**Exhibit 4.20**

**Announcement of Commencement ofPublic Distribution of the Third Issue of**

**CommercialPaper Securities by**

**CEMIG DISTRIBUIÇÃO S.A.**

LISTED COMPANY

CNPJ n.o06.981.180/0001-16

Av. Barbacena, 1200, 17thFloor, A1 Wing, Bairro Santo Agostinho

Belo Horizonte,Minas Gerais, Brazil

ISIN: BRCMGDNPM027

***LeadManager:***

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*The LeadManager of this Offering is  CaixaEconômica Federal*

In the amount of

**R$ 400,000,000.00**

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# 1. CORPORATE DECISIONS

The Second Issue ofCommercial 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 byCompanhia Energética de Minas Gerais – Cemig (“Cemig” or “theGuarantor”) was approved by the meeting of the Board of Directors of Cemig heldon May 24, 2007.

# 2. INFORMATION ABOUT THE ISSUE

## 2.1. Totalamount of the Issue

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

## 2.2. Quantityof Securities 

The issue is made up of40 (forty) Commercial Paper Securities (Promissory Notes).

## 2.3. Nominalunit value

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

## 2.4. Series

The Securities will beissued in a single series.

## 2.5.Remuneration

Remuneration interestshall 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 overextra-grupo Rate”, expressed in the form of an annual rate in per cent, on the252 (two-hundred-and-fifty-two)-business-day, calculated and published daily bythe CETIP (Custody and Settlement Chamber) in its daily bulletin available onits Internet page (http://www.cetip.com.br) (“The DI Rate” and “theRemuneration”). The Remuneration shall be calculated exponentially andcumulatively pro rata tempore per business day, applicable to the Nominal UnitValue of each Promissory Note from the date of the actual subscription andpaying-up (“Issue Date”) of the Securities up to the respective Maturity Date,in accordance with the following formula:

 ,

Where:

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

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

InterestFactor  =     product of the DI Rates, summed exponentially witha 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 thefollowing formula:

Where:

n =             thetotal 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 byday, calculated to 8 (eight) decimal places, with rounding, as follows:

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Where:

DIk =         The DI Rate published byCETIP, valid for 1 (one) business day (“overnight”), used to 2 (two) decimalplaces.

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

If at any time during theperiod of validity of the Securities the DI Rate is not published, the lastprevious available DI Rate shall be applied, and in this event no offsettingbetween the Issuer and the holders of the Securities shall be payable when theDI Rate that would be applicable is subsequently published. 

If the DI Rate ceases tobe published for a period of more than 10 (ten) days, or if it is abolished orif there is a legal  impossibility ofapplication of the DI Rate to the Securities, the legal parameter which isestablished, if any, shall be used in substitution of it. If there is not asubstitute legal parameter for the DI Rate, then the weighted average rate ofremuneration of Brazilian short-term federal public securities with maturity of180 (one hundred and eighty) days traded in the prior 30 (thirty) days, at thetime of the occurrence, shall be used.

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

## 2.6. Date ofIssue and form of paying-up

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

## 2.7.Subscription Price

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

## 2.8. Period ofsubscription and paying-up

The Securities must besubscribed and paid-up within 10 (ten) business days from the date ofpublication of this Announcement of Commencement of Distribution of CommercialPaper Securities (“the Commencement Announcement”), subject to the provisionsof item 4.2 below. 

## 2.9. Form

The Security shall benominal, and issued in physical form, and shall be held on deposit with aninstitution qualified to provide the services of custody. The Securities shallbe nominal and shall be transferred by nominal endorsement, resulting in simpletransfer of ownership.

## 2.10.Guarantee

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

The Lead Manager warrantsthat the guarantee by CEMIG was duly constituted by signature of its legalrepresentatives on the reverse side of the physical issued form of each of theSecurities, guaranteeing the totality of the debt represented by them, and theguarantee in question was duly approved by a meeting of the Board of Directorsof CEMIG and is, thus, fully enforceable against CEMIG.

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## 2.11. Use ofproceeds

The proceeds from thepublic distribution of the Securities shall be used to strengthen the Company’scash position used in payments of principal of the debt occurring from January2007 up to the release of the funds and also payment of debts becoming due to up to the end of the year.

## 2.12. Earlyredemption  

The Company may effectearly redemption of the Securities, at its exclusive option, provided that theholders thereof are in agreement, in accordance with the applicablelegislation. In the event of partial early redemption, this shall take place bylottery, in accordance with Paragraph one of Article 55 of Law 6404 of December17, 1976. 

## 2.13. Periodof Maturity

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

## 2.14. Earlymaturity events  

The holders of theSecurities may declare automatic early maturity of all the obligations arisingfrom the Securities that they hold and demand immediate payment by the issuerof the Nominal Unit Value of the Securities plus the Remuneration and chargescalculated pro rata tempore, from the Issue Date, by letter formally deliveredor with advice of receipt addressed to the head office of the Issuer, in any ofthe following events:   

i)                                         decreeof bankruptcy of the Issuer and/or the Guarantor; or dissolution and/orliquidation of the Issuer and/or Guarantor; or application for judicial orout-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 applicablelegislation;

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

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

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

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

vi)                                  privatizationof the Issuer and/or Guarantor; 

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

viii)                            unjustifieddefault by the Issuer and/ or Guarantor, or absence of legal and/or Courtmeasures 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, withindividual or aggregate amount exceeding R$ 50,000,000.00 (fifty millionReais).

## 2.15.  Placement regime

The Lead Manager shallcarry out the distribution of the Securities on the Firm Guarantee ofSubscription basis.

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## 2.16 Trading

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

## 2.17. Place ofpayment 

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

## 2.18. Chargesfor arrears

If there is a failure ofpunctuality in the payment of any amount payable to the holders of theSecurities, the overdue units shall be subject to: (a) arrears interestcalculated from the day of default to the date of actual payment, at the rateof 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 conventionalarrears penalty payment, irreducible and of a compensatory nature, of 2% (twoper cent) on the amount due and unpaid.

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## 2.19. Targetpublic

The Offering shall bedestined solely and exclusively to qualified investors, as defined by Article109, sub-item (i) of CVM Instruction 409 of 18 August 18, 2004 (“QualifiedInvestors”). 

Any other investors whoare not Qualified Investors should be fully aware that the present offering isnot appropriate, since it is destined exclusively for Qualified Investors whohave sufficient specialization and knowledge to take an independent investmentdecision on the proper grounds.

# 3. Statement by the Company and the Lead Manager

3.1. Under the applicableregulations, the Issuer is responsible for the veracity of the informationcontained in the Commencement Announcement and also any information provided tothe market at the time of the registry and the public distribution, andwarrants that that information is true, correct, consistent and sufficient, inaccordance with a statement given by the Issuer pursuant to item 7 of theAppendix to Instruction 155 of August 7, 1991, (“CVM Instruction 155”), andArticle 56 of CVM Instruction 400 of December 29, 2003, (“CVM Instruction 400”).

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

# 4. DISTRIBUTION PROCEDURE

4.1. The Securities shallbe the object of a public distribution, intermediated by financial institutionsthat are part of the Securities Distribution System. The sharing criterionshall be of proportionality to the volume of orders placed by investors. Thereshall be no prior reserves nor setting of maximum or minimum lots. No contractfor stabilization of the price of the Securities shall be signed. No fund tosustain liquidity for the Securities shall be constituted. No type of discountshall be granted by the Lead Manager to investors interested in requiring theSecurities.  

4.2. The placement ofSecurities shall begin, in accordance with Article 3 of CVM Instruction 429 of March22, 2006 (“CVM Instruction 429”), only 5 (five) business days (“AutomaticRegistry”) 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 placementof the Security shall be carried out in accordance with the procedures of thePromissory Note System (“NOTA”), administered by Andima and operated by CETIP.

4.3. If the CVM does notgrant Automatic Registry, the terms and conditions of this present Issue shallremain in force, but the period of 5 (five) days referred to in item 4.2 shallbe replaced by the periods referred to by CVM Instruction 134 of February 1,1990, and the term “Automatic Registry” shall be replaced by “Registry”, whichshall have the following meaning: “concession of registry of the issue by theCVM”. 

4.4. Subject tocompliance with the applicable regulations, the Lead Manager shall carry outthe 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) theinvestment is adapted to the risk profile of its clients.

4.5 In accordance withthe 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 materialintended for public disclosure shall be used, other than this Announcements ofCommencement and Closing of the Distribution and the Summary of Information onthe Issue as specified in Appendix I of CVM Instruction 155.

# 5.  LOCATIONSFOR ACQUISITION OF THE SECURITIES

Those interested inacquiring the Securities may contact the Lead Manager of the Offering at thefollowing address:

**CAIXA ECONÔMICA FEDERAL**

**Av. Paulista 2300 – 12th Floor**

**01310-300 São Paulo, SP, Brazil**

**Att.:****      ****AlexandreParisi**

**Tel: (+55 11)****      ****3555 6200**

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**Fax: (+55 11)****      ****3211 0130**

**E-mail:**** ****gemef@caixa.gov.br**

www.caixa.gov.br

# 6. ADDITIONAL INFORMATION

A full presentation ofthe 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 inrelation to the Offering and the Securities interested parties should visit thehead office of the Lead Manager at the address indicated in item 5 above, or atthe CVM, at the CETIP or at the head office of the Issuer, at the addressesindicated below:

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**CVM (Comissão de Valores Mobiliários – BrazilianSecurities 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 - Custodyand 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 theOffering: 5 (five) business days after the publication of this CommencementAnnouncement, that is to sayJune 25, 2007 as stated in item 4.2. The application for registry with the CVM was made on June 14, 2007, in accordance with CVMInstruction 429.**

The registration of thisdistribution with the Securities Commission (CVM) aims only to guarantee accessto the information that will be given by the Issuer at the request of thesubscribers in the location mentioned in this Announcement of Commencement, anddoes not constitute a guarantee by the CVM of the truthfulness of theinformation, nor any judgment in relation to the quality of the Issuing Companyor 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. |
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