Electricity Reform Abroad and U.S. Investment

Energy Information Administration

Appendix C

Review of Argentine Electricity Privatization Investment

Table C1. Foreign Companies' Investments in Argentina's Electricity Industry, as of 1997

Company Country of Incorporation/ Headquarters Investment Amount of Investment (million)
AES Corporation United States Central San Nicolas (coal- and gas-fired generation)a 71%
Eden (distribution) 60%
Edes (distribution) 60%
Rio Juramento (hydroelectric generation) 98%
Cobra Corral (hydroelectric generation)
____ (hydroelectric generation)
Parana (combined-cycle generation) 		$8.1 (plus $45.4 debt)
$377 (for both Eden and Edes)
$41
N.A.
N.A.
$300 million (under construction)
Amoco Co. United States Comodoro Rivadavia (gas-fired generation) N.A.
British Gas United Kingdom Central Dock Sud (oil- and gas-fired generation) 45%c $24.5
Camuzzi Gazometri Italy Comodoro Rivadavia (gas-fired generation) >50%
Hidroelectrica Ameghina, S.A. (hydroelectric generation) 35%
Transpa (distribution) 50% 		N.A.
$1 (plus $7.6 debt)
N.A.
Chilectra Chile Central Costanera (oil- and gas-fired generation) 3%
Central Puerto (gas-fired generation) 9.8%
Edesur (distribution company) 10% 		$4.5
$15.1
$100
Cinergy United States Edesur (distribution company) 8% stake in Distrilec Invesora
SA, 		N.A.
Citicorp Capital
Investors 		United States Edelap (distribution) part of consortia holding 51% $139 (total for Edelap)
CMS Energy United States Hidroelectrica Arroyito (hydroelectric generation)
Central Termicas Mendoza (gas-fired generation) 41%
Central Termica de San Nicolas (coal- and gas-fired generation)b 0%
Central Hidroelectrica El Chocon, S.A., (hydroelectric generation) 18%
Edeersa (generation and distribution) 36%
La Plata (gas-fired generation under construction) 100% 		N.A.
$1.6 (plus $6.5 debt)
$66 (total for San Nicolas)
$0.3 (plus $41.1 debt)
N.A.
$75
Community Energy Alternatives United States Eden (distribution) 30%
Edes (distribution) 30% 		$188 (for both Eden and Edes)
Chilquinta
International Inc. 		Chile Central Puerto (gas-fired generation) 20.2% (later increased to 29.3%) $31.0 (later increased to $45.4)
Chilgener Chile Central Puerto (gas-fired generation) 30.7%
Edessa (distribution company) 34%
Piedra del Aguila (hydroelectric generation) 15.8% 		$47.6
$26.1
$89
Consumer's
Energy Co. 		United States Central Termica de San Nicolas (coal- and gas-fired generation) N.A.
Dominion Resources,
Inc., 		United States Central Alto Valle (gas-fired generation) 60%
Central Cerros Colorados (gas-fired generation)50.2% 		$13.3
$23 (plus $116.4 debt)
Duke Power United States Central Guemes (gas-fired generation) 15%
Hidroelectrica Piedra del Aguila, S.A. (hydroelectric generation) 19.7%
Transener (transmission) 9.8% 		$2.5 (plus $19.1 debt)
$33 (plus $57.4 debt)
$4.5 (plus $30.6 debt)
Electricite de France France Distro Cuyo, S.A., (transmission) 21%
Edenor, S.A. (distribution)
Hidroelectrica Diamante, S.A. (hydroelectric generation) 29.5% 		$8.3
$6 (plus $79.6 debt)
$2 (plus $14.4 debt)
El Paso Energy United States Agua del Cajon (gas-fired generation) 16% $157
Endesa de Chile Chile Buenos Aires S.A.(gas-fired generation)
Central Termoelectrica (__-fired generation)
Central Costanera (oil- and gas-fired generation) 30%
Central Dock Sud (oil- and gas-fired generation) 90%
Edesur (distribution) 5% 		N.A.
N.A.
$45
$350, including planned expansion through year 2000
$3 (plus $48.1 debt)
Endesa de Espana Spain Edenor, S.A. (distribution) 5.1%
Yacylec (transmission) 22.2% 		$3 (plus $39.8 debt)
N.A.
Enersis S.A. Chile Central Costanera (oil- and gas-fired generation) 30%
Edesur (distribution) 10%
Edesur (distribution) 64% (directly and through Chilectra)
Edenor, S.A. (distribution) 		$13.5
$100
$390
$200 (including new distribution lines)
Entergy Corp., United States Central Costanera (oil- and gas-fired generation) part of consortium holding 7.5%
Transener (transmission) 9.8%
Edesur (distribution) 5% 		$11.3 (by entire consortium)
$4.5 (plus $30.6 debt)
$50
Houston Industries United States Edelap (distribution) 25% $2.5 (plus $65.7 debt)
Hydroelectrica de
Ribagorzana, S.A. 		Spain Edenor, S.A., (distribution) 10.2% $6 (plus $79.6 of debt)
Iberdrola Spain Central Guemes (gas-fired generation) $2 (plus $15.3 debt)
Kansas City Power
and Light 		United States Central Costanera (oil- and gas-fired generation) 6% $23.4
LG and E Energy
Corp., 		United States San Miguel (gas-fired generation)
Tucuman (gas-fired generation) 		$18
$13.3
Louis Dreyfus
Argener, S.A. 		United States Hidroelectrica Cerros Colorados (hydroelectric generation) 9% $4 (plus $9.8 debt)
Merrill International United States Ave Fenex, S.A. (gas-fired generation) $100 (total for Ave Fenex)
National Electricity
Co. of Chile 		Chile Central Costanera (oil- and gas-fired generation) 24%
El Chocon (hydroelectric generation) 43% 		$600 ($120 for the plant and $480 for an expansion of capacity)
N.A.
New World Power United States Rio Negro (wind and diesel-fired generation) 15-year contract signed to finance, build, and own plants
Northeast Utilities United States Ave Fenex, S.A. (gas-fired generation)
San Miguel (gas-fired generation) 		$100 (total for Ave Fenex)
$18
PSI Energy United States Central Costanera (oil- and gas-fired generation) part of a consortium holding 60%
Edesur (distribution) 4% 		$ 91
$40
Repsol Spain Central Dock Sud (oil- and gas-fired generation) 3.7% N.A.
Sociedad Austral de
Electricidad 		Chile Energia de Rio Negro (distribution) part of consortium holding 90% $97.8 (total)
Societe D'Amenagment Urbain et Rural France Edenor, S.A., (distribution) 5.1% $3 (plus $39.8 debt)
Southern Company United States Central Hidroelectrica Alicura S.A. (hydroelectric generation) 47% $3.8 (plus $104 debt)d
Transalta Energy Canada Central Hidroelectrica Piedra del Aguila, S.A. (hydroelectric generation) 19.7% $33 (plus $57.4 debt)e
Western Resources United States Central Costanera (oil- and gas-fired generation) 6% $23.4
aAES converted San Nicolas to a gas-fired generator. See Friedland, Jonathan and Benjamin Holden, "Utility Deregulation in Argentina Presages Possible U.S. Upheaval," The Wall Street Journal Interactive Edition (June 19, 1996).
bCMS sold its share of San Nicolas to its partner AES. See Friedland, Jonathan and Benjamin Holden,"Utility Deregulation in Argentina Presages Possible U.S. Upheaval," The Wall Street Journal Interactive Edition (June 19, 1996).
cBritish Gas and its partners sold Central Dock Sud for a total of $1.3 million less than 4 years after purchasing it. See Friedland, Jonathan and Benjamin Holden, "Utility Deregulation in Argentina Presages Possible U.S. Upheaval," The Wall Street Journal Interactive Edition (June 19, 1996).
dSouthern has committed to spend $301.7 over the initial 9 years of its 30-year concession for Central Hidroelectrica Alicura.
eTransalta currently values its investment in Hidroelectrica Piedra del Aguila at $36.5 million, which was written down at year end 1996 from $39.4 million.
Sources: Annual reports to shareholders and various public news sources

Table C2. Organization of Argentina's Federal Electricity Industry, 1991 and 1997

1991 1997
Enterprise Description Enterprise Description
Servicios Electricos del Gran Buenos Aires (Segba) generation and distribution company serving the Buenos Aires/La Plata area, which includes more than one-third of the country's population. Agua del Cajon 382 megawatt gas-fired power generation facility near Neuquen
    Central Costanera 1,260 megawatt oil-and gas-fired power generation facility
    Central Dock Sud 211 megawatt oil and gas-fired power generation facility
    Central Pedro de Mendoza 58 megawatt oil- and gas-fired power generation facility
    Central Puerto S.A. 1,009 megawatt gas-fired power generation facility
    Central Termoelectrica Buenos Aires S.A. 220 megawatt gas-fired power generation facility
    Compana de Transporte de Energia en Alta Tension Red (Transenor) created by combining the transmission assets of Segba, Ayee, and Hidronor; owns and operates the high voltage (500 kilovolts) segment of the transmission system serving 14 (of 24) Argentine provinces; and owns and operates a regional 220 kilovolt trunk transmission system
    Empresa Distribudora Electrica Norte (Edenor) distribution company serving northern Buenos Aires
    Empresa Distribudora Electrica Sur (Edesur) distribution company serving southern Buenos Aires
    Empresa Distribudora Electrica de la Plata (Edelap) distribution company serving la Plata
Compania de Agua y Energia Electrica (Ayee) non-Buenos Aires/La Plata generation and national transmission company, also oversaw Argentina's interests in the Yacyreta hydroelectric plant joint-venture with Paraguay Agua del Toro 150 megawatt thermal generator
    Cabra Corral 102 megawatt hydroelectric generator
    Central Alto Valle 165 megawatt gas-fired generator in the province of Neuguen (700 miles southwest of Buenos Aires)
    Central Guemes 245 megawatt gas-fired generator located in the Salta Province (northwest Argentina)
    Central Sorrento 226 megawatt thermal generator (specific fuel not known)
    Central San Nicolas 650 megawatt coal-fired generator (since converted to gas-fired)
    Centrales Termicas del Litoral, S.A. 94 megawatt thermal generator (specific fuel not known)
    Centrales Termicas Mendoza 135 megawatt gas-fired generator (expansion to 406 megawatt underway)
    Centrales Termicas del Noreste Argentino 241 megawatt thermal generator (specific fuel not known)
    Centrales Termicas del Noroeste Argentino, S.A. 214 megawatt thermal generator (specific fuel not known)
    Centrales Termicas Patagonicas, S.A. 254 megawatt thermal generator (specific fuel not known)
    el Cadillal 13 megawatt thermal generator
    el Tigre 14 megawatt hydroelectric generator
    Escaba 52 megawatt hydroelectric generator
    Fataluefu 448 megawatt hydroelectric generator
    Hidroelectrica Ameghino 54 megawatt hydroelectric generator
    Hidroelectrica Arroyito 120 megawatt hydroelectric generator
    Hidroelectrica Diamante 388 megawatt hydroelectric generator
    Hidroelectrica Los Nihuiles 260 megawatt hydroelectric generator
    Los Reyunos 236 megawatt hydroelectric generator
    Pueblo Viejo 15 megawatt hydroelectric generator
    Rio Grande 750 megawatt thermal generator
    Rio Reyes 7 megawatt thermal generator
    Sociedad Del Estado 145 megawatt gas-fired generator
    Ullum 45 megawatt hydroelectric generator
    Yacyreta partially completed 3,200 megawatt hydroelectric power generator joint venture by Argentina and Paraguay
    Transener transmission company serving the country with the transmission assets formerly of Segba, Ayee, and Hidronor
Hidroelectrica Norpatagonica S.A. (Hidronor) hydroelectric generation company operating in southern Argentina Central Hidroelectrica Alicura, S.A. 1,000 megawatt hydroelectric generator
    Central Hidroelectrica Cerros Colorados, S.A. 450 megawatt hydroelectric generator
    Central Hidroelectrica El Chocon 1,320-megawatt hydroelectric generator
    Hidroelectrica Piedra del Aguila, S.A. 1,440 megawatt hydroelectric generator
    Pichi Picun Leufu 252 megawatt hydroelectric generator
    Transener transmission company serving the country with the transmission assets formerly of Hidronor, Segba, and Ayee
Comision Nacional de Energia Atomica (Conea) national nuclear energy agency, created in 1950 to conduct nuclear research, oversees the operation of nuclear power generation units and regulates the domestic nuclear industry Conea conducts nuclear research
    Nucleoelectrico Argentina S.A. oversees and operates Argentina's two completed (Atucha I and Embalse) and 1 under-construction (Atucha II) nuclear plants
    Nacional Nuclear Regulatory Authority (Enrn) domestic nuclear regulatory agency. Will continue its role after privatization of the nuclear generation facilities
Comision Tecnica Mixta de Salto Grande (Ctmsg) Binational commission overseeing the Salto Grande hydroelectric plant joint-venture with Uruguay Salto Grande 1,800 megawatt hydroelectric power generator joint venture by Argentina and Uruguay
Sources: WEFA; Argentine Ministry of the Economy, http://www.mecon.ar/invest/energy/prim.htm (July 1, 1997); Electric Utility Week (various issues); Privatization (various issues); and Latin American Power Watch (various issues)

Table C3. Organization of Argentina's Provincial Electricity Industry, 1991 and 1997

1991 1997
Enterprise Description Enterprise Description
Empresa Social Electrica de Buenos Aires (Eseba) vertically-integrated electric utility serving the province of Buenos Aires Piedrabuena thermal generator, near Bahia Blanca (specific fuel not known)
    [unnamed facility] thermal generator, near Mar del Plata and Necochea (specific fuel not known)
    Empresa Distribuidora de Energia Norte S.A. (Eden) distribution company serving the northern part of the province of Buenos Aires; based in San Nicolas
    Empresa Distribuidora de Energia Sur S.A. (Edes) distribution company serving the southern part of the province of Buenos Aires; based in Bahia Blanca
    Empresa Distribuidora de Energia Atlantica distribution company serving the Atlantic part of the province of Buenos Aires; based in Mar del Plata
Servicios Energetics del Chaco electric utility serving the province of Chaco Servicios Energetics del Chaco distribution company serving the province of Chaco
Empresa Provincial de Energia de Cordoba (Epec) electric utility serving the province of Cordoba Epec distribution company serving the province of Cordoba
Empresa Social Electrica de Entre Rios (Eseer) electric utility serving the province of Entre Rios Empresa Distribuidora de Entre Rios, SA (Edersa) distribution company serving the province of Entre Rios
Energia de Mendoza, S.A. (Emse) vertically-integrated electric utility serving the province of Mendoza Distro Cuyo transmission company for the western Andes provinces of Mendoza and San Juan
    Emse distribution company serving the province of Mendoza
Patagonia vertically-integrated electric utility serving the province of Patagonia Transportadora Argentine Northwest Company (Transnoa) transmission company for mainline distribution for Patagonia, the provinces of La Pampa, Neuquen, and Rio Negro
    Transportadora Patagonia (Transpa) transmission company serving the province of Patagonia
Empresa de Energia Rio Negro electric utility serving the province of Rio Negro Empresa de Energia Rio Negro distribution company serving the province of Rio Negro
San Juan electric utility serving the province of San Juan Distro Cuyo transmission company for the western Andes provinces of Mendoza and San Juan
    Empresa Distribuidora de Electricidad Sanjuanina S.A. (Edessa) distribution company serving the province of San Juan
Empresa Provincial de Servicos Publicos de Santa Cruz electric utility serving the province of Santa Cruz Empresa Provincial de Servicos Publicos de Santa Cruz distribution company serving the province of Santa Cruz
Empresa Provincial de Energia de Santa Fe (Epe) electric utility serving the province of Santa Fe Epe distribution company serving the province of Santa Fe
Direccion Provincial de Tierra del Fuego electric utility serving the province of Tierra del Fuego Direccion Provincial de Tierra del Fuego distribution company serving the province of Tierra del Fuego
Hidroelectrica Tucuman vertically-integrated electric utility serving the province of Tucuman El Cadill 13 megawatt hydroelectric generator
    Escaba 24 megawatt hydroelectric generator
    Pueblo Viejo 15 megawatt hydroelectric generator
    Distribudora Electrica de la Tucuman (Edet) Distribution company serving the province of Tucuman
Sources: WEFA; Argentine Ministry of the Economy, http://www.mecon.ar/invest/energy/prim.htm (July 1, 1997); Electric Utility Week (various issues); Privatization (various issues); and Latin American Power Watch (various issues).

Table C4. Argentine Power Generators Built Since 1991

Are Fenex, S.A. 168 megawatt gas-fired power generator near the city of Tucuman
Comodoro Rivadavia Gas-fired power generator in the area of Patagonia
La Plata 120 megawatt gas-fired power generator in the province of Buenos Aires
San Miguel 114 megawatt gas-fired power generator in San Miguel (north central Argentina)
Sources: WEFA; Argentine Ministry of the Economy, http://www.mecon.ar/invest/energy/prim.htm (July 1, 1997); Electric Utility Week (various issues); Privatization (various issues); and Latin American Power Watch (various issues)

Explanatory Notes

This appendix indicates the various companies that were created during Argentina's restructuring of its federal and provincial electricity companies. Table C1 contains investments made by foreign companies in Argentina's privatized electricity industry and is a more detailed version of Table 20 in the text. Table C2 provides details concerning the restructuring of federal electricity companies and Table C3 provides similar details for the provincial electricity companies. The 1991 column refers to the pre-restructuring company and the 1997 column refers to the post-restructuring company. Table C4 presents Argentine power generators built since restructuring began in 1991.

Similar reviews for the United Kingdom and Australia are contained within the text of the Chapters 2 and 3 , respectively. An appendix was used to present the Argentine review because of the many companies into which the federal and provincial electricity companies of Argentina were divided during the restructuring.

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