo interview of 5 October and election result; exchange rate from open.er-api.com, 28 October (all accessed 28 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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