1E9Ct5D

Regarding permits under the authority of the CRE, if the petition does not comply withthe requirements established by the RGLP, the CRE must notify the interested party of theomissions in the petition within 15 days after the CRE receives the petition. The interestedparty will have one month to remedy the omissions in the petition. Once the omissionsare remedied, the CRE will have 140 days to issue a determination regarding thepermit. If after the 140 days the CRE has not issued a determination, it will be assumedthat the permit has been denied.Permits will be valid for 30 years and can be extended for additional periods of 15years with the permit holder’s valid petition. It should be mentioned that permits do notconfer any exclusivity rights to the permit holder.Currently, Mexico is the leading consumer of LP gas for residential purposes. In recentyears, the growth of the demand for this fuel has exceeded PEMEX’s expectations, whichhas made it necessary to import considerable quantities of this gas in order to satisfy thedemand. For this reason it is important to search for mechanisms that foment privateinvestment in this area so that Mexico no longer needs to import the gas and can ultimatelybecome an exporter of this fuel.3.3. ElectricityFor many decades, only the State was allowed to participate in the generation, distribution,transformation, and supply of electricity; however, due to the rapid growth ofdemand for electricity and the large amount of investment that the federal governmentmust make in this area, various legal reforms were passed in 1992 that allow for privateinvestment in the generation of electricity.Notwithstanding this opening to private investment, constitutional reforms thatwould allow a more active participation of private investment in the electricity sectorare necessary. Many reform proposals have been put forward, but none of them havebeen approved by the Mexican Congress due to the political interests of the oppositionparties.Currently, electricity is regulated by the Provision of Electricity to the Public Law (Leydel Servicio Público de Energía Eléctrica, LSPEE) and the Regulation of the Provision of Electricityto the Public Law (Reglamento de la Ley del Servicio Público de Energía Eléctrica,RLSPEE). Both the LSPEE and its regulation establish that only the nation may generate,conduct, transform, distribute, and supply electricity that is destined for public use.The LSPEE does not consider the following as providing electricity to the public:a) The generation of electricity for self-supply, the co-generation of electricity, orsmall-scale production;b) The generation of electricity by independent producers for the purpose of sellingthe energy to the Federal Electricity Commission;269Regulated Activities