Modification to the Organic Statute of CFE Generation V

January 2023 | printable version

Executive Summary

• CFE Generación V is the CFE's Subsidiary Productive Company that carries out the generation activities covered by the independent energy production contracts signed by CFE, through the Legacy External Power Plants, as well as representing said Legacy External Power Plants in the Wholesale Electricity Market.
• On January 16, 2023, the Federal Electricity Commission published the Agreement in which the Organic Statute of CFE Generación V is modified.
• The Agreement grants new powers to the Sub-Management of Services and Financial Analysis of CFE Generación V, in matters of contracting goods and services.

CFE Generación V is the CFE's Subsidiary Productive Company whose purpose is to carry out the generation activities covered by the independent energy production contracts signed by CFE, through the Legacy External Power Plants, as well as to represent said Legacy External 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 in which the modification is made to the Organic Statute of CFE Generación V, published on June 12, 2020 (“Agreement”).

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

New Powers

The Organic Statute of CFE Generation V¹ It indicates that the Sub-Management is made up of the Financial Analysis Department and the Administrative Services Department of said Subsidiary.

The original powers of said Sub-Management are provided for in Article 14.² of the Organic Statute of CFE Generación V and, through the Agreement, eleven new powers are granted to said Sub-Management through the addition to Article 17 of the Organic Statute of CFE Generación V.

The new powers consist of the following:

1. Preparation of needs studies related to the goods and services required by CFE Generación V to have good planning for the places where a project is intended to be located.
2. Preparation of market conditions research for the goods and services required by CFE Generación V to review the importance of the market and have proper planning for it. 
3. Review and validation of the information recorded by the CFE Generation V areas for the integration of the Annual Contracting Program before it is sent to the CFE Intelligence and Market Analysis Management.
4. Report to the CFE Intelligence and Market Analysis Management the information registered by the CFE Generation V requesting areas in the electronic system determined for the integration of the Annual Contracting Program.
5. Preparation of Market Conditions updates regarding the procurement of goods and services to be carried out by CFE Generación V.
6. Design of the requirements related to the procedures for contracting goods and services that CFE Generación V will carry out.
7. Determine the suitability of contract modifications developed by CFE Generación V, when it involves the replacement of goods.
8. Dissemination of the rules applicable to market intelligence processes issued by the Board of Directors or the Corporate Administration Directorate of the CFE.
9. Provide information to CFE Generación V and to the CFE Market Intelligence and Analysis Department on the general results of the Market Intelligence processes. These results support the creation of a global analysis of the operation's costs as well as the planning of market strategies. 
10. Collaboration with the CFE's Market Intelligence and Analysis Department when conducting verifications on compliance with the rules applicable to market intelligence processes. 
11. Any other assumption that is applicable according to the law. 

The powers previously granted to the Sub-Management, indicated 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 17 January 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 Generation 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 sets out the general powers of all the Sub-Managements of CFE Generación V, including the Sub-Management that is the subject of this document.