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Bates White Principal, Nicolás Puga, plays key role in FERC U.S.-Mexico electricity interconnection case
WASHINGTON, D.C., October 12, 2007—A ruling in a recent FERC case clears the way for the
development of wholesale electricity trade between the ERCOT and Mexican electricity markets.
Bates White Principal, Nicolás Puga,
served as a expert in the case.
On August 24, 2007, Mr. Puga submitted an affidavit that provided the basis for a Petition for
Declaratory Order filed with the FERC on behalf of U.S. distribution and transmission company
Sharyland Utilities, L.P. The Petition, filed by Sutherland, Asbill, and Brennan, L.L.P., asked
FERC to disclaim jurisdiction over ERCOT electric utilities and market participants in
connection with Sharyland’s High Voltage Direct Current (HVDC) interconnection, known as
a “DC Tie,” linking ERCOT with Mexico’s power grid.
The matter arose as a result of an agreement between Sharyland Utilities and Comisión
Federal de Electricidad (CFE) to build a 150 MW High Voltage Direct Current (HVDC)
interconnection linking Texas with northern and northeastern Mexico. (An HVDC system converts
electrical current from AC to DC at the transmitting end, and from DC to AC at the receiving
end. Such systems provide for asynchronous interconnection and control of power flows between
electrical systems.)
At the formative stages of the project, Mr. Puga testified before the Public Utility
Commission of Texas as to the benefits that would accrue to consumers and businesses on both
sides of the border. The operation of the tie was put on hold by ERCOT pending FERC’s
ruling, which came October 1, 2007, and affirmed ERCOT’s electric utilities and market
participants’ status as a nonpublic utility under the Federal Power Act. (ERCOT had not
previously been subject to FERC authority, because it has operated exclusively within Texas
and was not engaged in interstate commerce.)
As a result of FERC’s ruling, electricity trade over the multimillion-dollar 150 MW HVDC
interconnection can proceed. This facility, which is owned and operated by Sharyland Utilities,
will provide, for the first time, large-scale commercial and emergency bidirectional power
transfer and voltage control between Texas and Mexico, and it will improve the stability of
both grids.
“This DC Tie is an energy bridge between our two great nations and we hope it is one of
many to come,” Sharyland Utilities president Hunter Hunt said at a ceremonial
commissioning of the new facility on October 10, 2007. “It has the potential to foster an
international wholesale market that could bring together power generators and commercial
customers on both sides of the border,” according to a statement released by Sharyland.
Nicolás Puga. M.S., has more than 20 years
of experience as a senior energy advisor and executive of energy consulting services in
international marketing, business development, and operations. Mr. Puga has worked as a technical
advisor on energy infrastructure project development, energy end-use efficiency, renewable energy
technology policies and marketing. He is an expert in U.S./Mexico cross-border energy trade and
in the market, regulatory, and commercial aspects of energy project development in Mexico. Mr.
Puga has advised numerous private and public sector clients in the United States, Canada, Mexico,
Argentina, Chile, Venezuela, Colombia, the Philippines, and Australia.
About Bates White
Bates White is a consulting firm offering services in economics, finance, and business strategy to leading law firms,
Fortune 500 companies, and government agencies. We provide our clients with a unique combination of quantitative and
analytical expertise, and an understanding of business issues across a range of industries. Bates White has offices
in Washington, D.C., and San Diego, Calif.
www.bateswhite.com
About Sharyland Utilities, L.P.
Sharyland Utilities, L.P is a privately owned, Texas-based transmission and distribution electric
utility committed to providing quality customer service, safe and reliable electric delivery, and
increased investment in the electric grid of Texas. It is a pure “wires only” company
that has been operating in South Texas in the cities of Mission and McAllen for the past seven
years and has no interests in or affiliations with Retail Electric Providers (REPs) or electric
generation in Texas. Sharyland Utilities has a proven record of bringing innovative solutions to
the ratepayers of Texas, including its underground and looped distribution system, automated
metering, and time-of-use tariffs. Sharyland Utilities is owned by Hunter L. Hunt and other
members of his family and managed by Hunter L. Hunt. For more information, please visit:
www.su-power.com.
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