Foley Team Secures Favorable Resolution in Wheeling Charges Constitutional Trial in Mexico

Foley & Lardner México S.C. represented its client, an international renewable power generation company, before the Mexican Federal Courts against an administrative order to increase wheeling charges for renewable and efficient cogeneration legacy energy projects in Mexico.

On May 28, 2020, the Energy Regulatory Commission (Comisión Reguladora de Energía or CRE) issued an administrative resolution increasing the wheeling fees for renewable and efficient cogeneration projects in Mexico (the “Resolution”). More information regarding the wheeling fees’ substantial increase is available here.

The Resolution affected the owners of renewable and efficient cogeneration power projects that had executed interconnection agreements with the Federal Electricity Commission (Comisión Federal de Electricidad or CFE) prior to the 2013 Energy Reform and would have led to severalfold increases in wheeling fees for our client.

Foley obtained an injunction from the District Courts, preventing CFE from charging the client the new wheeling fees and on January 3, 2023, the District Court ruled in favor of our client. Following the District Court ruling, the Mexican government filed a remedy of appeal which was finally resolved on December 4, 2023, by the Circuit Courts confirming the District Court’s resolution in favor of our client.

As a result of this amparo resolution, our client will be exempt from paying the new wheeling fees imposed by the Mexican government on renewable and efficient cogeneration projects developed before the 2013 Energy Reform in Mexico. The client was represented by Mexico City of counsel David Berezowsky and associate Aldo Mendoza.