Lawsuits expected over Mexican law on power generation

MEXICO CITY (AP) — The International Chamber of Commerce’s Mexico chapter says it expects a flurry of lawsuits, legal appeals and international investor-dispute arbitration panels, after Mexico enacted a law favoring government-owned power generation over cleaner private electrical plants. The chamber said Wednesday the provisions of the new law violate Mexico’s constitution, which guarantees the right to competition and a healthy environment. The bill enacted under President Andrés Manuel López Obrador also appears to violate investment protection and trade agreements. Many wind, solar and gas-fired power stations were built in Mexico by foreign companies, but López Obrador plans to give priority to state-owned coal, oil and diesel plants.