Our subsidiary Delsur is the second largest electricity distribution company in El Salvador in terms of electricity volume distributed and number of customers. Delsur serves the south-central region of the country. Delsur was privatized in 1998 in connection with the privatization process of the Salvadoran electricity sector, and 75% of Delsur's common stock was sold to Electricidad de CentroAmerica S.A. de C.V., or EC, which subsequently acquired an additional 11.4% through purchases in the open market. The remaining stock is held by minority shareholders. Delsur is listed on the El Salvador Stock Exchange (Bolsa de Valores de El Salvador) under the symbol "ADELSUR". In May 2007, AEI acquired 86.4% of Delsur's common stock through the acquisition of EC.
Delsur holds an electricity distribution license in El Salvador, which is automatically renewed on an annual basis as long as Delsur provides certain basic operational information to regulatory authorities. An existing license of an electricity distribution company may only be cancelled if a distributor fails to remediate after notice of any specific breach of applicable Salvadoran law or regulations governing its distribution of electricity. Although electricity distribution companies in El Salvador have no exclusivity over a specific territory, in practice they serve specific geographic areas. There are three components to Delsur's regulated distribution tariff: (1) an energy charge, (2) a distribution charge, and (3) a customer service charge. The energy charge is adjusted every six months based on the last six month period average spot power prices. The distribution charge is adjusted and approved by regulators every five years and is indexed annually by 50% of the change in inflation. The distribution charge provides for the recovery of the investment (at a 10% rate of return) and operating costs of a model distribution company delivering energy to end-users. The customer service charge includes costs related to billing, customer service, marketing and other services. The charge changes every year and is also indexed annually by the surplus if inflation is higher than 3%.
Contact Delsur:
Edificio Corporativo DELSUR Unidad de Comunicaiones Final 17 Av. Nte. Y calle a El Boqueron Santa Tecla, La Libertad + (503)2233-5403 www.delsur.com.sv
Country of Operation: 
