Nationalization

President L zaro C rdenas issued a landmark law in 1937 on the authority of the state on the electricity industry in the country, but the oil expropriation dominated the national scene and was deferred to the presidency of Manuel vila Camacho, between 1940 and 1941, beginning the process of nationalizing the electricity industry. State intervention was because private companies neglecting rural communities in the country (the vast majority of the country) for the high level of investment that was made against the minimum required earnings that would result from electrify villages scattered and would have little demand. It would be President Miguel German who in 1949 decreed the creation of the Federal Electricity Commission (CFE), a public agency with legal personality and patrimony of which is to bring light to all corners of the country.For ten years, this mixed scheme of private enterprises in the cities and industrial areas of the country along with the CFE in the rest of the country functioned without contravening interests. But in 1960 he decided to nationalize the entire country’s power industry. As President Adolfo L pez Mateos buying established businesses were taken care of supplying electricity. In this way, the government bought 52 million dollars, 90 of the shares of The Mexican Light and Power Co., and pledged to settle the liabilities of that company amounting to 78 million. For the sum of 70 million was the actions of the American and Foreign Power Co. closed the transaction later commits both companies to invest in Mexico the money they received to prevent excessive export of currency.Together with its subsidiaries, had 19 power plants that served the Federal District and the states of Puebla, Mexico, Michoacan, Morelos and Hidalgo, of whom 16 were hydraulic and 3 stations. Besides the assets mentioned, the nation received the building in Melchor Ocampo No. 171, Colonia Tlaxpana in Mexico City, in addition to all other buildings and furniture and stations and hydroelectric power plants and equipment and materials office. Since then the Mexlight started calling in Spanish as the “Compania Mexicana de Luz y Fuerza” or simply “Light Company”, a term with deep roots among workers and users. That same year, President Lopez Mateos to the Senate sent the proposed constitutional amendment to article 27, which was approved and published in the Official Journal on 23 December 1960, falling from that time, legally and financially consummate the nationalization electric industry.