Section Seven
Secretary of Energy

RESOLUTION whereby the Long-Term Competitive Bidding Manual is issued

PEDRO JOAQUIN COLDWELL, the Secretary of Energy, pursuant to the Third Transitional Article of the Electricity Industry Law and Articles 33(XXVI) of the Organizational Law of the Federal Government and for the Internal Regulations of the Secretary of Energy

Whereas

In accordance with Article 25, paragraph four, of the Mexican Constitution, the public sector shall have exclusive jurisdiction over strategic areas stated in Article 28, paragraph four, of the Constitution;

Article 27, paragraph six, of the Mexican Constitution establishes that the Nation has exclusive jurisdiction to plan and oversee the National Electric System, as well as public services for transferring and distributing electricity, and that no concessions shall be provided for these activities, notwithstanding that the Government may execute contracts with private individuals in the terms established by law, which shall determine how private individuals may participate in activities related to the electricity industry;

The Third Transitional of the Electricity Industry Law establishes in its third paragraph that on one sole occasion the Secretary of Energy shall issue the first Rules for the Wholesale Electricity Market and that these Rules shall include the Electricity Market Terms and Market Operation Provisions determined by the Secretary;

On September 8, 2015 the Electricity Market Terms were published in the Federal Daily Gazette, which define the rules and procedures that must be carried out by the Market Participants and the authorities to maintain proper administration, operation, and planning of the Wholesale Electricity Market;

The Market Practices Manuals shall be included in the Market Operational Provisions and their aim is to develop detailed elements on the Electricity Market Terms and established procedures, rules, instructions, calculation principles, directives, and examples to follow for the administration, operation, and planning of the Wholesale Electricity Market, and

These Manuals are considered general administrative acts that must be published in the Federal Daily Gazette to become legally binding, so I hereby issue the following

Resolution

SOLE ARTICLE. - The Secretary of Energy issues the Long-Term Competitive Bidding Manual.

Transitional

SOLE. - This Resolution shall become effective on the day it is published in the Federal Daily Gazette.

Mexico, Federal District, on November 10, 2015.- The Secretary of Energy, Pedro Joaquin Coldwell. - Initialed.

Long-Term Competitive Bidding Manual
Table of Contents

1. Introduction
2. Characteristics of the Competitive Bids
3. Participation in Competitive Bidding
4. Contracts Awarded through Competitive Bidding
5. Procedure when Conducting the Competitive Bids