Mexico’s electricity generation began with private companies, but in 1938 the Mexican government began nationalization of the electric utility industry.  As a result of this process two electrical companies were created: CFE – Federal Electrical Commission and LyFC – Central Light and Power. LyFC generated and distributed electricity in the central part of the country around Mexico City at 50 Hz and CFE supplied the rest of the country at 60 Hz.; in 1972 Mexico unified the frequency at 60 Hz. During all these years a very powerful union SME Mexican Electrical Union grew as part of LyFC.

On October 10, 2009, due to inefficiencies and the huge cost of maintaining the operation of LyFC, Mexico President Felipe Calderon ordered the company to be closed.  Now CFE controls all the installations of LyFC. This will improve the operation of the Mexican Electrical System.

Background provided by Gustavo Dominguez, NEMA Director, Mexico and Central America

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