In 1937, Mexico’s population amounted to 18.3 million people. Three companies were in charge of providing electric power to seven million people, which accounted for 38% of the country’s population, and they faced severe difficulties. Supply did not fulfill demand, power outages were constant and rates were too high; these conditions hindered the country’s economic development.
Additionally, these companies served primarily the most profitable urban markets and did not consider rural areas in their expansion plans, where 67% of the population resided.
In response to this situation, in August 14, 1937, Mexico’s Government decided to create the Comisión Federal de Electricidad, which in its first stage, built generating plants to fulfill the existing demand.
Engineers Carlos Ramírez Ulloa, Luis F. de Anda, Héctor Martínez D´Meza and Eduardo Nieto Palacios, among other founders of CFE, began to switch the regional approach of electrification. In remote regions, power rapidly became a beneficial source for pumping irrigation water, dragging and milling, but mainly for public lighting.
CFE’s pioneer projects were performed at Teloloapan, Guerrero; Pátzcuaro, Michoacán; Suchiate and Xía in Oaxaca, and Ures and Altar in Sonora. In 1938, the company’s capacity was barely 64 kW; it increased during the following eight years, reaching 45,594 kW. Then, private companies discontinued their investment and CFE was required to generate power, which was then resold by private companies.
In 1960, the country’s rated capacity was 2,308 MW, 54% contributed by CFE, 25% by Mexican Light, 12% by American and Foreign and 9% by the remaining companies. However, in spite of these generation and electrification efforts, in the 60s, only 44% of the population had electricity. From CFE’s inception, the population has grown 91% (34.9 million inhabitants), along with a vigorous development of the industry, agriculture and other urban and rural activities.
The situation of the Mexican Power Sector encouraged the then President Adolfo López Mateos to nationalize the electric industry on September 27, 1960. For such purposes, he adhered to the sixth paragraph of article 27 of the Political Constitution of the United Mexican States, as follows: "It is the Nation’s exclusive role to generate, transfer, distribute and supply the electric power aimed at providing public service. Therefore, concessions will not be given to private individuals and the Mexican Nation shall utilize its natural resources and assets required for such purposes ".
The nationalization of the electric industry responded to the need to integrate the National Electric System, to extend supply coverage and to accelerate the country’s industrialization. For such purposes, the Mexican state acquired the assets and facilities of private companies that were operating with severe deficiencies due to lack of capital investment and due to the labor problems they were facing.
In 1961, the scenario was different. The total rated capacity in the country amounted to 3,250 MW; CFE was selling 25% of the power that it produced and its share in the ownership of generating plants went from 0% in 1940 to 54%. In a little more than 20 years, CFE had fulfilled one of it’s most important goals: to become the governing entity of electric power generation.
During the 60s, more than 50% of public investment was destined for infrastructure projects. Major generating plants were built from these proceeds, including Infiernillo and Temascal. In ten years, generating plants were installed equaling 1.4 times what had been done up to then, reaching a rated capacity of 7,874 MW by 1971.
By the end of the 70s the challenge to sustain the same growth rate was surpassed when 1.6 times the amount of generating plants ever built were built between 1970 and 1980, which resulted in a rated capacity of 17,360 MW. During the 80s, the growth was not as spectacular, mostly due to a reduction in budgetary assignments. In 1991, the rated capacity amounted to 26,797 MW.
At present, the country’s rated capacity amounts to 40,354.24 MW*, out of which 64.83% is produced by thermal power plants, 23.24% by hydro power plants, 6.44% by coal-fired power plants, 2.10% by geothermal power plants, 3.38% by nuclear power plants and 0.01% by wind-driven power plants.
At one point, the initial development of the electric industry brought about the construction and operation of several isolated systems with different characteristics. Due to the diversification of technical standards, nearly 30 distribution voltages, 7 high voltages for transmission lines and 2 electrical frequencies of 50 and 60 hertz coexisted together.
These conditions made power supply to the entire country more difficult; therefore, CFE set unified technical and economic criteria for the Domestic Power System. Firstly, it standardized operating voltages, with the purpose of standardizing the equipment and reducing costs and manufacturing, storage and inventory turnaround schedules.
Later, in 1962, CFE started the integration of transfer systems, starting with the Northwest Operating System and the Northeast Operating System. In 1967 it concluded the integration of the Northern, Eastern, Western and Central Operating Systems. During that same year, the first interconnection of the Eastern and Western systems was achieved into a single one called ORIOC.
During the 70s all the systems were interconnected, except the electric systems of the Baja California and Yucatan peninsulas. The latter was incorporated into the National Interconnected System in 1990, in such manner that today the power transportation system covers almost the entire territory of Mexico.
Parallel to voltage standardization and interconnection of the electric system, in 1976 the 60 hertz electrical frequency was unified throughout the country. This radically transcendental action was not easy due to technical, social and union obstacles to converting or changing the electrical equipment of power producers and consumers operating at 50 hertz.
Our system was subject to the largest standardization process in the world; therefore, an eight year period was scheduled to achieve unification of electric power throughout the country. However, thanks to its technical merits and goal organization, in only five years, in which 2,434,810 consumers were visited and their electric appliances set up to the new frequency, 32 generating plants with 87 units were converted, and 41 substations were adjusted.
Another item that showed remarkable achievement regards the electricity transfer line which is currently composed of 39,182 kilometers of 400,230 and 161 kV lines; 311 power substations with a capacity of 120,128 MVA and 42,950 kilometers of subtransmission lines of 138 kV and lower voltages.
The distribution system has developed from zero in 1937, until today when we have 1,449 substations with 36,519 MVA capacity; 41,511 kilometers of 138 kV and lower voltage subtransmission lines, 6,212 distribution circuits with a length of 343,603 kilometers; 859,049 distribution transformers with a capacity of 28,059 MVA; 223,102 kilometers of secondary low voltage lines and 515,567 kilometers of tapping.
Today, it is not only possible for 125,323 localities to have electricity, but their inhabitants will receive a faster and more comfortable service through 930 public service offices and 1,179 Cfemático ATM’s, where the electricity bill may be paid at any time 365 days a year.
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* Includes eight external power producer plants with a total capacity of 3,495.03 MW, which are included in the generating plant section.
Information as of march 31, 2004