São Paulo Tramway, Light and Power Company

Canadian William Mackenzie and American Frederick Stark Pearson founded the São Paulo Tramway, Light and Power Company in 1899. In 1900 Light São Paulo began operating the first tram line in the city of São Paulo which ran to Barra Funda.

Work began in 1901 on the hydroelectric plant in Santana de Parnaíba. It opened in 1905. In 1905 the company installed the first electric street lights on Rua Barão de Itapetininga. In 1906 the company constructed a reservoir at Guarapiranga. In 1907 they installed 50 more lights on Direita Street, Rua 15 de Novembro, and Rua São Bento.

The company signed a contract with the state of São Paulo for the first time in 1911. By 1916 they had installed 8,605 gas lights and 864 electric street lamps in the city.

In 1927 the company won a government contract to transfer the surplus flow of the Tietê River to feed the Henry Borden hydroelectric power plant in Cubatão, requiring the inversion of the natural flow of Pinheiros River. As part of the concession contract, the company received the right to expropriate wetlands surrounding the river basin for both its own use and city infrastructure projects, with a clause giving previous owners priority in subsequent real estate auctions. In February 1929 the region was subjected to above-average precipitation which, due to company operations (the opening of the Guarapiranga and Billings Reservoir sluices while closing the Santana de Parnaíba dam, trapping the surplus water in the metropolitan region of São Paulo) resulted in the worst flooding in the city history, the water level rising 3.45 meters above the normal levels and resulting in 38 deaths. When the water level receded, the company identified the affected areas with bronze plaques which marked them for expropriation, totaling 20.779.443 square meters (about 1/3 of the total metropolitan area). To avoid the buy-back clause the company resorted to side agreements with expropriated proprietors, only 10% of the expropriated properties returning to their original owners. Despite ample press coverage at the time, the company was never formally indicted due to political pressure.