Exhibit 4.20


Announcement of Commencement of
Public Distribution of the Third Issue of 


Commercial
Paper Securities by





CEMIG DISTRIBUIÇÃO S.A.


LISTED COMPANY


CNPJ n.o
06.981.180/0001-16


Av. Barbacena, 1200, 17th
Floor, A1 Wing, Bairro Santo Agostinho


Belo Horizonte,
Minas Gerais, Brazil


ISIN: BRCMGDNPM027


Lead
Manager:














The Lead
Manager of this Offering is  Caixa
Econômica Federal


In the amount of


R$ 400,000,000.00











1. CORPORATE DECISIONS


The Second Issue of
Commercial Promissory Notes (“the Offering”, “the Issue”, and “the Securities”)
was approved by the Board of Directors of Cemig Distribuição S.A. (“Cemig D”,
the “Issuer” or “the Company”) at a meeting held on May 24, 2007 (“RCA”). 


The guarantee given for the Promissory Notes by
Companhia Energética de Minas Gerais – Cemig (“Cemig” or “the
Guarantor”) was approved by the meeting of the Board of Directors of Cemig held
on May 24, 2007.


2. INFORMATION ABOUT THE ISSUE


2.1. Total
amount of the Issue


The total amount of the
issue is R$ 400,000,000.00 (four hundred million Reais).


2.2. Quantity
of Securities 


The issue is made up of
40 (forty) Commercial Paper Securities (Promissory Notes).


2.3. Nominal
unit value


The par value (“the
Nominal Unit Value”) of the Securities is R$ 10,000,000.00 (ten million Reais).


2.4. Series


The Securities will be
issued in a single series.


2.5.
Remuneration


Remuneration interest
shall be due, at the rate of 101.6% ((one hundred and one point six per cent)
of the average daily rate for interbank deposits known as the “DI over
extra-grupo Rate”, expressed in the form of an annual rate in per cent, on the
252 (two-hundred-and-fifty-two)-business-day, calculated and published daily by
the CETIP (Custody and Settlement Chamber) in its daily bulletin available on
its Internet page (http://www.cetip.com.br) (“The DI Rate” and “the
Remuneration”). The Remuneration shall be calculated exponentially and
cumulatively pro rata tempore per business day, applicable to the Nominal Unit
Value of each Promissory Note from the date of the actual subscription and
paying-up (“Issue Date”) of the Securities up to the respective Maturity Date,
in accordance with the following formula:


 ,


Where:


J =              unit value of the
remuneration interest, calculated to 6 (six) decimal places, without rounding,
payable at the end of the Capitalization Period.


VNe =        the Nominal Value of the
issue, published/calculated to 6 (six) decimal places, without rounding.


InterestFactor  =     product of the DI Rates, summed exponentially with
a percentage factor, from the start date of the Capitalization Period,
inclusive, up to the date of termination of Capitalization Period exclusive,
calculated to 8 (eight) decimal places, without rounding, as found by the
following formula:





Where:


n =             the
total number of days of the DI Rate used in the updating of the asset, where
“n” is a whole number.


P =             101.6%
(percentage applied to the DI Rate).


TDIk =      the DI Rate, expressed by
day, calculated to 8 (eight) decimal places, with rounding, as follows:














Where:


DIk =         The DI Rate published by
CETIP, valid for 1 (one) business day (“overnight”), used to 2 (two) decimal
places.


“Capitalization Period”:         This is the time interval
starting on the Issue Date, inclusive, and ending on the date of payment of the
Nominal Unit Value of the Security, exclusive, plus the Remuneration.


If at any time during the
period of validity of the Securities the DI Rate is not published, the last
previous available DI Rate shall be applied, and in this event no offsetting
between the Issuer and the holders of the Securities shall be payable when the
DI Rate that would be applicable is subsequently published. 


If the DI Rate ceases to
be published for a period of more than 10 (ten) days, or if it is abolished or
if there is a legal  impossibility of
application of the DI Rate to the Securities, the legal parameter which is
established, if any, shall be used in substitution of it. If there is not a
substitute legal parameter for the DI Rate, then the weighted average rate of
remuneration of Brazilian short-term federal public securities with maturity of
180 (one hundred and eighty) days traded in the prior 30 (thirty) days, at the
time of the occurrence, shall be used.


For the purposes of the
Issue, the expression “Business Day” means any day, with the exception of
Saturdays, Sundays, and national holidays.


2.6. Date of
Issue and form of paying-up


For all intents and
purposes, the Date of Issue of the securities shall be the date of their actual
subscription and paying-up (“the Issue Date”). The securities shall be
subscribed for Nominal Unit Value, in Brazilian currency, at sight, on the date
of subscription


2.7.
Subscription Price


The securities shall be
subscribed for their Nominal Unit Value (“the Subscription Price”).


2.8. Period of
subscription and paying-up


The Securities must be
subscribed and paid-up within 10 (ten) business days from the date of
publication of this Announcement of Commencement of Distribution of Commercial
Paper Securities (“the Commencement Announcement”), subject to the provisions
of item 4.2 below. 


2.9. Form


The Security shall be
nominal, and issued in physical form, and shall be held on deposit with an
institution qualified to provide the services of custody. The Securities shall
be nominal and shall be transferred by nominal endorsement, resulting in simple
transfer of ownership.


2.10.
Guarantee


The Securities are
guaranteed by a guarantee given by Companhia Energética de Minas Gerais – Cemig
(“Cemig”, or “the Guarantor”).


The Lead Manager warrants
that the guarantee by CEMIG was duly constituted by signature of its legal
representatives on the reverse side of the physical issued form of each of the
Securities, guaranteeing the totality of the debt represented by them, and the
guarantee in question was duly approved by a meeting of the Board of Directors
of CEMIG and is, thus, fully enforceable against CEMIG.











2.11. Use of
proceeds


The proceeds from the
public distribution of the Securities shall be used to strengthen the Company’s
cash position used in payments of principal of the debt occurring from January
2007 up to the release of the funds and also 
payment of debts becoming due to up to the end of the year.


2.12. Early
redemption  


The Company may effect
early redemption of the Securities, at its exclusive option, provided that the
holders thereof are in agreement, in accordance with the applicable
legislation. In the event of partial early redemption, this shall take place by
lottery, in accordance with Paragraph one of Article 55 of Law 6404 of December
17, 1976. 


2.13. Period
of Maturity


The maturity period of
the Promissory Notes shall be 180 (one hundred and eighty) calendar days from
the date of subscription (“the Maturity Date”).


2.14. Early
maturity events  


The holders of the
Securities may declare automatic early maturity of all the obligations arising
from the Securities that they hold and demand immediate payment by the issuer
of the Nominal Unit Value of the Securities plus the Remuneration and charges
calculated pro rata tempore, from the Issue Date, by letter formally delivered
or with advice of receipt addressed to the head office of the Issuer, in any of
the following events:   


i)                                         decree
of bankruptcy of the Issuer and/or the Guarantor; or dissolution and/or
liquidation of the Issuer and/or Guarantor; or application for judicial or
out-of-Court recovery or bankruptcy formulated by the Issuer and/or Guarantor;
or further, any analogous event which may characterize a state of insolvency,
including agreement with creditors, in accordance with the applicable
legislation;


ii)                                      legitimate
and reiterated protest of securities against the Issuer with individual or
aggregate value unpaid exceeding R$ 50,000,000.00 (fifty million Reais), unless
the protest shall have been filed in error of due to bad faith of third
parties, and provided this is validly proven by the Issuer, or if it is
canceled or, further, validly contested in the Courts, in any event, within a
maximum period of 30 (thirty days) calendar days from the date of maturity of
the obligations; 


iii)                                  early
maturity of any pecuniary obligation of the Issuer and/or the Guarantor,
arising from default on an obligation to pay any individual or aggregate amount
in excess of R$ 50,000,000.00 (fifty million Reais);


iv)                                  change,
transfer or direct or indirect assignment of the stockholding control of the
Issuer and/or Guarantor, other than by legal order, without the prior consent
of the holders; 


v)                                     absorption
of the Issuer by another company, split or merger of the Issuer and/or of the
Guarantor, unless by legal orders; 


vi)                                  privatization
of the Issuer and/or Guarantor; 


vii)                               termination,
for any reason whatsoever, of any of the concession contracts held by the
Issuer and/ or Guarantor that represent an adverse material impact on the
payment capacity of the Issuer or Guarantor; or


viii)                            unjustified
default by the Issuer and/ or Guarantor, or absence of legal and/or Court
measures required for the non-payment of any debt or any obligation to pay,
under any agreement in which either or both are lender or guarantor, with
individual or aggregate amount exceeding R$ 50,000,000.00 (fifty million
Reais).


2.15.  Placement regime


The Lead Manager shall
carry out the distribution of the Securities on the Firm Guarantee of
Subscription basis.











2.16 Trading


The Securities shall be
traded in the over-the-counter market, through the NOTA system administered by
“Andima” (the National Association of Financial Market Institutions) and
operated by  


2.17. Place of
payment 


The payments relating to
the Securities shall be carried out in accordance with the procedures of CETIP,
for the Securities registered on the NOTA, or, for the holders of the
Securities who are not linked to the third system, at the head office of the
Issuer.


2.18. Charges
for arrears


If there is a failure of
punctuality in the payment of any amount payable to the holders of the
Securities, the overdue units shall be subject to: (a) arrears interest
calculated from the day of default to the date of actual payment, at the rate
of 1% (one per cent) per month, on the amount owed, independently of the price,
or notification or action in or outside the Courts; and (b) a conventional
arrears penalty payment, irreducible and of a compensatory nature, of 2% (two
per cent) on the amount due and unpaid.











2.19. Target
public


The Offering shall be
destined solely and exclusively to qualified investors, as defined by Article
109, sub-item (i) of CVM Instruction 409 of 18 August 18, 2004 (“Qualified
Investors”). 


Any other investors who
are not Qualified Investors should be fully aware that the present offering is
not appropriate, since it is destined exclusively for Qualified Investors who
have sufficient specialization and knowledge to take an independent investment
decision on the proper grounds.


3. Statement by the Company and the Lead Manager


3.1. Under the applicable
regulations, the Issuer is responsible for the veracity of the information
contained in the Commencement Announcement and also any information provided to
the market at the time of the registry and the public distribution, and
warrants that that information is true, correct, consistent and sufficient, in
accordance with a statement given by the Issuer pursuant to item 7 of the
Appendix to Instruction 155 of August 7, 1991, (“CVM Instruction 155”), and
Article 56 of CVM Instruction 400 of December 29, 2003, (“CVM Instruction 400”).


3.2. The Lead Manager
warrants that it has taken all the measures of care and acted with high
standards of diligence to ensure that all the information provided to the
market on the occasion of the registry and the public distribution is true,
consistent, correct and sufficient, in accordance with the statement given by
the Lead Manager pursuant to item 7 of the Appendix to Instruction 155 of the
CVM, and Article 56 of CVM Instruction 400, of December 29, 2003.


4. DISTRIBUTION PROCEDURE


4.1. The Securities shall
be the object of a public distribution, intermediated by financial institutions
that are part of the Securities Distribution System. The sharing criterion
shall be of proportionality to the volume of orders placed by investors. There
shall be no prior reserves nor setting of maximum or minimum lots. No contract
for stabilization of the price of the Securities shall be signed. No fund to
sustain liquidity for the Securities shall be constituted. No type of discount
shall be granted by the Lead Manager to investors interested in requiring the
Securities.  


4.2. The placement of
Securities shall begin, in accordance with Article 3 of CVM Instruction 429 of March
22, 2006 (“CVM Instruction 429”), only 5 (five) business days (“Automatic
Registry”) after: (i) filing of the application with the CVM; (ii)
publication of the Commencement Announcement of the Offering; and (iii)
availability of the Term Sheet, as described in Item 4.5. below. The placement
of the Security shall be carried out in accordance with the procedures of the
Promissory Note System (“NOTA”), administered by Andima and operated by CETIP.


4.3. If the CVM does not
grant Automatic Registry, the terms and conditions of this present Issue shall
remain in force, but the period of 5 (five) days referred to in item 4.2 shall
be replaced by the periods referred to by CVM Instruction 134 of February 1,
1990, and the term “Automatic Registry” shall be replaced by “Registry”, which
shall have the following meaning: “concession of registry of the issue by the
CVM”. 


4.4. Subject to
compliance with the applicable regulations, the Lead Manager shall carry out
the public distribution of the Promissory Notes, in such a way as to ensure:
(i) that the treatment given to investors is fair and equitable; and (ii) the
investment is adapted to the risk profile of its clients.


4.5 In accordance with
the option provided for in Article 1 of CVM Instruction 155 of August 7, 1991,
for the purposes of this Issue no prospectus nor any advertising material
intended for public disclosure shall be used, other than this Announcements of
Commencement and Closing of the Distribution and the Summary of Information on
the Issue as specified in Appendix I of CVM Instruction 155.


5.  LOCATIONS
FOR ACQUISITION OF THE SECURITIES


Those interested in
acquiring the Securities may contact the Lead Manager of the Offering at the
following address:


CAIXA ECONÔMICA FEDERAL


Av. Paulista 2300 – 12th Floor


01310-300 São Paulo, SP, Brazil 


Att.:        Alexandre
Parisi


Tel: (+55 11)        3555 6200











Fax: (+55 11)        3211 0130


E-mail:   gemef@caixa.gov.br


www.caixa.gov.br


6. ADDITIONAL INFORMATION


A full presentation of
the details of this Offering is available on the web pages of the Lead Manager
(http://www1.caixa.gov.br/download/index.asp), the Issuer (http://cemigd.infoinvest.com.br/),
the CVM (www.cvm.gov.br) and CETIP (www.cetip.com.br).


For more information in
relation to the Offering and the Securities interested parties should visit the
head office of the Lead Manager at the address indicated in item 5 above, or at
the CVM, at the CETIP or at the head office of the Issuer, at the addresses
indicated below:











CVM (Comissão de Valores Mobiliários – Brazilian
Securities Commission)


Rua Sete de Setembro 111, 5th Floor


Rio de Janeiro – RJ


Rua Cincinato Braga, 340 – 2nd, 3rd and 4th Floors 


São Paulo – SP


CETIP (Câmara de Custódia e Liquidação - Custody
and Settlement Chamber)


Rua Líbero Badaró, 425, 24th Floor


01009-000 – São Paulo - SP


www.cetip.com.br


Headquarters of the Issuer: 


Cemig Distribuição S.A. 


Av. Barbacena, 1200, 17th Floor, A1 Wing, Bairro Santo Agostinho


Belo Horizonte, Minas Gerais, Brazil 



Att: Cristiano Corrêa de Barros


Telephone: (31) 3299-4810


Fax: (31) 3299-3790


 Email: cbarros@cemig.com.br


http://cemigd.infoinvest.com.br/


Date of commencement of the
Offering: 5 (five) business days after the publication of this Commencement
Announcement, that is to say
June 25, 2007 as stated in item 4.2. 
The application for registry with the CVM was made on June 14, 2007, in accordance with CVM
Instruction 429.


The registration of this
distribution with the Securities Commission (CVM) aims only to guarantee access
to the information that will be given by the Issuer at the request of the
subscribers in the location mentioned in this Announcement of Commencement, and
does not constitute a guarantee by the CVM of the truthfulness of the
information, nor any judgment in relation to the quality of the Issuing Company
or in relation to the Securities to be distributed.


	
  

  	
  This public
  offering was prepared in accordance with the Self-Regulation Code of ANBID
  for Public Offerings for Distribution and Acquisition of Securities, which is
  an integral part of the Minutes registered with the Fourth Notary’s Office
  for Registry of Legal Entities of the City of São Paulo, São Paulo State, under
  number 4890254, and this present Public Offering thus meets the minimum
  standards of information contained in the code, and ANBID shall not have any
  responsibility for the said information, nor for the quality of the Issuer,
  the Offering Parties, the participation institutions or the Securities that
  are the subject of the Public Offering.