Mexico's CRE Issues Modifying Agreement for Load Center Exclusion
Mexico's Federal Official Gazette (Diario Oficial de la Federación or DOF), on April 23, 2024, published the "Agreement Num. A/023/2024 issued by the energy regulatory commission by means of which agreement a/064/2017 is modified pursuant to which the members of a self-supply company or of an electric energy cogeneration permit are recognized, the right to directly request the exclusion of their load centers from the permit and the respective legacy interconnection contract."
Regulatory Considerations
The main modifications established by this agreement are outlined below.
Objective
The agreement allows the members of companies that hold legacy interconnection contracts (contratos de interconexión legados or CIL), whose load centers are part of a self-supply or electric energy cogeneration permit granted under the Public Electricity Service Law (Ley del Servicio Público de Energía Eléctrica or LSPEE), to directly request to the Energy Regulatory Commission (Comisión Reguladora de Energía or CRE) a modification to the permit for the exclusion of the load centers and CIL.
Request/Filing
The agreement distinguishes three possible filings and their characteristics, when they are filed by:
- the beneficiary partner of the energy or the establishment associated to the cogeneration beneficiary of the energy
- a qualified service supplier on behalf of the energy beneficiary partner and/or establishment associated to the cogeneration energy beneficiary
- a legal entity belonging to the same economic interest group of the energy beneficiary partner or establishment associated to the cogeneration energy beneficiary
Procedure
The procedure is comprised of the following two stages:
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Stage One |
Stage Two |
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Attention on the request submitted to the CRE for the exclusion of the load centers from the permit |
Activities by the intermediary generator, the permit holder and the National Energy Control Center (Centro Nacional de Control de Energía or CENACE) to carry out the modification of the CIL |
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Maximum response time: 60 business days Prevention: The CRE may deny the applicant during the first half of the referred term (30 business days), and the applicant will have 10 business days to correct the omissions or inconsistencies that have been requested. |
Maximum response time: 65 business days |
CRE Resolution
In the resolution issued by CRE with respect to the request, it shall instruct the permit holder, the intermediary generator and CENACE to carry out and observe within the scope of its competence the considerations outlined below:
- The intermediary generator shall request CENACE a new analysis of the transmission line cost (estudio de porteo), in accordance with the current load scenario of the applicable transmission agreement, in which it shall determine the new transmission charges as a result of the exclusion of load centers.
- The intermediary generator shall notify the permission holder of the analysis of the transmission line cost (estudio de porteo) and the proposed transmission agreement to be subscribed.
- The intermediary generator shall suspend the transmission service to the corresponding load centers.
- The removal of the assets in the Wholesale Electricity Market (Mercado Eléctrico Mayorista) will be carried out regardless of whether the permisionaire has failed to comply with the term for the subscription of the transmission agreement.
Procedure After the Exclusion of Load Centers
After the exclusion of load centers, the procedure established in the Interconnection Manual of Power Plants and Load Centers (Manual para la Interconexión de Centrales Eléctricas y Conexión de Centros de Carga) for the change of regime for power plants or load centers in operation shall be observed.
Likewise, the procedure indicated in the Manual for Registration and Accreditation of Market Participants (Manual de Registro y Acreditación de Participantes del Mercado) and the General Administrative Provisions (Disposiciones Administrativas de Carácter General) regarding open access and rendering of services in the National Transmission Grid (Red Nacional de Transmisión or RNT) and the General Distribution Networks (Redes Generales de Distribución or RGD) of electric energy shall be observed.
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