MEXICO Law and Practice Contributed by: Bernardo Cortés and Fernando Quesada, Cortés Quesada Abogados, S.C.
4. Transmission Lines and Associated Facilities 4.1 Constructing and Operating Transmission Lines and Associated Facilities The construction and operation of transmission lines is governed by the LESE, the LPTE and the LGEEPA. These statutes also regulate asso- ciated facilities, such as energy storage equip- ment associated with the transmission activities. Transmission services are exclusively reserved to the Mexican State, through CFE. CFE must comply with the General Administrative Provi- sions on open access and terms of service for transmission and distribution services, as approved by the CNE. Nevertheless, the LESE and LCFE allow private sector involvement in the construction, installa- tion, financing and improvement of the National Transmission Grid (NTG). In particular, the LCFE provides that CFE may create joint ventures with private entities for the development of the NTG. Private market participants, including genera- tors, exporters, importers and consumers, are allowed to construct and operate private lines for specific uses, such as onsite delivery, inter- connection and connection to the grid. These private lines are not considered part of the NTG and are therefore not subject to open access rules. However, the provision of transmission services to third parties via such lines is express- ly prohibited. The PLADESE sets forth the government’s policy for the expansion and improvement of the NTR, which includes references to anchor projects and general specifications for their development.
ing private ownership, lease, easements and usufruct rights. 3.5 Decommissioning a Generation Facility The PLADESE includes a dedicated section on the decommissioning of generation facili- ties. Given the binding nature of the PLADESE, decommissioning is expected to proceed in accordance with the requirements provided thereunder. Generators are also required to notify CENACE of the decommissioning of the generation assets within one year prior to the effective decommis- sioning date. Importantly, decommissioning is not permitted for power stations still participat- ing in capacity transactions with binding obliga- tions. CENACE will assess whether the facility plays a role in system reliability. If it does, CENACE notifies the CNE to obtain approval to perform a capacity auction, in which the generator is obliged to participate. Environmental authorities may also impose requirements for insurance or financial guar- antees to ensure that decommissioning activi- ties comply with the conditions imposed on site remediation, including waste management. SENER may also determine specific social com- mitments upon decommissioning, if applicable.
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