MEXICO CITY — October 12, 2009 - President Felipe Calderon on Sunday disbanded the public utility that supplies electricity to Mexico City and the surrounding area, citing a gaping budget hole that threatened service to 25 million consumers.
About 500 federal police seized the Mexico City offices of the electricity company Luz y Fuerza del Centro, hours before the government published a decree documenting severe financial and operational inefficiencies at the electricity provider.
Luz y Fuerza is a state-run company that services Mexico City and parts of four central states, but business decisions were largely dictated by a powerful labor union that was locked in a dispute with Calderon's government. The 66,000-member union promised protests to resist the move in the coming days. FULL STORY
