Modification to the CFE Generación V Organic Statute

January 2023 | Download Document

Executive Summary

• CFE Generación V is the Subsidiary Productive Company of the CFE that performs the generation activities covered by the independent energy production contracts signed by the CFE, through the Legacy Power Plants, as well as representing such Legacy Power Plants in the Wholesale Electricity Market.
• On January 16, 2023, the Federal Electricity Commission (Comisión Federal de Electricidad) published the Agreement which modifies the Organic Statute of CFE Generación V.
• The Agreement grants new powers to the Deputy Manager of Services and Financial Analysis of CFE Generación V, regarding the procurement of goods and services.

CFE Generación V is the Subsidiary Productive Company of the CFE whose purpose is to carry out the generation activities covered by the independent energy production contracts signed by the CFE, through the Legacy Power Plants, as well as to represent such Legacy Power Plants in the Wholesale Electricity Market.

On January 16, 2023, the Federal Electricity Commission ("CFE") published, in the Official Gazette of the Federation ("DOF"), the Agreement amending the Organic Statute of CFE Generation V, published on June 12, 2020 ("Agreement").

This Agreement grants new powers to the Sub-Management of Services and Financial Analysis ("Sub-Management") of CFE Generación V, regarding the contracting of goods and services.

New Powers

CFE Generación V's Organic Bylaws¹ notes that the Sub-Management is composed of the Financial Analysis Department and the Administrative Services Department of said Subsidiary.

The original powers of this Sub-Manager are set forth in Article 14² of the Organic Statute of CFE Generación V and, through the Agreement, eleven new powers are granted to said Deputy Manager by means of the addition to Article 17 of the Organic Statute of CFE Generación V.

The new powers consist of the following:

1. Elaboration of needs studies related to the goods and services required by CFE Generación V in order to have a good planning towards the places where a project is intended to be carried out.
2. Elaboration of Market Conditions investigations of the goods and services required by CFE Generación V to review the importance of the market and to have a correct market planning. 
3. Review and validation of the information recorded by the areas of CFE Generación V for the integration of the Annual Contracting Program before it is sent to the CFE Market Intelligence and Analysis Management.
4. Report to the CFE's Market Intelligence and Analysis Management the information registered by the CFE Generación V requiring areas in the electronic system determined for the integration of the Annual Contracting Program.
5. Preparation of the updates of Market Conditions related to the procurement of goods and services to be carried out by CFE Generación V.
6. Design of the requirements related to the contracting procedures for goods and services that CFE Generación V will carry out.
7. Determine the appropriateness of modification of contracts developed by CFE Generación V, in the case of replacement of goods.
8. Dissemination of the rules applicable to market intelligence processes issued by the Board of Directors or the CFE's Corporate Administration Department.
9. Provide information to CFE Generación V and CFE's Market Intelligence and Analysis Management on the overall results of the Market Intelligence processes. These results support the creation of a global cost analysis of the operation as well as the planning of market strategies. 
10. Collaboration with the CFE's Market Intelligence and Analysis Management when verifying compliance with the rules applicable to market intelligence processes. 
11. Any other case that may be applicable according to the law. 

The powers previously granted to the Deputy Manager, set forth in sections I to XII of Article 17 of the Organic Statute of CFE Generación V, are not affected by this Agreement.

The Agreement entered into force on January 17, 2023. To consult the original publication, please visit: https://www.dof.gob.mx/nota_detalle.php?codigo=5677167&fecha=16/01/2023#gsc.tab=0

^1. The Organic Statute of CFE Generación V was published in the DOF on June 12, 2020 and is available for consultation at: https://www.dof.gob.mx/nota_detalle.php?codigo=5594923&fecha=12/06/2020#gsc.tab=0

^2. Article 14 of the Organic Statute of CFE Generación V establishes the general powers of all the Deputy Managers of CFE Generación V, including the Deputy Manager that is the subject of the present document.

Juan Carlos Machorro
Partner
+52 55 5279 5463
jmachorro@s-s.mx

Norma Álvarez
Associate
+52 55 5279 5415
norma.alvarez@s-s.mx

Pablo Ortiz Mena
Associate
+52 55 5279 5499
pablo.ortizmena@s-s.mx