The CFE presents, in the Board of Directors, the main achievements obtained in 2022

• CFEnergía and CFE Internacional have generated savings and benefits of 24 billion dollars; its profits are being invested in strengthening the company’s infrastructure.
• The CFE played a prominent role in the restoration of electrical service in Cuba after Hurricane Ian.
• It has a fundamental participation in strategic projects of the government of President Andrés Manuel López Obrador: the Mayan Train, the Interoceanic Corridor in the Isthmus of Tehuantepec and the Internet for All program.

During a session of its Board of Directors, chaired by the Secretary of Energy, Rocío Nahle, the Federal Electricity Commission reported on some of the notable results achieved during 2022.

The director of the Federal Electricity Commission, Manuel Bartlett, highlighted that the rescue of the company is underway: it is investing in new generation capacity and the reinforcement of the transmission and distribution networks, strategic alliances have been signed to turn it into a powerful energy company, it participates with a role of prime importance in projects of President Andrés Manuel López Obrador and the construction of the Puerto Peñasco Photovoltaic Plant, in Sonora.

Bartlett celebrated that the danger of the CFE’s scheduled disappearance has been averted, since its undoubted strengthening is now underway.

CFEnergía strengthens as a profitable company and support of energy security in Mexico

The director of CFEnergía, Miguel Reyes Hernández, presented the results achieved by the subsidiaries CFEnergía and CFE International, which have focused their efforts on achieving energy security and sovereignty in Mexico, as well as on generating profitability to finance new productive projects in the CFE.

Thanks to the actions implemented in this administration, the CFE has obtained, through its subsidiaries CFEnergía and CFE International, savings and benefits of more than 24,047 million dollars: 5,470 by renegotiating gas pipelines, 3,227 by replacing expensive fuels with natural gas, 2,264 by marketing the molecule with third parties, 4,672 by recovering its reserve capacity and 8,414 by signing strategic alliances.

At the end of the past six-year term, in 2018, CFEnergía had profits of 1,336 million pesos. At the end of 2022 they have increased to 10,651; the subsidiary increased its profitability from 0.75% to 6.22%. In addition, while before they were allocated to current spending, now they are allocated to investment in generation plants through the CFE Master Investment Trust.

Thanks to the efforts of the current administration, CFEnergía has positioned itself as the largest natural gas marketer in Mexico: it has formalized 26 contracts with nine different clients during 2022, representing close to 2,264 million dollars.

Miguel Reyes recalled that, since December 2018, they have focused their efforts on renegotiating disadvantageous natural gas transportation contracts, bequeathed by the previous administration, which has generated budget certainty, financial stability, and savings. The result was balanced clauses, level and competitive rates whose savings amount to 4.376 million dollars in nominal value.

Thanks to these successful renegotiations, today the CFE has achieved:

• The unification of the Mayakan system and the construction of the Cuxtal gas pipeline, to guarantee the supply of natural gas at low cost to the Yucatan Peninsula.
• Agreements with the Altamira LNG Terminal, which will be able to store 300,000 cubic meters of Liquefied Natural Gas, which is equivalent to guaranteeing fuel for four 1,000 MW plants for 10 days and therefore strengthens Mexico’s energy security against unforeseen events .
• The entry into operation of the “Wahalajara” system; This ensured the supply of natural gas to the West and Central Mexico, as well as savings in the generation of the Manzanillo, Salamanca, Salamanca Cogeneración and Valle de México plants.
• The introduction of natural gas to Baja California Sur for the first time, to reduce the cost of generation in the region, reduce polluting emissions, and increase the reliability and stability of its electrical system.

CFEnergía was a central part of the plan to solve the historical lag of isolated electrical systems in the Baja California Peninsula: in Baja California Sur it called for a tender to acquire and put into operation four aeroderivative turbogas units; in Baja California, it strengthened the generation park with six mobile aeroderivative units.

To meet the growing demand for electricity in the country, CFEnergía, through the Master Investment Trust, contracted the development of five new Combined Cycle plants in strategic regions of the country, which will guarantee the supply of at least 2,939 MW to the National Electric System – the CCC González Ortega, San Luis Río Colorado, Riviera Maya (Valladolid), Mérida and Tuxpan Phase I.

Lastly, Miguel Reyes highlighted the recently signed alliances with TC Energía and Sempra, which will make the CFE a relevant player in the domestic and international natural gas market – by giving it ownership of its transportation and liquefaction infrastructure for the first time.

Humanitarian aid from the Government of Mexico to the Republic of Cuba

The corporate director of Administration, Rubén Cuevas Plancarte, gave a report on the support that the CFE provided to Cuba after the passage of Hurricane Ian, on September 27, 2020:

• Dispatch of 16 specialists.
• Support for the entry into operation of the Antonio Guiteras Thermoelectric Power Plant, with an installed capacity of 330 MW.
• Technical assistance to restore substations and subtransmission lines, as well as to restore 80% of affected users.
• Donation of 112 tons and 5,500 pieces of materials, with an estimated value of 7.6 million pesos.

Collaboration of the CFE in relevant projects for the federal government

The director of the Corporate Directorate of Engineering and Infrastructure Projects, César Fuentes Estrada, reported on progress in six strategic projects:

• For the rescue of 63 miners in Pasta de Conchos, the CFE has already completed the studies, engineering and rescue project. The excavation of two luminaries, two access ramps and tunnels are in progress; the search and rescue are scheduled to begin at the end of 2023. To date, due to the accumulation of breaches and delays in the contractor’s obligations, the CFE began the process to terminate the contractual relationship and continue with another company.
• For the rescue of 10 miners in El Pinabete, the CFE continues in the study and project stage. The next steps will be excavation, entering the mine galleries, search and rescue, as well as closing the pit.
• The CFE has already concluded the studies, indigenous consultations, engineering and real estate management for 666 works that will allow the electrification of the Mayan Train.
• The attention of 15 indigenous consultations and consultative assemblies has also begun, with 211 derived petitions, to undertake 450 works in the Interoceanic Corridor of the Isthmus of Tehuantepec – electrification in indigenous communities, crossings of train tracks with transmission lines and
• power supply to 10 development poles.
• The Framework Contract continues to be implemented to install 1,600 telecommunication towers that will communicate the country through the Internet for All program.
• Progress is being made on the Photovoltaic Project at the Central de Abasto in Mexico City, which will be owned by the government of the capital and operated by the CFE.

The corporate director of Distribution, Guillermo Nevárez Elizondo, reported on the strategic projects under his charge:

• To date, the CFE has connected 1,774 Banco del Bienestar branches to telecommunications networks, which provide services in areas where commercial services do not arrive. 86 more will connect once they are finished. The connectivity and internal equipment of 102 branches will be completed in 2022; The remaining 898 will be executed in 2023.
• It played a fundamental role in restoring electricity to the Mexico City Metro Collective Transportation System, after a fire in January 2021. A permanent power substation has already been built; now they are working on medium voltage works for line 1 and its rectifying substations.

Rocío Nahle, Secretary of Energy and President of the Board of Directors of the CFE, congratulated the CFE, its director and its staff for the outstanding work they carry out in favor of the company and of Mexico. The general director, Manuel Bartlett Díaz, emphasized that “despite the great short-term and long-term challenges it faces, the CFE’s strength will continue and grow.”