MEXICO Law and Practice Contributed by: Bernardo Cortés and Fernando Quesada, Cortés Quesada Abogados, S.C.
4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities As the exclusive provider of transmission ser- vices, CFE is not required to obtain a specific permit for such purposes. However, transmis- sion must comply with the General Administra- tive Provisions on open access and for the provi- sion of such services issued by the CNE. Notwithstanding the exemption from sector- specific permitting, the construction and opera- tion of transmission lines requires environmental, social, local and municipal authorisations (simi- lar to those applicable to generation facilities), as well as government approvals for crossroads, lands and water bodies within the jurisdiction of governmental agencies. These approvals are typically contingent on the acquisition of the cor- responding real estate rights. Note that environmental impact authorisations are not required for transmission infrastructure located in urban, rural, industrial or touristic areas. 4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a Transmission Line and Associated Facilities Environmental and social authorisations related to the construction and operation of transmis- sion infrastructure include provisions for reme- diation measures, ongoing monitoring protocols and obligations tied to eventual decommission- ing.
4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities Transmission services are deemed to be a pub- lic utility and are therefore subject to expropria- tion under that designation. The LESE expressly grants eminent domain rights for the construc- tion and operation of transmission works. CFE must follow the land use and occupation procedures outlined by the LESE in order to obtain the necessary real estate rights for the development, construction and operation of transmission infrastructure. These procedures consider the execution and ratification of real estate agreements before civil or agrarian courts, as well as specific compensation concepts. 4.5 Monopoly Rights to Provide Transmission Services CFE is the only entity allowed to provide pub- lic utility transmission services. The terms and conditions governing these services (including rates) are approved by the CNE (whose rules were grandfathered from the former regulator). While CFE holds exclusive rights to operate transmission services, the participation of pri- vate investment in transmission infrastructure is expected, either under contractor modality or through partnerships. In support of this, the Mexican government recently announced invest- ments of up to USD6.5 billion for the 2025–2030 period, aimed at 158 transmission projects that would reinforce the NTG with 15,729 MVA of capacity. 4.6 Transmission Charges and Terms of Service Transmission rates are issued and approved annually by the CNE. These rates are calculated
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